USD LOOKING TO STRETCH ITS LEGS FURTHER
This week’s test of 1.1125 symbolized the continuation of the downtrend as bears managed to make a lower low before bulls stepped in to initiate the correction. We have since seen bulls take the pair back up to the 1.1250 resistance zone were bears stepped in to defend the 38.2% fibo, pummeling price back to the 1.1200 support level. As it stands the battle of direction will take place around 1.1200 with support at 1.1175, 1.1150 and 1.1125 while resistance is at 1.1225, 1.1250 and 1.1275.
Cable bears managed to make a decisive low as the peeked below 1.2950 before bulls stepped in for bargain purchases, driving price back up to the 1.3125 resistance zone where they were again met with staunch opposition by bears who have leveraged the 50% fibo and downward sloping trend line to their advantage, retesting support at 1.3025 with an eye on 1.3000, 1.2975 and 1.2950. Resistance is at 1.3050, 1.3075 and 1.3100.
The pair has found resistance at the 23.6% fibo level where bears stepped in, driving prices lower as they look to establish a foothold against the upward marching bulls. Currently the pair is at 0.7650 with resistance at 0.7675, 0.7700 and 0.7725 with support at 0.7625, 0.7600 and 0.7575.
Gold has enjoyed a spout of support as it traded as high as 1344 this week after bulls swept in to the markets on the break of 1320 to drive trade. We have seen little of bear’s except for the last 24hours where they have taken price back to the 1335 support zone where we expect bulls to renter as they look to make new highs for the week with targets at 1340, 1345 and 1350. Support is at 1330, 1325 and 1320.