Bitcoin set to close the trading month with huge trading gain

Record run

Bitcoin looked set to close the trading month with a huge monthly gain after the number cryptocurrency by market capitalization ended the trading week above the $8,000 level. Bitcoin gained a staggering three digits in the month of May and also added to its total crypto market dominance, as it edged closer to capturing almost sixty per cent of the entire digital currency market. Ethereum and Litecoin also finished the month with strong monthly gains, with the second largest cryptocurrency, Ethereum, adding over seventy per cent to its market value during the month of May.

• ∙ The BTCUSD pair is bullish while trading above the $8,000 level, key resistance is found at the $9,000 and $10,000 levels.
• ∙ If the BTCUSD pair trades below the $8,000 level, key support is located at the $7,800 and $7,500 levels.

Pound fades

The British pound reversed early week gains against the US dollar this week as UK political uncertainty continued to weigh heavily on sterling. Uncertainty surrounding the new Conservative party leader continued to hurt the British pound after British PM Theresa May stepped down last week. The prospect of a no-deal Brexit appeared more likely, as former British Foreign Secretary Boris Johnson is still the front-runner to become the new British PM and Conservative party leader. The British pound had started the week on a stronger footing, despite the new Brexit party winning the European elections by some margin.

• ∙ The GBPUSD pair is bearish while trading below the 1.2700 level, key support is found at the 1.2550 and 1.2500 levels.
• ∙ If the GBPUSD pair trades above the 1.2700 level, key resistance is found at the 1.2745 and 1.2800 levels.

BOC on hold

The Bank of Canada kept interest rates on hold at 1.75 per cent this week as widely expected, with the BOC failing to communicate a strong message towards any future rate changes. The lack of detail towards future rate changes caused the Canadian dollar to move sharply lower against the US dollar. The central bank noted the much better than expected jobs, housing, and retail sales data last month, while also mentioning the recent pick-up in oil prices. Market participants had hoped for a more bullish tone from the Bank of Canada or at least some clarity towards rates after the recent recovery in domestic data points.

• ∙ The USDCAD pair is bullish while trading above the 1.3388 level, key resistance is found at the 1.3555 and 1.3630 levels.
• ∙ If the USDCAD pair trades below the 1.3388 level, sellers may test towards the 1.3310 and 1.3260 resistance levels.

Election outcome

The euro traded lower against the US dollar this week after much weaker than expected German unemployment data and fears about the Italian budget. The euro currency had opened the new trading week above the 1.1200 level, despite a  number of new EU populists parties gaining seats in the European Parliament following the European elections. The EURUSD pair eroded its former weekly gains and slipped back towards the 1.1100 level, as traders and investors feared for the health of the German economy and a possible three billion euro fine being imposed on the Italian economy after it breached EU budget rules.

• ∙ The EURUSD pair is bearish while trading below the 1.1190 level, key support is found at the 1.1100 and 1.1060 levels.
• ∙ If the EURUSD pair trades above the 1.1190 level, buyers may test towards the 1.1230 and 1.1265 resistance levels.