Cryptocurrency market recovers higher following minor flash crash
The value of Bitcoin fell to its weakest trading level since May this week as the cryptocurrency market experienced a minor flash crash. The BTCUSD pair tumbled under the November monthly low, hitting $6,350, before quickly recovering back above the $7,000 level. The sudden drop and reversal higher were wide-spread across the cryptocurrency space, with Litecoin and Ethereum both following a similar price pattern. Litecoin moved to its lowest trading level since February this year, hitting $36.00, before reversing earlier losses and move back above the $40.00 level. Crypto pundits speculated that the latest decline may have marked a major technical bottom.
The BTCUSD pair is only bullish while trading above the $7,400 level, key resistance is found at the $7,850 and $8,500 level.
If the BTCUSD pair continues to trade below the $7,400 level, sellers may test towards the $6,800 and $6,350 support levels.
The British pound came under pressure across the board this week as the euphoria over the recent Conservative party election win came to an end. Confirmation that the UK would be pressing ahead with its plan to leave the EU as soon as possible sent sterling crashing lower on the foreign exchange market. Dovish commentary from the Bank of England also weighed heavily on the British pound, with the GBPUSD pair tumbling towards the 1.3000 level. Sterling eroded 500 points in just under a one-week basis.
The GBPUSD pair remains bullish while trading above the 1.3200 level, further upside towards 1.3300 and 1.3380 levels seems possible.
If the GBPUSD pair moves below the 1.3200 level, further selling towards the 1.2990 and 1.2900 support levels remain possible.
The Bank of Japan kept interest rates unchanged this week and cautioned that the nation's industrial sector was weakening due to the ongoing trade war. The central bank kept interest rates at negative levels and also reiterated the need for powerful monetary easing measuring to remain in place. Traders largely looked past the news, leaving the USDJPY pair to trade in a narrow price range on the foreign exchange market. Market participants had largely been pricing in no change from the Bank of Japan beforehand, which created less volatility around the Japanese yen currency.
The USDJPY pair is bullish while trading above the 109.00 level, further upside towards the 110.00 and 111.00 levels seems possible.
If the USDJPY pair moves below the 109.00 level, sellers may test towards the 108.60 and 108.20 support levels.
The Australian economy reported stronger-than-expected monthly jobs numbers this week, boosting the AUDUSD pair back towards the 0.6900 level. The Australian government reported that domestic employers added 39,900 jobs in November, following a loss of 24,800 in October. Traders took the news as a positive sign that the Bank of Australia may not cut interest rates when they meet at the start of 2020. Financial markets also remained positive towards solid GDP figures from the Australian economy, as annual growth held steady at two percent from a year earlier.
The AUDUSD pair is bullish while trading above the 0.6850 level, further upside towards the 0.6910 and 0.7000 levels seems possible.
If the AUDUSD pair moves below the 0.6850 level, sellers may test towards the 0.6810 and 0.6770 support levels.