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Nikkei 225
Over the last week, we have seen the Nikkei 225 index rally, but it has been stuck in a range of about JPY2500 points. The JPY40,000 level above continues to be like a brick wall, so if traders can get a daily close above there, then I think the Nikkei 225 would start to take off.If it pulls back, the JPY37,500 level would continue to be supported, especially now that the 50-week EMA appears to be approaching that level as well. In other words, I think that this remains a “buy on the dips” market, but I also recognize that the index is still stuck in a short range.
S&P 500
The S&P 500 rallied again during the week, and I fully anticipate that any time it pulls back, there will likely be plenty of buyers willing to jump in and try to take advantage of the rally that happens at the end of every year.Short-term pullbacks should continue to serve as buying opportunities, with the 6000 level offering a certain amount of support. After all, the 6000 mark was previously a point of resistance, and now I think it will continue to offer support on the way up.
GBP/USD
The British pound moved all over the place during the course of the trading week, as it continued to hang around the 1.2750 level. The 1.2750 level has been an important figure previously, and now the 200-week EMA has been hanging around the same area, as well as the 50-week EMA.In other words, there’s a lot of technical noise here. If the British pound can break above the highs of the week, it could then go looking toward the 1.30 level. The Federal Reserve is expected to cut interest rates by 25 basis points this month, so perhaps that might be part of what’s going on here.
EUR/USD
The euro similarly moved all over the place during the week, and although its price action displays a fairly neutral candlestick on the weekly chart, it’s also worth noting that the Friday candlestick was very negative. What this tells me is that the euro will likely continue to bounce around in this area. It’s additionally worth noting that the euro appears to be sitting on a significant amount of support.
Gold
Gold markets initially plunged during the course of the trading week, but now they look as if they are starting to find support again. Therefore, I think the yellow metal could potentially find its way back to the upside.The $2725 level looks to be a major barrier above, but if it can clear that, there’s not much on this chart that would keep gold from going to the $2800 level. Short-term pullbacks could be expected, but I think people would look at these pullbacks as buying opportunities to pick up “cheap gold.”
USD/JPY
The US dollar moved all over the place against the Japanese yen during the week. The neutral looking candlestick is actually a good thing, because it may stabilize the pair after the beating that it took during the previous week.At this point, if the market can clear the JPY151.50 level, then I think it would have a good shot at going higher. If it breaks down below the bottom of the weekly candlestick, then it could start to threaten the 50% Fibonacci retracement level, which is an area that a lot of technical traders will likely be paying close attention to.
NZD/USD
The New Zealand dollar looks horrible. It’s probably only a matter of time before it breaks down even further, perhaps trying to get down to the 0.56 level. Unless I see the US dollar falling apart across the board, I don’t trust any rally in the New Zealand dollar. This is especially true now that Australia released a GDP number that was lower than anticipated, which does have a bit of a “knock on effect” on the Kiwi dollar.
AUD/USD
Speaking of the Australian dollar, it looks very much like it could go down to the 0.6250 level. The week ended up being horrific for the Australian dollar, and now it seems to be threatening the beginning of major support.While I don’t necessarily think that the Australian dollar is going to suddenly go up in flames, I do think that any time this pair rallies, we will continue to see traders fade the first signs of exhaustion. As mentioned previously, GDP quarter-over-quarter in Australia came in lighter than anticipated this week.More By This Author:GBP/USD Forecast: Pressure Upside Break OutGBP/CHF Forecast: Stuck In RangeUSD/CAD Forecast: US Dollar Dips Slightly Against Loonie
