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Apr 13, 2018

U.S DOLLAR REMAINS MIXED AS FOMC AND ECB MEETING MINUTES DIVERGE

FED MORE HAWKISH

The U.S dollar came under renewed selling pressure in the early part of the trading week, following mixed U.S inflation reports and a lack of overall demand for greenbacks above the key 90.00 level. However, the U.S dollar received a mid-week boost, as the FOMC Meeting Minutes revealed that Federal Reserve members are becoming more hawkish on the U.S economy, including higher GDP and Inflation forecasts. The EURUSD pair faded lower from the 1.2396 level, after the ECB Meeting Minutes showed the Governing Council striking a dovish tone.

  • The USDJPY pair remains bullish while trading above the 107.00 level, further upside towards 108.00 and 108.45 seems likely.

  • Should the USDJPY pair decline below the 107.00 level, sellers may then test towards the 106.60 and 106.00 support levels.

COMMODITY CURRENCY STRENGTH

Commodity related currencies moved higher against the greenback this week, largely boosted by rising commodity prices and renewed risk-on trading sentiment. A sharp rise in oil prices boosted the Canadian dollar, with the USDCAD pair declining to its lowest trading level in over seven-weeks. Antipodean currencies also made strong gains against the greenback, with the NZDUSD pair rising towards the key $0.7400 level, while the AUDUSD pair continued to climb steadily towards the $0.7800 resistance level.

  • The NZDUSD pair remains bullish while trading above the $0.7320 level, further upside towards $0.7430 and $0.7500 seems possible.

  • Should price-action decline below the $0.7320 level, support is then found at the $0.7280 and $0.7220 levels.

GOLD SAFE HAVEN

Increased tensions surrounding Syria and the United States boosted demand for gold this week, with the yellow metal moving ever closer to a multi-year upside technical breakout. The value of spot gold traded as high as $1,360 per ounce at one point, after U.S President Donald Trump threatened a possible missile strike against Syria. Gold has long been sought after as a safe-haven asset class in times of geo-political uncertainty, investors will often move into the perceived safety of gold when the U.S dollar is becoming a less favorable alternative.

  • Spot gold remains bullish while trading above the $1,330 level, further upside towards $1,375 and $1,388 appears possible.

  • Should price-action trade below the $1,330 level, a deeper correction towards the $1,318 and $1,303 levels may occur.

CRYPTOS FINALLY RALLY

The Cryptocurrency market finally moved higher this week, after spending much of the early trading week at depressed levels and confined to increasingly narrow trading-ranges. The BTCUSD pair gained over ten percent, and surged towards the $8,000 level, while the second largest digital currency by market capitalization, Ethereum, made double digit gains towards the key $500 level. The move was broad-based across the cryptocurrency market, with strong technical buying also seen in Ripple, Dash and Litecoin, as the alternative coin market staged a late-week revival.

  • The BTCUSD pair remains bullish while trading above the $7,100 level, further upside towards $8,300 and $9,000 levels appears possible.

  • Should the BTCUSD pair move below the $7,100 for a sustained period, a deeper correction towards the $6,300 and $5,000 levels cannot be ruled out.

 

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