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USD/CAD

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The US dollar fell significantly against the Canadian dollar during the trading week, as the Bank of Canada and the Federal Reserve both held interest rate decisions. When the Federal Reserve suggested that a December rate cut isn’t necessarily a given at this point, the US dollar recovered quite rapidly.

At this point, the USD/CAD currency pair has been comfortably hanging around the 1.40 level, which is an area that has previously seen a notable amount of price action. A break above the highs of the previous week could potentially see the US dollar reach toward the 1.4250 level.

EUR/GBP

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The euro rallied against the British pound during the week to break above the crucial 0.8750 level, which is an area that has seen significant resistance more than once. Breaking above that level suggests that the market could be ready to go much higher, perhaps even to the 0.89 level. However, it should be kept in mind that the British pound itself is rather weak.

Nasdaq 100

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The Nasdaq 100 broke above the top of the trading channel that it was stuck in for months. The index now appears poised to take off to the upside. Short-term pullbacks may offer some value, and I believe the Nasdaq 100 may see some "buy on the dips" price action drive it up further. 

The 25,000 level underneath may offer some support, as it previously offered resistance. I think the space will likely continue to see a lot of upward momentum over the longer-term, but the index may be a little overextended in the short-term.

Gold

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Gold fell significantly during the week to break below the $4000 level, but it has since turned around quite significantly to break back above that level. That being said, the candlestick structure seems likely to form a hammer, which would obviously be a bullish sign.

However, I think the best case scenario for gold at the moment is for it to move sideways in an effort to shed some of the market's excess froth. Ultimately, a break down below the lows of the past week could see the yellow metal fall down to the $3800 level below.

Natural Gas

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Natural gas markets gapped higher to kick off the trading week, as the market rolled over into the December contract. At this point, natural gas seems to be poised to break well above the $4.00 level, but I think a short-term pullback could be likely.

A short-term pullback would potentially offer value. Such a move could also take advantage of the colder temperatures as we progress into the winter months, as the cold will, of course, drive up the price.

EUR/USD

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The euro initially tried to rally a bit during the course of the trading week, only for it to turn around and break down below the 1.1550 level, opening up the possibility of a fall down to the 1.14 handle.

This is a market that has been gradually rolling over since the United States started cutting interest rates, even though most people think it would work the other way around. This is because the Federal Reserve doesn’t know that we need to automatically cut multiple months in a row, and, of course, there are numerous concerns about the global economy. Ultimately, the euro looks to be under some serious pressure at the moment.

Crude Oil

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The light sweet crude oil market fell a bit during the course of the trading week, as the $62 level offered a certain amount of resistance. The $62 level was previously support, and is now offering significant resistance.

All things being equal, this is a market that must contend with demand perhaps not meeting the massive amount of supply available. Although the US levied more sanctions on Russia, the reality is that oil will only continue to flow into the market. Traders should approach oil with a cautious eye due to its volatility, and I will be looking out for fading signs of exhaustion.

USD/JPY

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The US dollar fell significantly during the trading week, only for it to turn around and show signs of life. Breaking above the JPY154 level is an important victory to take note of, just as the break above the JPY153 level was.

All things being equal, this is a market that will likely continue to see "buy on the dips" sentiment, especially as the interest rate differential continues to favor the US dollar and the Bank of Japan continues to be loose with its monetary policy.

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