Yahoo Finance's Jared Blikre joins Seana Smith from the floor of the New York Stock Exchange to discuss a Goldman Sachs analyst note, which notes negative seasonality for equities in midterm election years heading into the election.
Gold markets initially tried to break above the $1350 level during the week but rolled over to form a bit of a shooting star. However, I see there is more than enough support underneath that could continue to come into the market and singled higher.
The US dollar initially pulled back against the Japanese yen during the week but found enough bullish pressure to reach towards the top of the shooting star from the previous week. This is a very bullish sign, and we have a clear breakout point to watch.
The US dollar fell as low as the 1.25 region during the week but bounced enough to show signs of life. On Friday, we guide a very negative outcome when it comes to the CPI numbers coming out of Canada, so this only exacerbated the upward momentum.
The New Zealand dollar has fallen rather hard during the week, reaching down towards the 0.72 handle. That’s an area that has been supportive in the past, but the fact that we are closing at the very bottom of the candle suggests that we could continue to see more bearish pressure. I think this next week is going to be crucial.
The British pound initially tried to rally against the US dollar during the week but found enough resistance above the 1.43 level to roll over and fall rather significantly. The 1.40 level of course will offer a bit of support, and I think that if we can break down below that level it’s likely that we will probably go looking towards the uptrend line underneath, and of course the sideways support at the 1.3650 level should also offer support.
The British pound initially tried to rally against the Japanese yen during the week, but found the upward momentum lacking, thereby rolling over and reaching towards the 151 handle during the Friday session. However, we have several support levels underneath that should give buyers some hope.
The EUR/USD pair initially rally during the week, testing the 1.24 level before rolling over rather significantly. The market remains in consolidation, so even though this is a negative candle, I don’t put too much into what we are seeing. In fact, I think that it is difficult for longer-term traders to be involved currently.
The Euro rallied significantly during the week, using the 0.8650 level as support. I believe that these markets have a significant amount of resistance at the 0.88 handle, so I think that although we’ve seen some strength, when I look at this chart I see a gradual drift lower.
The Australian dollar has fallen over the course of the week but is near a major support area that could come into play. We are closing out the week at the bottom of the range, so that of course is a negative sign, and sets up a very important week ahead.
Gold market participants sold during the Friday session, reaching down towards the $1335 level. I think that there is plenty of support below though, so it’s only a matter of time before we turn around and rally again. I believe that the $1350 level above is of course massive resistance.
The US dollar initially pulled back against the Japanese yen on Friday but found enough support near the 107.50 level to turn around and rally significantly. I think that the 108 level above is major, so paying attention to this market is crucial now.
The US dollar has initially pulled back during the trading session on Friday, reaching down towards the 1.2625 level, but finding enough bullish pressure turn around and go much higher, reaching towards the vital 1.2750 level.