Should the $58 support level give way, there is no obvious support level until around $50 where it reversed at the end of last year. UK Oil will now be looking for the support at $58 to remain and keep prices propped up as the medium term trend down and there is a lot of selling pressure being applied.
We also covered the US30 index which also spent the remainder of the week also rallying higher to a one month high near 27000. In the last four weeks or so the US30 Index has traded back and forth around the key 26000 level as its volatility has doubled in the last month. This trading within the range came after it suffered its largest falls this year dropping sharply from near its all time highs down to its lowest levels in two months near 25000 several weeks ago. It will be interesting to see whether the US30 index can maintain this rally and potentially threaten its all time high set in July.
Last week the GBPUSD finished the week easing a little after enjoying a strong surge higher to a one month high. It had been threatening to break lower through the current key support level at 1.20 for the last month so its recent rally is promising. The sterling did meet some resistance around 1.23 two weeks ago however it has been able to since move higher. For the last month the GBPUSD has been able to consolidate and receive solid support off the 1.20 level, allowing it to stop the rot and take a breather from its drastic falls in the last three months.
To finish out the week we covered the USDJPY, which has rallied and pushed up to its highest level in one month above the 107 level, after spending the last month or so trading in a narrow range right around the 106 level. Prior to this consolidation period the USDJPY fell away sharply from the key 109 level down to its lowest level this year near 105, which has since been lowered three weeks ago to below 104.50. Throughout July the USDJPY had been meeting resistance at the 109 level as it has generally traded in a narrow range between 108 and 109 for some time. However, in the last four months, the USDJPY has moved considerably lower falling from above 112 down to its 2019 low. Should the USDJPY rally from its present consolidation range, the 109 level remains a key level and is likely to play a role providing resistance, as it continues to loom large.
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