FOMC minutes and Powell speech keep the greenback pressured
The US dollar fell sharply against the euro and the Japanese yen currencies this week as the FOMC meeting minutes revealed a strictly dovish dovish amongst FED policy members. The market reaction saw a continuation of the early week themes in financial markets, such as broad based US dollar selling, rising US stocks, and falling bond yields. The FOMC minutes noted that it would likely be some time until substantial further progress toward the committee’s maximum-employment and price-stability goals would be realized. Traders and investors were left in no doubt that the FED is likely to continue of its reject trajectory of low rates and more QE, as Federal Chair Jerome Powell delivered more dovish commentary this week.
- The S&P 500 is only bearish while trading below the 3,975 level, key support is found at the 3,950 and 3,900 levels.
- The S&P 500 only bullish while trading above the 3,975 level, buyers may test towards the 4,200 and 4,500 resistance levels.
Bitcoin staged a strong correction on the cryptocurrency market this week, as the top coin fell back towards the $55,500 support level amidst a flurry of whale activity. On-chain data revealed that the second and third largest Bitcoin transactions of the year were recorded this week. Bitcoin did manage to recover higher after the mid-week price slump as BTC exchange supply remained at record low, with the BTCUSD pair trading back towards the $59,000 level. The cryptocurrency market is set for a big week next week as the billion US dollar cryto exchange, Coinbase, lists on the Nasdaq, which is widely considered to the top exchange for tech companies in the world.
- The BTCUSD pair is only bearish while trading below the $57,000 level, key support is found at the $56,000 and $55,000 levels.
- If the BTCUSD pair trades above the $57,000 level, buyers may test towards the $60,000 and $65,000 resistance levels.
The price of gold rallied towards the $1,758 level this week, marking the highest trading level for the yellow-metal in around five-weeks. Weakness in the US dollar currency and the promise of continued QE from the Federal Reserve helped propel gold higher this week. Gold has suffered its worst start to the year in over a decade, and has been in a protracted down trend since breaking below its 200-day moving average in February. From a seasonal perspective, the month of April is not a strong one for gold, however, the promise of more QE and low rates in the United States is helping to drive the recovery so far this month.
- XAUUSD is only bullish while trading above the $1,720 level, key resistance is found at the $1,758 and $1,810 levels.
- XAUUSD is only bearish while trading below the $1,720 level, key support is located at the $1,690 and $1,677 levels.
The Canadian dollar rallied sharply after the March monthly jobs report from the Candian economy came in at 300,000, which was much higher than the expected 100,000. The nations official unemployment rate came at percent 7.5 percent, while most economists had been expecting the rate to drop to 8.0 percent in March. The USDCAD pair tumbled towards the 1.2500 area following the strong jobs number, which now increases hopes that the Bank of Canada may be the first central bank to hint at changing its ultra-loose fiscal policy during its next meeting.
- The USDCAD pair is only bearish while trading below the 1.2570 level, key support is found at the 1.2500 and 1.2470 levels.
- The USDCAD pair is only bullish while trading above the 1.2570 level, buyers may test towards the 1.2650 and 1.2740 resistance levels.