CRYPTOCURRENCIES COME UNDER HEAVY SELLING PRESSURE
The cryptocurrency market suffered another week of heavy losses, amidst strong technical selling and bearish fundamental news. A lack of overall buying interest caused popular alternative coins like Bitcoin, Ethereum, Ripple, and Litecoin to suffer double-digit trading losses, with selling intensifying as a series of key technical levels were breached across the digital currency space. Further selling was also seen across the cryptocurrency market, as news broke that the US Justice Department had opened a criminal probe into whether traders are manipulating the price of Bitcoin and other digital currencies in the United States.
The BTCUSD pair remains strongly bearish while trading below the $7,800 level, further selling towards $7,000 and $6,500 remains possible.
If the BTCUSD pair starts to trade above the $7,800 level, buyers may test towards the $8,000 and $8,250 resistance levels.
The euro currency tumbled to its lowest trading level of the year against the US dollar this week as Italian economic and political woes surfaced, and the greenback continued to firm. The EURUSD pair fell to its lowest trading level since November 14th, hitting 1.1678, as traders and investors moved away from euro’s and into the higher-yielding US dollar currency. Italian bond-yields also start to rise this week, as investors worried about the Italian government meeting its fiscal commitments. Italy is the world’s third-largest bond-market, behind the United States and Japan, and any significant rise in Italian bond-yields typically worries investors.
The EURUSD pair is strongly bearish while trading below the 1.1800 level, further losses towards the 1.1600 and 1.1540 levels remains possible.
If the EURUSD pair moves above the 1.1800 level, we may see a correction back towards the 1.1829 and 1.1875 level.
The British pound suffered a volatile trading week against the US dollar, with sterling falling to its lowest trading level of 2018, before recovering higher on better than expected UK economic data. The GBPUSD pair fell to its lowest level since November 2017, hitting 1.3304, after the United Kingdom economy posted weaker than expected monthly and year-on-year CPI Inflation figures. The British pound later recovered above the 1.3400 level, after the UK economy posted better than expected monthly Retail Sales figures, which showed an impressive 1.6 percent increase during April.
The GBPUSD pair is only bullish while trading above the 1.3491 level, further upside towards 1.3600 and 1.3710 would then seems possible.
If the GBPUSD pair continues to trade below the 1.3491 level, sellers may test towards the 1.3304 and 1.3268 support levels.
SAFE HAVEN DEMAND
The Japanese yen and Swiss franc currencies received a notable bid this week, as fears over North Korea and the Italian economy caused investors to seek out safe havens. The USDJPY pair tumbled towards the 109.00 level, after the United States President Donald Trump canceled his much-anticipated meeting with North Korean leader Kim Jong-un, in Singapore next month. The Swiss franc currency made strong gains against the euro currency and greenback this week, as investors became increasingly worried about the Italian economic and political situation.
The USDCHF pair remains bearish while trading below the 0.9890 level, further downside towards 0.9810 and 0.9740 seems possible.
If the USDCHF pair moves above the 0.9890 level, buyers may test back towards the 0.9950 and 0.9978 resistance levels.