End of Week Report 13 Nov

Gold Last week witnessed four consecutive days of drifting lower after failing again to breach the 1238 Fib level, and there was a need for the Bulls to defend the 1214 support. They failed, and Friday saw this level crack, triggering some sell-side stop activity. Having closed below this key level the selling resumed yesterday and at one point touching the psychological support at 1200. 1214 will now revert to the resistance column but this market is still nervous and looking to the downside. Early trading today sees Gold still hovering just above 1200, which is concerning for the Bulls. If they allow this market to slip lower, then it could return to the old range which sees the 1182 area as the next support. 1200 is usually a heavy work area as seen through most of September (circled on the chart), meaning Gold could find this acting as a pivot.

Currencies At the end of last week, USD made some gains against EUR that has continued this week and was flagged as a concern in Friday's report. GBP has also suffered after a decent bull run. It is this pair that is now most interesting after gapping lower yesterday. Friday's low is now gap resistance and comes in at 1.2958 (circled on the chart.) Breaking below 1.2921 also helps the Bears and it is hard technically to see a quick recovery here. Due to the strong rally on 1st November, there are few reference points to identify as support. The first level of note is down at 1.2765. This was the close on 31st October and the opening price on the day of the rally (arrowed on the chart.) With Brexit looming, there could be fierce activity over the couple of weeks.

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