Gold
Gold markets have been strong yet again during the previous week, but it looks as if the noise above the $4000 level will continue to be a major problem. With that being said, it’s worth noting that the $4000 level has a certain amount of psychology around that, and a pullback from here would make quite a bit of sense. If the market were to pull back from here, I anticipate that the $3800 level should be support, as it was a previous target from the ascending triangle that we broke out of. It’s dangerous to simply pile into Golden buy it here, because the only thing people are talking about in public forms is gold and silver.
Silver
Silver has been all over the place during the trading week, as we had it touched the $50 level in the futures market, but gave back quite a bit of the gains. At this point, the silver market seems to be running into a lot of trouble, and I do anticipate that it is only a matter of time before we get a bit of a pullback. Quite frankly, that’s the best thing that could happen to this bullish run, and it’s probably worth noting there is a lot of fear here as traders have to pay attention to the fact that the last couple of times silver has ran to the $50 level, traders got smoked.
Crude Oil
The crude oil markets initially did try to rally a bit during the course of the week, but we continue to see a lot of downward pressure. I suspect this could end up being the case going forward, as there simply seems to be far too much in the way of supply, and of course traders are out there worried about overall demand. If global economy start to slow down, then you have a situation where demand for oil could really start to fall off of a cliff, and therefore I think there is still a little bit of an overhang here.
Top Forex Brokers
USD/MXN
The US dollar rallied a bit during the early part of the week but has seen a little bit of resistance coming into the picture. The 18.50 level continues to be important, as it had previously been support, now we are starting to see “market memory” coming into the picture. That being said, we are still looking at this through the prism of a downtrend, although we have been somewhat sideways for the last month. It is not until we can break above the 18.80 level that I would consider the trend possibly changing.
USD/CAD
The US dollar has rallied a bit for the week, breaking above the 1.40 level, but it looks like we are struggling to stay above there. The Canadian employment number on Friday was positive just over 60,000 jobs added, which repudiates the loss at 65,000 jobs for the previous month. In other words, I think we continue to have quite a bit of noisy trading in this area, and I think you have to look at this as a scenario where traders are going to focus on choppy behavior, but if we can break the top of this past week, that would be a very good sign that we are in fact heading toward the 1.42 level.
USD/JPY
The US dollar rallied significantly during the course of the week to break well above the ¥152 level. This was a reaction to the federal elections, which has people thinking that the Japanese government is about to get very dovish, driving down the value of the yen. Ultimately, this looks like a market that continues to see a lot of buyers on pullbacks, as it offers value and what obviously is a massive breakout in this pair. I have no interest in shorting whatsoever, and I believe it is very difficult to get bearish of this point after what we saw at the open on Monday.
EUR/USD
The euro broke down significantly during the course of the trading week and even managed to pierce the 1.16 level. At this point, it looks like we are starting to see a potential breakdown, and if we do see a little bit of momentum, then we could drop to the 1.14 level below, which was a previous support and resistance barrier. All things being equal, this is a market that looks as if it could break down rather rapidly, and if it does, we will probably see the US dollar really take off to the upside.
GBP/USD
The British pound initially rallied during the trading week but then turned around to show signs of weakness. As we continue to see the US dollar strengthen, I’ll be watching the 1.32 area in this currency pair, because we break down below there, I think we start to see a bit of a trend change in a market that suddenly looks a bit suspicious at best. As far as buying is concerned, we could get a bounce to the 1.36 level, but it’s not until we break above that I would be convinced of a longer-term move.
Ready to trade our Forex weekly forecast? We’ve made this forex brokers list for you to check out.