Chart USD/ZAR Update: Extending January losses
Cautious trade has given way to a test below the 18.1300 Fibonacci retracement
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 18.8500 | break level | S1 | 18.1300 | * | 50% ret of Sep-Jan rally | ||
| 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 | 17.7500 | * | break level |
Asterisk denotes strength of level
11:45 GMT - Cautious trade has given way to a test below the 18.1300 Fibonacci retracement, with prices reaching 18.0500~ before bouncing back to 18.1300. Oversold intraday studies are unwinding, suggesting further consolidation around here. However, daily readings continue to track lower and broader weekly charts are also under pressure, highlighting room for continuation of January losses towards congestion support at 18.0000. Beneath here is the 17.8700 retracement, but oversold daily stochastics could limit any initial tests of here in consolidation. Meanwhile, resistance is up to the 18.3000 break level. A close above here is needed to turn sentiment neutral and prompt consolidation beneath 18.5000.