November 9, 2021 14:47:06
After falling since May from a high at 156.07, this pair has struggled to break down decisively through a strong area of support around 148. Sellers tried to push prices lower several times with lows at 148.45/52.
Trendline resistance from the May top capped any upside until the start of October. The pair then enjoyed nine days of gains in ten. A new cycle high at 158.21 was made. But bulls couldn’t get decisively beyond the long-term high from February 2018 at 156.60.
Prices fell sharply on Thursday last week through a couple of Fib levels. We are now trading at the halfway mark of the July to October move around 153.34. The 50-day SMA and 100-day SMA also reside around here with the latter just below at 152.63.
If we can break lower after some healthy consolidation, the 200-day SMA is 151.89. Resistance above comes in at the 38.2% Fib level at 154.49. Momentum remains bearish with Brexit issues looming. Downside may be supported by a potential BoE December rate hike.
Although Moneta Markets aims to ensure that the information/material is accurate, it cannot be held responsible for any omissions/miscalculations or mistakes as it does not warrant the accuracy of such material. Any material and/or content provided herein is intended for educational purposes only and does not constitute investment advice on how clients should trade as it does not take into consideration your personal objectives, financial circumstances or needs. Please seek independent advice before making any trading decisions. Reliance on such material is solely at your own risk and Moneta Markets cannot be held responsible for any losses resulting directly or indirectly from such reliance. Any reference to figures/statistics or numbers refers to the group of companies of Moneta Markets. Please refer to the legeal documents should you require more information.
