Silver
The previous week for silver was a very difficult one. The market tried to reach the $32.35 level, but as soon as silver got anywhere near there, the space started to see a lot of selling pressure. As of the time of writing, silver has plummeted down to the $30.44 level, and now it seems to be looking for some type of support.I think there is support to be found near the $30 level, but I would be watching for some type of bounce before getting involved to the upside. As far as selling is concerned, I am a bit hesitant to do so at the moment.
Gold
Gold initially took off to the upside during the week as well, but unlike silver, it looks set to end the week with at least a little bit of positive pricing. Nonetheless, I believe that gold is approaching a larger consolidation area, with the $2800 level potentially serving as a major barrier to overcome. I think that between now and the end of the year, traders will probably see a lot of back-and-forth consolidation, but I still favor buying dips.
GBP/USD
The British pound initially tried to rally during the trading week, but it started to pull back just a bit as it approached the 50-week EMA. Perhaps more importantly, Friday saw the GDP numbers cause havoc for the market, as the British economy slowed down.The expected reading of 0.1% was met with an actual reading of -0.1% month-over-month. In a week that saw the Swiss National Bank panic and cut 50 basis points, while the European Central Bank cut rates by 25 basis points, it looks like money will continue to flow toward North America.
EUR/USD
The euro initially tried to rally during the trading week before it fell toward the 1.05 level. At this point, it looks like the market is just simply consolidating right around that 1.05 level, and I don’t see much that would lead me to believe there could still be a massive run higher.In fact, I would not be impressed at all by a rally in this market unless the euro could reach above the 1.0750 level. I suspect the space will continue to see short-term rallies fade going forward, as the European economy certainly appears to be struggling, to say the least.
Nasdaq 100
The Nasdaq 100 witnessed a rather noisy week, and it appeared to be caught on fire as it approached the weekend. However, it seems to have gained a small amount of its gains back. I think the Nasdaq 100 will likely experience some more consolidation going forward, but perhaps with a “buy on the dips” mentality due to the ‘Santa Claus rally.’ Any short-term pullbacks that arise will likely be bought into.
USD/CHF
The US dollar rose higher against the Swiss franc, and that should not be a huge surprise due to the fact that the US dollar was strong to begin with. However, the Swiss National Bank cut interest rates by 50 basis points this week, more than the expected 25 bps. With that, it looks like the Swiss Bank is quite concerned about the economy.With this being the case, I think the US dollar will continue to go higher, and any short-term pullbacks could serve as buying opportunities. I have no interest in shorting this pair.
West Texas Intermediate Crude Oil
Crude oil witnessed a very strong week, as it looked like it was trying to reach for the $72.50 level. This is an area that’s been resistant a couple of times in the past, so it could be worth watching.I think at this juncture, the market is trying to determine whether or not it can finally break out above there. I believe this will happen sooner or later. If crude oil could move above the $72.50 level, I suspect that the market would get bullish rather quickly. As things stand right now, I think the space is still consolidating.
USD/JPY
The US dollar rose against the Japanese yen, as the US dollar continues to be the currency that most people want. The Bank of Japan seemingly has no chance of tightening monetary policy, and traders are now betting that there is an 80% chance that the Federal Reserve will have to sit still in January. While I do expect to see an interest rate cut at the December meeting, it’s very likely that Jerome Powell will suggest that they will have to sit still for a while.More By This Author:ETH/USD Forecast: Can ETH Break $4,000?BTC/USD Forex Signal: Eyes $106K Amid RecoveryCopper Forecast: Continues To Look Like A Value Trade
