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EUR/USD
(Click on image to enlarge)The euro plunged during most of the trading week, but there now seems to be a little bit of support near the 1.08 level.At this point in time, the market looks as if it is trying to bounce, but there is still a lot of negativity to be found in this space. I believe any rally at this point in time will probably continue to attract short sellers — and short sellers often come to this pair, mainly due to the fact that interest rate spiking in the United States will continue to be a major driver of the US dollar.I have no interest in buying this pair in the short-term unless something changes from a fundamental point of view.
USD/CHF
(Click on image to enlarge)The US dollar rallied again during the course of the week, but it now looks to be struggling a bit with a certain amount of resistance. If it can break above the present area, then the currency pair could go looking to the 0.8750 level, an area that previously has been important due to both support and resistance.I also believe that area would be very difficult to get above. Pulling back from this range could open up the possibility of a move to the 0.8550 level, which is a little bit of a floor. Price action appears to be in the middle of two major areas, so traders should expect to see some choppiness.
NZD/USD
(Click on image to enlarge)The New Zealand dollar fell pretty significantly during the course of the week, as it tested the 0.60 level. Breaking down below the bottom of the candlestick for the previous week could open up the possibility of a move down to the 0.5850 level.If we were to see it turn around and bounce from there, it’s very likely that the market could go looking to the 0.61 level. However, I think this is an area that will likely continue to serve as massive resistance. Additionally, if interest rates in America continue to spike and traders continue to see more “risk-off behavior,” it would make sense to see this pair move negatively.
Nasdaq 100
(Click on image to enlarge)The Nasdaq 100 declined quite a bit during the course of the week to reach the 20,000 level, only for the index to then turn around and bounce rather significantly.In fact, as we are closing out the week, it looks like the Nasdaq has been trying to do everything it can to continue to go much higher. Perhaps it could even reach the 21,000 level before all is said and done.Ultimately, I think that short-term pullbacks could continue to be an issue in this space. I also recognize that many traders are likely bullish on the index, and I think that it’s almost impossible to start shorting the Nasdaq 100 anytime soon.
USD/MXN
(Click on image to enlarge)During the trading week, we have seen the US dollar rally toward the 20 MXN level, but that area has continued to be a major resistance barrier.If the US dollar can break above that area, then the market could likely rise higher. After all, the market has plenty of things to worry about right now, and that makes the US dollar much more attractive than the Mexican peso, which is pretty far out on the risk appetite spectrum.If it can break above the 20 MXN level, that could open up a move higher to the 20.50 MXN level. As things stand right now, I believe that this remains a “buy on the dips” market.
Gold
(Click on image to enlarge)Gold markets experienced another bullish week, and it is probably worth noting that it sold off quite a bit toward the top.That being said, I also recognize that a short-term pullback would probably be the best thing that could happen for gold. Whether or not we get it remains to be seen, but the one thing that I can take away from this chart is that traders are most certainly due for some type of dip to take advantage of.If and when that happens, I would be a major buyer, with the $2600 level being a massive support level
WTI Crude Oil
(Click on image to enlarge)Crude oil rallied a bit during the course of the week, as it continued to see a lot of back and forth movement.At this point, I believe that the $65.50 level is a major floor in the market, and the $85 level above is a major ceiling. As price action has moved closer to the bottom than the top, I suspect that range-bound traders will continue to look at each one of these dips as a potential trading opportunity.Having said that, I don’t necessarily think that the market is going to take off and jump straight in the air. Yet, at this point in time, I also recognize that a little bit of sideways and back-and-forth trading is likely to continue.
USD/JPY
(Click on image to enlarge)The US dollar had a strong week against the Japanese yen, as the space continued to see a lot of noisy behavior.With that being the case, the JPY152 level looks to be a major area of importance. If it can break above there, then the market could very well find itself looking toward the JPY155 level.On the other hand, if we were to see some type of pullback, then I think traders would be looking for more value as the interest rate differential continues to favor the greenback.More By This Author:USD/CAD Forecast: Pressure Resistance Against LoonieEUR/USD Forecast: Strong Support Near 1.08GBP/USD Forecast: British Pound Continues To Fall Against Greenback
Pairs In Focus – Sunday, Oct. 27
