Euro currency looks past more dovish commentary from the ECB
The euro currency edged higher against the US dollar this week, despite more dovish commentary from ECB President Mario Draghi. The ECB decided to keep interest rates and monetary policy on hold as widely expected, with ECB President Mario Draghi reiterated that risks to the eurozone economy remain tilted to the downside. President Draghi said that growing geopolitical uncertainties and a slow down in emerging market economies remained a threat to global growth. The EURUSD pair edged higher, as the greenback came under selling pressure against other leading currencies.
- The EURUSD pair is bearish while trading below the 1.1250 level, key support is found at the 1.1230 and 1.1216 levels.
- If the EURUSD pair trades above the 1.1290 level, buyers may test towards the 1.1330 and 1.1350 resistance levels.
The British pound failed to react to another Brexit delay this week, as European Union leaders decided to extend the date for the United Kingdom’s departure from the European Union until October 31st, 2019. The British Pound has started to suffer from Brexit fatigue, as sterling largely shrugged-off the news of yet another extension to the Article 50 agreement. Sterling spent much of the week in a narrow trading range, although better than expected monthly UK GDP figures caused the GBPUSD pair to briefly spike above the 1.3100 resistance level.
- The GBPUSD pair is only bearish while trading below the 1.3100 level, key support is found at the 1.2975 and 1.2840 levels.
- If the GBPUSD pair trades above the 1.3100 level, key resistance is found at the 1.3180 and 1.3260 levels.
The release of the FOMC meeting minutes this week showed that US policymakers remained largely dovish towards future US rate increases. FOMC members judged that the current outlook of the US economy suggests that US interest rates will likely remain unchanged for the rest of this year. Some FOMC members said that if the US economic outlook did improve, a rate hike could be deemed appropriate. The greenback moved lower on the news, with the Australian dollar and Japanese yen currency also benefitting from the lack of positive news from the minutes release.
- The USDJPY pair is only bullish while trading above the 111.60 level, key resistance is found at the 111.85 and 112.45 levels.
- If the USDJPY pair trades below the 111.60 level, sellers may test towards the 110.90 and 110.40 support levels.
Bitcoin found strong technical resistance from the $5,454 level this week, as the number one cryptocurrency by market capitalization briefly spiked to a new 2019 trading high. The early week rally in BTCUSD pair started to fade as the broader cryptocurrency market came under technical selling pressure. Ethereum and Litecoin also fell back, as they failed to sustain price at elevated levels. Bitcoin also received bearish fundamental news that the Chinese government will be cracking down on Bitcoin mining.
- The BTCUSD pair is only bearish while trading below the $5,000 level, key support is found at the $4,800 and $4,600 levels.
- If the BTCUSD pair trades above the $5,000 level, buyers may test towards the $5,300 and $5,454 resistance levels.