EURO CURRENCY RECOVERS ON EUROPEAN CENTRAL BANK QE SPECULATION
The euro currency moved sharply higher this week, as reports surfaced that the European Central Bank may soon be discussing when to end QE. The single currency recovered some of its recent heavy losses against the US dollar, Swiss franc, and Japanese yen currencies as investors factored in the news that the ECB may be having a live discussion, about the exit timing of QE at the upcoming ECB Monetary Policy Meeting this month. The EURUSD pair surged above the 1.1800 level, amidst strong technical buying after finding support from the 1.1651 level in early week trading.
The EURUSD pair is bullish while trading below the 1.1750 level, buyers may test towards the 1.1868 and 1.1995 resistance levels.
If the EURUSD pair moves below the 1.1750 level, sellers may test towards the 1.1700 and 1.1650 support levels.
CRYPTOS ON THE MOVE
Cryptocurrencies continued to recover this week, amidst low buying volumes and smaller trading ranges than digital currency traders have come to expect. Early week dip-buying was seen in Bitcoin, Ethereum, and Ripple, with Litecoin largely underperforming around the $120 level. Bitcoin edged closer towards the $8,000 resistance level, after finding strong early buying from just above the $7,200 level, while Ethereum, the second largest digital currency by market capitalization held firm around the $600 level.
The BTCUSD pair is bullish while trading below the $7,680 level, further gains towards the $8,000 and $8,200 levels seems possible.
If the BTCUSD pair moves below the $7,500 level, sellers may test back towards the $7,200 and $7,000 support levels.
The Australian dollar firmed against the US dollar this week after posting stronger than expected GDP data. The AUDUSD pair traded towards the 0.7680 level, after Australian Q1 GDP rose 1.0 percent, beating expectations of a 0.8 percent increase. The AUDUSD pair fell towards the 0.7600 level before later recovering, after the Reserve Bank of Australia kept its benchmark interest rate unchanged at 1.50 percent for the twenty-second consecutive month. The RBA policy statement noted that the decision was consistent with maintaining sustainable growth in the economy and achieving itsinflation target over time.
The AUDUSD pair is bearish while trading below the 0.7715 level, key support is located at the 0.7580 and 0.7510 levels.
If the AUDUSD pair moves above the 0.7715 level, buyers may test towards the 0.7785 and 0.7850 resistance levels.
The British pound suffered another week of heavy volatility against the greenback, with the GBPUSD pair rising on better than expected economic data, but later falling lower on Brexit concerns. The GBPUSD pair moved a new monthly trading high, hitting 1.3471 after the United Kingdom economy posted stronger than expected PMI Services data. The pound later slipped back under the 1.3400 level against the greenback, after reports surfaced that United Kingdom’s Brexit secretary David Davis, strongly opposed UK Prime Minister Theresa May's plan to stay in the EU customs union for an indefinite period after Brexit.
The GBPUSD pair is bullish while trading above the 1.3450 level, further upside towards 1.3500 and 1.3600 remains possible.
If the GBPUSD pair fails to move above the 1.3450 level, sellers may test the 1.3360 and 1.3300 support levels.