Greenback under pressure following US civil unrest
The US dollar sold-off sharply lower against a basket of top currencies this week as the ongoing riots across America caused traders to ditch the greenback. Traders and investors moved into the euro, British pound, Australian dollar, and the New Zealand currencies amidst wide spread rioting across major cities in the United States. Analysts also speculated that US President Donald Trump faces coming under scrutiny due to his response to the ongoing rioting. Furthermore, it may harm his chances of being re-elected as President in November this year. The US dollar currency also suffered heavy losses against the Swiss franc and Canadian dollar currencies.
- The USDCAD pair is only bearish while trading below the 1.3800 level, key support is found at the 1.3450 and 1.3300 levels.
- The USDCAD pair is bullish while trading above the 1.3800 level, buyers may test towards the 1.4000 and 1.4200 resistance levels.
The euro currency rallied to its highest trading level since early-March against the US dollar this week after the European Central Bank sounded more hawkish towards the eurozone economy. ECB President Christine Lagarde said that the eurozone economy was showing signs of stabilization after the recent COVID-19 induced economic slump. The euro currency also received a strong boost against the greenback over fears about the American economy, due to the ongoing riots. Traders and investors generally view the euro currency as a good alternative to the greenback when investing in the USA appear risky.
- The EURUSD pair is only bullish while trading above the 1.1070 level, key resistance is found at the 1.1400 and 1.1500 levels.
- If the EURUSD pair trades below the 1.1070 level, key support is located at the 1.1020 and 1.0990 levels.
Bitcoin had a volatile trading week after the pioneer cryptocurrency rallied towards the $10,500 level and then reversed back towards the $9,200 level. Fears over an outage in major cryptocurrency exchange and Bitcoin whales manipulating the price of Bitcoin caused the BTCUSD pair to fall by nearly $800.00 in just under five-minutes. Bitcoin soon recovered higher towards the end of the week, as the ongoing bullish fundamentals behind the cryptocurrency continued to attract strong dip-buying interest towards the technically important $9,000 support area.
- 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.
The Australian dollar and New Zealand posted strong gain against the US dollar this week as stock markets across the globe continued to rally. The AUDUSD pair rose towards the 0.7000 level, while the NZDUSD pair recovered above its key 200-day moving average. The Australian dollar and New Zealand are both tradings over 1,000 points higher than their respective 2020 trading lows. A lack of buying appetite for the US dollar this week also encouraged traders to move into antipodean currencies.
- The AUDUSD pair is only bullish while trading above the 0.6650 level, key resistance is found at the 0.7000 and 0.7150 levels.
- The AUDUSD pair is only bearish while trading below the 0.6650 level, key support is located at the 0.6550 and 0.6400 levels.