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Aug 24, 2018

GREENBACK SOLD BROADLY AS PRESIDENT TRUMP CRITICIZES THE FED

DOLLAR DROP

The US dollar fell sharply-lower this week, after US President Donald Trump directly attacked the Federal Reserve, noting that he was unhappy with the FED continuing to hike US interest rates. The US dollar index tumbled on President Trump’s comments, with the greenback nearly erasing all of its hard-fought gains for the month of August. The US dollar softened even further after two of President Trump’s closest associates faced growing legal problems with American authorities.

  • The USDJPY pair is only bearish while trading below the 110.55 level, further downside towards the 109.80 and 109.00 levels seems possible.

  • If the USDJPY pair trades above the 110.55 level, buyers will likely towards the 111.00 and 111.39 resistance levels.

CRYPTOS STILL SOFT

Cryptocurrencies continued to trade on the defensive this week, as investors remained cautious ahead of next months ruling from the US SEC over a potential Bitcoin exchange-traded fund. Bitcoin made early-week gains towards the $6,800 level but was quickly sold lower as overall buying appetite for the world’s number one cryptocurrency remained muted. Ethereum and Litecoin also failed to move away from depressed trading levels this week, as ETHUSD and LTCUSD traders also struck a cautious tone.

  • The BTCUSD pair is only bullish while trading above the $6,800 level, key resistance is found at the $7,100 and $7,500 levels.

  • If the BTCUSD pair trades below the $6,800 level, further selling towards the $6,000 and $5,700 support levels remains possible.

EURO UPBEAT

The euro currency moved above the 1.1600 level against the U.S. Dollar this week, as a mixture of US dollar weakness and positive sentiment towards the single currency boosted the EURUSD pair. The European Central Bank also struck a positive tone towards eurozone inflation during the ECB monetary policy meeting. The ECB left interest rates unchanged as widely expected, but noted that uncertainties towards eurozone inflation are starting to recede.

  • The EURUSD pair is bearish while trading below the 1.1553 level, further losses towards the 1.1507 and 1.1410 levels remain possible.

  • If the EURUSD pair trades above the 1.1553 level, further upside towards the 1.1650 and 1.1730 resistance levels seem possible.

STERLING RECOVERS

The British pound finally recovered higher against the US dollar this week, after previously suffering its worst losing streak in over four years. The GBPUSD pair looked past ongoing Brexit no-deal concerns and pushed above the 1.2900 resistance over broad-based US dollar weakness. Sterling also benefitted from improving risk-on trading sentiment as investors placed concerns over emerging markets to one side.

  • The GBPUSD pair is only bullish while trading above the 1.2800 level, key resistance is found at the 1.2950 and 1.3000 levels.

  • If the GBPUSD pair trades below the 1.2800 level, further selling towards the 1.2770 and 1.2700 support levels remains possible.

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