Euro breakout reaches the highest level since April 2018
The euro currency reached its highest trading level since April 2018 against the US dollar this week, after the pair broke past the psychological 1.2100 resistance level. The EURUSD pair received a strong boost after Republican and Democrat party officials in the United States announced that we're moving closer to approving a bipartisan COVID-19 stimulus package. Technical traders and investors also bought the EURUSD after the pair performed its strongest monthly price close this year. Ongoing political drama surrounding the United States election results also provoked broad-based weakness in the US dollar index this week.
- The EURUSD pair is only bearish while trading below the 1.1840 level, key support is found at the 1.1800 and 1.1740 levels.
- The EURUSD pair is only bullish while trading above the 1.1840 level, buyers may test towards the 1.2200 and 1.2300 resistance levels.
Bitcoin hit new all-time trading on certain cryptocurrency exchanges this week, as the bellwether digital asset moved within touching distance of the $20,000 level. Bitcoin staged a major recovery at the start of the trading week, following news that investment manager Guggenheim was preparing to deploy $500 million of its portfolio into Bitcoin. Trader and investors shrugged-off the recent rumours surrounding upcoming cryptocurrency regulation on US wallet holders. The BTCUSD pair also received a boost after the CEO of PayPal noted that the company had seen strong demand for its new cryptocurrency products.
- The BTCUSD pair is only bearish while trading below the $17,500 level, key support is found at the $16,200 and $14,800 levels.
- The BTCUSD pair is only bullish while trading above the $17,500 level, buyers may test towards the $19,800 and $20,500 resistance levels.
Ethereum moved to a new multi-year high this week, as traders and investors rallied the second-largest cryptocurrency towards the $640.00 level. Optimism over the launch of Ethereum 2.0 continued to underpin the strong bid tone behind the ETHUSD pair. The ETHUSD pair also benefitted from the strong recovery in the BTCUSD pair, and a strong increase in new daily active addresses. Litecoin briefly traded above the $90.00 level this week, as the LTCUSD pair continued to build on its recent recovery from the $66.00 level. Interest towards Litecoin has been increasing since PayPal included the cryptocurrency as a payment option.
- The ETHUSD pair is only bearish while trading below the $460.00 level, key support is found at the $440.00 and $410.00 levels.
- If the ETHUSD pair trades above the $460.00 level, buyers may test towards the $640.00 and $700.00 resistance levels.
Sterling had another volatile trading week as Brexit negotiators from the UK and EU warned that significant differences remained over fisheries, state aid rules and the governance arrangements for any agreement. The GBPUSD pair traded between the 1.3280 and 1.3500 levels as Brexit news continued to be the main driving force in the currency market. The FTSE 100 index enjoyed strong buying interest towards the 6,500 level this week, as traders and investors cheered the announcement that a COVID-19 vaccine had been approved for release in the United Kingdom.
- The FTSE 100 is only bullish while trading above the 6,280 level, key resistance is found at the 6,500 and 6,700 levels.
- The FTSE 100 is only bearish while trading below the 6,280 level, key support is located at the 6,170 and 6,100 levels.