CRYPTOCURRENCIES CRASH LOWER ON BEARISH FUNDAMENTAL NEWS
Bitcoin came under heavy selling pressure alongside the broader cryptocurrency in the first trading week of September, as bearish news from Goldman Sachs pushed the BTCUSD pair back towards the $6,000 level. Goldman Sachs announced the delay of a cryptocurrency trading desk over fears about regulatory uncertainty in the crypto market. Ethereum was also sold sharply lower on the news, with the second largest cryptocurrency by market capitalization falling to a fresh yearly trading low around the $200.00 level.
The BTCUSD pair is bearish while trading below the $6,550 level, further losses towards the $6,000 and $5,800 levels seem possible.
If the BTCUSD pair trades above the $6,500 level, further gains towards the $6,700 and $6,830 resistance levels remains possible.
The British pound clawed back lost ground against the US dollar this week after positive news on Brexit helped the GBPUSD pair recover to the 1.2985 level. The British pound had been under fire earlier this week, as concerns over Theresa May’s proposed Chequers deal and softer than expected UK economic data helped push sterling towards the 1.2800 level. Comments from German trade officials lifted the British pound higher, as they announced that they would be dropping important Brexit demands, offering a more accommodative stance towards the United Kingdom’s departure from the EU.
The GBPUSD pair is bullish while trading above the 1.2950 level, further upside towards the 1.3040 and 1.3100 levels seem possible.
If the GBPUSD pair moves below the 1.2863 level, further downside towards the 1.2802 and 1.2775 levels seem possible.
The US dollar gained sharply against the Canadian dollar this week, as traders and investors feared that U.S and Canadian officials would be unable to reach a deal on NAFTA. The USDCAD pair rose above the 1.3200 level on the overall lack of progress coming from trade talks in Washington. The USDCAD pair also moved higher, as the Bank of Canada kept interest unchanged and mentioned concerns over the North Atlantic Free Trade Agreement.
The USDCAD pair is bullish while trading above the 1.3120 level, further gains towards the 1.3289 and 1.3350 levels seems possible.
If the USDCAD pair moves below the 1.3120 level, sellers will likely test towards the 1.3000 and 1.2930 support levels.
The United States economy posted impressive economic data this week, with the ISM Manufacturing survey rising to a fourteen-year high. The ISM Manufacturing survey posted a 61.3 reading for the month of August, easily outpacing market expectation of a 57.7 number. The US dollar index moved higher on the bullish ISM number but later gave back gains as the greenback struggled to break key technical resistance.
The USDJPY pair is only bearish while trading below the 110.90 level, key support is found at the 110.45 and 110.10 levels.
If the USDJPY pair trades above the 111.80 level, further upside towards the 112.05 and 112.80 levels remains possible.