GREENBACK SOARS WHILE CRYPTOCURRENCIES CONTINUE TO TUMBLE
US DOLLAR ADVANCE
The US Dollar Index soared towards the best levels of 2018, as investors continued to bet that the Federal Reserve would tighten US fiscal policy in the second-half of 2018. The US dollar started the trading week under pressure, but soon recovered as buyers defended the 94.00 level on the US dollar index. The greenback made strong gains against the British pound, Swiss franc, euro, and Antipodean currencies as US Dollar bulls took charge above the 95.00 level once again.
The US dollar index is strongly bullish while trading above the 95.50 level, buyers may test towards the 95.90 and 96.50 resistance levels.
If the US dollar Index moves below the 95.00 level, sellers may test towards the 94.40 and 94.18 support levels.
Litecoin fell to a fresh 2018 trading-low this week as the sixth largest digital currency by market capitalization slumped below the key $73 level. Litecoin selling started in early-week trading, as price dropped below the $81 technical support level, amidst heavy selling volumes and worsening sentiment towards cryptocurrencies. The decline in the LTCUSD pair came alongside a strong move-lower in the broader cryptocurrency market, as the popular alternative coin lost over twenty-five percent of its value against the US dollar since hitting $99 last week.
The LTCUSD pair is bearish while trading below the $81 level, further losses towards the $70 and $62.50 levels seems possible.
If the LTCUSD pair moves above the $81 level, buyers may test back towards the $83 and $89 resistance levels.
The New Zealand dollar fell to a two-year trading-low against the greenback this week, as the Reserve Bank of New Zealand kept rates unchanged and struck a dovish tone towards future interest rate increases. The New Zealand dollar came under selling pressure before the RBNZ policy statement, as lingering trade war tensions supported commodity-related currency selling. Strong technical selling in the kiwi also remained a key factor behind the move lower this week, with the NZDUSD pairs 50-day moving average crossing below its 200-day moving average.
The NZDUSD pair is strongly bearish while trading below the 0.6855 level, key support is located at the 0.6730 and 0.6645 levels.
If the NZDUSD pair moves above the 0.6855 level, buyers may test towards the 0.6921 and 0.6970 resistance levels.
PRECIOUS METALS SOLD
Precious metals remained under heavy selling pressure this week, as weak Asian demand and trade tensions between the United States and Chinese governments supported US dollar buying. Gold fell to levels not seen since December 2017, with XAUUSD hitting $1,250 level, as investors continued to sell the yellow-metal. Silver also fell to a fresh 2018 trading-low, with the price of XAGUSD moving below the $16 level for the first-time this year.
XAUUSD remains bearish while trading below the $1,265 level, key support is now found at $1,244 and $1,230.
If XAUUSD moves above the $1,265 level, buyers may then test towards the $1,271 and $1,275 levels.