Published: 2024-05-08T11:06:47.000Z
Chart USD/ZAR Update: Limited tests higher - background studies continue to track lower
Senior Technical Strategist
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Consolidation within the 18.4100 - 18.5000 support area has given way to a bounce
Levels | Imp | Comment | Levels | Imp | Comment | |||
R4 | 19.3925 | ** | 23 Feb YTD high | S1 | 18.5000 | ** | congestion | |
R3 | 19.2000 | break level | S2 | 18.4100 | ** | 76.4% ret of Nov-Feb rally | ||
R2 | 19.0000 | * | congestion | S3 | 18.2500 | * | congestion | |
R1 | 18.7500 | * | congestion | S4 | 18.1070 | ** | Nov-Dec (m) lows | |
Asterisk denotes strength of level
11:55 BST - Consolidation within the 18.4100 - 18.5000 support area has given way to a bounce, as oversold daily stochastics tick higher, with prices currently trading around 18.6000. However, the daily Tension Indicator continues to track lower and broader weekly charts are under pressure, highlighting a bearish tone and difficulty sustaining any tests of congestion resistance at 18.7500. In the coming sessions, cautious trade is expected to give way to fresh losses. A later close below critical support at the 18.4100 Fibonacci retracement will add weight to sentiment and extend February losses to 18.2500.