Chart USD/ZAR Update: Further gains to remain limited
Cautious trade has given way to a gap higher, with the break above 16.5000 currently balanced beneath 16.6000
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 17.2000 | ** | congestion | S1 | 16.5000 | break level | ||
| R3 | 17.0000 | * | congestion | S2 | 16.2520 | ** | 61.8% ret of Jan-Mar rally | |
| R2 | 16.8000 | * | congestion | S3 | 16.1280 | * | 10 Mar (w) low | |
| R1 | 16.6000 | break level | S4 | 16.0170 | ** | 76.4% ret of Jan-Mar rally |
Asterisk denotes strength of level
11:55 BST - Cautious trade has given way to a gap higher, with the break above 16.5000 currently balanced beneath 16.6000. Intraday studies and oversold daily stochastics are rising, highlighting room for a test above here. But the negative daily Tension Indicator and bearish weekly charts should limit scope in renewed selling interest/consolidation beneath congestion resistance at 16.8000. Following cautious/corrective trade, fresh losses are looked for. A break below 16.5000 will add weight to sentiment. But a close below the 16.2520 Fibonacci retracement will turn sentiment negative and extend late-March losses towards the 16.1280 weekly low of 10 March.