Chart USD/ZAR Update: Room for still lower
Cautious trade has given way to the anticipated break lower
Levels | Imp | Comment | Levels | Imp | Comment | |||
R4 | 19.5000 | ** | congestion | S1 | 18.7500 | * | congestion | |
R3 | 19.3925 | ** | 23 Feb YTD high | S2 | 18.5000 | ** | congestion | |
R2 | 19.2000 | break level | S3 | 18.4100 | ** | 76.4% ret of Nov-Feb rally | ||
R1 | 19.0000 | * | congestion | S4 | 18.2500 | * | congestion | |
Asterisk denotes strength of level
11:30 BST - Cautious trade has given way to the anticipated break lower, with prices reaching congestion support at 18.7500, where unwinding oversold intraday studies are prompting fresh consolidation. Daily readings continue to track lower, and broader weekly charts are also coming under pressure, highlighting room for still further losses in the coming sessions. A close beneath here will add fresh weight to already negative price action and open up strong support within the 18.4100 Fibonacci retracement and congestion around 18.5000. Meanwhile, resistance is lowered to congestion around 19.0000. A close above here, if seen, will turn sentiment neutral and prompt consolidation beneath 19.2000.