Euro bulls test towards 2020 yearly trading high
The euro currency rose sharply higher against the US dollar this week, as traders moved into the single currency over hopes of a recovery in the eurozone economy. The EURUSD pair rallied towards the 1.1450 level, marking its highest trading level since March 9th this year. The euro corrected lower against the US dollar following the ECB policy meeting this week, after the Governing Council failed to deliver the dovish policy message euro bulls had been hoping for. The EURUSD needs to move above the 1.1496 resistance level to break the current yearly high.
- The EURUSD pair is only bullish while trading above the 1.1300 level, key resistance is found at the 1.1450 and 1.1540 levels.
- If the EURUSD pair trades below the 1.1300 level, key support is located at the 1.1260 and 1.1200 levels.
The Bank of Japan downgraded its GDP growth projections during this week policy meeting, with the central bank predicting that Japanese economic growth would decline by 4.7 percent. The central bank also maintained its ongoing pledge to keep buying massive amounts of Japanese bonds. Bank of Japan officials also noted that the overall outlook for the Japanese economy remained extremely unclear due to COVID-19. The Japanese yen currency suffered a volatile week against the US dollar and traded between the 107.40 to 106.60 price range.
- The USDJPY pair is only bearish while trading below the 106.90 level, key support is found at the 106.60 and 106.00 levels.
- The USDJPY pair is bullish while trading above the 106.90 level, buyers may test towards the 107.40 and 108.00 resistance levels.
Bitcoin and host of top altcoins came under downside pressure this week, due to bearish fundamental developments and a major pullback in Chinese equity markets. The BTCUSD pair declined back towards the $9,000 support level, following a three percent decline in Chinese equity markets, and a Twitter scam involving Bitcoin payments. Litecoin and Ethereum also suffered notable price declines and reversed their hard-fought gains from the previous trading week.
- The BTCUSD pair is only bearish while trading below the $9,400 level, key support is found at the $8,800 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.
The Bank of Canada kept interest rates unchanged at record low levels this week, with the central bank announcing that interest rates will remain unchanged until 2023. The central bank struck a notably bearish tone and reiterated its commitment to its ongoing QE programme. Bank of Canada members also said that the outlook for the domestic economy appears fragile, alongside the nations oil industry, which accounts for a significant portion of Canadian GDP. The Canadian dollar gained ground against the US dollar and the British pound, following the rate decision.
- The USDCAD is only bullish while trading above the 1.3660 level, key resistance is found at the 1.3720 and 1.3800 levels.
- The USDCAD is only bearish while trading below the 1.3660 level, key support is located at the 1.3490 and 1.3410 levels.