Spot gold continues technical breakout rally above $2,000
The price of gold rose to yet another record all-time this week, as the yellow-metal rallied above the psychological $2,000 resistance level as the ongoing technical breakout continued. Traders moved into gold and other precious metals as US congress debated a new $3 trillion government stimulus package. Gold also benefitted from rising tensions between the United States and China, and the ongoing multi-week sell-off in the US dollar currency. Gold is oncourse for its largest quarterly gain on record, and is trades nearly $500 higher than its yearly opening price.
- The XAUUSD is only bullish while trading above the $1,980 level, key resistance is found at the $2,075 and $2,200 levels.
- The XAUUSD is only bearish while trading below the $1,980 level, key support is located at the $1,950 and $1,920 levels.
The British pound remained well-supported against the US dollar and the euro currency this week, despite more bearish commentary from the Bank of England. The central bank warned that the United Kingdom faces rising unemployment, and possibly negative interest at some point. Traders and investors sold the FTSE 100 index after the Bank of England policy decision, due to disappointment that the central bank failed to offer more monetary stimulus. The GBPUSD pair moved to a multi-month trading high this week, as traders continued to sell the US dollar and buy other major currencies.
- The GBPUSD pair is only bearish while trading below the 1.2960 level, key support is found at the 1.2800 and 1.2700 levels.
- The GBPUSD pair is bullish while trading above the 1.2960 level, buyers may test towards the 1.3250 and 1.3300 resistance levels.
Bitcoin remained well-supported on the cryptocurrency market this week as traders continued to buy dips towards the $11,000 support level. Increasing institutional demand for Bitcoin, and the recent technical breakout above the $10,500 had caused a major trend for the pioneer cryptocurrency. On-chain data this week also showed that the number of retail Bitcoin investors has reached its highest level since 2017. The BTCUSD pair has rallied nearly thirty percent since breaking above its 50-day moving average last month.
- The BTCUSD pair is only bearish while trading below the $10,300 level, key support is found at the $9,800 and $9,400 levels.
- If the BTCUSD pair trades above the $10,300 level, buyers may test towards the $11,900 and $12,500 resistance levels.
The Australian dollar rallied to a new multi-month high against the US dollar this week after the Reserve Bank of Australia kept interest rates unchanged. Traders had been fearing that the central bank may lower interest rates further due to the latest coronavirus lockdown in Australia. The AUDUSD pair also benefitted from better-than-expected Australian Retail Sales data this week, and the ongoing impasse in US congress over the latest government spending bill. The ASX index also surged higher on the stock market, following the release of positive Australian consumer spending data.
- The AUDUSD pair is only bullish while trading above the 0.6990 level, key resistance is found at the 0.7280 and 0.7310 levels.
- If the AUDUSD pair trades below the 0.6990 level, key support is located at the 0.6880 and 0.6800 levels.