Bitcoin
Bitcoin price has initially fallen during the course of the week, but it does look like it is trying to do everything it can to hang onto support. Ultimately, it looks like this is a market that has been hanging about for a while near the $56,500 level, and the fact that we ended up forming a bit of a hammer and have bounced from the 50% Fibonacci retracement level suggests that if we can clear the $60,000 level, we could see Bitcoin start to take off to the upside. On the other hand, if we were to break down below the 50-Week EMA, we could see Bitcoin collapse.
Silver
Silver market has gone back and forth in the course of the week, as we continue to see a lot of noise around the $31 level. All things being equal, this is a market that is very noisy, and of course is highly levered. Because of this, you need to be very cautious, but I do think that you remain in a “buy on the dip” scenario, with the $30 level underneath offering a significant amount of support from both a psychological standpoint and from a previous standpoint.
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DAX
The German index initially fell during the course of the trading week but found enough support at the previous trendline to turn things around and break above the €18,650 level. Now, it looks like we are going to threaten the €19,000 level, and if we can break above there it’s likely that the DAX will eventually go looking to the €20,000 level, which obviously has a lot of psychology attached to it. I have no interest in shorting the DAX anytime soon, as it looks like stocks are starting to rip to the upside yet again.
EUR/USD
The euro had a very strong week to reach the 1.09 level. This of course is a large, round, psychologically significant figure, and an area where a lot of people have been paying attention to the EUR/USD markets previously. If we can break above the 1.09 level, then it’s likely that the euro will go looking to the 1.10 level above. Underneath, we have the 1.08 level offering plenty of support, and I think that of course is something worth paying attention to. Quite frankly, this is a market that just continues to go back and forth between large, round, psychologically significant figures.
S&P 500
The S&P 500 has broken to the upside during the course of the week, clearing the 5600 level quite handily. Quite frankly, this is a market that every time it falls, buyers come in and try to pick up the pieces. I believe that we do continue to go higher, and I think that the 5500 level underneath will be the short-term floor in the market that I think a lot of people will be paying close attention to. Ultimately, I believe that we will eventually see the S&P 500 go looking to the 6000 level.
USD/CAD
The US dollar (USD/CAD exchange rate) initially fell during the course of the week but found enough support at the crucial 1.36 level to turn things around and show signs of life. The 50-Week EMA sits just below there, and it’s probably worth noting that the market is currently trading in a well-defined range between the 1.36 level the bottom, and the 1.38 level above. In general, this is a market that I think continues to be very noisy and sideways, so ultimately, I think you have to look at this through the prism of “being cheap at the bottom of the range.”
GBP/JPY
The British pound has been all over the place during the course of the trading week, as we have seen the Bank of Japan stepped into the market and intervene in the currency markets. After all, the Japanese yen had been like a punching bag for most currencies, including the British pound. That being said, this is a market that is still very bullish, and you do get paid to hang onto the pair regardless. Because of this, I am a buyer of dips and I continue to hang on to the GBP/JPY pair.
AUD/USD
The Australian dollar has broken higher during the course of the week, and it looks like now we are threatening the 0.68 level. Short-term pullbacks at this point in time could be a nice buying opportunity, and I believe there is a massive amount of support underneath, especially near the 0.6650 level. That’s an area that’s been important more than once, and therefore I think it will continue to be a place where you would see a lot of “market memory” coming into the picture. Ultimately, the AUD/USD market is a one that I think is racing its way toward the 200-Week EMA.
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