Bitcoin
Bitcoin plunged during the trading week to break down below the $67,000 level. It is because of this that I believe Bitcoin is going to drop from here, perhaps reaching down to the $60,000 level. The $60,000 level is a large, round, psychologically significant figure, and an area where it has bounced from before.The $60,000 level being broken to the downside could open up a massive amount of selling, but I think we are about to find out whether or not the buyers are serious about owning this asset, or if Wall Street has just handed their bags off to vulnerable retail traders.
West Texas Intermediate Crude Oil
The crude oil market experienced a strong week, and it seems to be challenging the 50-week EMA. If crude oil can break above that indicator, then the market could go looking to the $80 level. The $80 level is a large, round, psychologically significant figure, and an area that has previously housed a large amount of resistance.If it breaks above the $80 level, then the market would likely take off to the upside and go looking toward the $85 level. Otherwise, short-term support can be found at multiple levels underneath, not the least of which would be near the $75.75 level.
AUD/USD
The Australian dollar continued to put most traders to sleep this week, and I don’t think that’s going to change anytime soon. However, if it managed to break above the high from the last two or three weeks, that could kick off a move to the upside, and the Australian dollar could go looking to the 0.69 level.On the other hand, if it could break down below the lows of the last two weeks, then the Australian dollar could go looking to the 0.6450 level. In general, I think this is a market that continues to see a lot of back-and-forth movement, and confusion reigns.
Nasdaq 100
The Nasdaq 100 saw another bullish week, and it looks like buyers will continue to jump into this market any chance they get. With this being the case, I think we have a situation where anytime the Nasdaq 100 pulls back, there should be plenty of buyers willing to take advantage of value.I believe that the “floor in the market” is all the way down at the 19,000 level, far below where the Nasdaq rests right now. The target over the longer-term will be 20,000, but I think we’ve got a lot of work to do to make that happen.
EUR/GBP
The euro gapped to the downside on Monday, and it then spent most of the week bouncing around.The 0.84 level is an area that I think could continue to offer support. If the market manages to turn around and close below the 0.85 level, this could be a major trade just waiting to happen. On the other hand, if we see it break down below the 0.84 level on a daily close, then such a move could see the market drop down to the 0.83 level.
USD/CAD
The US dollar moved back and forth during the trading week against the Canadian dollar. There is a lot of noise between here and the 1.39 level, so I think it’s going to be a bit of grind to get up to that level.Short-term pullbacks may offer buying opportunities though, with the 1.36 level underneath offering a bit of a floor. It’s also worth noting that the 50-week EMA is rapidly approaching that floor. Interest rate differential between the United States and Canada will continue to attract buyers.
GBP/USD
The British pound initially rallied during the course of the week, but it turned around at the 1.28 level, which is an area that has served as significant resistance more than once. By the end of the week, it ended up forming a bit of a shooting star, so this suggests that there may be more trouble above, and I think this space is going to prove itself to be a “sell the rallies” type of market.However, if it were to break above the high of the week, that would be a very bullish sign, I believe the market could then truly take off to the upside.
CAC 40
The Parisian index had a very rough week, dropping over EUR400 from the open on Monday. At this point, the CAC 40 seems to be testing the EUR7500 level for support.If we see a rally from this point, it would be a massive buying opportunity. However, if the index could break down through there, then the EUR7200 level could be the next target.More By This Author:GBP/JPY Forecast: Rally Faces Resistance At 200 YenUSD/JPY Forecast: Grinding HigherBTC/USD Forecast: Finding Support Again
