Intraday Analysis - Wednesday, Oct. 21

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AUDUSD hits double top

The Australian dollar (AUDUSD) continued its rally as the pair moved over 100 pips higher.

• Prices hope to find steady ground above 0.7000 after breaking the previous resistance.

• The next level at 0.7010 is the immediate resistance, which has formed a double top.

• A confirmed breach at the said level would push prices toward the next swing high above 0.7080.

• Otherwise, a fall below 0.6980 would trigger a reversal towards 0.6900.

XAUUSD holding ground

Gold trades slightly higher as prices gear up for another charge at fresh highs.

• A failure to hold above 4150 will put buyers on the defensive.

• The precious metal continues to look for the next signal.

• 4100 at the base of the latest drop is a firm threshold to see if buying interest continues.

• Bulls will need to clear 4220 to regain control.

UK 100 grinds support

The FTSE continues grinding higher after a firm bounce.

• On the chart, the price remains bullish with the recent jump.

• Buyers are preparing for a possible test at the latest peak of 10890.

• A rise above this specified zone indicates an interest in putting the index back on track towards 11000.

• On the flip side, stiff selling could be expected from profit-taking, with 10650 as the first support to prevent a deep reversal.