Chart USD/ZAR Update: Consolidating losses - studies under pressure
Sharp losses have bounced from support at the 16.2520 Fibonacci retracement as intraday studies turn higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 17.0000 | * | congestion | S1 | 16.2520 | ** | 61.8% ret of Jan-Mar rally | |
| R3 | 16.8000 | congestion | S2 | 16.1280 | * | 10 Mar (w) low | ||
| R2 | 16.6000 | break level | S3 | 16.0170 | ** | 76.4% ret of Jan-Mar rally | ||
| R1 | 16.5000 | break level | S4 | 16.0000 | ** | congestion |
Asterisk denotes strength of level
12:30 BST - Sharp losses have bounced from support at the 16.2520 Fibonacci retracement as intraday studies turn higher, with prices reaching resistance at 16.5000 before settling into consolidation. A test above here cannot be ruled out. But negative daily readings and unwinding overbought weekly stochastics should limit scope in renewed selling interest towards 16.6000. Following corrective trade, fresh losses are looked for. A later break below 16.2520 will add weight to sentiment and extend late-March losses towards the 16.1280 weekly low of 10 March. However, the rising weekly Tension Indicator and improving longer-term charts should limit any deeper losses in short-covering/consolidation above strong support within the 16.0000 - 16.0170 range.