Chart USD/ZAR Update: Gains to remain limited
Cautious trade has given way to a test above 18.3000
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 19.0000 | * | break level | S1 | 18.3000 | ** | break level | |
| R3 | 18.8500 | break level | S2 | 18.1300 | * | 50% ret of Sep-Jan rally | ||
| R2 | 18.7250 | * | congestion | S3 | 18.0000 | ** | congestion | |
| R1 | 18.5000 | ** | break level | S4 | 17.8700 | ** | 61.8% ret of Sep-Jan rally |
Asterisk denotes strength of level
11:50 GMT - Cautious trade has given way to a test above 18.3000, as intraday studies turn higher, with prices currently trading around 18.3500. Oversold daily stochastics are unwinding and the bearish daily Tension Indicator is flattening, suggesting potential for a test of resistance at 18.5000. However, negative weekly charts are expected to limit any extension beyond here in renewed selling interest towards congestion around 18.7250. Meanwhile, support remains down to the 18.1300 Fibonacci retracement. A break beneath here, not yet seen, will add weight to sentiment and extend January losses below congestion around 18.0000 towards the 17.8700 retracement.