US DOLLAR SLIDES AS PRESIDENT TRUMP CRITICIZES THE FEDERAL RESERVE

US DOLLAR DOWN

The US dollar tumbled broadly lower this week, as US President Donald Trump once again directly criticized the US Federal Reserve for hiking US rates to quickly. The US dollar Index fell towards the 95.00 support level as the US President voiced his displeasure with the US Central Bank after the greenback had peaked in early week trade, hitting 96.15. The euro currency made a strong recovery against the US dollar, moving towards the 1.1600 resistance level, after earlier dropping to its lowest trading level since August 20th.

• The EURUSD pair is only bullish while trading above the 1.1500 level, key resistance is found at the 1.1650 and 1.1714 levels.

• If the EURUSD pair trades below the 1.1500 level, key support is found at the 1.1463 and 1.1400 levels.

RISK OFF RETURNS

Risk-off trading sentiment returned this week, causing global equity markets to sell-off sharply alongside commodity markets. Stock markets slid lower over concerns about rising US interest rates and slowing global economic growth, with the IMF also worsened market sentiment as they downgraded their 2019 growth forecasts. Asian equity markets were also hit hard, causing the Japanese yen to strengthen against the greenback, while the Nikkei225 suffered an intraday decline close to 1,000 points. Oil prices were also hit by global growth concerns and fears that the slowing Chinese economy could dent demand for WTI and Brent oil.

• The USDJPY is bearish while trading below the 112.00 level, key support is now found at the 111.10 and 109.60 levels.

• If the USDJPY pair moves above the 112.55 level, key resistance is found at the 113.30 and 114.00 levels.

CRYPTOS BREAK LOWER

Cryptocurrencies finally found a directional bias this week, as the broader market fell to the downside as digital currencies tumbled against the US dollar. Bitcoin fell below the $6,200 level after weeks of price consolidation, with the number one cryptocurrency suffering only mild percentage losses compared to other popular tokens. Ethereum suffered a double-digit decline with the ETHUSD pair tumbling below the $180.00 level, while Litecoin broke the $50.00 benchmark amidst a raft of technical selling. The overall digital currency market remains in a technical downtrend, since January 2018, more than $600bn have been wiped off the value of cryptocurrencies.

• The ETHUSD pair is bearish while trading below the $180.00 level, further losses towards the $173.00 and $157.00 levels remains possible.

• If the ETHUSD pair trades above the $200.00 level, further gains towards the $214.00 and $225.00 resistance levels then seems possible.

STERLING OPTIMISTIC

The British pound benefitted from weakness in the US dollar this week, with the GBPUSD pair soaring above the 1.3200 resistance level. Investors remained positive about ongoing Brexit negotiations, despite a lack of clarity over the outstanding Northern Ireland border and other key issues still unresolved. Sterling also looked past weaker than expected United Kingdom data as UK Gross Domestic Product came in flat on a monthly basis, while Manufacturing Production dropped -0.2 per cent during the month of September.

• The GBPUSD pair is bullish while trading above the 1.3100 level, key resistance is found at the 1.3300 and 1.3350 levels.

• If the GBPUSD pair trades below the 1.3100 level, further losses towards the 1.3055 and 1.2940 levels remains possible.