Bitcoin saw a notable recovery earlier this week, crossing the $120,000 mark, although it began to show signs of fatigue. The current candlestick formation resembles a shooting star, indicating that Bitcoin might not be poised for significant gains just yet. A pullback seems reasonable, especially as summer winds down. There’s solid support around the $110,000 level, acting as a potential market floor.
The Nasdaq 100 had an attempt at a rally this week but also started to lose momentum, with a shooting star candlestick suggesting a possible need for a pullback to attract buyers. If we can pinpoint some value beneath, buyers may find opportunities near the 22,800 mark, making it logical to engage in the market. The ongoing “artificial intelligence trade” remains a key driver of positive sentiment.
Silver experienced a significant drop this week, yet it continues to hold onto the $37.50 support level. This area has proven to be crucial in the past, leading to expectations for a “buy the dip” mentality. While there’s some exhaustion in the market, it’s surprising to think it might dip below the $36 mark. I feel like we might just be biding time until September when liquidity is likely to rise again.
Gold took a considerable hit, dropping below the $3,400 threshold for the week. Yet, it’s interesting to note that the daily charts indicate more of a sideways market over the past few sessions. Despite the fluctuations, we remain in a broader uptrend, making any short-term pullbacks potentially attractive. If you look closely, you might even spot a rising triangle pattern. The next few weeks could see a lot of consolidation before making substantive moves.
The British pound saw a strong rally this week but is still facing considerable resistance around the 1.3550 range. So while the last couple of weeks appear bullish, we’re encountering the same resistance levels. The US dollar theoretically stands to benefit from anticipated Federal Reserve rate cuts, but concerns about global economic growth could create bumps in the road.
The euro had a rough start to the week but found support near the 1.16 level, allowing it to rally and close around 1.17. This level is critical, and breaking past it could lead to attention on the 1.18 level for future movements.
The US dollar faces some challenges against the Japanese yen, especially around the 148 yen mark, which seems to be a sticky point for bulls. The 50-week EMA is also in play, and a break here could pave the way for pushing towards 151.50 yen. Yet, any downward movement may find support near 145 yen.
The US dollar gained against the Mexican peso this week, hovering within a range between 18.50 and 19 MXN. The 200-week EMA sits just above the notable 19 MXN level, acting as a ceiling for now. We seem to be in a wait-and-see mode until more liquidity enters the market in September, likely continuing this range-bound behavior for the time being.
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