CAC
The Parisian CAC initially fell during the week but has turned around to show signs of life. The €7900 level continues to be a major floor, and we have in fact reacted it just above there to find plenty of buyers. The question now is whether or not we can build up enough momentum to continue going higher? It certainly looks that way, and I would not be surprised at all to see this market go looking to the €8200 level over the next several sessions. At this point, I certainly have no interest in trying to short stocks anywhere, let alone France.
GBP/JPY
The British pound has rallied rather significantly during the course of the trading week, closing near the ¥197 level. By doing so, it looks very much like a market that is going to continue to go higher, especially now that the Bank of Japan has finally admitted that he can’t really do much about the value of the yen. In fact, they said the shrinking yen isn’t something that they’re worried about. That’s an interesting take, and probably a flat out lie. Nonetheless, I think they are helpless at this point and therefore I think we continue to see the British pound overtake the Japanese yen.
Silver
Silver has had a somewhat negative week, but let’s keep in mind that the market had been straight up in the air for what seemed like a lifetime. Furthermore, we are also extended to say the least and therefore we need to pay close attention to the $26 level underneath, because that could define whether or not we are still in an uptrend. On the upside, we have the $28.50 level offering a significant barrier, and I believe a short-term target for those who are bullish in this market.
GBP/CHF
The British pound has rallied significantly against the Swiss franc during the course of the week, but we continue to see the same major barrier get in the way. This of course is the 1.15 CHF level, which has been like a brick wall multiple times. That being said, it is worth noting that the British pound has been relentless in its attempt to break out, and I think given enough time it actually will. If we can clear the 1.15 CHF level on at least a daily close, I am anticipating a move to the 1.17 CHF level. Underneath, I see the 1.13 CHF level as support.
USD/MXN
The US dollar rallied slightly against the Mexican peso during the past week, but we still see a lot of resistance above in the form of the 17.50 MXN level, and of course the 50-Week EMA which we pull back from. We ended up forming a bit of a shooting star so that suggests to me that we are more likely than not going to continue to see some downward pressure. After all, the interest rate differential heavily favors the Mexican peso, and therefore if you do want to get long of the US dollar, this might not be the pair to do it in.
EUR/GBP
The euro initially rallied significantly during the course of the week only to find significant resistance near the 50-Week EMA, and of course the 200-Week EMA, which are sitting right around the 0.86 level. Ultimately, this is a market that looks as if it is going to finish the week at the very lows of the candle, meaning that we may get some follow-through. However, I do believe that the 0.85 level underneath is going to continue to hold, so the closer we get to that area, the more likely I am to be looking for some type of bounce to start buying again.
Bitcoin
Bitcoin has been all over the place during the course of the week, essentially finishing the week slightly negative. That being said, it certainly looks as if there is a lot of support underneath, and it looks like the $60,000 level is an area that could be a massive “floor in the market” that traders will continue to use. I think this remains a “buy on the dips” market, but I don’t think you are going to get a huge run higher anytime soon. In other words, you are looking for value and then dumping it off as soon as you get a significant profit.
EUR/USD
The Euro initially rallied during the week but continues to see a lot of noise above the 1.07 level. I think we continue to pay close attention to interest rates in the United States, which seemingly be in one way trade at the moment, thereby making the US dollar stronger. The fact that we gave back some of these gains tells me that although we could very well rally next week, the upside is limited. I am presently using this chart more or less as a way to determine which way the US dollar could be traded against other currencies.
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