Federal Reserve policymakers look past positive macro data
The United States Federal Reserve bank kept interest rates unchanged alongside monetary policy this week, as us policymakers maintained a dovish outlook, which was broadly in-line with market consensus. The Federal Reserve upgraded their assessment of the US economy, however, they also noted that now was not the time to scale back pandemic support. FED Chair Powell noted that economic uncertainty remained due to the ongoing presence of the COVID-19 virus. The central bank did suggest that the ongoing vaccine rollout across the globe was a positive measure. The overall market reaction saw the US dollar fall against a basket of top currencies while US stock tracked higher.
- USDJPY pair is only bullish while trading above the 108.45 level, key resistance is found at the 109.30 and 110.00 levels.
- USDJPY is only bearish while trading below the 108.45 level, key support is located at the 108.00 and 107.50 levels.
Bitcoin had another volatile week on the cryptocurrency market after recovering sharply in early-week trade and then fading lower. Bitcoin briefly rallied above the $56,000 resistance level after moving into extremely oversold territory, following two straight weeks of heavy losses. News that the United States regulator, the Securities Exchange Commission, had delayed their widely-anticipated decision towards the VanEck SEC proposal sank Bitcoin. News that Facebook failed to add Bitcoin to their holdings also caused a wave of selling. Bitcoin also appeared weak on the technical front after failing to move above its 50-day moving average.
- The BTCUSD pair is only bearish while trading below the $55,800 level, key support is found at the $50,000 and $47,000 levels.
- The BTCUSD pair only bullish while trading above the $55,800 level, buyers may test towards the $57,000 and $58,400 resistance levels.
The Canadian dollar strengthens significantly this week, as traders and investors factored in the Bank of Canada’s recent hawkish policy move, and the ongoing divergence between the BOC and other global central banks. The Loonie also widely benefitted from a strong rally in oil prices as the Canadian dollar currency tends to appreciate in value when oil prices move higher. The USDCAD was one of the worst affected currency pairs on the foreign exchange market, as it tumbled to a fresh yearly trading low below the 1.2300 support level.
- The USDCAD pair is only bearish while trading below the 1.2470 level, key support is found at the 1.2200 and 1.2100 levels.
- If the USDCAD pair trades above the 1.2470 level, buyers may test towards the 1.2520 and 1.2600 resistance levels.
Ethereum rallied to yet another new all-time trading high this week, as cryptocurrency traders continued to turn increasingly bullish towards the world’s second-largest digital asset. Bullish fundamentals, large scale whale activity, accumulation, and an impressive list of successful projects on Ethereum’s network attracted strong buying interest towards the ETHUSD pair. Ethereum also advanced due to a powerful multi-year technical breakout in the ETHBTC pair, as Etheruem continued to take valuable market share away from the world’s largest digital asset, bitcoin.
- The ETHUSD pair is only bearish while trading below the $2,300 level, key support is found at the $2,000 and $1,800 levels.
- The ETHUSD pair is only bullish while trading above the $2,300 level, buyers may test towards the $3,000 and $3,200 resistance levels.