Having resisted prices so strongly, it was no surprise that the 0.7250 level stepped in and offered support once it was broken through so strongly. Up until its break several weeks ago, the AUDUSD spent most of its time trading between two key levels, meeting resistance at 0.7250 and being supported at 0.7050, after having fallen sharply through the 0.7250 level down to a then two month low below the key 0.7050 level in late September.
We also covered the US30 index which spent the remainder of the week continuing to apply pressure on the key 30000 level before breaking through again. In the last few weeks the US30 index has applied lots of pressure on the key 30000 level which has stood up and resisted prices firmly keeping the index below this level for the most part. This has happened especially in the last two weeks where every day the index touched 30000 attempting to push through. During this time it has also been well supported by the 29000 level. In the last four weeks it has traded above this key level in a range up to 30000 and four weeks ago, the US30 index made its first run towards 30000 and in doing so, smashed through resistance at 29000, which has applied downward pressure on the index for some time. Having supported prices for the last few weeks, the 29000 level will be expected to continue to prop up the index. 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 now it has finally broken through with an increase in volatility.
We also covered XAUUSD which finished last week rallying well back to a two week high, off four month lows below $1770 to return to near $1840. Leading up to the rally, it has eased away from the resistance at the key $1900 level moving to the lows after spending a considerable amount of time trading around $1900. If the XAUUSD is to continue to rally back to $1900, it is highly likely to experience further resistance at this level. In the last few weeks, the $1900 level has been providing more resistance, whereas previously it was trading comfortably back and forth around this level. It recently surged through to a six week high above $1960 before falling even more sharply returning all gains in falling to a five week low around $1850. 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 resistance to gold, as it seems to content to trade not far away from it.
To finish out the week we covered the GBPUSD which finished the week moving higher to a two year high above 1.35 before forming a classic reversal pattern to finish. In the last two weeks or so the GBPUSD has moved steadily higher after finally breaking through the resistance at 1.3250. In more recent time, the 1.33 level has become key level resisting prices and in the last week supporting the GBPUSD as it pushed through to the high. For the few weeks prior to the breakthrough, 1.3250 had been offering resistance, as it made a run at this level reaching a then two month high, before it was sold off. Its recent push in the last month or so came after the GBPUSD traded around the 1.30 level for several weeks with an increase in volatility. Now that it has moved through 1.3250, it may enjoy some support from this level, as well as 1.33. The 1.30 level has played a significant role in the price action of the GBPUSD in the last four months and may be called upon if the GBPUSD drops back through 1.3250.
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