FOMC offers a bearish view of the United States economy
The FOMC kept interest rates unchanged at record low levels this week, with the central bank continuing its pledge to more policy stimulus and ultra-low interest rates. The FOMC policy statement, deliver by Federal Reserve Chair Jerome Powell, noted that the United States economy remains under considerable pressure due to the ongoing spread of COVID-19. The US dollar firmed after the rate decision, while stocks flatlined alongside precious metals and bonds. The US dollar index gave back its gains shortly after and looked set to post its seventh-straight week of losses, as traders continued to sell the greenback.
- The USDJPY pair is only bearish while trading below the 106.00 level, key support is found at the 104.60 and 103.00 levels.
- The USDJPY pair is bullish while trading above the 106.00 level, buyers may test towards the 106.40 and 107.00 resistance levels.
Bitcoin broke above the $11,000 level this week as the pioneer cryptocurrency staged a major technical breakout alongside other top coins. The BTCUSD pair started the week on strong footing, and continued to rally as traders and investors bought into the latest bull run. The technicals for Bitcoin finally caught up with positive fundmentals surrounding the cryptocurrency. Many payment providers, such as Visa and Mastercard, have recently announced introducing digital assets, while some US banks also recently announced that they will be offering crypto custody services for a number of its clients.
- The BTCUSD pair is only bearish while trading below the $9,800 level, key support is found at the $9,200 and $8,400 levels.
- If the BTCUSD pair trades above the $9,800 level, buyers may test towards the $11,400 and $12,500 resistance levels.
The price of gold rose to a record all-time this week, as traders and investors continue to pile-into the yellow-metal, and sell the greenback. Gold rallied to a new all-time trading high, with the yellow-metal surging towards the $1,980 in anctipation of the US dollar currency losing its value due to the ongoing money printing from the Federal Reserve, and government stimulus packages. Silver prices also staged a massive breakout rally alongside gold this week, with the widely used metal briefly trading above the $26.00 resistance level. Silver now looks on track to post its largest monthly trading gain since 2010.
- The USDCAD is only bullish while trading above the 1.3660 level, key resistance is found at the 1.3720 and 1.3800 levels.
- The USDCAD is only bearish while trading below the 1.3660 level, key support is located at the 1.3315 and 1.3210 levels.
Altcoins staged a large breakout this week, as some of the top coins appeared to track Bitcoin higher, following its recent breakout above the psychological $10,000 level. Ethereum rallied towards the $330.00 resistance level, as the second-largest cryptocurrency posted its largest weekly gain since March. Ethereum was supported by the recent news that the much-awaited Ethereum 2.0 network will soon be launched. Litecoin also posted strong double-digit, with the cryptocurrency moving above its 200-day moving average for the first-time this quarter.
- The ETHUSD pair is only bullish while trading above the $280.00 level, key resistance is found at the $350.00 and $400.00 levels.
- If the ETHUSD pair trades below the $280.00 level, key support is located at the $270.00 and $255.00 levels.