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EUR/USD

The EUR/USD currency pair moved back and forth during the trading week, as it continued to test the 50-week EMA. At this point, it looks like there’s a lot of choppiness and indecision surrounding this pair, and I think that will only continue to be the case going forward.

If the pair were to break down below the levels seen over the last couple of weeks, then it’s possible that it could go down to the 1.03 level. After that, the market could go looking to the parity level, which would obviously attract a lot of attention.

In the short-term, I think the pair could probably continue going back and forth. However, I still favor the downside as Jerome Powell has made it clear that the Federal Reserve is going to remain tight for some time and perhaps even tighten interest rates quicker than many originally thought.

GBP/USD

The GBP/USD currency pair has similarly moved back and forth during the course of the trading week to show signs of hesitation, but it did dip a little bit lower during the week. Because of this, I believe that if the pair were to break down below the bottom of the candlestick for the week, then it could open up a potential run down to the 1.15 level.

To the upside, the 50-week EMA comes into the picture near the 1.22 level, and I think it could offer a bit of resistance. It does appear like the pair has been trying to bounce a bit, but it’s worth noting that several of the previous weekly candlesticks have formed inverted hammers, and therefore I think going higher from here is going to be a bit of a struggle.

USD/JPY

The USD/JPY pair initially tried to rally during the trading week against the Japanese yen, but it found the JPY138 level to be very difficult to overcome. That being said, the JPY138 level is an area that has previously served as resistance. Therefore, I believe this suggests that this area may see a struggle ensue.

However, underneath that level is the 50-week EMA, which is rising and could offer a significant amount of support. The Bank of Japan continues to work against the value of the yen by keeping interest rates down. Therefore, I think it’s probably only a matter of time before the greenback turns around and rallies again.

AUD/USD

The AUD/USD duo got hammered during the trading week. Quite frankly, it now looks like it’s on the verge of breaking down rather significantly. Because of this, I believe it will likely end up going down to the 0.64 level. The 0.67 level above there is an area that could be difficult to overcome, and I think short-term rallies will likely attract a lot of selling pressure.

Gold

Gold markets initially fell during the week, but after the Non-Farm Payroll announcement, the yellow metal has seen a lot of buying pressure as the US dollar took a little bit of a hit.

From a technical analysis standpoint, it’s obvious that gold has found quite a bit of support at the 50-week EMA, as well as near the 50% Fibonacci level. If it were to break above the weekly candlestick, it could possibly make a move toward the $1900 level, an area that has previously seen a lot of selling pressure.

USD/CAD

The USD/CAD duo rallied rather significantly to break above the 1.38 level during the week. If it can break above that area, it would then threaten the 1.40 level. Any break above the 1.40 level would be extraordinarily strong for the US dollar, and the Canadian dollar would get hit as a result. At this point, short-term pullbacks may end up becoming buying opportunities.

AUD/JPY

The AUD/JPY currency pair was hammered against the Japanese yen during the week, and it now appears as though it is being threatened. In fact, the argument could be made that anything below the JPY87 level could kick off a head-and-shoulders pattern. Granted, the area appears rather noisy, but it is still an argument one could make.

On the other hand, if the pair were to rally from here, the JPY92 level above could serve as resistance. If the pair were to break above the JPY92 level, then it could go looking toward the JPY96 level after that.

USD/CHF

The USD/CHF currency pair surrendered a significant amount of gains early in the week, as it plunged down to the 0.92 level. That being said, the pair rests near a major support level for the US dollar against the Swiss franc, so I would not be surprised to see this pair bounce throughout the week.

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