EUR/USD
The euro fell during the bulk of the trading week, only to turn around and show signs of resiliency. That being said, the market is likely to continue to see a lot of noisy behavior, and I think that you have a lot of questions about any rally at this point. The 1.16 level is a market level that I think a lot of people will be watching, followed by the 1.17 level. If we break down below the bottom of the candlestick for the week, then it opens up the possibility of a move down to the 1.14 level. Anything below the 1.14 level opens up the possibility of a move down to much lower levels.
USD/ZAR
The US dollar has initially rallied during the trading week, but it continues to see a lot of resistance near the 17.50 ZAR level, as we have turned around to show signs of hesitation. The weekly candlestick is a bit of a shooting star, or perhaps even a bit of an inverted hammer. If we break down below the bottom of the candlestick, then it opens up the possibility of a move down to the 17 ZAR level, which is a large, round, psychologically significant figure and an area that we’ve seen some action at previously.
Gold
Gold markets fell during the bulk of the week, only to turn around and show signs of life again. We dip below the 4000 level but by the time we started to get to the end of the week, we broke above there and it looks likely that we are going to continue to see a little bit of sideways action, but this sideways action could very well end up being a good sign that we are at least trying to find some type of stability. A massive selloff leading to sideways action opens up the reality of a potential market trying to work off some of the excess froth.
Top Forex Brokers
Crude Oil
The crude oil market has broken down significantly during the trading week to break below the $60 level but has turned around to show signs of life. Ultimately, this is a market that will continue to see a lot of noise, and I think that is something that you need to pay close attention to, as it looks like we continue to struggle in general, and with that being the case, the market is likely to continue to see a potential drop down to the $55 level. If we were to rally a bit from here, the $62 level should offer a bit of resistance as well, and with the lack of demand out there, I think we continue to see a lot of problems.
Bitcoin
Bitcoin has plunged this week as we tested the crucial $100,000 level. That being said, we have bounced pretty hard on Friday to at least try to save the market, with the 50 Week EMA in the general area, which also comes into play as well. That being said, if we break down below the $98,000 level, we could see Bitcoin really take a pounding. At that juncture, I would anticipate a move down to about $82,000. If we can bounce from here and go to the upside, the next major resistance barrier is probably going to be near the $108,000 level.
Natural Gas
Natural gas continues to run higher during the week, as we try to reach the $4.50 level. That being said, we are looking a little bit exhausted at this point, and I think it’s probably only a matter of time before we see some type of blowup. That blowup could send this market down quite a bit, and I will look at that pullback as a potential buying opportunity because this time of year is typically very bullish for natural gas. As temperatures drop in the United States and Europe, demand obviously will start increasing on a day-to-day basis.
GBP/USD
The British pound broke down rather significantly during the trading week but turned around to form a massive hammer. The 1.30 level is a significant area of support, with the 200 Week EMA sitting underneath, which also offers quite a bit of support as well. Ultimately, this is a market that I think you are looking for short-term rallies to fade, but we may get a little bit of a recovery here in the short term, as the pound also witnessed the Bank of England refuse to cut rates this past week.
USD/CAD
The US dollar initially rallied against the Canadian dollar during the week but has given back some of the gains, and it now looks as if we are going to hang out in the area of the 1.40 level, as it is a bit of a magnet overall. I think we probably go sideways for a while, but I still believe that the US dollar continues to rally against the Canadian dollar eventually. We just have a little bit of sideways action in the short term, and that may continue to be the way forward.
Ready to trade our Forex weekly forecast? We’ve made a list of some of the best regulated forex brokers to choose from.