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Gold
 

Gold markets have initially fell a bit during the trading week but have turned around to show signs of life again as the market looks like it is still stuck in the middle of a major consolidation range, which is bordered by $3200 at the bottom, and the $3500 level at the top. Ultimately, I do still believe that gold goes higher over the longer term, but we still have a lot of work to do in order to break out. This time of year, is quite often very quiet, so what I am seeing now is not a huge surprise. Buying the dip continues to be the way forward.

EUR/USD
 

The euro plunged during the beginning of the week but has found enough support just below the 1.16 level to turn things around somewhat. This is a market that’s been very bullish for a while, and therefore a bit of a pullback probably made sense. If we were to break down below the 1.15 level, then we could start to talk about a turnaround, but right now I believe we have a situation where we continue to see a lot of noisy trading, but as things stand right now, the uptrend is still very intact.

Nasdaq 100
 

The Nasdaq 100 has been bullish during the week, breaking above a neutral candlestick from the previous one. At this point in time, the market is very bullish, and we have hit a fresh, new all-time high, and therefore I think we’ve got a scenario where the just simply need to see some type of reason to continue the upward trajectory. Pullbacks at this point in time are still very possible, with the 22,250 level being a significant level on the charts that will almost certainly offer a bit of support on any dip. At this point, the Nasdaq 100 means extraordinarily bullish.

GBP/USD
 

The British pound has fallen pretty significantly during the trading week, to reach down toward the 1.3350 level, an area that has been important in the past, so I do believe that this is a market that is trying to find a bit of a bottom after falling apart. That being said, if we were to drop down below the 1.3250 level, then the British pound could be in a bit of trouble, probably due to US dollar strength overall more than anything else. At this point, it does look as if the buyers are willing to defend Sterling.

USD/CAD
 

The US dollar rallied against the Canadian dollar during the bulk of the week, but we continue to see a little bit of trouble here at the 1.38 level, so at this point, it looks like the US dollar is still just simply consolidating against the Canadian dollar. If we can break above the 1.38 level, then it’s possible that the greenback will continue to climb. On the other hand, if we were to break down below the 1.3550 level, then it opens up an even lower breakdown.

Bitcoin
 

Bitcoin broke above the crucial $120,000 level during the week but then turned around to show signs of exhaustion again. Ultimately, this is a market that I think is a little overextended, so a short-term pullback would make a certain amount of sense. We could drop all the way down to the $110,000 level and it will not have changed anything. If we can break above the top of the weekly candlestick, then it opens up an impulsive move for Bitcoin. The US government is currently sitting in a series of bills through Congress that is very crypto friendly, so that might be part of what’s going on.

USD/MXN
 

The US dollar rallied against the Mexican peso during the bulk of the week but has given back a bit of the gains. Ultimately, I think this is a market that, given enough time, will eventually try to break down below the 18.50 MXN level, opening up a drop down to the 17.75 MXN level. Remember, Mexico is a major exporter to the United States and the latest economic numbers coming out of that country have been very surprisingly positive. That being said, Mexico tends to be a major beneficiary, so the Mexican peso will climb in that environment. I remain bearish of this pair.

USD/JPY
 

The US dollar rallied against the Japanese yen during the bulk of the week, piercing the crucial ¥148 level. The ¥148 level has been important multiple times, so if we can break above the top of the candlestick from this past week, the US dollar could make a serious attempt to continue going higher. With the Bank of Japan having to deal with a very weak Japanese bond market, I do favor the upside but I also recognize a lot of patience will be needed.

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