Gold prices rally to the highest level in seven years
The gold price rallied to their highest trading level in seven years this week as the investors remained concerned about the global economy and fiscal spending. The yellow-metal advanced towards the $1,750 level, following a technical breakout above the former 2020 trading high. Worries about increased fiscal spending and ultra-loose monetary policy from global central banks continued to cause the gold price to push higher. Two US Congressman also proposed additional emergency money for American citizens for the next six months.
- The USDJPY pair is only bullish while trading above the 106.50 level, key resistance is found at the 109.40 and 111.10 levels.
- If the USDJPY pair trades below the 106.50 level, key support is located at the 104.50 and 103.80 levels.
The cryptocurrency market staged a sudden reversal after coming under heavy selling pressure at the start of the trading week. Bitcoin reversed sharply higher from the $6,450 support level and eventually rallied above the $7,000 level before finding resistance from the $7,150 resistance level. Ethereum also posted a double-digit recovery towards the $175.00 level after finding support from the $150.00 level. Traders were seen turning more bullish towards cryptos ahead of Bitcoin’s upcoming halving event, which is less than four weeks away.
- The BTCUSD pair is only bearish while trading below the $6,700 level, key support is found at the $6,500 and $6,000 levels.
- If the BTCUSD pair trades above the $6,700 level, buyers may test towards the $7,700 and $8,100 resistance levels.
The British pound continued to stage a strong recovery against the US dollar this week, with the pair advancing to its highest level in over a month. Sterling rallied towards above the 1.2600 level as traders shunned the greenback over-improving risk-sentiment and the notion that the coronavirus may have peaked. The GBPUSD eventually pulled back from the 1.2600 level as the UK Chancellor of the Exchequer, Rishi Sunak, said that the United Kingdom's economic activity had seen a worrying decline.
- The GBPUSD pair is only bullish while trading above the 1.2250 level, key resistance is found at the 1.2600 and 1.2800 levels.
- The GBPUSD pair is only bearish while trading below the 1.2250 level, key support is located at the 1.2150 and 1.1950 levels.
The greenback moved higher this week after US Retail Sales figures posted a record decline in March, with a -8.7 percent headline reading. The shock figure sent traders into the safety of the US dollar as traders and investors moved away from riskier asset classes. Consumer spending was significantly lower than expected, even though analysts had already accounted for the coronavirus lockdown. UK retail sales also showed a large decline in March, with the headlining coming in at -4.3 percent compared to the same period last year.
- WTI oil is only bearish while trading below the $25.50 level, key support is found at the $23.00 and $21.00 levels.
- If WTI oil trades above the $25.50 level, buyers may test towards the $32.00 and $38.00 resistance levels.