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Pairs in Focus This Week- EUR/USD, USD/CAD, Gold, GBP/USD, USD/JPY, Oil, NASDAQ 100, FTSE 100

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EUR/USD

The EUR/USD initially did fall during the trading we, only to turn around and show signs of life. Ultimately, this is a market that I think continues to see a lot of volatility, but it is a bit oversold. I do believe at this point, any move toward the parity level is going to be repudiated, so I think short-term recovery means a longer-term shorting opportunity as the European Union is going to continue to see a lot of issues. A lack of energy is just the beginning of all of the problems.

Pairs in Focus This Week- EUR/USD, USD/CAD, Gold, GBP/USD, USD/JPY, Oil, NASDAQ 100, FTSE 100

USD/CAD

The US dollar has exploded higher against the Canadian dollar yet again during the week, as we are starting to get a little overdone. The 1.38 level continues to be an area of resistance, and it is an area that has been important more than once. Ultimately, I think that any short-term pullback probably opens the possibility of a buying opportunity, but regardless, I don’t have any interest whatsoever in trying to sell the spare, because I think the USD/CAD is about the pickup even more steam with all of the geopolitical and economic issues out there. Furthermore, you have a lack of demand for oil, but as most markets get lopsided, they do tend to revert to the mean of it.

Pairs in Focus This Week- EUR/USD, USD/CAD, Gold, GBP/USD, USD/JPY, Oil, NASDAQ 100, FTSE 100

Gold

Gold markets initially plunged during the week, reaching fresh, new lows. That being said, the market then try to get to the $1680 level, before pulling back a bit. I think at this point in time, does make sense that we would see selling pressure in that general vicinity, especially as the 200-Week EMA is sitting in the same area. Ultimately, this is a market that I think continues to see a lot of negativity as a US dollar continues to strengthen overall. Pay attention to not only the US dollar, but interest rates in America as they have massive negative correlations to this market.

Pairs in Focus This Week- EUR/USD, USD/CAD, Gold, GBP/USD, USD/JPY, Oil, NASDAQ 100, FTSE 100

GBP/USD

The GBP/USD recovered after initially plunging to the 1.05 level. This is a market that continues to see a lot of noisy behavior, so at this point in time I think it’s only a matter of time before we see sellers come back into this market. The 1.15 level is a major resistance barrier, and therefore I think that this is a simple recovery that is going to get faded given enough time. After all, the market has gotten a bit overdone, but at this point in time I think that it’s clear that the US dollar is going to continue to be the main currency to own.

Pairs in Focus This Week- EUR/USD, USD/CAD, Gold, GBP/USD, USD/JPY, Oil, NASDAQ 100, FTSE 100

USD/JPY

The USD/JPY has rallied a bit during the course of the week, testing the ¥145 level. This is an area that is very resistive, so does make a certain amount of sense that we have stalled here. I suspect that the US dollar will continue to be bullish against the Japanese and, but I also look at this as a scenario where we are trying to consolidate in order to continue the otherwise upward momentum anyway. The ¥140 level underneath could offer a significant amount of support on any significant selloff. The Bank of Japan should be thought of in the back of your mind, but they are more worried about the rate of change of the market than the actual level.

Pairs in Focus This Week- EUR/USD, USD/CAD, Gold, GBP/USD, USD/JPY, Oil, NASDAQ 100, FTSE 100

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gone back and forth during the course of the week, showing signs of life. Ultimately, the market is still in a descending channel, and I think we will continue to have an overall negative pressure on this market, as we have seen demand for crude oil dwindle. Whether or not that continues as a completely different question, but I would be paying close attention to the $85 level. This is an area that previously had been resistant, and of course has been supported. With this, I think you are looking at a “fade the rally” type of week.

Pairs in Focus This Week- EUR/USD, USD/CAD, Gold, GBP/USD, USD/JPY, Oil, NASDAQ 100, FTSE 100

NASDAQ 100

The NASDAQ 100 initially tried to recover during the week but has turned around to show signs of negativity. At this point, it looks as if the 11,000 level will have to be broken through for the next move lower. In the short term, I suspect that this is a market that will continue to fade rallies that show signs of exhaustion, as earnings estimates, and forward guidance is starting to come down. Furthermore, we see a significant amount of strength in the interest rate market, then the NASDAQ 100 will continue to fall.

Pairs in Focus This Week- EUR/USD, USD/CAD, Gold, GBP/USD, USD/JPY, Oil, NASDAQ 100, FTSE 100

FTSE 100

The FTSE 100 initially tried to rally during the week but then plunged below the 7000 level. At this point, the market is now starting to threaten a significant support level and move down below the 6800 level could open the possibility of a bigger move to the downside. At this point, any rally would be looked at with suspicion, as the British economy is tenuous at best, and of course the geopolitical situation in the European Union between all parties involved in Russia continues to deteriorate. At this point, this is a market that I think eventually starts to break down.

Pairs in Focus This Week- EUR/USD, USD/CAD, Gold, GBP/USD, USD/JPY, Oil, NASDAQ 100, FTSE 100

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