Greenback gains as global stocks resume the downtrend
The US dollar started the new trading month on a positive note as the world's reserve currency gained back a portion of its recent losses. Traders moved into the safety of the greenback as speculation mounted that other central banks may soon issue unlimited bond buying schemes like the Federal Reserve. The US dollar also received a boost after the ADP Private Sector Jobs report came in better than most economists had been expecting. The US dollar made strong gains against both the euro and British pound currencies this week.
- The EURUSD pair is only bullish while trading above the 1.1060 level, key resistance is found at the 1.1130 and 1.1240 levels.
- If the EURUSD pair trades below the 1.1060 level, key support is located at the 1.0840 and 1.0800 levels.
The United States and European equity markets gave back recent gains this week as they failed to build on last week's strong recovery. The S&P 500 came under pressure alongside the Nasdaq and the Dow Jones Industrial Average as the number of coronavirus infections in America rapidly increased. Estimates suggested that the United States now has over 200,000 coronavirus infections. Traders and investors were also becoming increasingly worried about the upcoming set of macroeconomic data points from the US economy for the month of March.
- The USDJPY pair is only bearish while trading below the 108.90 level, key support is found at the 106.00 and 104.50 levels.
- If the USDJPY pair trades above the 108.90 level, buyers may test towards the 110.00 and 111.30 resistance levels.
The cryptocurrency market started the month of April in positive fashion as the Bitcoin staged a strong breakout above the $7,000 level. Bitcoin managed a powerful range break after trading between the $6,000 to $7,000 price levels for most of the week. Despite the much-needed recovery, the pioneer cryptocurrency finished the month of March down by over twenty percent and down around ten percent in the first quarter of 2020.
- The BTCUSD pair is only bullish while trading above the $6,400 level, key resistance is found at the $7,300 and $8,400 levels.
- The BTCUSD pair is only bearish while trading below the $6,400 level, key support is located at the $4,600 and $3,700 levels.
Oil prices continued to struggle to break above the $30.00 level this week as uncertainty loomed of excess supply from leading OPEC nations Saudi Arabia and Russia. Crude oil prices ranged between the $20.00 to $25.00 per barrel price range amidst the looming oversupply crisis caused by the slowing global economy. President Trump caused oil prices to spike as he Tweeted about a possible output from Saudi Arabia and Russia. The commodity sector has continued to struggle during the coronavirus outbreak due to the ongoing lack of consumer demand and reduction in global travel and commerce.
- WTI oil is only bearish while trading below the $30.00 level, key support is found at the $22.00 and $20.00 levels.
- If WTI oil trades above the $30.00 level, buyers may test towards the $38.00 and $44.00 resistance levels.