It was able to enjoy some strong support from the $43 level previously, however now that this has been strongly broken through, it is likely to provide some resistance to the UK Oil’s rally. In early June UK Oil made two solid runs towards a then three month high and met stiff resistance at $43 on both occasions, which underpins how significant this level is.
We also covered the US30 index which spent the remainder of the week falling back below the key 28000 level, after being rejected from above that level on the back of the rally higher in the previous week. Prior to the rally, the US30 index dropped sharply from its six month high above 29000 back to a one month low near 27000. Any support received at 28000 was convincingly broken after having provided some support for a few days, and this level may provide more resistance should the index rally, as it has provided stiff resistance on several occasions in the last few weeks. In the two weeks leading up to the resistance at 28000 around mid-August, the US30 index moved steadily higher reaching a then six month high just above 28000. For a few weeks in July the US30 index meet resistance at another key level of 27000 whilst bouncing off support at 26000, and the 27000 level is highly likely to offer some support to the index if needed.
In the last week the EURUSD traded in a vary narrow range after making another run at the key resistance level at 1.19 and again, it met stiff resistance pushing prices lower again. Only a few weeks ago the EURUSD made another run and reached a two year high above 1.19 as a result, however it has also reversed strongly after meeting solid selling pressure. The 1.19 level has established itself as a key level as it has been resisting prices for the last seven weeks or so as the EURUSD consolidates in a range between 1.17 and 1.19, with the former level offering support. In the few weeks leading up to the recent highs, the EURUSD surged higher strongly after meeting some resistance at 1.13 for several weeks, as it was trading between support at 1.12 and the resistance at 1.13 consolidating there for several weeks. Given the significance of the 1.13 level, this is likely to offer some support should the EURUSD decline from its current highs.
To finish out the week we covered the USDJPY which finished the week at its lowest point in nearly two months getting close to its trough set at the end of July near 104. It had for the previous week or so traded in a very narrow range above 106 before the recent slump. In the last few weeks it has rallied up from support around the key 105 level on two occasions however this time the support was overrun with selling pressure. In the last few weeks the USDJPY has also made multiple attempts to break through the other key level at 107 however it has met stiff resistance on every occasion forcing it lower, and this level now seems some distance away. After trading in a very narrow range right around the key 107 level in late July, the USDJPY then went on a rollercoaster ride as it fell sharply to a five month low near 104 before rallying strongly back to resistance at 107. Since that time it has consolidated in a range between the two key levels of 105 and 107, before the recent drop lower.
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