Euro currency makes solid weekly gains against the greenback and pound

Euro demand returns

The euro currency made strong gains against the US dollar and the British pound this week, despite weaker than expected economic data from both Germany and France. Investors focused on dovish comments inside the FOMC Meeting Minutes this week and the ongoing expectation that the ECB will continue along its path towards normalizing monetary policy during the course of 2019. The EURUSD pair surged above its one-hundred day moving average, hitting 1.1569, and trading at levels not seen since October 2018. The EURGBP pair also advanced to a fresh 2019 trading high, as traders remained cautious ahead of next Tuesday’s key Brexit vote in UK Parliament.

∙ The EURUSD pair is strongly bullish while trading above the 1.1500 level, key resistance is found at the 1.1630 and 1.1680 levels.

∙ If the EURUSD pair trades below the 1.1500 level, a decline towards the 1.1460 and 1.1430 levels remains possible.

Canadian dollar firms

The Canadian dollar continued to claw back late 2018 trading losses against the US dollar this week, as Oil prices rebounded and the greenback came under selling pressure. The USDCAD pair fell towards the 1.3200 level as WTI and Brent Oil came back into favor with investors and the FOMC projected a more patient stance towards future rate increases. The Bank of Canada kept interest rates on hold at 1.75 per cent as widely expected this week, with policymakers noting that the recent rapid decline in the value of Oil has dampened the economic outlook of the Canadian economy.

∙ The USDCAD pair is bearish while trading below the 1.3350 level, key support is found at the 1.3180 and 1.3090 levels.

∙ If the USDCAD pair trades above the 1.3350 level, buyers may test towards the 1.3455 and 1.3530 levels.

Cryptocurrencies retrace

The cryptocurrency market failed to hold onto early month trading gains this week, with Bitcoin and Ethereum moving to the downside after spending much of the early trading week in consolidation mode. Ethereum failed to build on recent gains above the $150.00 level and eventually faltered back towards the $125.00 level. Bitcoin also traded in an increasingly narrow price range before succumbing to heavy technical selling pressure and moving back towards the $3,600 level, after failing to build sustainable buying momentum above the $4,000 level.

∙ The ETHUSD pair is only bullish while trading above the $140.00 level, key resistance is found at the $155.00 and $170.00 level.

∙ If the ETHUSD pair declines below the $140.00 level, sellers may test towards the $125.00 and $108.00 levels.

Yen buying resumes

The Japanese yen currency once again enjoyed strong buying interest against the US dollar and the Australian dollar this week, as trade talks between the US and China showed progress, but ultimately failed to bring the ongoing trade dispute to a halt. The USDJPY pairs decline was also spurred by a weaker US dollar currency, with the risk-sensitive pair once again dropping below the important 108.00 level. The AUDJPY pair also came back under renewed selling pressure this week, as the Chinese economy posted much weaker than expected CPI and PPI inflation data.

∙ The USDJPY pair is bearish while trading below the 108.40 level, key support is found at the 107.00 and 106.60 levels.

∙ If the USDJPY pair trades above the 108.40 level, buyers may test towards the 109.00 and 109.40 levels.