USD/CAD
The US dollar plunged against the Canadian dollar during the week but really accelerated to the downside as the Canadian employment numbers came out stronger than anticipated. Because of this, it looks as if the market is ready to roll over again, as we continue to see schizophrenic behavior. That being said, this week features the FOMC interest rate decision coming out on Wednesday, which could turn this thing around completely. In other words, expect a lot of volatility here.
EUR/JPY
The euro has been very choppy against the Japanese yen during the trading week, as we are hanging around in a fairly tight range after a very explosive move to the upside. All things being equal, this is a market that will continue to focus on the interest rate differential and the fact that Japan cannot raise rates much further, despite the fact that the bond market is doing everything it can to make that happen. Short-term pull banks continue to be buying opportunities for value hunters willing to get involved in the market. To the upside, the ¥184 level is a potential target.
Bitcoin
Bitcoin has been noisy during the course of the week, as we continue to see a lot of choppy volatility, and questions continue to be asked about the validity of the bullish pressure that had been seen previously. That being said, the last couple of weeks have been all about trying to build some type of basing pattern, but quite frankly, this is a market that just cannot seem to find any upward momentum. The $80,000 level remains a significant floor in the market, and as long as we can stay above there, there is at least a chance of Bitcoin recovering. If we break down below that level, then disaster looms.
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NASDAQ 100
The NASDAQ 100 initially pulled back during the trading week, only to turn around and show signs of strength again. Ultimately, it looks as if the 25,000 level is going to end up being a significant floor in the market, and as we head toward the interest rate decision on Wednesday of next week, it’ll be important to pay close attention to how the market behaves. I suspect over the longer term, we still continue to go higher, though.
Gold
Gold markets have been all over the place during the week, but the one thing that they did manage to accomplish is to signify that the $4200 level could very well end up being supported. If the market were to break down below the $4200 level, it could send the market lower, but as things stand right now, it looks like we are going sideways more than anything else. This is a bullish market, and I do think that, given enough time, we will continue to see plenty of buyers trying to push the gold market toward the crucial $4400 level.
Silver
Silver continues to see plenty of explosive upward pressure. The $60 level has been tested, but it looks like we have pulled back from there, and as things stand right now, this is a market that is overdone. We are in the middle of a massive short squeeze, and while these things can last longer than you anticipate, you can also lose a time of money if you get it at the wrong time. Pullbacks at this point are buying opportunities for those looking for value. The $55 level ends up being a bit of a floor from everything I can see.
Crude Oil
The crude oil market had a positive week, but it looks as if we will continue to struggle with the same downtrend line, with the $60 level coming into focus as significant resistance. Ultimately, this is a scenario where it’s likely that sellers will jump into the market sooner or later, as the supply of crude oil is far too strong to demand higher pricing in an environment where it looks like we could very well end up seeing demand destruction overall.
EUR/USD
The euro rallied significantly during the trading week to break toward the 1.17 level. That being said, the market still is in the midst of consolidation, and quite frankly, I don’t know that it has anywhere to go. After all, the FOMC interest rate decision comes out on Wednesday, and it looks like traders are basically biding their time to get into position ahead of what they expect. It’s not the interest rate decision itself that will move the market, but probably the press conference afterwards, which could give us an idea as to where we are going over the longer term. Until then, things are probably rather choppy.
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