BITCOIN CONTINUES TO OUTPERFORM OTHER CRYPTOCURRENCIES
BITCOIN RACES HIGHER
Bitcoin continued to surge higher this week, with the world’s number one cryptocurrency by market capitalization breaking above the $8,000 level. Bitcoin has gained close to forty-percent this month, easily making the BTC/USD pair the best performing cryptocurrency in July. Bitcoin has been gaining in value on the back of solid fundamental developments, with a number of leading hedge funds looking to move into blockchain technology. With trade tensions between the U.S. and China accelerating, traders are now moving into digital currencies such as Bitcoin in times of uncertainty and widely shunning traditional safe-haven assets such as gold.
The BTCUSD pair is bullish while trading above the $7,700 level, further upside towards the $8,500 and $9,100 levels seem possible.
If the BTCUSD pair trades below the $7,700 level, further losses towards the $7,400 and $7,000 support levels remain possible.
CANADIAN DOLLAR FIRMS
The Canadian dollar firmed to a six-week trading high against the U.S. Dollar this week, as the greenback slipped-lower and Oil prices began to recover higher towards the $70.00 level. The USD/CAD pair fell towards the 1.3000 level as the U.S. Dollar gave back recent gains against commodity-related currencies, while weaker than expected Crude Oil inventory data from the U.S. economy helped lift the Canadian dollar. The USD/CAD pair had remained largely range-bound since the Bank of Canada chooses to raise interest rates 0.25 percent earlier this month.
The USDCAD pair remains bearish while trading below the 1.3123 level, further downside towards 1.2900 and 1.2810 levels seems possible.
If the USDCAD pair moves above the 1.3123 level, further upside towards the 1.3200 and 1.3265 resistance levels remains possible.
BOJ IN FOCUS
The U.S. Dollar tumbled towards the 110.50 level against the Japanese yen currency this week, as reports surfaced that the Bank of Japan would review the allocation of ETF purchases. Speculation has been widespread that the Bank of Japan would start to taper its asset purchases, ahead of next week’s key monetary policy decision from the Bank of Japan. The Japanese yen currency has recently started to benefit from uncertainty, as trade tensions between the U.S. and China worsen.
The USDJPY pair is bearish while trading below the 111.39 level, further downside towards the 110.10 and 109.00 levels seems possible.
If the USDJPY pair moves above the 111.39 level, buyers will likely towards the 112.00 and 112.80 resistance levels.
The euro currency shed gains against the U.S. Dollar and British pound, despite the European Central Bank striking a positive tone towards recent developments in the eurozone economy. The ECB kept monetary policy unchanged this week as expected, with ECB President Mario Draghi noting the eurozone economy had stabilized, whilst also highlighting improving eurozone data in the second quarter. The EURUSD pair slipped back towards the 1.1650 level after opening the week on stronger-footing, while the EURGBP pair also shed recent strong gains above the 0.8900 level.
The EURUSD pair is bearish while trading below the 1.1724 level, further losses towards the 1.1600 and 1.1510 levels seem possible.
If the EURUSD pair moves back above the 1.1724 level, further upside towards the 1.1851 and 1.1960 resistance levels seem possible.