Euro currency rallies as traders bet on recovery
The euro currency staged a strong breakout against the US dollar this week, as the EURUSD pair rose to its highest trading level since late-March this year. Improving risk sentiment and a major sell-off in the US dollar index caused the EURUSD pair to breakout above its trend defining 200-day moving average. Traders bet that the global economy would start to bounce back next month as lockdown measures around the world start to ease. The single currency also received a strong boost against the greenback this week after the release of weak Gross Domestic Product and Durable Goods Orders data from the American economy.
- The EURUSD pair is only bullish while trading above the 1.0970 level, key resistance is found at the 1.1100 and 1.1130 levels.
- If the EURUSD pair trades below the 1.0970 level, key support is located at the 1.0950 and 1.0900 levels.
Bitcoin staged a strong upside recovery this week after the pioneer cryptocurrency came under selling pressure last weekend. Bitcoin recovered above the $9,000 resistance level and closed an important price gap on the CME futures chart, around the $9,130 level. Positive news surrounding upcoming altcoin projects and large scale crypto partnerships helped to boost overall sentiment. Bitcoin also benefitted from rising equity markets due to its positive price correlation with the S&P 500 index.
- The BTCUSD pair is only bearish while trading below the $9,100 level, key support is found at the $8,700 and $8,100 levels.
- If the BTCUSD pair trades above the $9,100 level, buyers may test towards the $10,000 and $10,400 resistance levels.
Global stock markets moved to their highest trading level since early-March this week as positive risk sentiment caused traders and investors to buy stocks. Traders turned bullish towards US, European, and Japanese stocks as buying pressure remained in force into the monthly price close. The S&P500 turned technically bullish above its 200-day moving average and traded over twenty percent above its current yearly price low. The Nikkei 225 index also posted strong gains on hopes that Japanese economic activity will soon return to close to normal levels.
- S&P500 is only bearish while trading below the 3,000 level, key support is found at the 2,800 and 2,550 levels.
- S&P 500 is bullish while trading above the 3,000 level, buyers may test towards the 3,100 and 3,200 resistance levels.
The Australian dollar gained ground against the US dollar and the Japanese yen currency this week as risk tolerance amongst traders and investors surged. The AUDUSD pair rose sharply as a drop in global coronavirus cases caused traders to buy riskier currencies. The Australian dollar is often seen as a proxy for risk-on sentiment, and a key metric that investors look to during times of economic uncertainty and prosperity. The AUDUSD pair tested its key 200-day moving average for the first time since January 2020.
- The AUDUSD pair is only bullish while trading above the 0.6550 level, key resistance is found at the 0.6670 and 0.6740 levels.
- The AUDUSD pair is only bearish while trading below the 0.6550 level, key support is located at the 0.6450 and 0.6300 levels.