Therefore it is quite significant that it broke through the 0.7250 level so strongly and it will be interesting to see whether it receives some support from that level. Before dropping into its recent range, the AUDUSD spent around two weeks resting on support at 0.7250 after easing away from a two year high above 0.74, which is why the 0.7250 has offered stiff resistance up until last week.
We also covered the US30 index which spent the remainder of the week surging to a two week high back above the key 28000 level. Prior to the strong rally, it had fallen strongly over the last three weeks from the strong resistance at the key 29000 level, falling sharply through key levels 28000 and 27000 in the process. It enjoyed strong support from 26000 which stopped the fall and allowed the index some support to rally back above 27000. The fall has followed a strong period which saw the US30 index rally very well moving from a six week low to back above the key 28000 level and towards 29000, which offered stiff resistance again. The 29000 level also provided resistance to the US30 index in early September, when it was approaching its all time high set earlier in the year, and this may be tested again in the next week if it can receive some support from 28000. For the last three months, the US index has moved mainly between support at 27000 and resistance at 29000, and so it remains within this range.
We also covered XAUUSD which finished last week surging to its highest level in six weeks above $1950. In the last week or so the XAUUSD rallied back to the current key level of $1900 which has played a significant role for the last three months. For the last few weeks, the XAUUSD has spent most of its time trading back and forth around this level, after falling strongly through the $1900 level which had been providing strong support for many weeks, down to a two month low below $1860. Up until the initial break lower in late September, the XAUUSD had rested on strong support at the key $1900 level after having moved sharply back and forth in the few weeks prior. The $1900 level will be expected to continue to provide some support to gold, as it seems to content to trade not far away from it. In early August, XAUUSD fell sharply from its all time high around $2075 however it was stopped well by the support around the $1900 level which has been able to buffer the fall and allow it to consolidate in the time since, even allowing it to rally back above $2000 before returning to support.
To finish out the week we covered the GBPUSD which finished the week trading near a two month high near 1.3150. In the last few days the GBPUSD surged back above the key 1.30 level after trading around this level for the last few weeks and with an increase in volatility. Two weeks ago the GBPUSD surged back above the key 1.30 level to reach a six week high before easing back below 1.30 in the week or so afterwards and it finished the week returning to that high. The 1.30 level has played a significant role in the price action of the GBPUSD in the last four months and continues to do so. In the last few month or so the GBPUSD has rallied well from a two month low around 1.2650 back up to 1.30 which has resisted prices strongly, before the recent breaks. Around that low, the GBPUSD also received support from another key level at 1.2650.Having placed downward pressure on price in August, the 1.3250 level will also be expected to offer some resistance should the GBPUSD continue to rally higher.
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