Chart USD/ZAR Update: Poised to extend late-January gains
Cautious trade has given way to a break higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 17.1200 | 9 Dec (w) high | S1 | 16.6000 | break level | |||
| R3 | 17.0000 | ** | break level | S2 | 16.5000 | break level | ||
| R2 | 16.8000 | * | break level | S3 | 16.2000 | * | congestion | |
| R1 | 16.7530 | 3 Mar high | S4 | 16.0000 | ** | congestion |
Asterisk denotes strength of level
12:30 GMT - Cautious trade has given way to a break higher, with prices currently consolidating the test of resistance at the 16.7530 high of 3 March. Daily readings are positive and broader weekly charts continue to rise, highlighting room for further strength in the coming sessions. A close above here will improve sentiment and extend late-January gains beyond the 16.8000 break level towards stronger resistance at 17.0000. Already overbought daily stochastics could limit any initial tests in consolidation. Meanwhile support is raised to congestion within the 16.5000 - 16.6000 range. A close back beneath here, if seen, will help to stabilise price action and prompt consolidation above 16.2000.