XAUUSD and EURUSD Break Under Key Pivot Zones on Dwindling Brexit Odds

The pivot range between 1.1295-1.13 was outlined two days ago in this article, and I speculated that this technical zone may be retested in the coming days. The 1.13 pivot zone held as support yesterday, however, the entire range was broken to the downside today during the UK trading session. Given the rich history of this technical range, it would not be surprising if this area now turns into resistance. If 1.13 starts acting as resistance, the next led down may push the EUR/USD to 1.113 - the June 16th lows.

Like the EUR/USD, the XAU/USD also managed to close under a very important technical zone. The $1278 level - which I outlined in my post on the 19th of June - was broken today and this level is very likely to now turn into resistance. While the XAU/USD has been on a tear since the begging of June, today's break under $1278 may be signaling the start of a bear market.

Remember, the uncertainty surround the Brexit referendum was one of the key drivers of the precious metals rallies this month, but the chances of a Brexit vote are growing smaller by the day. Just two days ago, British-based gambling site Ladbrokes put the odds of the UK leaving the EU at 29%, but that percentage has now gone down to just 24%!

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