The precious metal has continued its bearish ways post FOMC and looks to be sold on positive US data. It has currently found support at 1050 just shy of the 1046.50 support level founded last month. A break below 1050 will open up 1046.50 and then bears will look to take the 2010 lows if 1026 with the ultimate goal being the retest of the 1000 handle, where the real battle will take place. A break above 1060 will see the current breather extend itself to the 1064 and 1070, if bulls can find the legs.
The pair is squeezing lower as USD bulls reenter the market, falling 260 pips from this weeks highs. Current support has been found at 1.0800 with 1.0750 and 1.0680 up next as the stochastic and RSI trade in overbought territories. A close above 1.0870 will open up the way for 1.0915, which bulls will look to break and retest 1.0950.
The pair tumbled to just short of the 1.4860 support zone, where bulls managed to pull them selves together and drive price back up, the gains are expected to be capped though with the CCI being in overbought levels and heavy resistance ahead at 1.4960, 1.5000 and 1.5050. A break below 1.4925 will see bears attempt to continue the downward projection as they retest 1.4900,1.4860 and 1.4800.
The back of the trend line and significant resistance at 0.6765 proved to be too much for bulls to overcome and bears drove the pair below the 0.6700 support zone. Further sell offs are expected as stochastics cross down from overbought territories and the 0.6700, 0.6680 and 0.6660 support zones are tested respectively. However, a break above 0.6715 will see bulls gain confidence as they make a run for a deeper correction to the 0.6740 and perhaps 0.6765 resistance zones.