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Pairs in Focus - WTI Crude Oil, Silver, DAX, GBP/CHF, EUR/GBP, USD/CAD, CAC, EUR/JPY

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

WTI Crude Oil

WTI Crude Oil Weekly Chart - 26/05: WTI bounces.

The West Texas Intermediate Crude Oil market has fallen during most of the week, but it is worth noting that Friday was extraordinarily bullish. Because of this, I think there’s an extreme likelihood that we do bounce from here. The $80 level above continues to be a bit of a barrier, so I think it might be difficult to overcome in the near term. However, if we can break above the $80 level, I think that the WTI Crude Oil market could go looking to the $85 level before it is all said and done.

Silver

Silver Weekly Chart - 26/05: Silver fluctuates.

Silver has been all over the place during the course of the week, as it culminated with a move above the $32 level, and then turned around to fall rather precipitously. By doing so, it looks like we are getting a bit exhausted, but I still think that there are plenty of buyers underneath that would get involved. After all, the market will continue to favor the upside as we have been in an uptrend, and therefore I think that continues to be one of the main drivers, right along with the $30 level in the $28.50 level being support.

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DAX

DAX Weekly Chart - 26/05: DAX rebounds.

The German DAX initially fell during the week but turned around to show signs of life again. This suggests that perhaps there are plenty of buyers underneath then we will continue to see the market look at this through the prism of trying to find value on each dip due to the massive uptrend that we have been in for some time. With this, I believe there is massive support at the 18,250 level, followed by the 18,000 level, which of course assumes that we do fall. I think given enough time we will go looking to the 20,000 level above.

GBP/CHF

GBP/CHF Weekly Chart - 26/05: GBP/CHF rises.

The British pound has continued to show strength against the Swiss franc for the 2nd week in a row, so now I think it’s pretty obvious that what you are looking for is some type of value to take advantage of. Short-term pullbacks should continue to see plenty of support near the 1.15 level as the interest rate differential continues to favor the British pound overall. The 200-Week EMA sits just above, but I don’t necessarily think that it is a huge deal with this point.

EUR/GBP

EUR/GBP Weekly Chart - 26/05: EUR/GBP dips.

The euro has plunged during the course of the week against the British pound, but it’s worth noting that we did stop at the 0.85 level. This is an area that has been important multiple times so to be interesting to see if we turn things back around. This is an area that has been massive support, so it’s not going to be easy to break down below, despite the fact that we seemingly have attempted to do so multiple times over the last year or so. A rally at this point does make a certain amount of sense, but it would be difficult to get above the 0.86 level at the moment.

USD/CAD

USD/CAD Weekly Chart - 26/05: USD/CAD rallies.

The US dollar has rallied during the course of the week, reaching toward the 1.38 region before turning right back around against the Canadian dollar. The 1.36 level underneath should continue to offer plenty of support as it was previous resistance, and therefore I think the market will continue to see plenty of value hunters coming back in, and therefore I think it is probably only a matter of time before we rallied again. However, if we were to break down below the 1.35 level, we could lose another 100 points before fighting support after that.

CAC

CAC Weekly Chart - 26/05: CAC recovers.

The Parisian CAC fell during most of the week, but we did recapture the €8100 level and assigned that perhaps the buyers are willing to come back into the market based on value. Ultimately, the €7900 level should be a major support level to pay close attention to, and at this point in time I think it represents a lot of value. If we can continue to go to the upside, then I believe the €8200 level would be worth watching, because it is the gateway to much higher pricing.

EUR/JPY

EUR/JPY Weekly Chart - 26/05: EUR/JPY climbs.

The Euro has rallied significantly during the course of the week against the Japanese yen yet again, as we continue to see the interest rate differential play out in the marketplace. Ultimately, I think this is a market that you need to be very bullish on, because it is probably only a matter of time before we continue to go higher. Short-term pullbacks continue to offer value and therefore I think we continue to buy those dips and take advantage of the Bank of Japan being stuck.

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Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

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