The British pound has rallied significantly during the course of the week, as it looks like we are trying to break out to the upside. The 50-Week EMA continues to offer support, and now it looks as if the British pound is going to try to take out the 1.26 level. Ultimately, this is a market that looks like given enough time he could break out to the upside, but you should probably think of this more or less as an opportunity to buy on dips more than anything else.
The Euro initially tried to rally during the week as well, as we have reached the 200-Week EMA. We pulled back from there, but now it looks as if we are going to go back and forth in general, with a 1.10 level offering a bit of a magnet for price. Ultimately, if we break down below the bottom of the cancer, then we could see this market go looking to the 1.09 level. On the other hand, if we take off above the top of the candlestick, then it’s possible that we go to the 1.1250 level.
Gold markets have had a somewhat choppy week, but at this point it looks like we are continuing to dance around the $2000 level. This is a market that I think continues to see a lot of noisy behavior, and perhaps even a pullback in order to find a certain amount of value underneath. After all, the market has been very strong for a while, but the last couple of weeks have been more or less a grind. On the other hand, if we can break above the high from 2 weeks ago, then it opens up the possibility of a move to the $2100 level. This is a market that I think continues to be “buy on the dip” but isn’t as aggressively bullish as it once was.
The US dollar rallied during the course of the week but gave back quite a bit of the gain later in the week against the Loonie. The market continues to look like it’s in consolidation overall, but if we can break above the top of the candlestick, then it’s possible that we could see this market go looking to the 1.38 level. On the other hand, if we break down below the bottom of the candlestick, then it’s very possible that the 50-Week EMA underneath gets targeted, which is a little closer to the 1.34 level. Remember, there’s a major correlation between crude oil and the Canadian dollar, something that you should pay close attention to.
The West Texas Intermediate Crude Oil market initially fell during the course of the week but found a little bit of support on Friday to form a more positive tone. That being said, the market continues to see a lot of questions asked about whether or not there is going to be enough demand, and therefore we more likely than not will continue to bounce around in the general vicinity between the 200-Week EMA in the 50-Week EMA. Ultimately, the $77.50 level should offer a little bit of a magnet for price.
The US dollar has gone back and forth during the trading week, as we continue to see a lot of questions as to what is going to happen with the US dollar. Furthermore, you also have to keep in mind that Wednesday features the Federal Reserve announcement, which will have major implications for the greenback. It’s also worth noting that the 0.88 CHF level is an area that’s been important multiple times, so I do think that we are more likely than not to see a little bit of a bounce. However, if we were to break down below the 0.88 level, I could send the US dollar into a bit of the freefall against the Swiss franc.
The S&P 500 initially pulled back just a bit during the trading week, but then turned around to show signs of life again. Ultimately, this is a market that I think given enough time will take off to the upside if Wall Street decides to ignore the Federal Reserve. So far, that’s been the case, and I think it continues to be a very real possibility that they will completely ignore Jerome Powell. On the other hand, if we were to break down below the bottom of the candlestick, then this market could go looking toward the 4000 level.
Bitcoin has recovered quite nicely during the course of the week, with the $30,000 level being targeted yet again. This has been an area of a lot of fighting in the market, and I think that continues to be a bit of an epicenter of trouble. If we can break cleanly above 31,000, that could open up a move to the 35,000 level. On the other hand, if we fail at that level, I would not be surprised at all to see a return to the $26,000 level.