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EUR/USD

The EUR/USD currency pair rallied a bit during the trading week, slicing through the 200-week EMA and the 1.12 level. Now that the pair has broken above that level, based upon the idea that the inflation issues in the United States are cooling down, it looks like the euro might end up being one of the big winners in the coming week.

Short-term pullbacks at this point in time should continue to attract buyers, with the 1.10 level underneath offering a certain amount of support as it is a large, psychologically significant figure.

GBP/USD

The GBP/USD currency pair bounced from the 200-week EMA, and then jumped above the 1.30 level. By doing so, the market has now taken on the 1.31 handle, and it looks like it could go as high as the 1.3250 level over the longer-term. 

Short-term pullbacks could become buying opportunities based on what the charts show and the idea that inflation is going to drop in America. At the same time, the United Kingdom still has to fight rising inflation, which means a tightening of monetary policy. Underneath, the 1.2650 level could serve as a bit of a floor for the market.

USD/JPY

The USD/JPY pair plunged rather significantly during the course of the trading week, as inflation numbers in the United States suggest that the battle against inflation is starting to cool off, and that drove down some of the bond market's expectations. 

That being said, the JPY138 level is an area that has previously seen some resistance in the form of an ascending triangle, and it’s worth noting that Friday saw a bit of a turnaround. If the market can take off and recapture the JPY140 level, then I think this currency pair could have a real shot at going back to the recent highs.

USD/CAD

The USD/CAD currency pair spent most of the week falling, but it also found quite a bit of support at the 200-week EMA, which is right around the 1.31 level. 

The market may continue to experience noise in this area, but if the pair can take out the top of the candlestick from the previous week and the 50-week EMA, the US dollar could find itself trading near the 1.36 level rather quickly. If the pair were to break down below the 200-week EMA and touch the bottom of the candlestick for the week, then I think the 1.30 level would be targeted next.

AUD/JPY

The Australian dollar turned around against the Japanese yen during the course the week after initially plunging toward the 50-week EMA. The 50-week EMA does often attract a certain amount of attention, and the fact that the weekly candlestick has formed a hammer suggests that the market is likely to turn around and rally. 

If we were to see a break above the top of the candlestick, then the pair could go looking towards the JPY97.50 level above. Keep in mind that a lot of this will come down to risk appetite, as well.

NZD/USD

The New Zealand dollar experienced a strong week, breaking above the 0.6350 level and threatening the idea of breaking out to the 0.65 handle. On the other hand, if the New Zealand dollar turns around and pulls back from here, then it could go looking to the 0.62 level. 

All things being equal, the market is likely to continue to move based on the US dollar more than anything else, so keep an eye on what’s going on in the US Dollar Index, as the greenback tends to move in the same direction overall.

AUD/USD

The AUD/USD currency pair rallied significantly during the course of the trading week to test the 0.69 level, an area that is a large, psychologically significant figure. If the pair could break above the top of the candlestick, then it could likely head towards the 0.7050 level.

On the other hand, if it were instead to turn around and break down below the 0.68 level, then such a move would open up a potential return toward the 50-week EMA. Much like the New Zealand dollar, this is going to be more about the US dollar than anything else.

Nasdaq 100

The Nasdaq 100 has broken well above the 15,250 level, and it even broke above the 15,500 level. Short-term pullbacks could offer opportunities to get long, as this is a market that obviously looks like it’s ready to go much higher. 

I have no interest in shorting this market, and I do think that this will continue to be a “buy on the dip” type of situation. Shorting isn’t even a thought in my mind until I see a break down below the 50-week EMA, which is closer to the 14,000 level.

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