CRYPTOCURRENCY MARKET DECLINE ACCELERATES
The value of Bitcoin continued to plummet lower this week, with the world’s number one cryptocurrency falling within a touching distance of the $4,000 support level. Bitcoin shed over thirty per cent of its market value as a number of important technical levels were breached below the psychological $5,000 level. The decline in the value of the BTCUSD pair and the broader cryptocurrency market has been blamed on Bitcoin Cash, as the world’s fourth-largest cryptocurrency recently split into two distinct entities.
The BTCUSD pair is strongly bearish while trading below the $5,000 level, key support is found at the $4,000 and $3,300 levels.
If the BTCUSD pair trades above the $5,000 level, key resistance is found at the $5,300 and $5,705 levels.
CANADIAN DOLLAR HIT
The Canadian dollar fell sharply lower against the US dollar this week, as oil prices continued their recent decline and the Bank of Canada announced a change to the Central Bank’s inflation forecasts. The USDCAD pair traded above the 1.3300 level for the first time since June this year, as Crude Oil prices tumbled to levels not seen since December 2017. The Canadian dollar was also by the news that the Bank Of Canada would be adjusting upcoming inflation forecasts due to an uncertain global economy and downward pressure on oil prices.
The USDCAD is bullish while trading above the 1.3220 level, key resistance is now found at the 1.3385 and 1.3465 levels.
If the USDCAD pair moves below the 1.3220 level, key support is found at the 1.3165 and 1.3120 levels.
ETHEREUM AND LITECOIN CRASH
Ethereum and Litecoin followed the broader cryptocurrency market lower this week, as the recent digital currency market sell-off showed few signs of stopping. Ethereum came close to the $100.00 support level, while Litecoin broke the $30.00 benchmark before finding support from the $29.60 level. The recent decline in the cryptocurrency market has caused a ripple effect in the industry, with cryptocurrency mining now becoming unprofitable for some of the world’s largest crypto mining facilities.
The ETHUSD pair is strongly bearish while trading below the $190.00 level, further losses towards the $100.00 and $50.00 levels remains possible.
If the ETHUSD pair trades above the $190.00 level, further gains towards the $205.00 and $2625 resistance levels then seems possible.
The British pound traded higher against the US dollar this week, as the EU agreed to British PM Theresa May’s Brexit deal in a draft declaration. British PM Theresa May has so far managed to avoid a potential leadership challenge, although her political future remained in the balance over opposition to her proposed Brexit deal. The GBPUSD pair traded back above the 1.2900 level, marking a sharp reversal from last week, traders also remained cautious ahead of the important EU Summit being held in Brussels this coming weekend.
The GBPUSD pair is only bullish above the 1.2900 level, further upside towards the 1.3100 and 1.3315 levels remains possible.
If the GBPUSD pair trades below the 1.2732 level, further selling towards the 1.2665 and 1.2550 levels remains possible.
The South African Reserve Bank hiked interest rates this week, causing the South African rand currency to spike against a basket of currencies. The SARB increased rates 0.25 per cent, bring the South African interest rate to 6.75 per cent, in a move which was not expected by most economists after the SARB recently downgraded inflation forecasts. The USDZAR pair has been under pressure this year, due to political uncertainty in South Africa and the fast pace of interest rate rises in the United States.
The USDZAR pair is bearish below the 14.00 level, key support is found at the 13.50 and 13.00 levels.
If the USDZAR pair trades above the 14.00 level, key resistance is found at the 14.50 and 14.90 levels.