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Nasdaq 100

The Nasdaq 100 moved all over the place during the trading week as. I think the real question now is whether or not the index can break above the highs of the week. It is worth noting that one of the Federal Reserve members mentioned on Friday that the Federal Reserve was willing to provide stability for the market if it was needed. I’ll be watching the high of the week, and if the index can break above there, then the worst of the selling could be over.

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USD/CAD

The US dollar was hammered against the Canadian dollar over the trading week, as bonds sold off quite viciously. It now appears to be testing a major area of support, as the 1.39 level has previously seen a lot of resistance.

With that being said, the candle on the chart is very ugly, and I think traders should pay close attention to what happens next. This will be a very interesting pair to watch, because there could be an excellent entry to the upside if things do stabilize a bit in the US. If they do not, we could very easily see the Canadian dollar start to strengthen again, perhaps driving the currency pair down to the 1.36 level.

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EUR/USD

The euro spiked against the US dollar, as the bond market sold off quite drastically in the United States. The currency pair appears to be approaching the 1.15 level, which is an area that has been important in the past.

If it can break above there, then I think the euro could go much higher while the US dollar would likely continue to suffer. That being said, the pair looks to be overextended at the moment, and it would not be surprising to see this market turn around at the first signs of amicable trade relations.

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GBP/JPY

The British pound fluctuated throughout the week, as it marked the JPY190 level as resistance and the JPY185 level as support. It ended up forming a very neutral candlestick on the charts. This signals to me that the pair is at the bottom of its major range, and that this might be one of the best upside plays in the coming week if the Japanese yen loosens its grip on financial markets.

In other words, even a small amount of positive price action could see the market move higher from here.

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GBP/USD

The British pound initially fell against the US dollar during the week, as it declined to the 1.29 level. This is an area where both the 50-week EMA and the 200-week EMA indicators can be seen, so the currency pair may see more interest.

The pair turned around and rallied well above the 1.30 level, but it is worth noting that this currency cross has been underperforming many others when it comes to trading the greenback. The next target could be the 1.35 level, but if the US dollar starts to strengthen at all this week, the British pound might be the first currency to see the effects.

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EUR/CHF

The euro gapped lower against the Swiss franc, turned around to fill that gap, found plenty of resistance near the 0.95 level, and then turned around as a massive sell-off sent the currency pair back down to the bottom.

It’s worth noting that the Swiss franc has continued to be one of the stronger currencies out there, and I have seen this pattern play out in anything related to the Swiss franc. If a break down below the 0.92 level was to occur, then the bottom could fall out. However, such a move might spark intervention from the Swiss National Bank.

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DAX

The German DAX initially fell during the week to test the EUR19,000 level, but it has since turned around to rally quite significantly. It has reached above the 50-week EMA again, and at one point in time it even pierced the crucial EUR21,000 level.

That being said, the index gave back some of the gains, although the EUR20,000 level may garner some interest. Any short-term pullbacks that occur would likely get bought into, unless a major risk-off event was to interrupt.

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USD/CHF

The US dollar initially gapped lower against the Swiss franc during the week, before it then turned around to show signs of strength. However, it then got hammered further.

The Swiss franc has been strengthening against most things, and the US dollar isn't any different. Short-term rallies in the currency pair would likely end up serving as selling opportunities. That is, of course, unless the US dollar is able to take off against other currencies.

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