Chart USD/ZAR Update: Room for higher
Cautious trade is giving way to anticipated gains
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 17.0000 | * | congestion | S1 | 16.2520 | ** | 61.8% ret of Jan-Mar rally | |
| R3 | 16.8000 | * | congestion | S2 | 16.1280 | * | 10 Mar (w) low | |
| R2 | 16.6000 | break level | S3 | 16.0170 | ** | 76.4% ret of Jan-Mar rally | ||
| R1 | 16.5000 | break level | S4 | 16.0000 | ** | congestion |
Asterisk denotes strength of level
12:20 BST - Cautious trade is giving way to anticipated gains, with prices once again pressuring resistance within the 16.5000 - 16.6000 range. Daily stochastics continue to rise and the daily Tension Indicator is also improving, highlighting room for further strength in the coming sessions. A break above here will open up congestion around 16.8000. But negative weekly charts should prompt renewed selling interest towards here and limit any tests in consolidation. Meanwhile, support remains at the 16.2520 Fibonacci retracement. A close beneath here is needed to turn sentiment negative and extend late-March losses back to 16.1280, ahead of the 16.0170 retracement.