Financial markets remain volatile over the holiday season

Equity market volatility

Global equity markets remained volatile over the Christmas holiday period, with the US Dow Jones Industrial Average posting its largest ever one-day points gain and the Japanese Nikkie225 slumping by over five-hundred points. Global indices and stocks started the week under pressure with S&P 500 slumping into bear market territory alongside the Nikkie225. Global equity markets performed a mid-week relief rally, following soothing comments from US President Donald Trump, who said the recent slump provided a buying opportunity. The recovery saw a broad-based move higher in global stocks, following the early week drubbing.

• The EURUSD pair is only bullish while trading above the 1.1430 level, key resistance is found at the 1.1470 and 1.1500 levels.

• If the EURUSD pair trades below the 1.1342 level, sellers may test towards the 1.1300 and 1.1216 support levels.

Ethereum action

The cryptocurrency market remained active this week, with cryptocurrency traders enjoying the recent return of short-term volatility to the digital currency space. Ethereum was amongst the biggest movers in the top twenty cryptocurrencies, as the third largest cryptocurrency staged a strong move higher in early week trade. The ETHUSD pair spiked towards the $160.00 level, amidst a surge in technical buying and improving fundamentals. Ethereum eventually slipped back towards the $100.00 level, as buyers failed to sustain the ETHUSD pair at higher trading levels as the entire cryptocurrency market once again came back under selling pressure.

• The ETHUSD pair is only bullish while trading above $140.00 level, further upside towards the $160.00 and $180.00 levels now seems possible.

• If the ETHUSD pair moves below the $115.00 level, sellers may test towards the $100.00 and $82.00 levels.

Bitcoin falters

Bitcoin traded on the back foot once again this week, as the number one cryptocurrency by market capitalization relinquished early week gains above the $4,000 level as sentiment towards cryptocurrencies turned bearish. The BTCUSD pair started the week strongly and eventually found strong technical resistance from the $4,400 level. Buyers failed to hold onto early week gains as short-term sellers once again gained control and pushed the BTCUSD pair back towards the $3,500 support level.

• The BTCUSD pair is only bullish while trading above $4,000 level, further upside towards the $4,400 and $5,000 levels would then seem possible.

• If the BTCUSD pair moves below the $3,600 level, sellers may test towards the $3,300 and $3,100 levels.

Canadian dollar pressured

The Canadian dollar fell to a fresh nineteen-month trading low against the US dollar this week, with the USDCAD pair hitting, 1.3660. The Canadian dollar resumed its recent decline against the greenback, as Crude Oil prices came under heavy selling pressure and West Texas Intermediate Oil tumbled closer to the $40.00 benchmark. The Canadian dollar has been one of the worst performing currencies in December due to the sharp decline in Oil prices, losing ground against the Japanese yen, euro and the US dollar.

• The USDCAD pair is strongly bullish while trading above the 1.3480 level, key resistance is now found at the 1.3660 and 1.3750 levels.

• If the USDCAD pair trades below the 1.3455 level, sellers may test towards the 1.3385 and 1.3300 support levels.