Midweek Report 20th November

Gold
Last week, Gold recovered well from the psychological 1200 level that was heavy work area in August and September. Last Wednesday and Thursday, pushing through 1214 appeared difficult but this was achieved with a strong close on Friday and was a positive for the Bulls. This should now revert once again to the support column and if this is the case, Gold will be back in the 1214-1238 range. By way of a reminder, 1238 is the 38.2 Fibonacci Retracement of the big move down that began last April. Gold managed to move through this point on a couple of occasions in October however, it is a close through this point that could be a catalyst for further gains.

Currencies
EURGBP is still seeing big swings, which is understandable. Last Thursday saw an impressive rally after previously touching a low at .8656. There were further, modest gains on Friday and this was also important as it took the pair back through .8866 which is the first support. The main support though is the Marabuzo line down at .8791. This is the 50 per cent mark between the open and the close of last Thursday's large Bull candle. In the other direction, it is sitting just below an important resistance at .8939. This is the fourth in a group of consecutive lower highs on each swing of the market. Breaking through this would be a major positive for the Bulls, but could prove difficult.

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