Improving risk sentiment sends the greenback lower
The greenback came under pressure against a basket of currencies this week, as investors increasingly believed that global economic activity may start to improve as the coronavirus lockdown comes to an end. The US dollar currency lost ground against the euro, British pound, and commodity-related currencies. The US dollar index was on course for its largest weekly decline in nearly four-weeks. An apparent stabilization in global economic macroeconomic data and a rise in global indices caused traders and investors to move away from the US dollar and into riskier asset classes.
- The USDJPY pair is only bullish while trading above the 106.90 level, key resistance is found at the 108.00 and 109.20 levels.
- If the USDJPY pair trades below the 106.90 level, key support is located at the 105.50 and 104.80 levels.
Bitcoin failed to move above the $10,000 level this week due to bearish fundamental news and rumours surrounding Satoshi Nakamoto. BTCUSD fell back from $9,900 level after data showed that fifty Bitcoins had been moved for the first-time since 2009. Speculation mounted that the supposed creator of Bitcoin, Satoshi Nakamoto had started to move some of his coin holding. An unscheduled outage in the BitMEX trading exchange also caused a brief price plunge in the BTCUSD pair this week.
- The BTCUSD pair is only bearish while trading below the $8,700 level, key support is found at the $8,400 and $8,000 levels.
- If the BTCUSD pair trades above the $8,700 level, buyers may test towards the $10,000 and $10,400 resistance levels.
The price of gold, silver, and platinum continued to rise this week, as the notion of currencies losing their purchasing powers continued to boost the metal market. Gold moved to a new multi-year trading high, as the yellow-metal rallied towards the $1,760 level. Silver also received a strong bid this week, as silver prices rallied towards the $17.50 resistance area. Silver has recovered significantly since the March 2020 decline, when the price of silver crashed by double-digits and moved below the $12.00 support level.
- XAUUSD is only bearish while trading below the $1,670 level, key support is found at the $1,650 and $1,610 levels.
- XAUSUD is bullish while trading above the $1,670 level, buyers may test towards the $1,760 and $1,800 resistance levels.
The currency gained ground against the US dollar this week, following positive EU data and more dovish tones from FOMC Chair Jerome Powell. The EURUSD pair moved higher as Chair Powell confirmed the Federal Reserve’s strong commitment to unlimited bond buying. Traders speculated that the US central bank was now starting to sound more dovish than the European Central Bank. The euro currency also received a boost this week as the ECB ruled a negative interest rate policy in the future for EU bank account holders.
- The EURUSD pair is only bullish while trading above the 1.0900 level, key resistance is found at the 1.1000 and 1.1130 levels.
- The EURUSD pair is only bearish while trading below the 1.0900 level, key support is located at the 1.0840 and 1.0770 levels.