Greenback slumps despite positive US economic data

Dollar weakness

The US dollar index came back under heavy selling pressure this week despite positive jobs and manufacturing data from the United States economy. The greenback slipped against the euro, British pound and commodity-related currencies, as positive market sentiment caused traders to move back into riskier currencies. The US Non-farm payroll job report showed that 4,800 new jobs had been created during the month of June, while the official us employment rate fell to 11.1 percent. The release of FOMC meeting minutes this week also caused traders to sell the greenback as US central bank policymakers remained committed to unlimited QE purchases.

• The USDJPY pair is only bearish while trading below the 106.80 level, key support is found at the 106.50 and 106.00 levels.
• The USDJPY pair is bullish while trading above the 106.80 level, buyers may test towards the 108.00 and 109.00 resistance levels.

Bitcoin volatility drops

Volatility surrounding Bitcoin fell to its weakest level of 2020 so far this week as the number one cryptocurrency continued to trade in a narrow trading range. Data showed that Bitcoin spot trading volume dropped by 30 percent last month, while Bitcoin futures volumes also saw a significant double-digit decline. Increased retail and institutional participation over recent months has seen Bitcoin’s price stabilizing around the $8,000 to $10,000 price range. Bitcoin appeared increasingly weak from a technical perspective as price moved under its 50-day moving average, although bears were unable to hold price under the $9,000 support level.

• The BTCUSD  pair is only bearish while trading below the $9,400 level, key support is found at the $8,700 and $8,400 levels.
• If the BTCUSD pair trades above the $9,400 level, buyers may test towards the $10,000 and $10,500 resistance levels.

Metal exhaustion

The price of spot gold moved to fresh multi-year trading high this week as the yellow-metal advanced to its highest trading level since October 2012. Gold prices reached $1,790 per ounce, although bulls were repeatedly unable to breach the psychological $1,800 resistance level. The price of silver also advance towards the $18.40 resistance level, however the price of silver quickly tumbled back under the $18.00 support level on strong technical selling. Copper prices also posted strong upside gains this week, as traders and investors moved back into risk-on trading mode. 

• The XAUUSD is only bullish while trading above the $1,730 level, key resistance is found at the $1,790 and $1,810 levels.
• The XAUUSD is only bearish while trading below the $1,730 level, key support is located at the $1,715 and $1,690 levels.

UK GDP drop

The British pound rose against the US dollar and Japanese yen currencies this week, despite downbeat economic data from the United Kingdom economy. The GBPUSD pair recovered back above the 1.2500 level after falling in earlier week trading towards the 1.2250 support area. Traders shrugged-off the bearish news that United Kingdom economic growth slumped by -2.2 percent during the last fiscal quarter. Sterling traders also looked past the negative news that the United Kingdom And EU leaders had cancelled an important meeting regarding Brexit trade matters.

• The GBPUSD pair is only bullish while trading above the 1.2420 level, key resistance is found at the 1.2540 and 1.2600 levels.
• If the GBPUSD pair trades below the 1.2420 level, key support is located at the 1.2350 and 1.2250 levels.