Chart USD/ZAR Update: Sharp bounce
Cautious trade around congestion support at 16.4000 has given way to a sharp bounce to 16.6900~
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 17.2000 | ** | congestion | S1 | 16.6000 | break level | ||
| R3 | 17.0000 | * | congestion | S2 | 16.5000 | break level | ||
| R2 | 16.9150 | * | 30 Apr (w) high | S3 | 16.4000 | congestion | ||
| R1 | 16.8000 | * | congestion | S4 | 16.2520 | ** | 61.8% ret of Jan-Mar rally |
Asterisk denotes strength of level
13:05 BST - Cautious trade around congestion support at 16.4000 has given way to a sharp bounce to 16.6900~, where flat overbought intraday studies are prompting short-term reactions. Daily readings have turned positive and weekly stochastics are also improving, suggesting room for continuation towards congestion resistance at 16.8000. However, the negative weekly Tension Indicator should limit any initial break in renewed consolidation beneath the 16.9150 weekly high of 30 April, before rising longer-term charts prompt further gains. Meanwhile, support is raised to 16.6000. A close back beneath here will turn sentiment negative and prompt renewed consolidation above congestion support at 16.4000.