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    Weekly Market Snapshot - January 23, 2016: Forex, Equities, Commodities

    January 23, 2016 - (Weekly) FX Strength, Pivot points, Support, Resistance & Fibonacci retracement levels for Currency pairs, Dollar Index, Global Stock Indices & Commodities offered by WorldWideMarkets and a Chart of Interest [US Crude Oil (WTI)]. {updated end of week}

    • Currency Performance - Weekly(Strongest to Weakest)FX_Strength_012316.png
    Market Best Performer Worst Performer Comments
    Forex CADJPY EURCAD Risk aversion abatement saw safe haven currencies (JPY, CHF) weaken while higher yielding "com-dolls" gained a cautious bid. CAD ended the week as the strongest performer after the Bank of Canada left monetary policy unchanged, surprising a market that was anticipating a rate cut. Higher yielding antipodeans (AUD, NZD) also rose.
    Equity Germany Hong Kong Most of the major global equity indices staged a much needed rebound aided by an ECB that just about promised to increase the pace of stimulus by their March meeting. Of course, the last time the market was "certain" that Draghi would act aggressively was December 2015 and, as most will remember, that proved to be a bit of a disappointment.
    Commodity US Crude Oil (WTI) Gold Crude oil began the week by plunging to levels not seen since September 2003 before reversing course to end the week almost 12% higher. The catalyst might have been BOC's decision to leave rates unchanged which probably prompted bears to book some profits. (see chart below)
    • Pivot Points & Fibonacci Retracement Levels - Weekly
      A technical analysis indicator used to try and determine the short-term trend of the market. The pivot point is the average of the high, low and closing prices from the previous trading period. If the market on the following period trades above the pivot point it is thought to be exhibiting bullish sentiment, whereas trading below the pivot point is seen as bearish. The Fibonacci retracement is the potential reversal of a financial instrument's original move in price.(click to enlarge)FOREX_012316_w.png
    • Chart of Interest: US Crude Oil(WTI) - Weekly(click to enlarge)
      Crude oil prices printed a low of $27.5 before rebounding to end the week around $32.2, a move that measured over 17% from low to high. The question that inevitably arises when price action reverses course dramatically is whether this could mark the end of the long term downtrend that saw the commodity nicknamed "black gold" plummet from $110 over the past 18 months. The simple answer is NO. The factors that led to this precipitous decline are still in play namely, the supply glut that shows no signs of diminishing and the lack of demand brought about by weakening global growth, especially in china. The most plausible explanation is that this was a correction precipitated by the extremely oversold condition that has persisted for some time as traders pared their bearish exposure. If this momentum were to continue then prior breached support levels at $33.5 (2009 low) and $37.7 would now become resistance levels which, if reached, could see sellers re-enter the market. Only a clear break of the $40 - $42 range could bring about the possibility that oil has put in a short to mid term bottom. Until, and unless, this happens the path of least resistance argues for more losses in coming weeks with a break of recent lows targeting the $20 - $24 range.Chart_CrudeOil_W_012316.png
    • Global Stock Indices, Commodities & USD -vs- Majors - Weekly(click to enlarge)DOLLAR_012316_w.png

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