The pair finished the week back at the 1.1200 as if by magnetic force despite a valiant attempt by bears to break the gravitational pull of the 1.1200 handle, which saw them peek below the 1.1100 handle before bulls stampeded. Today has seen 1.1200 acting as strong resistance as we see the stochastic turn down from overbought level. 1.1175 will form the new support for bears to beat should they wish to try for 1.1150, 1.1125 and 1.1100. On the other hand 1.1200 will be the level to beat should bulls want to test higher with further resistance at 1.1225, 1.1250 and 1.1275.
The pair entered a corrective phase on Friday as bears used the 104.25 resistance level to try and recapture some of their losses over the last 8 sessions which saw the pair close at around the 102.75 support level going into the weekend. With the medium term trend is still bullish, this week has the bulls re-entering at the bargain prices as they successfully captured the 103.00 handle. More upside is expected with targets at 103.50, 103.75 and 104.00 unless bears can re-capture 103.00, which would open the way for 1027.75, 102.50 and 102.25.
The bears finally managed a shot at the 0.7550 support level but their joy was short lived as we saw the pair snap back up to the 0.7600 handle on profit taking and bargain hunting bulls entering the game. As it stands the pair has tested the 23.6% fibo and with the lower high still intact, we expect a test on the lower low with targets at 0.7575, 0.7550, and 0.7525. However, should bulls manage to capture 0.7625, making a higher high, we would see the pair enter neutral territory as the forces fight it out. Resistance is at 0.7600, 0.7625 and 0.7650.
Gold managed to post a positive close on Friday after 8 straight days of pounding by bears. The precious metal has hung on to the 1250 support level and has since made a higher high, placing the bearish trend in doubt. As it stands support is at 1260, 1255 and 1250 while resistance is at 1265, 1270 and 1275.