GBP/USD
The British pound initially tried to rally a bit during the course of the week, testing the 1.2650 level, before breaking down toward the 50-Week EMA. Alternatively, this is a market that should go looking at the 1.2350 level, an area that has been supported previously, as well as resistance and I think there is a huge area of both buying and selling that could go on there. All things being equal, if the market were to turn around and break above the 1.2650 level, then it could open up a bigger move to the upside. In general, I think the next week or two could be crucial for this pair.
EUR/USD
The euro has fallen a bit as well, and now looks as if it’s ready to threaten a serious breakdown below the 1.07 level, and then possibly down to the 1.05 level after that. If we were to turn around and rally from here, then the market is likely to go looking toward the 1.10 level above, an area that had previously been significant resistance, so I do think that there would be a bit of a fight if we get anywhere near there.
USD/JPY
The US dollar has rallied significantly against the Japanese and during the course of the week, and now it looks as if it is going to threaten a move to the ¥150 level, an area that I think will cause some serious headaches. That being said, I do believe that it is probably only a matter of time before we get there, so I look at short-term pullbacks at this point as opportunities to pick up “cheap US dollars in a market that is obviously very strong. The ¥146.55 level below is an area where we have seen support in the past.
GBP/AUD
The British pound initially trying to rally during the trading week but gave back strength as it looks like we are going to continue to pull back from the 2.00 level. Ultimately, I do think that there is a buying opportunity underneath, but we may have a little further to go at this point. We could go all the way down to the 1.90 level, and I think it would continue to offer a bit of support. However, we could also turn around and break above the top of the candlestick during the previous week, then it could open up a move back to the 2.00 level, which of course is a large, round, psychologically significant figure.
AUD/USD
The Australian dollar has fallen a bit during the course of the week, slicing through the 0.64 level. The 0.64 level is an area that has been important multiple times, and it’s probably worth noting that we are closing toward the very bottom of the candlestick, and it does suggest that we could go down to the 0.62 level underneath. On the other hand, if we turn around and take out the 0.65 level, then we may have an opportunity to rally toward the 0.66 level. Most things suggest that we are going to continue to go much lower.
EUR/JPY
The euro rallied a bit against the Japanese yen during the course of the trading week, as we continue to consolidate overall. If we can break the high of the last couple of candlesticks, this market should continue to go much higher, perhaps reaching the ¥160 level. Taking out the ¥160 level frees the market to go much higher at that point in time, and I think given enough time we will continue to go much higher and for much longer.
Gold
Gold markets have fallen a bit during the course of the week, but it looks like we are still hanging about and consolidating. The 50-Week EMA sits just below near the $1900 level, so I think it’s probably only a matter of time before we would see buyers come back into this market, but if we were to break through the $1900 level, then it’s possible that gold could go much lower, dropping $100 rather quickly.
Bitcoin
Bitcoin had a rather quiet week as it seems like most people are not interested in the crypto market at the moment. Pay close attention to the $25,000 level underneath, because it will be important, and if we break down below that level, then it’s likely that we drop down to the $22,000 level. On the other hand, if we turn around a break above the top of the inverted hammer from the previous week, then we could go looking to reach the $30,000 level at this point, we just have a serious lack of momentum.
