UK Oil is forming a textbook ascending triangle with the upper level at the resistance around $43, so it will be interesting if it can now remain above the $43 level and if it provides some support. Should this level be convincingly broken, it will most likely provide some support.
We also covered the US30 index which spent the remainder of the week easing away from the key 27000 level, which has provided some stiff resistance recently. In the last two weeks the US30 index has run into a wall of resistance at the key 27000 level which has applied significant selling pressure on the index. In the few days leading up to the resistance, the US30 index pushed higher through the 26000 level reaching its highest level in three weeks. In the last few weeks it has enjoyed solid support from another key level at 25000, while receiving some resistance from 26000 remaining in a range between these levels, up until the break last week. Several weeks ago, the index fell strongly after having moved strongly higher through the key resistance level at 25000 and 26000 on its way to a three month high above 27000. Should the index decline further, the 25000 level will be expected to continue to offer support, while the 27000 level continues to loom above having placed downward pressure on the index recently and earlier in the year.
In the two weeks the EURUSD has surged to an 18 month high above 1.16 after meeting some resistance at 1.13 for several weeks. For several weeks the EURUSD was trading between support at 1.12 and the resistance at 1.13 consolidating there, after easing from a then three month high above 1.14. Given the significance of the 1.13 level, this is likely to offer some support should the EURUSD decline from its current highs. On its way to the then three month high above 1.14, the EURUSD moved through many key levels on its way, many of which have previously played a role in the EURUSD’s price action, including the 1.10 level which had been offering stiff resistance on several occasions throughout April and May.
To finish out the week we covered the USDJPY which finished the week moving to its lowest level in four months after finally moving away from the key 107 level.In the last two weeks the USDJPY has traded in a very narrow range right around the key 107 level, and a few weeks ago the USDJPY moved through the key 107 level to a three week high before slowly easing back towards 107 where it is found some support.For the last six weeks or so, the USDJPY hasn’t strayed too far from this key level, therefore it’s recent move is quite significant.In early June the USDJPY moved sharply dropping from above the key 109 level and two month high down through the popular range and back below the key 107 level to a one month low, after having previously surged higher through 109.
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