Breakout cryptocurrency market rally captures traders attention
Bitcoin soared by over $1,000 this week, as the number one cryptocurrency by market capitalization traded above at level not seen since July 2018. The BTCUSD pair eventually found strong technical resistance from just above the $8,300 level before cryptocurrency traders decided to book recent profits. The strong move higher in Bitcoin sparked a frenzy of buying amongst other popular digital assets, with Ethereum and Litecoin soaring to new 2019 trading highs. Ethereum, the second largest cryptocurrency, was one of the largest gainers on the week, with the ETHUSD pair surging towards the $280.00 level resistance level.
- The BTCUSD pair is bullish while trading above the $7,200 level, key resistance is found at the $8,00 and $8,300 levels.
- If the BTCUSD pair trades below the $7,200 level, key support is located at the $6,800 and $6,550 levels.
Risk-off trading sentiment remained at elevated levels this week after the Chinese government imposed up to $60 billion of new trade tariffs on selected US goods entering into the American economy. The move came after the Trump administration imposed new trade tariffs on up to $200 billion of Chinese goods entering into the US economy last week. Safe haven asset classes became a major beneficiary of the bearish tone sweeping through financial markets, with the Swiss franc and the Japanese currency coming back into demand with traders and investors.
- The USDJPY pair is bearish while trading below the 110.00 level, key support is found at the 109.00 and 108.40 levels.
- If the USDJPY pair trades above the 110.00 level, buyers may test towards the 110.30 and 110.60 resistance levels.
The British pound slumped across the board this week as United Kingdom political uncertainty and an overall lack of demand for the British currency. British PM Theresa May failed to find common ground over Brexit during cross-party talks, with the embattled British PM now set to bring her unpopular Brexit bill back to the UK commons for Member of Parliament to vote on next week. The British pound suffered its worst losses against the euro currency and the US dollar, with the GBPUSD pair slumping to its weakest level since February this year.
- The GBPUSD pair is bearish while trading below the 1.3000 level, key support is found at the 1.2770 and 1.2710 levels.
- If the GBPUSD pair trades above the 1.3000 level, key resistance is found at the 1.3065 and 1.3100 levels.
The Australian Dollar fell sharply lower against the greenback this week after the Australian unemployment rate increased for the second consecutive month. The official Australian unemployment rate increased to 5.2 percent, marking yet another worrying monthly increase. The RBA policy statement from last month clearly stated that an interest rate cut would soon be warranted if the Australian unemployment rate continued to track higher. Traders sold the Australian dollar sharply lower as the central bank’s condition was met, with traders also selling the New Zealand dollar as antipodean currencies came under pressure.
- The AUDUSD pair is bearish while trading below the 0.6900 level, key support is found at the 0.6810 and 0.6750 levels.
- If the AUDUSD pair trades above the 0.6900 level, buyers may test towards the 0.7000 and 0.7040 resistance levels.