Chart USD/ZAR Update: Room for a minor test higher
Cautious trade around 18.4000 is giving way to a test higher
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 19.0000 | ** | congestion | S1 | 18.2960 | * | 24 Jan YTD low | |
| R3 | 18.8500 | break level | S2 | 18.1300 | * | 50% ret of Sep-Jan rally | ||
| R2 | 18.7250 | * | congestion | S3 | 18.0000 | ** | congestion | |
| R1 | 18.5000 | ** | break level | S4 | 17.8700 | ** | 61.8% ret of Sep-Jan rally |
Asterisk denotes strength of level
11:45 GMT - Cautious trade around 18.4000 is giving way to a test higher, with prices currently pressuring resistance at the 18.5000 break level. Intraday studies have ticked higher and daily readings are showing signs of improvement, suggesting room for a test above here. A break will open up congestion around 18.7250, but negative weekly charts are expected to prompt renewed selling interest towards here and limit any tests in consolidation. Following corrective trade, fresh losses are looked for. A later break below support at the 18.2960 current year low of 24 January will add weight to sentiment and extend January losses initially to the 18.1300 Fibonacci retracement.