On Easter Sunday President Trump tweeted that caravans of immigrants are approaching the US and hence the building of the Border wall is required and that the Dreamer’s deal is canceled. The deal was a recent cornerstone of stability as it provided Democratic consensus for the US government budgeting recently. Trump also threatened to cancel NAFTA should Mexico not respond on the issue and assist the US. Overall, the tweets could increase instability in the US political stage and could weaken the US Dollar.
EUR/USD traded in a sideways manner on Friday and during today’s Asian morning well between the 1.2355 (R1) resistance line and the 1.2230 (S1) support line. We might see the pair continue to trade in the same manner today, however with some bullish tones as the financial data due out today could weaken the greenback. Should the bulls take over the market we could see the pair breaking the 1.2355 (R1) resistance line and aim for the 1.2455 (R2) resistance level. On the other hand, should the bears take the reins we could see the pair breaking the 1.2230 (S1) support line and aim for the 1.2100 (S2) support barrier.
- Support: 1.2230(S1), 1.2100(S2), 1.1920(S3)
- Resistance: 1.2355(R1), 1.2455(R2), 1.2680(R3)
Bitcoin stabilises after a week of dropping
Bitcoin seems to start stabilising after continuous dropping last week. Main fundamental reasons behind it: Twitter’s ban on cryptocurrency advertising, especially initial coin offerings (ICO). Headlines about France and Thailand setting up regulations about aspects of cryptocurrencies as well as Japanese authority’s warnings against one of the largest cryptocurrency exchanges Binance, also contributed to the drop. Should there be any further negative headlines about cryptocurrencies, Bitcoin could start dropping again, hence we keep a negative outlook for the cryptocurrency.
Bitcoin has been in a clearly bearish market for the past week, however, started stabilising on Friday. The cryptocurrency seems to remain a trendsetter as most main crypto’s such as Ripple, Litecoin and Etherium followed. We continue to preserve a negative outlook for Bitcoin for the following week as it has not broken the downward trend-line incepted since the 5th of March. Should the cryptocurrency continue to be underselling interest we could see it breaking the 5710 (S1) support line and aim for the 4115 (S2) support hurdle. Should the pair find fresh buying orders along its path we could see it breaking the downward trend line and move Bitcoin in a sideways trading manner or even upwards breaking the 7428 (R1) resistance line.
- Support: 5710(S1), 4115(S2), 2930(S3)
- Resistance: 7425(R1), 8650(R2), 9750(R3)
In today’s other economic highlights:
During today’s European morning we get the US ISM manufacturing PMI for March which could weaken the USD.
As for the rest of the week:
On Tuesday, we get Australia’s RBA Interest Rate decision and Germany’s Markit/BME Manufacturing PMI for March. On Wednesday, Eurozone’s preliminary CPI rate and the unemployment rate for March as well as US ADP Employment Change and ISM Non-Manufacturing PMI for March. On Thursday we get UK’s Services PMI for March while on Friday we get the star of the week, the US Employment Report as well as Canada’s Employment data for March.
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