US Oil (WTI Crude)
The West Texas Intermediate Crude market has rallied a bit during the course of the trading week, and it now looks as if it’s on the verge of some type of major breakout. If we break above the $83.50 level, then it’s likely that this market will eventually go looking to reach the $88 level, possibly even $90. Keep in mind that Saudi Arabia is still pressuring the market by cutting supplies for yet another month, so I do think that short-term pullback should offer plenty of buying opportunities going forward.
EUR/USD
The euro has initially fallen during the week but then turned around to show signs of life after the jobs number in America came out lower than anticipated. With that being the case, the market is likely to continue to be a “buy on the dips” situation, and it looks like we could go looking to the 1.1250 level above. Underneath, the market breaks down below the bottom of the candlestick for we could open up a move down to the 50-Week EMA underneath. That being said, it still looks very bullish.
USD/CAD
The US dollar has been all over the place against the Canadian dollar this week, but it looks like we’re trying to figure out whether or not we can break above the top of the candlestick. If we can break above the top of the candlestick, perhaps better put the 1.34 level, then the US dollar will probably go looking for the 1.36 level. On the other hand, if we break down below the 1.33 level, then it’s likely that could go down to the 1.28 level.
USD/JPY
The US dollar has rallied during most of the week against the Japanese yen but gave back gains after a cooler-than-anticipated jobs number. Whether or not we can continue to go higher is probably more of a longer-term question, but I do think that short-term pull banks continue to attract attention that people are more willing to get involved in. At this point, nobody really wants to on the Japanese yen, and I think you cannot seriously consider shorting this market until we break down below the ¥138 level.
NASDAQ 100
The NASDAQ 100 has fallen rather significantly, reaching the 15,250 level. The 15,250 level has previously been both support and resistance, so it does make a certain amount of sense that we could see the market bounce from here. Quite frankly, the Friday candlestick does suggest that we are ready to continue to go higher. 16,000 above is probably going to be the target in the meantime, and I do expect to see the market hit that eventually.
GBP/CHF
The British pound has shown itself to be well supported near the 1.10 level, as we are testing the bottom of a major consolidation area. Because of this, I think it’s probably only a matter of time before we reach higher, and until we break out of this range you have to assume that we continue to go back and forth. The 1.14 level would be my target to the upside. However, if we were to break down below the 1.10 level, that could send this market lower. For what it’s worth, the Swiss National Bank has been known to jump in the market and support currencies against the Swiss franc, so there might be something like that going on here.
USD/ZAR
The US dollar has shot higher against the South African Rand during the week, as it looks like we are going to continue to see more or less a “risk off rally” in this pair. The 19 Rand level will continue to be a major issue, and if we can break above there then it’s likely that we could go looking to the 20 Rand level. Underneath, the 50-Week EMA should continue to offer support, and it does make sense considering that we have been in an uptrend for quite some time. The size of the candlestick does suggest that we are going to continue to see upward pressure.
AUD/USD
The Australian dollar has gone back and forth during the course of the week, showing signs of volatility. With this being the case, the market is probably going to see the 0.65 level underneath as a major support level, and if we were to break down below there is likely that we could drop down to the 0.64 level. Just above, if we were to break above the 50-Week EMA, then it’s possible that we could go looking to the 0.69 level. With this, I believe that the Aussie will be more of a back-and-forth range-bound type of opportunity
