Chart USD/ZAR Update: Choppy trade - immediate gains to remain limited
The anticipated break below 18.0000 has bounced smartly from 17.8750
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 18.5000 | ** | break level | S1 | 18.0000 | ** | congestion | |
| R3 | 18.4100~ | ** | 38.2% ret of Apr-Jul fall | S2 | 17.8000 | * | congestion | |
| R2 | 18.3575~ | * | 1 Aug (w) high | S3 | 17.7000 | * | congestion | |
| R1 | 18.1525 | ** | 19 Jun (m) high | S4 | 17.6000 | * | congestion |
Asterisk denotes strength of level
12:00 BST - The anticipated break below 18.0000 has bounced smartly from 17.8750, as oversold intraday studies unwind, with prices trading once again above 18.0000. Overbought daily stochastics continue to track lower and the positive daily Tension Indicator is flattening, suggesting renewed selling interest towards resistance at the 18.1525 monthly high of 19 June. Broader weekly charts are improving, but a close above the 18.4100 Fibonacci retracement is needed to confirm continuation of July gains, initially to 18.5000, ahead of the 18.7000 retracement. Meanwhile, support remains down to congestion around 17.8000. An unexpected break should be limited in fresh buying interest above 17.5000.