Gold markets initially rallied during the week, but we have given back quite a bit of the gains. We are currently in the middle of a lot of choppy behavior, and I think we have a situation where market participants will have to look at this from a short-term perspective more than anything else, as we look like we are trying to find a reason to continue the overall uptrend but just do not have it at the moment.
The WTI Crude Oil market had a very strong week, breaking toward the crucial $65 level. The market breaking above the $65 level is a very positive sign, so I will be watching that this week. A move above could open up a move to the $68 level, possibly even the $72.50 level. Underneath, we have a massive amount of support near the $60 level, so as long as we can stay above there, I still think there are plenty of buyers in this market as the US economy is stronger than the market had been pricing in previously, if the jobs numbers are to be believed.
The NASDAQ 100 rallied for the week, breaking above the 21,800 level, and threatening overall highs near 42,100. All things being equal though, the market is a little bit extended, and I think we may see some choppy behavior as we try to push through the major swing high that we had melted down from. Short-term pullbacks at this point in time should be expected, but those short-term pullbacks should end up being buying opportunities given enough time.
The euro initially rally during the week but continues to see a lot of resistance near the 1.15 level. This is an area that I think will continue to be significant resistance, and given enough time, it could very well end up being the “ceiling in the market.” If we can break above there, it would obviously be a very bullish sign, but right now I don’t think that is very likely. On the other hand, if we break down below the 1.12 level, that could send the market plunging. As things stand right now, based on the last 2 weekly candlestick, I think we are essentially stuck in the range.
The United States dollar fell against the Canadian dollar during the start of the trading week, but it looks like traders are pushing back a bit, especially after the jobs number on Friday came out stronger than anticipated. At this point in time, we still see a lot of downward pressure, but given enough time we could see buyers return, especially as we are approaching the 200 Week EMA. All things being equal, this is a market that continues to pay buyers to hold onto it and may have pulled back into a major demand area. I will be watching this pair very closely this week.
Silver exploded this week, breaking above the recent double top that had been so difficult to get above. With that being the case, the market is now likely to go looking toward the $40 level, but it is going to take some time to get there. Pullbacks at this point in time should end up being buying opportunities based on the idea of “value” in the market. The silver market got a little bit of a boost on Friday as well, as the jobs number came out hotter than anticipated in the United States, signaling that there might be a bit of industrial demand coming from the United States as well.
The US dollar has initially fallen against the Japanese yen during the trading but then turned around to show signs of strength. The jobs number on Friday had people buying greenback as well, and now it looks like we are threatening the crucial ¥145 level. The ¥145 level of course is a large, round, psychologically significant figure. The ¥142 level underneath is massive support. We are consolidating, but we also look like we are trying to break to the upside given enough time. The interest rate differential will continue to favor the greenback.
The US dollar initially tried to rally a bit during the trading week, but it fell pretty hard to find the 200 Week EMA. The Mexican peso continues to be reasonably strong, and therefore I think we’ve got a situation where traders are taking advantage of the overall interest rate differential that favors Mexico, but with the 19 MXN level underneath offering a significant amount of support, it’ll be interesting to see if we can break down below that level. If we can, then that would be very negative for the pair.
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