Matt Simpson, CFTe, MSTA
CityIndex
By reviewing and comparing market % performance we can gain a quick and convenient insight into where money is flowing to (and from) to help us refine our trading watchlist for the days or weeks ahead...
FOREX:
AUD: AUDJPY clawed back the week's losses on Friday to reject the downside breakout below 92.20, however it did not do so well against the Kiwi as the AUDNZD pair continues to trade at 5 year lows, closing the week below 1.10.
CAD: Canadian futures continue to trend down and remain one of the weakest currencies amongst the majors, along with JPY and AUD.
CHF: The Swiss futures accelerated back near their October highs, closing the week above 1.20. The most bullish FX pair we follow was CHFJPY and was also last week's biggest mover.
EUR: Bullish momentum increased across all majors excluding the Kiwi. The ECB decided to keep interest rates at record lows, fuelling speculation that they will have to add additional monetary easing action some time next year.
JPY: Sold off heavily on Friday back in line with the bearish trend, wiping off all of the week's corrective gains.
GBP: The British pound futures retraced from its highs and produced a Spinning Top Doji after 4 consecutive bullish weeks. The trend still remains bullish and current price action appears more corrective before a resumption of the uptrend. However GBPCHF has raised questions after a 360 pip sell-off from the November highs.
NZD: The Kiwi had a very bullish week however the weekly futures charts are not so clear and still appear to be in a bearish correction in line with a longer-term bullish trend. Additionally there are divergences amongst the pairs, so whilst Kiwi finished up against AUD and was also the 2nd largest gainer last week against USD, it finished down against GBP and was last week's biggest mover.
USD: The USD finished the week back below 80.50 support to signal further downside. Technically this could still be a bearish correction but the next level of support is around 8.0 and 79.50.
COMMODITIES:
OIL: WTI finally broke above the 95.60 swing high to close with week with a Bullish Engulfing candle. This adds further weight to the suggestion that WTI and Brent have both formed moult-week cycle lows as highlighted in our video last week.
METALS: Gold and Silver still remain technically bearish and trade within bearish channels; however both markets produced 'spike' bottoms to suggest a correction may be approaching.
INDICIES:
US Equities produced long-shadow Hanging Man patterns, but still hover around their record highs after a bullish close following Friday's positive NFP figures. AUS200 accelerate the sell-off and broke out side of a suspected 'corrective' channel.
JPN225 had a positive week with a Bullish Engulfing Pattern to put it back on track with USDJPY.
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