Chart USD/ZAR Update: Range trade - background studies remain under pressure
Cautious trade has given way to a break higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 16.9150 | ** | 30 Apr (w) high | S1 | 16.2500 | * | congestion | |
| R3 | 16.8000 | * | congestion | S2 | 16.1400 | ** | 17 Apr (m) low | |
| R2 | 16.6000 | * | congestion | S3 | 16.0170 | ** | 76.4% ret of Jan-Mar rally | |
| R1 | 16.4000 | congestion | S4 | 16.0000 | ** | congestion |
Asterisk denotes strength of level
12:20 BST - Cautious trade has given way to a break higher, with prices currently balanced in consolidation within the 16.2500 - 16.4000 range. Intraday studies are under pressure, highlighting room for a test below congestion support at 16.2500. But rising daily readings should limit initial scope in consolidation above the 16.1400 monthly low of 17 April, before negative weekly charts prompt further losses. A close below 16.1400 will add weight to sentiment and extend late-March losses towards the 16.0170 Fibonacci retracement. Meanwhile, a close above congestion resistance at 16.4000, if seen, will help to stabilise price action and give way to consolidation beneath further congestion around 16.6000.