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WTI Crude Oil

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The crude oil market seemed to be a bit negative during the course of the trading week, but oil continued to hang around the $80 level. Because of this, I think the space is just consolidating overall.

The further this market drops, the more likely we are to see value hunters come back in and take advantage of “cheap barrels.” Ultimately, this is a market that I have no interest in shorting. Given enough time, crude oil will probably see some type of rally -- either after a continued dip, or if it can break above the $85 level.

DAX

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The German index fell apart during the course of the week, as it was seen testing a major trend line right around the EUR18,200 level. Underneath there, the market is likely to go looking toward the EUR18,000 level, which has been support multiple times in the past and is a large, round, psychologically significant figure.

Similarly, given enough time, I believe the index will likely rally. However, if we were to see it drop down below the EUR17,500 level, then the market would probably fall apart.

GBP/CHF

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The British pound initially tried to rally against the Swiss franc during the trading week, but it fell to break down below the CHF1.15 level. That being said, there is still plenty of support underneath, and I believe buyers will return if given enough time.

Quite frankly, the lower this pair drops, the more interested I am in buying. This is because the currency cross provides a positive swap, as the Swiss National Bank has begun it’s cutting cycle, while the Bank of England has not. Ultimately, if it can break above the CHF1.17 level, then the market could really start to take off.

Gold

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Gold markets initially shot higher during the course of the trading week, as the yellow metal began to threaten the $2500 region. It then turned around to show signs of negativity, and gold has recently been seen hanging around the $2400 level.

This is an area that previously had served as major resistance, and it should offer quite a bit of support now. All things being equal, even if we do see gold break down below the $2400 level, the $2300 figure could serve as a major support level, as well.

EUR/USD

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The euro initially tried to rally during the course of the trading week, but after the European Central Bank failed to act and left the door open for a September rate cut, the euro was crushed.

The 1.09 level has previously offered a significant amount of resistance. Based upon the formation of the shooting star, it’s possible that the euro may drop down to the 1.08 level, and then potentially further to the 1.07 level. On the other hand, if we were to see it turn around and break above the top of the candlestick for the week, such a move would open up the possibility of the euro going to the 1.10 level above.

Nasdaq 100

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The Nasdaq 100 initially tried to rally during the week, but it has since collapsed. Quite frankly, this appears to be a scenario where traders have been jumping out of high-flying technology stocks, and perhaps jumping into smaller indices, such as the Russell 2000.

The Nasdaq 100 has recently been seen hanging around the 19,500 level, and this is an area that previously has served as support. If the index can break down below there, then I think this would open up the potential for a move down to the 19,000 level.

On the other hand, if we were to see a bounce from here, then the index could challenge the 20,000 level. However, at the moment, I think the market is busy getting a much needed reprieve from the constant upward pressure.

USD/CAD

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The US dollar rallied rather significantly against the Canadian dollar over the past week. At this point, it looks like the 1.38 level above is a major barrier. If the pair can break above that level, then it could go looking toward the 1.39 level.

On the other hand, if we were to see it pull back from here, I believe that the 1.36 level would then offer a significant amount of support, especially as the 50-week EMA sits just below that level.

GBP/USD

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The British pound initially tried to rally during the course of the trading week, only to turn around and show signs of hesitation just below the 1.31 level. This is an area has previously been rather significant, so it’s not a surprise to see the chart forming a little bit of a shooting star.

Furthermore, the market has been dealing with more of a “risk-off” attitude over the last several days, so it makes sense that the US dollar has strengthened as a result. At this point, I would be looking at the 1.2750 level as a potential support level. Alternatively, if we were to see it turn around and break above the 1.31 level, then the market could really start to take off to the upside.

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