Bitcoin volatility continues to capture traders attention
Bitcoin attempted to recover higher this week, following bullish news surrounding a North American mining council and a pushing back of environmental concerns by the world’s largest cryptocurrency exchange. News that crypto heavyweights Elon Musk and Michael Saylor will be forming a North American mining council caused Bitcoin to recover close to the $41,000 level. The cryptocurrency exchange, Coinbase, also released a statement pushing back against the environmental concerns surrounding Bitcoin and other cryptos. Bitcoin still struggled to make traction above the $40,000 level for most of the week as ongoing regulatory concerns and general cautiousness held the top crypto back.
- The BTCUSD pair is only bearish while trading below the $43,000 level, key support is found at the $35,000 and $30,000 levels.
- The BTCUSD pair only bullish while trading above the $43,000 level, buyers may test towards the $50,000 and $55,000 resistance levels.
The price of gold rallied to its highest trading level since early January 2021 this week as traders and investors continue to buy the yellow-metal. Gold rallied towards the $1,912 price area this week before pullback under $1,900, as ongoing inflationary fears underpinned the overall bid-tone in the popular metal. A rotation has also been underway, as many cryptocurrency investors have been deploying capital in gold as cryptos come under pressure. In terms of gains, the price of gold has gained over thirteen percent in value since finding a meaningful price floor under the $1,680 level in March this year.
- XAUUSD is only bullish while trading above the $1,880 level, key resistance is found at the $1,912 and $1,940 levels.
- XAUUSD is only bearish while trading below the $1,880 level, key support is located at the $1,855 and $1,840 levels.
The German DAX rallied this week after IFO data from Europe’s largest economy came in much better than economists had been expected. All three components of the German IFO survey came in stronger than forecast, which further painted a bullish price picture of the German economy. The IFO Business climate index rose to a two-year trading high, which underscored that a recovery is underway in Germany. Importantly, IFO Expectations index came in at its strongest since February last year, which highlighted that companies are bullish towards the future prospects of the economy. Q1 German GDP data this week showed that the economy contracted 1.8 percent compared to the previous year.
- The EURUSD pair is only bearish while trading below the 1.2160 level, key support is found at the 1.2100 and 1.2060 levels.
- The EURUSD pair is only bullish while trading above the 1.2160 level, buyers may test towards the 1.2200 and 1.2260 resistance levels.
The New Zealand dollar rallied against the US dollar this week after the Reserve Bank of New Zealand sounded less dovish than markets had been expecting. The central bank kept interest rates and its Large Scale Asset Purchase and Funding for Lending programs policies unchanged. The RBNZ also pledged to keep rates low until the current level of inflation rose to two percent and the nation's unemployment rate fell. On a positive note, the central bank said that the economy has made a strong recovery, although the tourism and hospitality sector has yet to recover. The NZDUSD pair rose above the 0.7300 resistance level as the RBNZ did not sound as bearish as market participants feared.
- The NZDUSD pair is only bearish while trading below the 0.7250 level, key support is found at the 0.7200 and 0.7150 levels.
- If the NZDUSD pair trades above the 0.7250 level, buyers may test towards the 0.7300 and 0.7400 resistance levels.