US dollar index downside move starts to accelerate
The US dollar currency came under selling pressure across the board this week, as the United States government prepared to issue another massive coronavirus stimulus bill. The US index fell towards the worst levels of the years as traders moved in the euro, British pound, and commodity-related currencies. Traders and investors sold the US dollar aggressively after the currency broke through a number of key technical levels. The US dollar index looked set to post its six-straight week of losses, as the downtrend in the greenback started to accelerate.
- The EURUSD pair is only bullish while trading above the 1.1400 level, key resistance is found at the 1.1660 and 1.1710 levels.
- If the EURUSD pair trades below the 1.1400 level, key support is located at the 1.1310 and 1.1200 levels.
The Nasdaq moved to a fresh all-time trading high this week, as the index rallied above the psychological 11,000 resistance level. Positive sentiment towards US equity markets helped boost the Nasdaq higher, as traders and investors continued to expect more monetary stimulus from the US government. The Nasdaq has been the best performing US index this year, due to the fact that a number of tech stocks have rallied due to positive fundamental factors. Apple, Facebook, Zoom, and Amazon have all posted strong double-digit gains since the stock market decline in March this year.
- 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 staged a powerful upside breakout this week, due to positive technical and fundamental factors surrounding the cryptocurrency. The news that United States banks are now offering cryptocurrency custody sent Bitcoin and host of top coins racing to fresh monthly trading high. The BTCUSD pair also broke back above its key 50-day moving average this week, which provided traders with a growing indication of positive upside momentum. Etheruem and Litecoin also staged strong moves higher this week, as traders turned increasingly bullish towards the crypto market.
- 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 price of gold and silver rose sharply higher this week as trading moves into the popular metals over fears of growing US inflation. Gold rallied to a multi-year trading high, with the yellow metal surging towards the $1,900 resistance zone as traders moved away from the greenback. Silver staged its largest one-day advance of the year so far, as the metal broke above the $20.00 level, and eventually peaked around the $23.00 level. Analysts speculated that the price of gold could soon trade as high as $2,000 per ounce as US central bank money printing continues.
- XAUUSD is only bullish while trading above the $1,790 level, key resistance is found at the $1,890 and $1,920 levels.
- XAUUSD is only bearish while trading below the $1,790 level, key support is located at the $1,750 and $1,650 levels.