Earlier in the month, UK Oil moved well up to resistance at $63 off support at $60. It has traded between $58 and $63 for the most part of the last two months and selling has been steady at anything above $63 indicating how significant this level is. Sure enough, it has returned back well within this range to finish last week.
We also covered the US30 index which spent the remainder of the week trading near its all time highs. After trading around the key 27000 level for several weeks, the last few weeks have seen the US30 index surge higher to new all time highs above 28000, before easing two weeks ago and rallying again. It is currently trading around the previous peak so it may just be experiencing some selling pressure at this level. Throughout October it rallied well and moved back above the current key level of 27000 after the index was ably supported by the 26000 level which propped up the index earlier. Should the index retreat from its current highs, the 27000 level is now likely to provide support.
Last week the GBPUSD continued to do little. For the last six weeks or so the GBPUSD has traded in a narrow range consolidating under resistance at 1.30, which has become a level of significance. Earlier in the range, the GBPUSD eased ever so slightly from a five month high just above 1.30 after smashing through the key 1.25 level which has resisted prices strongly for around a month. It had also received some support from 1.28 during this period of consolidation. It will be interesting to see how long the selling pressure remains at 1.30 or whether the sterling eases away and returns to previous levels closer to 1.25. The 1.25 level may now reverse roles and provide some support should the sterling decline from its current highs. It may also use this current consolidation period as a base for higher prices as it may look to test the resistance at 1.30.
To finish out the week we covered the EURUSD which finished the week resting on support at one of the current key levels of 1.10. In the last week or so the EURUSD has fallen again back down to 1.10 after threatening to break through the 1.11 level, only to meet stiff resistance there. It made another strong rally off the 1.10 level back to 1.11, after falling sharply from near several month highs close to 1.12. The 1.10 level has now provided strong support in the last three weeks propping the currency pair up after the fall to start the month. It will be interesting to see if this support can continue to stand tall and maintain the current range.
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