Technical Analysis 13-10-2016
The pair is currently testing key support at 1.1000 with bulls throwing everything at the attacking bears. Should 1.1000 give way we expect a sharp selloff to 1.0975, 1,0950 and 1,0925 as bulls sell back any contracts bought at the battle of 1.1000. However, if bulls manage to hold 1.1000 they will look to push for 1.1025, 1.1050 and 1.1075 as they hope higher prices will send bears scurrying for cover as they look to protect their profits.
The H1 100 EMA has proven the converging point of bulls to defend the price from dropping as bulls defend the line and push forward from there. The pair managed to break above 104.00 and peeked above 104.50 before bears re-entered to drive prices back to the 100 EMA. The trend is up with bulls are looking to defend 103.50 as they look to capture the 105.00 level. Bears, on the other hand, will look to capture 103.50 in hopes of attracting sellers on the break below the 100 EMA with targets at 103.25, 103.00 and 102.75.
The 50% fibo held up as bears continued to dominate as they trade ever closer to the 0.7500 key support area. Resistance is at 0.7525, 0.7550 and 0.7575 while support is at 0.7500, 0.7475 and 0.7450.
Bulls held 1250 relatively well and have managed to close north of 1255, turning the short term trend bullish. Bulls will look to defend 1255 and add to their positions as we see the precious metal move higher into the 1265, 1270 and 1275 resistance levels. However, should bears manage to capture 1255, we expect further downside to 1250, 1245 and 1240.