GBP/USD
The British pound has been very noisy over the course of the trading week, but it looks as if the 1.32 level is an area that continues to see a lot of noisy behavior. All things being equal, it’s worth noting that we had broken through a significant level a couple of weeks ago, and now we are starting to see a significant amount of resistance in that same area. Ultimately, this is a market that continues to see a lot of noisy behavior, but it certainly looks as if rallies will probably be sold into.
EUR/USD
The Euro rallied significantly during the week, but it looks as if it is facing a certain amount of resistance just above, and therefore, some type of exhaustion could come back into the marketplace. If it does, then the Euro probably rolls over. At the very least, I anticipate that we will see a certain amount of sideways action at the moment, as the market is still in the midst of a potential topping pattern, but at the very least, consolidation. The US dollar has been stronger than anticipated as of late, and it’s likely that we will continue to see that come into the picture here.
USD/CAD
The US dollar fell slightly against the Canadian dollar during the trading week, but the 1.40 level is an area that people will be paying close attention to, as it is a large, round, psychologically significant figure, and an area that previously had been both support and resistance. Ultimately, it looks like the market is likely to see a lot of back-and-forth action at the moment, which makes sense considering just how choppy this pair is most of the time. All things being equal, this is a market that continues to see a lot of volatility, but I still favor the upside, as the interest rate differential favors the United States.
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USD/CHF
The US dollar has fallen significantly, as it is now pressing the 0.79 level, an area that has been a massive support multiple times in the past. If we were to break down from here, then the Swiss franc will probably strengthen against almost everything. There is a certain amount of fear out there when it comes to financial markets in general, so it is possible that the Swiss franc becomes attractive for most traders, but quite frankly, the Swiss National Bank has also mentioned more than once that it’s ready to intervene if necessary.
BTC/USD
Bitcoin had initially tried to recover during the week to test the $108,000 level. That being said, the market fell significantly from there, breaking down below the $100,000 level. Breaking below the $100,000 level shows significant weakness, and it does, in fact, look very likely to see further downward pressure. The size of the candlestick just shows how weak Bitcoin is, and quite frankly, it looks like it’s got further to go to the downside.
Gold
Gold markets initially shot up much higher during the course of the week, as the market reached the $4200 level, before turning around and showing signs of hesitation. Ultimately, this is a market that looks as if it is trying to top out, and ultimately, this is a market that has gotten far ahead of itself, and a significant sell-off looks very possible at this point, perhaps reaching the $3800 level, possibly the $3500 level. If we break above the $4200 level, then it would be a bullish sign.
Crude Oil (US Oil)
The US Oil market has been all over the place during the week, as we continue to hang around the $60 level. The $60 level is a large, round, psychologically significant figure, and an area that acts as a bit of a magnet for price. Ultimately, this is a market that is still trying to sort out what to do with itself, as Russian sanctions caused some bullish pressure, but the reality is that the demand probably isn’t enough to wipe out supply. With this, I remain bearish, but I also recognize it’s a very short-term driven market at the moment.
Silver
Silver had a wild week, making a fresh, new high. However, we have seen an absolute plunge in value, and it looks like we may be in the process of topping out. Ultimately, silver got way ahead of itself, and volume started to drop drastically on this latest rally. This screams of a market that might be in trouble. At the very least, it’s probably best to stand on the sidelines and watch what could end up being a very dangerous place to be.
NASDAQ 100
The NASDAQ 100 looks as if it is getting ready to enter some type of correction phase, but quite frankly the market is likely to continue to see plenty of buyers willing to get involved given enough time. We have been in a nice up trending channel for quite some time and breaking down below the bottom of it of course is a negative sign, but it’s not necessarily the end of the trend. I suspect is we are about to start seeing more “buy on the dip” opportunities.
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