Bitcoin
Bitcoin markets have fallen during the course of the week, but it looks like we continue to recognize a lot of support near the $60,000 level, so I think this is a market that will eventually turn things back around. If and when it does, it’s likely that the market will try to bounce toward the $63,500 level. Anything above there opens up the possibility of the $67,000 level being targeted over the longer term. I have no interest in shorting Bitcoin at the moment, but I recognize that if we were to break down below the $57,000 level, it could be very ugly for Bitcoin indeed.
USD/JPY
The US dollar (as part of the USD/JPY trading pair) initially dipped during the previous week but has turned around to show signs of life again. At this point, we are well above the ¥160 level, so it’ll be interesting to see how this plays out. Quite frankly, the Bank of Japan can’t do much, but it is possible that we might see a little bit of intervention down the road. If we do get that, is likely that it will only end up being a buying opportunity that traders will take advantage of as the interest rate differential will continue to be a major factor.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has been slightly positive during the trading sessions of the previous week, although it’s been somewhat noisy. At this point in time, I do believe that the WTI Crude Oil market remains more or less a “buy on the dips” scenario, as it is a market that has been compressing, but it does tend to have a certain amount of cyclicality helping it from the fact that there is a lot of demand typically during the summertime. In other words, I am bullish, but I recognize it might be somewhat noisy.
DAX
The German DAX has been all over the place during the course of the week, bouncing around between the €18,000 level on the bottom in the €18,375 level at the top. All things being equal, this is a market that I think continues to see a lot of consolidation, but that should over the longer term eventually help the DAX rise. After all, even though it hasn’t been extraordinarily bullish, the reality is that the selling pressure seems to have abated. With this, on a move above the €18,375 level, I think that the DAX will continue to strengthen.
S&P 500
The S&P 500 has been all over the place during the week, but it does look like we are starting to show a little bit of exhaustion. The 5500 level continues to be an area that is difficult to overcome, but if we can do so on a weekly chart, it kicks off the next shot higher. That being said, I would not be surprised at all to see this market pull back a bit, but that pullback should end up being a buying opportunity before it is all said and done. I believe that the 5300 level underneath continues to be important, and therefore I think it is what we are looking at through the prism of support.
NASDAQ 100
The NASDAQ 100 has been very much like the S&P 500, as it has gone back and forth. It is probably worth noting that the previous week ended up forming a massive shooting star, and Friday did seem to be left wanting a bit. The 19,500 level underneath should offer support, as it is a significant round figure, and an area where we have seen a lot of noise at. If we break down below that level, then I think the NASDAQ 100 could very well correct. That could be the best thing to happen into this market, but regardless I will not be a seller of this index.
EUR/JPY
The Euro has rallied a bit against the Japanese yen during the course of the trading week, trying to get to the 0.85 level above. This is an area that previously has been support, so I think a certain amount of “market memory” comes into the picture there, and therefore I would not surprise me at all to see a significant amount of resistance. If we can break above there, then the market could very well go looking to the 0.86 level. Underneath, I believe that the 0.84 level offers a significant amount of support as well.
GBP/USD
The British pound (GBP/USD exchange rate) initially tried to rally during the course of the trading week but ran into a bit of resistance of the 200-Week EMA. By doing so, this is the 5th candlestick in a row that you can make an argument for being a bit of a shooting star. This suggests that the British pound is getting very tired, and it will continue to grind lower, perhaps trying to reach the 1.25 level below.
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