Chart USD/ZAR Update: Leaning lower
The anticipated minor break above 16.6000 has not been seen
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 17.0000 | ** | congestion | S1 | 16.4000 | break level | ||
| R3 | 16.8000 | break level | S2 | 16.3025 | * | 6 Jan YTD low | ||
| R2 | 16.7000 | break level | S3 | 16.1060 | ** | 11 Aug 2022 (m) low | ||
| R1 | 16.6000 | break level | S4 | 16.0000 | ** | congestion |
Asterisk denotes strength of level
12:15 GMT - The anticipated minor break above 16.6000 has not been seen, as prices turn lower in broad USD weakness, to pressure minor support at 16.4000. Negative intraday studies and flattening overbought daily stochastics highlight room for a test beneath here. But the positive daily Tension Indicator is expected to limit initial scope in renewed consolidation above strong support at the 16.3025 current year low of 6 January. Broader weekly charts are negative, but a close beneath here is needed to add weight to sentiment and extend the April bear trend towards the 16.1060 monthly low of 11 August 2022 and historic congestion around 16.0000. Just lower is the 15.8800 Fibonacci retracement. But flat oversold weekly stochastics are expected to limit any initial tests of this broad 15.8800 - 16.1060 range in short-covering/consolidation. Meanwhile, resistance at 16.6000 should cap any immediate tests higher.