Bitcoin euphoria sends shockwaves through the crypto market

Bitcoin euphoria

Bitcoin enjoyed its strongest weekly advance of the year so far as the number one cryptocurrency posted gains of over thirty percent. The BTCUSD started the trading week above the $10,000 level and broke through a number of key technical barriers before halting just below the $14,000 resistance level. Speculators moved into Bitcoin due to bullish news about upcoming payment partnerships and positive sentiment towards cryptocurrencies as a whole. The king of digital assets advanced towards levels not seen since January 2018 before giving back a portion of its weekly gains as traders booked profits.

• The BTCUSD pair is bullish while trading above the $10,800 level, key resistance is found at the $13,000 and $14,000 levels.
• If the BTCUSD pair trades below the $10,800 level, key support is located at the $10,000 and $8,900 levels.

RBNZ warning

The Reserve Bank of New Zealand kept interest rates on hold as widely expected this week, but offered a dovish warning about possible rate cuts ahead. New Zealand central bank Governor Adrian Orr warned that further rate cuts may be needed to stimulate the domestic economy as global and domestic data worsens. Many market participants predicted that the May rate cut from the RBNZ, where they reduced interest rates by 0.25 percent, may have been enough. The New Zealand Dollar had a muted reaction to the dovish policy statement and ended the trading week higher against the greenback.

• The NZDUSD pair is only bullish while trading above the 0.6620 level, key resistance is found at the 0.6700 and 0.6740  levels.
• If the NZDUSD pair trades below the 0.6620 level, sellers may test towards the 0.6580 and 0.6550 support levels.

US dollar sidelined

The US dollar remained largely sideline this week as traders awaited the G20 leaders meeting over the weekend, where trade and currency related news is expected to be top of the agenda. The US dollar had started the trading week on a bearish note, after closing the former trading week below its 200-day moving average for the first time this year. A more hawkish statement from Federal Reserve member James Bullard also helped to inspire confidence in the greenback, following last weeks heavy drubbing.

• The EURUSD pair is only bearish while trading below the 1.1321 level, key support is found at the 1.1290 and 1.1225 levels.
• If the EURUSD pair trades above the 1.1321 level, buyers may test towards the 1.1440 and 1.1500 resistance levels.

Gold flows

Gold traded to its highest level in six years this week, as the yellow-metal raced towards the $1,440 level before succumbing to profit-taking. Renewed tensions between Iran and the United States and fears over US dollar weakness boosted gold prices in early week trade. Gold has become the safe-haven asset class of choice amongst investors, as trade and geopolitical tensions simmer, while speculators and yield-hunters seeking a return in a low-interest rate environment are also moving into gold.

• XAUUSD is bullish while trading above the $1,380 level, key resistance is found at the $1,440 and $1,450 levels.
• If XAUUSUD trdes below the $1,380 level, key support is located at the $1,365 and $1,340 levels.