Leading up to the strong surge, UK Oil fell away strongly from the key level of $43 which now continues to play a role and in recent time, has provided resistance, and more recently, support. For the two months or so prior to the latest push higher, the $43 level had been providing stiff resistance and constant downward pressure on prices. During this time, UK Oil has made repeated attempts to break through the long time key level of $43 so it is quite significant that it has now broken through this level and received support.
We also covered the US30 index which spent the remainder of the week continuing to trade right around the key 30000 level. In the few weeks prior, the US30 index had applied lots of pressure on the 30000 level which stood up and resisted prices firmly keeping the index below this level for the most part. In the last week, it has been able to move through this level and achieve a new all time high. During the last few weeks, it has also been well supported by the 29000 level, and may now enjoy some solid support from 30000. Several 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. In that initial surge higher, it also pushed strongly through 27000 and 28000 which have played a significant role in the price action of the US30 in the last few months. Having supported prices for the last three weeks, the 29000 will be expected to continue to prop up the index.
We also covered the EURUSD which finished last week easing from a two year high around 1.2170 back to around 1.2050. In the week prior it had surged higher to the high after breaking through the key 1.19 level which had been applying significant resistance to the currency pair. Any recent attempts to move through this level have been rejected swiftly so it is significant that the EURUSD has been able to maintain the break and continue higher. Several weeks ago, the EURUSD surged higher from below the other current key level of 1.17, before running into the resistance at 1.19. The EURUSD has spent the best part of the last three months trading between these two key levels with the 1.19 level providing stiff resistance, and if it was to fall back below 1.19 again, you would expect the 1.17 level to provide support again.
To finish out the week we covered the USDJPY which finished the week just below the current key 104 level. In the last few weeks, the USDJPY has traded right around the 104 level, seemingly content to trade around this level for the time being, with the volatility returning to normal levels. Several weeks ago, it fell very sharply from a three week high above 105.50 which it reached after its largest single day move in more than six months moving it from an eight month low up to that high above 105.50.Prior to the surge, it was trading at the low down near 103 after having broken through the strong support at the key 104 level. Prior to the support at 104, the USDJPY had eased back over the previous few weeks from a three week high above 106.The other current significant level is 105 although this was recently broken through in the last few weeks, although it could be expected to offer some resistance again should the USDJPY rally again off support at 104.
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