Euro bears unimpressed as the ECB keeps rates on hold
The euro currency fell to a two-year trading low against the US dollar this week after the eurozone economy released weaker than expected economic data and the ECB downgraded interest rate expectations. The ECB broadly disappointed market expectations as they failed to cut interest rates or announce an exact date for the next round of monetary policy stimulus. ECB President kept on message, as he noted that European inflation and growth continues to weaken. The German and French economies also released more soft PMI Manufacturing data for the month of July this week.
- The EURUSD pair is only bullish while trading above the 1.1230 level, key resistance is found at the 1.1285 and 1.1310 levels.
- If the EURUSD pair trades below the 1.1230 level, sellers may test towards the 1.1100 and 1.1050 support levels.
The British pound recovered from a twenty-seven-month trading low against the US dollar this week as the pair recovered from extreme oversold conditions. Sellers failed to move price below the GBPUSD pairs multi-year low, at 1.2380, further encourage a short-term technical rebound in sterling. The news that Boris Johnson was announced as the new British Prime Minister was already largely priced into the value of the British pound. The British currency also received a major boost from the large-scale unwinding of EURGBP long positions this week.
- The GBPUSD pair is only bearish while trading below the 1.2480 level, key support is found at the 1.2410 and 1.2380 levels.
- If the GBPUSD pair trades above the 1.2480 level, buyers may test towards the 1.2525 and 1.2660 resistance levels.
Bitcoin holds support
Bitcoin held above critical support this week, further encouraging a technical rebound amongst the broader cryptocurrency market. BTCUSD sellers failed to move the number one cryptocurrency below its former weekly trading low, prompting a sharp rebound back above the $10,000 level. Ethereum was the main beneficiary of the technical bounce back, with the ETH/USD pair quickly advancing back towards the $230.00 level. Litecoin remained largely directionless as the widely-traded LTCUSD pair consolidated around the $90.00 level.
- The BTCUSD pair is only bullish while trading above the $11,100 level, key resistance is found at the $11,700 and $12,500 levels.
- If the BTCUSD pair trades below the $11,100 level, key support is located at the $9,450 and $9,100 levels.
The Australian Dollar fell below the 0.7000 level against the US dollar this week as Australian policymakers continued to issue dovish policy rhetoric. The odds of another interest rate cut increased, as RBA Governor Lowe and Deputy RBA Governor Kent noted that inflation remains weak. Inflation has been a key concern for the Reserve Bank of Australia, alongside the softening jobs market. The Australian economy has released weaker-than-expected Import and Export data this week as the Sino-US trade war continued to hamper the nations domestic growth prospects
- The AUDUSD pair is only bullish while trading above the 0.7000 level, key resistance is found at the 0.7070 and 0.7120 levels.
- If the AUDUSD pair trades below the 0.7000 level, key support is located at the 0.6965 and 0.6930 levels.