Published: 2024-04-19T10:30:50.000Z
Chart USD/ZAR Update: Consolidating spike higher - potential for limited gains
Senior Technical Strategist
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Consolidation has given way to a reactive break higher
Levels | Imp | Comment | Levels | Imp | Comment | |||
R4 | 19.6380 | ** | 6 Oct (m) high | S1 | 19.0000 | * | congestion | |
R3 | 19.5000 | ** | congestion | S2 | 18.7500 | * | congestion | |
R2 | 19.3925 | ** | 23 Feb YTD high | S3 | 18.5000 | ** | congestion | |
R1 | 19.2000 | break level | S4 | 18.4100 | ** | 76.4% ret of Nov-Feb rally | ||
Asterisk denotes strength of level
11:15 BST - Consolidation has given way to a reactive break higher, with prices meeting selling interest just beneath strong resistance at the 19.3925 current year high of 23 February. The subsequent pullback is currently balanced in cautious trade beneath resistance at 19.2000. The daily Tension Indicator continues to strengthen, suggesting room for a later retest of 19.3925. A break will turn sentiment cautiously positive and extend November gains towards congestion around 19.5000. However, flattening overbought daily stochastics and mixed weekly charts are expected to limit any continuation beyond here in selling interest beneath stronger resistance at the 19.6380 monthly high of 6 October. Meanwhile, support is raised to congestion around 19.0000 and is expected to underpin any immediate tests lower.