EUR/USD
The euro has been a slightly positive market for the week, but it is worth noting that the market is at an extreme low. The 1.03 level is going to be a magnet for price, but I would expect this to be a situation where a bounce is somewhat likely, but I think this will still be a “sell the rally” type of situation. The market continues to see a lot of volatility, but the European Union is still struggling to show signs of strength, and the Fed remains likely to be tight.
USD/JPY
The US dollar continues to see a lot of noise in the Japanese yen, but at this point in time, the 155 level looks like it continues to see a lot of support overall. At this point in time, the market is likely to consolidate, as the market continues to see a lot of carry trading happening. The market has been in an uptrend for a while, and now there is the idea that the Bank of Japan possibly tightening. However, the interest rate differential will continue to see the US dollar favored at this point. Ultimately, this remains a ”buy on the dip” opportunity. The recent action shows hesitancy, but ultimately, this is a market that still favors the upside.
CAD/JPY
The Canadian dollar has been a bit sluggish against most currencies, and this includes the Japanese yen. At this point, it is likely that the pair will move in step with a lot of the yen-related pairs. The 50-Week EMA is right in the middle of the candlestick, and at this point in time, it looks like a market that is going to be more or less “buy on the dip”, although the CAD itself isn’t a currency that I would be bullish of. The 110 yen level continues to see a bit of selling pressure and acts as a bit of a barrier at this point in time.
EUR/GBP
The euro rallied again against the British pound, as we are now hanging about the 50-Week EMA. This being said, the market is at an extreme low, and just bounced from the crucial 0.8250 level, an area that has been important multiple times over the last several years. This massive support level continues to be a major factor in this pair, which is notoriously noisy to begin with. Also, this is a pair that has a lot of noise, as both economies are struggling overall. Ultimately though, this is a market that features two weak currencies.
Bitcoin
The Bitcoin market shot straight up in the air during the week, and it now looks like we are going to try to what we can to reach the highs again. This is a market that continues to look very bullish, as the “risk appetite” continues to improve in this market. The $110,000 level above is a massive barrier just waiting to happen. Short term pullbacks should continue to see a lot of buyers willing to get involved at this point, as it could offer “value” in the coin. I have no interest in shorting this market anytime soon.
Gold
Gold continues to see a lot of buyers, as the market initially dropped a bit, but turned around to show signs of strength. The “buy on the dips” crowd is still involved in this market, and I don’t see that changing anytime soon, as the gold market will continue to react to the geopolitical issues, and of course, the interest rate markets. The market is likely to continue to find the $2700 level as massive support in this market. As long as we can stay above there, the market is likely to continue to see a certain amount of buying value as it occurs.
WTI Crude Oil
Crude oil continues to see a lot of noise, but this past week has seen a lot of buying pressure, but we have seen a significant pullback at the swing high. All things considered, this is a market that has been noisy, but ultimately, this is a market that is trying to sort out the idea of demand, as well as supply. The weekly candlestick is a shooting star, but at this point in time, the market is simply showing itself to be rangebound, albeit in a positive manner as we recently tested the lows yet again.
DAX
The German DAX has been very strong during the trading week, as we have broken above a significant barrier in the form of the 20,500 level. The size of the candlestick is impressive, and it shows that there are a lot of people out there that are bullish of this market. I have no interest in selling, but I recognize that the occasional pullback is possible.
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