USD/CAD
The US dollar has been all over the place against the Canadian dollar during the course of the week, as we continue to see a lot of volatility. However, there are a lot of problems with the Canadian economy, and at the same time, the market is likely to continue to see a lot of pressure to the upside for the greenback, due to the fact that the interest rates in America will almost certainly offer quite a bit of benefits the holding the greenback. With PMI numbers coming out hotter than anticipated on Friday, that only adds more of a charge into this pair to the upside.
Bitcoin
Bitcoin initially did try to rally during the course of the week and test the $67,000 level, only to turn around and show signs of weakness. At all times, this is a pair that looks as if it is going to be noisy, especially after we had seen a 92% increase in the value of bitcoin in just 6 weeks. Since then, we have spent almost 4 months doing absolutely nothing. We are working off some of this froth, but as things stand right now, it looks like the $60,000 level underneath will continue to be a major support level that people will have to pay close attention to.
WTI Crude Oil
The West Texas Intermediate Crude Oil market has rallied rather significantly during the course of the trading week to eclipse the $80 level. At this point, the market is likely to continue to see a lot of buyers jump into this market as we are now breaking out above the crucial $80 level. At this point, if we can break above the top of the weekly candlestick, then I think it’s likely that the market could go looking to the $85 level. As things stand right now, I believe that any short-term pullback will continue to attract buyers.
DAX
The German index has stabilized during the course of the week between the €18,000 level on the bottom, and the €18,250 level in the top. The candlestick itself is not overly impressive, but it does suggest that we are currently stabilizing after the massive selloff during the previous week. Because of this, if we can break above the €18,250 level, I believe this is a market that will truly take off to the upside and then go looking to the recent high levels again. Longer-term, it would not surprise me at all to see this market go looking to the €20,000 level.
If we were to break down below the €18,000 level, then we may see the market challenge the €17,750 level, an area that we had bounce from previously. Either way, I do favor the upside overall.
USD/JPY
The US dollar has rallied rather significantly during the course of the week, as it looks like we are now trying to do everything we can to break above the crucial ¥160 level. This is an area that previously has been important and it’s also where the Bank of Japan intervened, and therefore raking above that level could bring in quite a bit of “FOMO trading.” All things being equal, a short-term pullback at this point in time could open up the possibility of value hunters on dips, and I would like to get involved on each and every short-term pullback with an eye on the ¥155 level underneath, which is a major support level.
EUR/USD
The Euro rallied initially during the course of the trading week but struggled with the 1.08 level. That’s an area that’s been important, and as we close out the market, we are hanging around the 1.07 level. If we can break down below the bottom of the candlestick for the week, then I think the euro continues to drift down to the 1.06 level. All things being equal, this is a market that I think will continue to be very choppy in general. All things being equal, I think this continues to be more or less a short term trading environment than anything else.
Silver
Silver has been all over the place during the trading week, as we broke above the $30 level at one point. Now that we have broken above there and then pulled back below there, it shows just how confused this market is. I think the next couple of weeks will continue to be very important, with an eye on the $28.50 level underneath as a floor in the market. That being said, if we can break back above the $30 level, then it’s likely that we could go looking to the $32 level above.
EUR/GBP
The euro has had an outsized week to the upside against the British pound, but at this point in time I think we are still trying to sort out whether or not we can break above the 0.85 level. If we can break above the 0.85 level, then I believe that the market will continue to rally from there for a longer-term move. On the other hand, if we break down below the low of the past 2 weeks, that could bring in even more downward pressure.
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