The pair shed over 1700 pips from its 1.5000 highs, trading at 1985 prices, as bears broke through support after support on heavy flows in the light of profit taking and loss covering. Currently the pair is trading off its worse levels as the 1.3500 support zone has stifled any further shorting. For now a retest of 1.4000 is on the cards with the battle their to determine the direction of the pair. Bulls will be looking to recapture 1.4000 where those who bought last week will look to puke and perhaps reverse their positions, bolstering the bearish camp as we the pair tests the lows once more.
The pair peeked below 1.0900 after being toppled more than 500 pips from the days high. The pair is proving to be resilient however, with the daily 50 and 100 EMA`s confluence at the 1.1150 zone, attracting participants. A retest of 1.1200 will be on the cards, where we expect the battle between bulls and bears to intensify as a true direction is sought. Should bulls capture 1.1200, we might see the pair test 1.1250, 1.1300 an perhaps even make a run for pre vote levels. However, should bears take control, we expect a sharper decline with 1.1100, 1.1000 and 109.00 making the next frontiers for bears to dominate.
The pair reacted splendidly on the daily chart, finding support at the trend line, 61.8% fibo and 50 EMA confluence zone to catapult itself more than 800 pips higher before falling back below key resistance at 0.8100. Upside bias remains with bulls likely to leverage their momentum, targeting the 1.68 extension at 0.8800, with interim targets at 0.8200, 0.8300 and 0.8400. Bears will look to control the 0.8100 level for as long as possible as they look to scale out of positons and perhaps even convert to bulls, with targets at 0.7900, 07800 and 0.7700.
Gold bulls managed to defend the 1250 key support zone despite barrages of bearish attacks in early trade and won the battle efficiently to trade over 100 USD higher as they toppled highs not seen since 2014, topping out at 1358 before profit taking and bear bargain hunters drove prices back to the 1300 support zone. The battle will be fought around the 1325 zone but with bulls in the money they are much better positioned to defend support as they use profits to solidify the up trend while bears will be short of funds and extra cautious as the recent loses are still being digested, making weak to bullish runs with targets at 1350, 1375 and 1400. Downside targets are at 1300, 1275 and 1250.