CRYPTOCURRENCIES ERASE EARLY MONTH GAINS
The broader cryptocurrency market tumbled lower this week, following the announcement of yet another major cryptocurrency exchange hacking scandal. Bitcoin, Ethereum and Litecoin erased most of their hard-fought early-month trading gains, as the decentralized cryptocurrency exchange Bancor, revealed that it had been hacked. Bitcoin lost over ten percent of its value since peaking above the $6,700 on Monday, with the number-one cryptocurrency falling back towards the $6,000 level. Ethereum fell towards the $400 level once again, while Litecoin remained under selling pressure and eventually tumbled back towards the $73 level.
The BTCUSD pair is bearish while trading below the $6,200 level, further losses towards the $6,000 and $5,700 levels seem possible.
If the BTCUSD pair trades above the $6,200 level, further upside towards the $6,370 and $6,700 resistance levels remains possible.
BOC RAISE RATES
The Bank of Canada raised interest rate 0.25 percent this week as expected, moving the benchmark interest rate to 1.50 percent, while also delivering a hawkish policy statement hinting at further rate hikes this year. The Bank of Canada noted that further gradual interest rates would seem appropriate as the Canadian economy and domestic inflation remain in-line with the central bank's targets. The Canadian dollar initially moved higher following the hawkish rate hike, but later weakened against the greenback as commodity-related currencies came under pressure due to US trade tariff tensions.
The USDCAD pair remains bullish while trading above the 1.3123 level, further upside towards 1.3220 and 1.3310 seems possible.
If the USDCAD pair moves below the 1.3123level, further selling towards the 1.3060 and 1.2940 support levels remains possible.
The Japanese yen currency suffered heavy trading losses against the US dollar this week, following a major technical breakout in the USDJPY pair. The US dollar surged to its highest trading-level since January this year against the Japanese yen, as USDJPY buyers edged towards the 113.00 resistance level. Traders looked past the ongoing trade tensions between the United States and China this week, as the Trump administration imposed a further $200 billion worth of trade tariffs on Chinese imports.
The USDJPY pair is bullish while trading above the 111.39 level, further upside towards the 113.10 and 113.40 levels seems possible.
If the USDJPY pair moves below the 111.39 level, sellers will likely towards the 111.00 and 110.25 support levels.
The British pound moved sharply-lower this week against the US dollar, following the resignation of British Foreign Secretary Boris Johnson. The GBPUSD pair tumbled below the 1.3200 level, as Boris Johnson vacated his position as Foreign Secretary in protest over British Prime Minister Theresa May’s latest soft Brexit deal proposal. Traders and investors feared that internal wrangling inside the ruling Conservative party over Brexit could eventually lead to a leadership challenge, and threaten Theresa May’s position as Prime Minister, creating political instability.
The GBPUSD pair is bearish while trading below the 1.3205 level, further losses towards the 1.3101 and 1.3060 levels seem possible.
If the GBPUSD pair moves back above the 1.3205 level, further upside towards the 1.3255 and 1.3300 resistance levels seem possible.