CRYPTOCURRENCIES CRASH LOWER AFTER SEC DELAY
Cryptocurrencies tumbled sharply-lower this week after the US Securities Exchange Commission delayed a key decision on a potential Bitcoin ETF until September this year. The broader cryptocurrency market tumbled on the SEC news, as digital-currency investors dislike uncertainty. Bitcoin crashed towards the $6,000 level, erasing the number-one cryptocurrencies strong gains from the month of July. Ethereum fell to a fresh 2018 trading-low, falling below the $350.00 support level, while Litecoin suffered heavy double-digit losses towards the $60.00 level.
The BTCUSD pair is strongly bearish while trading below the $6,700 level, key support is now found at the $5,700 and $5,300 levels.
If the BTCUSD pair trades above the $6,700 level, key resistance is found at the $6,838 and $7,000 levels.
HARD BREXIT FEARS
The British pound sunk to its lowest trading-level in nearly one-year against the US dollar this week, as financial markets feared the UK was moving closer to a Brexit no-deal with the European Union. The British pound fell broadly against a basket of top-tier currencies, as UK politicians admitted that the United Kingdom could leave the EU without agreeing any deal at all. The decline accelerated in the British pound as British PM Theresa May said she would prefer a Brexit no-deal than a bad deal for the United Kingdom.
The GBPUSD pair remains bearish while trading below the 1.2956 level, further downside towards the 1.2800 and 1.2740 levels seems possible.
If the GBPUSD pair moves above the 1.2956 level, key resistance is found at the 1.3000 and 1.3071 levels.
RUBLE AND LIRA HIT HARD
The Turkish lira and the Russian ruble currencies were hit-hard against the US dollar this week, as geopolitical tensions continued to hurt emerging market currencies. The USDTRY pair moved to its highest ever level this week, as Ankara’s detention of a US pastor spooked investors amidst worsening tensions between the US and Turkey. The USD/RUB pair soared to a two-year high, as the US government planned to impose fresh sanctions on Russia over US election meddling, while other reports suggested the US could ban some Russian banks from operating in the United States.
The USDJPY pair is bearish while trading below the 111.00 level, further downside towards the 110.10 and 109.55 levels remains possible.
- If the USDJPY pair moves above the 111.00 level, buyers may test towards the 111.39 and 112.05 resistance levels.
The New Zealand dollar fell to a fresh two-year trading-low against the greenback this week, as the Reserve Bank of New Zealand signalled lower interest rates for longer. The RBNZ held interest rates unchanged at 1.75 per cent as widely expected, with RBNZ Governor Adrian Orr striking a dovish tone towards future rate hikes and any possible economic downturns. The NZDUSD pair sunk towards the 0.6650 level on the news as the US and New Zealand central bank’s monetary policy continued to head-in different directions.
The NZDUSD pair is strongly bearish while trading below the 0.6700 level, further losses towards the 0.6580 and 0.6510 levels seem possible.
If the NZDUSD pair moves back above the 0.6700 level, further upside towards the 0.6735 and 0.6778 resistance levels seem possible.