CRYPTOS SUFFER HEAVY LOSSES AS HACKING SCANDAL PROMPTS PANIC SELLING

CRYPTO SELLING

The Cryptocurrency market came under heavy selling pressure this week, as a hacking scandal involving South Korean cryptocurrency exchange Coinrail caused widespread panic selling across the digital currency space. Bitcoin fell towards the $6,000 level, which marked the lowest trading level since February 6th for the world’s largest cryptocurrency by market capitalization. Ethereum was amongst the biggest losers, with the second most popular cryptocurrency at one stage shedding close to thirty percent of its trading value since last week, as the ETHUSD pair slumped to $440.

• The BTCUSD pair is strongly bearish while trading below the $7,210 level, further downside towards $5,700 and $5,300 seems possible.

• If the BTCUSD pair moves above the $7,200 level, key resistance is found at the $7,500 and $7,880 levels.

DOLLAR FIGHTS BACK

The US dollar index fell lower in mid-week trading, despite the Federal Reserve raising rates 0.25 percent as expected, and a more hawkish monetary policy statement from the US Central Bank. The initial market reaction saw the greenback gaining across the board but the move higher was quickly reversed, and the US dollar index was sold broadly, as traders had already priced in the rate hike. The US dollar index staged a comeback on Thursday, gaining sharply against commodity-related currencies, and also making strong gains against the Swiss franc, Japanese yen, British pound and euro currencies.

• The USDCHF pair remains bullish while trading above the 0.9950 level, key resistance is located at the 1.0010 and 1.0040 levels.

• If the USDCHF pair moves below the 0.9950 level, further selling towards the 0.9900 and 0.9840 levels remains possible.

EURO SELL OFF

The euro currency fell sharply lower against the US dollar this week, as the European Central Bank kept interest rates on hold and disappointed investors with its plans to withdraw QE stimulus. The single currency tumbled, as the ECB announced plans to start tapering its large asset purchase program known as QE in September, although the ECB noted that tapering remained contingent on eurozone data. During the ECB press conference, President Mario Draghi struck a dovish tone which further unsettled the euro currency, causing the EURUSD pair to move back below the key 1.1600 level.

• The EURUSD pair remains bearish while trading below the 1.1615 level, further losses towards 1.1540 and 1.1480 seem possible.

• If the EURUSD pair moves back above the 1.1615 level, buyers may test towards the 1.1680 and 1.1715 resistance levels.

WEAKER AUSSIE

The Australian dollar fell lower against a basket of top-tier currencies this week, as weaker than expected Australian jobs data spooked investors. The Australian dollar weakened after monthly jobs increased less than expected, while the jobs participation rate declined heavily. The only bright spot for the Australian jobs report came from the Unemployment rate, which hit a six-month low. Unemployment is an important factor for the Australian economy because it impacts on the rate of wage growth and the overall demand in the economy, and even domestic inflation.

• The AUDUSD pair remains bearish while trading below the 0.7580 level, key support is located at the 0.7510 and 0.7460 levels.

• If the AUDUSD pair moves above the 0.7580 level, further gains towards the 0.7655 and 0.7715 levels remains possible.