Technical Analysis 17-10-2016
Bears continue to reign supreme as they pound the pair lower, stopping just shy of 1.0950 as we see light profit taking and bargain buying by bulls. As it stands, more downside is on the cards once the correction has come full force. Possible turning points or resistance is at 1.1000, 1.1025 and 1.1050 while support is at 1.0975, 1.0950 and 1.0925.
The pair continues to squeeze higher as bulls use the 100 EMA as a platform to launch assaults higher. Currently the pair is kept a float by the 104.00 support zone which bulls will look to hold as they target 104.25, 104.50 and 104.75. Should bears capture 104.00, we expect further downside to 103.75, 103.50 and 103.25.
Bulls have taken back control in the medium term as they tested just shy of the 0.7650 resistance level before falling back to test the 0.7600 support zone which is fortified by the 100 and 200 EMA`s. Should this level hold, we expect the pair to grind higher as it looks to capture 0.7625, 0.7650 and 0.7675. However, should bears capture 0.7600, we could see a deeper correction to 0.7575, 0.7550 and 0.7525.
Gold continues to range as both sides defend the 1250 level. The importance of his level is growing as we see a pennant form due to the extended period of indecision. A breakout above 1260 will put the bulls in charge as they look to capture 1265, 1270 and 1275 while a breakout below 1250, will put the bears in charge as they target 1245, 1240 and 1235.