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Silver

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Silver markets spent most of the week selling off, as we have seen an increase in volatility across the world. At this point, it’s worth noting that the US dollar sold off a bit but held firm against certain currencies. In other words, it looks like the volatility is only somewhat justified, and I think it’s worth keeping in mind that the $36 level seems to hold a significant amount of support. If the gray metal can recapture the $37.50 level, it will probably re-enter the trading range it was stuck in throughout the previous month.

GBP/USD

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The British pound plunged for most of the week, as it tested the crucial 1.32 region. However, it found a little bit of support at the end of the week as the jobs report in the United States proved to be negative for the US dollar. This put the US dollar on the back foot just a little bit, but it has held its own fairly well, all things considered.

If we were to see a break down below the 50-week EMA at the 1.3063 region, I suspect that the British pound would start to fall apart. If the British pound does fall apart against the US dollar, the greenback would likely swallow everything else right along with it.

EUR/USD

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The euro dropped significantly during the course of the week as it peeked below the 1.15 level for a while. However, it did recover a bit after the US Non-Farm Payroll numbers came out out much weaker than anticipated.

This is an ugly candlestick regardless. Thus, I believe any follow-through whatsoever at this point, namely a breakdown below the bottom of the weekly candlestick from the one that was just printed, could spark some serious trouble for the euro. On the other hand, if it could recapture the 1.16 level, then the currency pair could likely reach the 1.18 level eventually.

Bitcoin

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Bitcoin experienced a rather tough week, but, quite frankly, Bitcoin had been a little stretched. Keep in mind that Bitcoin is now essentially an ETF, so with Wall Street traders out there on summer break over the next few weeks, volume in the space won’t be as strong as it once was.

Because of this, we could very well see Bitcoin continue to pull back, but I suspect that there may be a massive amount of support between the $110,000 mark and the $100,000 level. In other words, this could likely end up being a short-term correction.

USD/MXN

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The US dollar rallied significantly against the Mexican peso over the course of the trading week, despite the fact that Mexico received a 90-day extension on tariffs. This is mainly due to the fact that the Non-Foreign Payroll announcement in the United States was so weak, suggesting that perhaps we may encounter some issues in the US economy.

While one would think that such a scenario would hurt the US dollar, the reality is that Mexico is almost solely dependent on the US economy for exports, and therefore it’s the same thing as a shopkeeper having their best customer lose some purchasing power. While the US dollar struggled against multiple other currencies, the Mexican peso will be especially sensitive.

Gold

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Gold markets initially fell a bit for the week, but the yellow metal then turned around to show signs of extreme strength on Friday. What I do worry about with this market is the fact that it went straight up in the air by roughly $40 on Friday, only for it to then flatten out in dull trading.

In other words, the candlestick you are looking at on the weekly chart represents about two hours’ worth of trading by the time you truly break it down. At this point in time, gold appears to still be in the larger consolidation phase between the $3200 level and the $3500 mark. I don’t think much will change in this space. However, if we were to see a break above the $3500 level, then I think the market could then go looking towards the $3800 area above.

USD/JPY

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The US dollar initially spiked against the Japanese yen during the course of the week, but the jobs report completely wiped out those gains. We now have a bit of a shooting star sitting on top of the 50-day EMA, which was preceded by a hammer formation.

In other words, traders may have a big fight on their hands, and it’ll be interesting to see who wins. As far as the interest rate differential is concerned, it still favors the US dollar. So, while I expect to see a lot of noisy behavior in this pair, I still favor the upside overall, at least until I see it break down below the JPY146 level.

AUD/USD

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The Australian dollar fell pretty significantly during the course of the trading week, as it reached for the 0.6440 level. What I found most interesting, however, is that despite the fact that the US dollar had plenty of reasons to sell off quite drastically against the Aussie on Friday, it held its own.

This may tell you just how weak the Australian dollar is in general, as it has underperformed against the US dollar in comparison to its colleagues for months now. I believe this pair could serve as an indicator to buy the US dollar if it starts to drop.

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