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AUD/USD

The AUD/USD currency pair fell rather hard during the course of the week, as it was seen slicing through the 0.66 level. That being said, the market appears to have a “fade the rally” look about it on the short-term charts, as the pair may eventually work its way down to the 0.64 level.

At this point, if the pair were to break back above the 0.66 level, it would be a major victory for the Australian dollar, as it looks like markets are starting to run toward safety. I remain bearish.

USD/JPY

The USD/JPY currency pair exploded upward against the Japanese yen during trading this past week, and now the market appears to be reaching for the JPY140 level. At this point, it looks as though the pair may continue to go much higher, and if it can break above the JPY142 level, then it may go looking toward the JPY145 level next.

Short-term pullbacks may become a nice buying opportunity, as the JPY138 level should be a “hard floor in the market,” as it is the top of an ascending triangle that the pair just broke out of. It should be noted that the Bank of Japan and its monetary policy will continue to put downward pressure on the value of the Japanese yen.

GBP/USD

The GBP/USD pair fell hard against the greenback during the trading week, as the pair now appears to be testing the 50-week EMA. 

I suspect that the next week or two are going to be very noisy in the Forex markets as many try to determine whether or not the global slowdown is going to continue to have money running toward the greenback. The British pound has been a fairly strong performer over the last couple of months, so this might be nothing more than a dip within a shorter-term uptrend.

EUR/USD

The EUR/USD currency pair fell during the week to test a major uptrend line.

As it has recently been hanging around the 1.07 level, it will be interesting to see whether or not buyers come back to try to pick up “cheap euros.” If they do, then this could be a nice buying opportunity, but if we see a break down below the 50-week EMA, then I believe that the euro will go looking toward the 1.05 level underneath, which was a major swing low as of late. I am bearish, but I must see the area below cleared before I can start shorting again.

NZD/USD

The NZD/USD pair broke down significantly during the week, as it was plunging toward the 0.60 level. At this point, if it were to break down below the 0.60 level, then that could open up a floodgate of selling, so I will be paying close attention to that area. If it bounces from here, then I will be looking to fade rallies at the first signs of exhaustion, as such a move would likely send quite a bit of negative pressure into the market.

USD/CAD

The USD/CAD currency pair rallied against the Canadian dollar during a noisy trading week. Ultimately, this is a market that I believe is looking toward the 1.3750 level. After that, then the pair could go looking to the 1.40 level above. Underneath the 1.34 level is where the 50-week EMA appears to be offering support.

US Oil

The US oil markets rallied a bit during the trading week, but they ultimately showed quite a bit of exhaustion. With that being the case, I think the coming weeks may see quite a bit of noise, with the $80 level being important. If we do see a fade from there, I would be willing to short. I think oil will continue to bounce around in what I would consider to be a “summer range.”

Gold

Gold markets fell hard during the week, but they have recently been testing a major uptrend line. Somewhere around the $1940 level is where I would expect to see a little bit of support, but I will need to see momentum to the upside to get long. As far as shorting is concerned, I’m not quite ready to do so yet, but it is starting to look like the $2100 level is still a bridge too far.

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