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Market Recap: 2 - 4 January



On Wednesday last week we covered the AUDUSD which since writing, had a ridiculously volatile finish to the week moving violently within a two hour window. The move saw it fall to its lowest level in many years below 0.67. As quickly as it fell, it was bought up strongly moving it back slowly towards to the key 0.7050 level. This level propped up the currency pair well throughout October. The AUDUSD finished the week back above this level at a two week high. The next key level of 0.7150 is back within the picture as this may provide some resistance should the AUDUSD continue to rally higher.



The EURUSD has been content to trade within a narrow range for the last month or so enjoying support from the current key level of 1.13 and moving up to touch the 1.15 level in the last few days. During the middle of last week the EURUSD fell sharply in its largest fall in several months and as would have been expected, it bounced off the support at 1.13 again. The 1.13 level has become quite significant of late, and even though it has fallen through this level a few times, it was quickly pushed higher through strong buying which will provide some confidence that the 1.13 level will provide strong support should the EURUSD attempt to decline again.



In the last week gold has surged strongly higher to a six month high just shy of $1300 however as we expected last week, there may have been some resistance at the key $1300 level which has halted the rise for the time being.The market will now be watching the $1300 level as this level was significant earlier last year.Gold’s surge higher was on the back of some solid support from the key $1240 level and the $1200 level before that.Having presented strong resistance to gold in October and November, the $1240 level has now offered support recently and may be called upon again should gold decline from its highs.

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