Chart USD/ZAR Update: Immediate gains to remain limited
Consolidation above support within the 16.5000 - 16.6000 range is giving way to a sharp bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 17.1200 | * | 9 Dec (w) high | S1 | 16.6000 | break level | ||
| R3 | 17.0000 | * | congestion | S2 | 16.5000 | break level | ||
| R2 | 16.9560 | 13 Mar YTD high | S3 | 16.2000 | * | congestion | ||
| R1 | 16.8000 | congestion | S4 | 16.0000 | ** | congestion |
Asterisk denotes strength of level
12:05 GMT - Consolidation above support within the 16.5000 - 16.6000 range is giving way to a sharp bounce, as oversold intraday studies turn higher, with prices currently trading around 16.7650. Immediate focus is on resistance at congestion around 16.8000. But deteriorating daily readings are expected to limit any immediate break in renewed consolidation beneath the 16.9560 current year high of 13 March. Broader weekly charts are positive, but a close above here is needed to turn sentiment positive and extend late-January gains beyond further congestion around 17.0000 towards the 17.2750 Fibonacci retracement. Meanwhile, a break below support at 16.5000, if seen, should give way to consolidation above congestion around 16.2000.