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GBP/USD

The GBP/USD currency pair rallied significantly during the course of the week, with most of the gains coming on Friday after the Non-Farm Payroll numbers reported 209,000 jobs were added last month, well under the 225,000 expected. Furthermore, the previous month had been revised down, so it makes sense that people are selling off the US dollar as the inflation situation in the United Kingdom continues to strengthen.

A break above the weekly range could see the British pound look into the 1.30 level. Otherwise, the pair could pull back toward the 1.2650 level. This is an area that has been supported previously, and it could therefore set up either a move higher or some type of consolidation for the week.

EUR/USD

The EUR/USD currency pair initially pulled back just a bit during the course of the week, but it remained in a range despite obviously experiencing a very bullish Friday session along with the British pound.

It ended up forming a bit of a hammer, and this suggests that the 200-week EMA above is worth paying attention to as it rests just below the 1.11 level. If it can clear that level, it’s likely that the euro could continue to take off to the upside. On the other hand, if we see a break down below the 50-EMA, ostensibly the bottom of the candlestick, then it could drop down toward the 1.07 level.

Silver

Silver witnessed a slightly positive week, and it looks like the metal is ready to test the 50-week EMA above. If it can take that out, then I believe silver could then go looking toward the $24.25 level.

On the other hand, if it turns around and breaks down below the $22 level, then the metal could drop significantly from that point. That being said, I think we will continue to see sideways action with more of an upward tilt. Furthermore, you may want to pay attention to the US dollar, as there appears to be a negative correlation between the two markets.

Gold

Gold markets initially fell a bit during the course of the trading week, reaching down toward $1900 level before turning around. All things being equal, the metal ended up forming a bit of a hammer, and therefore if it could break above the 50-week EMA, then it’s possible that gold could go looking towards the $1950 level.

The market could then go looking to the $2000 level, which is a large, psychologically significant figure, and an area where I would expect to see a lot of noise. As things stand right now, it looks as though the market may be turning around to show signs of support.

USD/JPY

The USD/JPY pair initially tried to rally during the course of the week, but then it broke down through the JPY142.50 level, which is an area that’s been important in the past.

Now that it is below that point, it’s likely that the pair could continue to drift a bit lower, as traders continue to discuss whether or not the Federal Reserve is going to change its attitude. It appears to be nowhere near doing that. A short-term pullback could be a buying opportunity, and some type of bounce would offer the possibility of a move higher.

USD/CAD

The USD/CAD currency pair initially tried to rally during the course of the week as well, but it pulled back from the 38.2% Fibonacci level and then broke down below the 1.33 level. If the market were to continue to go lower, the 200-week EMA underneath could offer support.

If the pair were to break down below there, then it’s possible that the market could drop down to the 1.30 level, or possibly even the 1.28 level. On the other hand, if we were to see a break above the 50-week EMA, then it’s possible that the currency pair could go looking towards the 1.36 level.

GBP/JPY

The GBP/JPY pair similarly tried to rally during the course of the week, but then it turned around to show signs of selling pressure. The JPY184 level is an area where we’ve seen a lot of resistance. Therefore, I think if the pair could break down below that level, then the JPY180 could be within reach.

EUR/GBP

The EUR/GBP pair initially fell a bit during the week, but it seemed to be trying to find some support near the 0.85 level. If we were to see a break down below that point, then it’s possible that the market could go looking down to the 0.83 level, a level that has been important previously. On the other hand, if the pair were to turn around and take out the 0.87 level, then the euro could really start to take off, perhaps reaching the 0.89 level.

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