Bitcoin
Bitcoin has plunged during the trading week to break down below the $67,000 level. It is because of this that I believe Bitcoin is going to drop from here, perhaps reaching down to the $60,000 level. The $60,000 level of course is a large, round, psychologically significant figure, and an area where we have bounced from before. The $60,000 level being broken to the downside could open up a massive amount of selling, but right now I think we are about to find out whether or not the buyers are serious about owning this asset, or if Wall Street has just handed their bags off to vulnerable retail traders.
West Texas Intermediate Crude Oil
The WTI Crude Oil market has had a strong week, and now finds itself challenging the 50-Week EMA. If we can break above that indicator, then it’s likely that the market could go looking to the $80 level. The $80 level courses a large, round, psychologically significant figure and an area that we have seen a lot of resistance at previously. If we can break above the $80 level, then it’s likely that the WTI Crude Oil market takes off to the upside and goes looking toward the $85 level. Otherwise, short-term support is found at multiple levels underneath, not the least of which would be near the $75.75 level.
AUD/USD
The Australian dollar continues to put most traders to sleep, and I don’t know it’s going to change anytime soon. However, if we were to break above the high from the last 2 or 3 weeks, that could kick off a move to the upside and go looking to the 0.69 level. On the other hand, if we break down below the lows of the last 2 weeks, then the Australian dollar could go looking to the 0.6450 level. In general, I think this is a market that continues to see a lot of back and forth and therefore confusion reigns.
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NASDAQ 100
The NASDAQ 100 had another bullish week, and it looks like we are going to continue to see buyers jumping into this market any chance they get. With this being the case, I think we have a situation where anytime the NASDAQ 100 pulls back, there should be plenty of buyers willing to take advantage of value. I believe that the “floor in the market” is all the way down at the 19,000 level, far below where we are right now. The target over the longer term will be 20,000, but I think we’ve got a lot of work to do to make that happen.
EUR/GBP
The euro gapped to the downside on Monday and spent most of the week bouncing around as we are trying to sort out where to go next. Ultimately, this is a market that I think has a lot of questions to ask of itself, and now we have to think at this through the prism of perhaps trying to find value and some type of opportunity, but you need to be very cautious. The 0.84 level is an area that I think could continue to offer support and if the market were to turn around and close on a daily chart below the 0.85 level, this could be a major trade just waiting to happen. On the other hand, if we break down below the 0.84 level on a daily close, then you could see this market drop down to the 0.83 level.
USD/CAD
The US dollar has gone back and forth during the trading week against the Canadian dollar, but at this point in time it looks as if we are trying to pressure the upside. There is a lot of noise between here and the 1.39 level, so I think it’s going to be more or less a grind to get up to that level. Short-term pullbacks offer buying opportunities though, with the 1.36 level underneath offering a bit of a floor. It’s also worth noting that the 50-We EMA is rapidly approaching that floor. Interest rate differential between the United States and Canada will continue to attract buyers.
GBP/USD
The British pound initially rallied for the week, but has turned around at the 1.28 level, an area that has been significant resistance more than once. By the end of the week, we ended up forming a bit of a shooting star, so this does suggest that we are going to continue to see trouble above, and I think this is going to lend itself to be a “sell the rallies” type of market. However, if we were to break above the high of the week, that would be a very bullish sign as we could see the market truly take off to the upside as it would be such a strong sign.
CAC 40
The Parisian index has had a very rough week, dropping over €400 from the open on Monday. At this point, the CAC 40 seems to be testing the €7500 level for support, therefore I think you have to look at the market through the prism of possibly offering a bit of value. If we do in fact rally from this point, it will have ended up being a massive buying opportunity that a lot of people will have taken advantage of. However, if we were to break down through here, then the €7200 level could be your next target.
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