Litecoin hits $140.00 and continues to outpace the competition
Litecoin advanced to a new 2019 trading high this week and rapidly advanced up the cryptocurrency leader board. Litecoin gained over twenty percent in value as it raced towards the $140.00 resistance level. Litecoin became the fourth largest cryptocurrency by market capitalization, closing in its nearest crypto rival, Ripple. Buyers have been moving in on the LTCUSD pair due to the halving event that is scheduled to happen later this year, where cryptocurrency inflation will come into effect as Litecoin supply is drained from circulation.
- The LTCUSD pair is bullish while trading above the $110.00 level, key resistance is found at the $150.00 and $160.00 levels.
- If the LTCUSD pair trades below the $110.00 level, key support is located at the $100.00 and $90.00 levels.
The US dollar staged a strong rebound this week after coming under severe selling pressure during the early part of June. The US dollar index received a boost as technical traders were unable to move the US dollar index below its key 200-day moving average. The US dollar made its strongest gains against the Canadian dollar and the Australian dollar, as commodity-related currencies came under pressure. The US dollar also enjoyed a renewed bid after the monthly US CPI inflation measure came in only slightly less than expected on an annual basis.
- The EURUSD pair is only bearish while trading below the 1.1300 level, key support is found at the 1.1265 and 1.1200 levels.
- If the EURUSD pair trades above the 1.1300 level, buyers may test towards the 1.1320 and 1.1360 resistance levels.
The British pound had a mixed week of fortunes against the US dollar, following more UK political uncertainty and worse than expected UK data points. Monthly UK GDP contracted by -0.4 percent, sending sterling lower as the data showed that the UK economy dramatically stalled during the month of April. The GBPUSD pair later recovered on better than expected UK earnings data, although the move higher was short-lived as UK Parliament blocked plans to avoid a hard-Brexit scenario happening on October 31st this year.
- The GBP pair is bearish while trading below the 1.2700 level, key support is found at the 1.2660 and 1.2610 levels.
- If the GBPUSD pair trades above the 1.2700 level, key resistance is found at the 1.2747 and 1.2770 levels.
The Swiss National Bank kept interest rates on hold at -0.75 percent this week as widely expected, with the central bank issuing a warning about the rapidly appreciating Swiss franc. SNB Chairman Thomas Jordan said that the Swiss franc was highly valued and that the central bank stands ready to act if necessary. The Swiss franc has recently appreciated to a twenty-two-month trading high against the euro and is also trades below parity against the US dollar. Further appreciation in the Swiss franc remains likely if the Federal Reserve cut interest rates next month.
- The USDCHF pair is bullish while trading above the 0.9945 level, key resistance is found at the 0.9980 and 1.0125 levels.
- If the USDCHF pair trades below the 0.9945 level, sellers may test towards the 0.9890 and 0.9845 support levels.