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GBP/USD
The British pound rallied during the course of the week, as it had initially pulled back, only for it to turn around and break above the 1.34 level during the middle of the day on Friday. The GBP/USD market has continued to see a lot of bullish behavior, and I think any dips in this space will likely attract attention. With this, I believe that the 1.3250 level should offer a short-term opportunity for traders looking to to take advantage of a “cheap” pound.

USD/CHF
The US dollar had a tough week against the Swiss franc — and most other currencies, to be frank. The market will likely continue to see a lot of noise. I believe that it would be wise to watch the area around the 0.84 mark, as this level has previously served as a major support level. I think this could extend down to the 0.8350 level. The fact that the pair has been closing at these extraordinarily low levels may suggest that traders have a fight on their hands. Ultimately, I’ll be watching to see if the market can turn things around and break above the 0.86 level. If it did, it could end up being an excellent buying opportunity.

USD/CAD
The US dollar also fell significantly against the Canadian dollar during the course of the week, but that should not be a huge surprise considering the US dollar has lost ground against most currencies.The Canadian dollar has been strengthening in recent days. This has everything to do with the Federal Reserve cutting interest rates by 50 basis points during the previous week, and almost nothing to do with oil, which has been collapsing. At this point in time, the 1.34 level will likely continue to be a major support level.

NZD/USD
The New Zealand dollar initially fell during the past week, before it turned around to show signs of strength. The 0.6350 level has been an area of significant resistance previously. At this point, I think it’s only a matter of time before this market rallies rather significantly.Short-term pullbacks at this point will likely serve as potential buying opportunities, unless the currency pair ends up dropping down below the 0.6235 level, which I think would be a sign of further trouble. Keep in mind that the NZD/USD market is highly sensitive to risk appetite, and it often rises and falls depending on global risk appetite.

S&P 500
The S&P 500 experienced another bullish week, as it broke out to the upside, and it looks like it could continue to go higher in the coming days. Short-term pullbacks could serve as buying opportunities, as the 5675 mark has been an important level previously. Even if we were to see a break down below that level, it’s not until the index breaks down below the 5300 level that I would start to question the overall uptrend. To the upside, the 6000 level could be a potential target, but it will likely take some time to get there.

USD/MXN
The US dollar rallied significantly against the Mexican peso, which might be a little bit counter-intuitive to those of you who are not used to trading the USD/MXN currency pair, as this is actually a sign of “risk-off behavior.”If the US economy proves to be slowing down, then such a turn could be seen as the Mexican market losing its biggest customer. The pair has been bouncing around between the 19 MXN and 20 MXN levels. I think that will continue to be the case in the coming days, but this price action still seems to favor the upside. If traders were to see a weekly close above the 20 MXN level, then the Mexican peso would likely get absolutely hammered.

Gold
Gold markets shot higher during the course of the week, but they also witnessed quite a bit of profit-taking on Friday. Short-term pullbacks will likely continue to provide buying opportunities, although this market appears to be overstretched. At this point in time, I think a week or two of negative behavior would be needed before the space could offer value. From a longer-term fundamental standpoint, I have no interest in selling this market short.

WTI Crude Oil
The crude oil market saw quite a bit of downward pressure over the course of the week, as it looks like there have been plenty of buyers underneath. The $65 mark should continue to be a significant support level. As long as price action can stay above that point, then it’s likely that crude oil could continue to perform well. However, it’s also worth noting that a lot of traders have been concerned about the overall growth outlook, and therefore there may be a bit of a sour taste for those willing to get long. In general, I think this space will continue to see a lot of noisy behavior.More By This Author:Gold Forecast: Continues to Take Off
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