Chart USD/ZAR Update: Choppy in range - background studies under pressure
Consolidation following the test of support at congestion around 18.0000 and the 18.0465 monthly low of 7 March is giving way to choppy trade
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 18.8500 | break level | S1 | 18.0465 | ** | 7 Mar (m) low | ||
| R3 | 18.7250 | * | congestion | S2 | 18.0000 | ** | congestion | |
| R2 | 18.5000 | ** | break level | S3 | 17.8700 | ** | 61.8% ret of Sep-Jan rally | |
| R1 | 18.3000 | ** | break level | S4 | 17.6150 | ** | 12 Dec (m) low |
Asterisk denotes strength of level
11:25 GMT - Consolidation following the test of support at congestion around 18.0000 and the 18.0465 monthly low of 7 March is giving way to choppy trade beneath resistance at 18.3000. Bearish daily studies are flattening, suggesting potential for further consolidation. But broader weekly charts are under pressure, pointing to room for fresh losses in the coming sessions. A later close below 18.0465 will add weight to price action and extend January losses towards the 17.8700 retracement. Meanwhile, a close back above resistance at 18.3000, if seen, will turn sentiment neutral and give way to consolidation beneath 18.5000.