Now that the support at 0.6850 has failed, the 0.6750 level is likely to step in and offer some support having been a significant level earlier in the year. If the 0.6750 level fails to provide some support, the 0.6550 level may also step in and prop up prices.
We also covered the US30 index which spent the remainder of the week falling back to the key level of 25000. In the last few weeks the US30 index has moved strongly higher through the key resistance level at 25000 and 26000 on its way to a three month high above 27500 before falling the following two weeks. In the last two months the 25000 level had turned away the index on several occasions, reinforcing how significant the 25000 level had become in this period, however it has been able to support the index well in the last two weeks propping it up. Throughout April, the US30 index rallied higher to a one month high near 25000, while the key level of 22500 supported the index. The US30 index is also likely to receive some support from 22500 should it break back lower through 25000.
In the last week XAUUSD has traded in a very narrow range around $1730 before pushing higher to close out last week. Only a few weeks ago it bounced off the solid support at $1675, and for the last two months now, gold has enjoyed solid support from $1675, and it has rallied off this level on a few occasions keeping gold near the multi-year highs. Several weeks ago XAUUSD reached an eight year high around $1765 before easing in the weeks or so afterwards. $1675 is the most significant level presently and is highly likely to provide more support should gold decline again. It has generally moved well in the last three months surging higher from three month lows around $1450 up to the recent eight year high. If the support at $1675 fails, it will return to a range where it has spent the best part of this year trading in, above $1600.
To finish out the week we covered the GBPUSD which in the last week or so has fallen sharply from a three month high above 1.28 back down below the key 1.25 level, towards 1.23. In doing so, it has returned to a range where it has spent the best part of the last three months between 1.23 and 1.25. In the prior three weeks the GBPUSD rallied from a six week low below 1.21 back up to the key 1.23 level where it has met resistance however on this occasion it was able to push higher and pushed through to a three month high above 1.28. The 1.2650 level didn’t offer any support as the GBPUSD fell from the high and now it may provide some resistance again should it rally.
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