Chart USD/ZAR Update: Sharp reversal - strong resistance at the 17.8600 Fibonacci retracement
The anticipated fall towards support at the 17.3500 break level has given way to a sharp reactive bounce
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 18.2950 | ** | 76.4% ret of Aug-Sep fall | S1 | 17.6000 | * | minor congestion | |
| R3 | 18.0550 | ** | 61.8% ret of Aug-Sep fall | S2 | 17.5000 | * | break level | |
| R2 | 18.0000 | * | congestion | S3 | 17.3500 | ** | break level | |
| R1 | 17.8600 | ** | 50% ret of Aug-Sep fall | S4 | 17.2000 | intraday pivot |
Asterisk denotes strength of level
11:50 GMT - The anticipated fall towards support at the 17.3500 break level has given way to a sharp reactive bounce, with prices currently trading around 17.7500. Just above here is strong resistance at the 17.8600 Fibonacci retracement, but mixed daily readings are expected to limit any initial tests in consolidation. Broader weekly charts continue to rise, but a close above here is needed to turn price action positive and extend September gains initially towards resistance within the 18.0000 - 18.0550 area. Meanwhile, support is raised to congestion within 17.5000 - 17.6000, and should underpin any immediate tests lower.