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Loony and Bitcoin lift strongly as USD falls

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It's been all about the United States today in global markets as the dollar slipped lower as investors flocked to riskier assets. This was on the back of the trade agreement between the US and Mexico, which is looking positive for the US economy in the long run. There are however a number of issues around it including Canada not being a part of it, but more importantly the need for congress and the senate to ratify anything. With upcoming mid-term elections in the US in the next 3 months it's unlikely anything could be officially signed and sorted until then, and there is the very real prospect of the democrats gaining some traction according to recent polls. So I would expect more drama in the long run around this proposed deal, as it's very hard to do anything without congress on your side as previous administrations have noted.

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Given the big rise, one that is worth noting, has been of course the USDCAD which has fallen sharply on the recent news. With the CAD has been the bigger winner currency in all of this, support at 1.2881 was only just able to hold back the bearish tide as of late. Looking at the chart we can see that resistance levels can be found at 1.2960 and 1.3041 at present. The 100 day moving average also continues to act as dynamic resistance and support, but only when economic and political news is light. There is further potential for things to move lower, but at this stage the bulls have fought back quite hard.

Bitcoin has been one of the big winners on the weaker USD as it lifted sharply on the back of an increase in risk appetite as well. The crypto currency king has been moving rapidly as of late with the fluctuations of the USD, and many are comparing it to another silver or gold where it's treated as a store of wealth in the long run, just in an online format.

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With that in mind the bulls have made a welcome return for crypto investors and it's looking positive at present as it pushes up to resistance at 7308. The key thing to note around Bitcoin is that it can be very technical given it does not play of economic data as much, so traders will be focused on a potential trend line that has formed that is bearish in nature at this given time. So a move above resistance at 7308 would be a cause for concern.  Support levels can be found at 6720 and 6065 if the market does decide to turn. In the long run though Bitcoin is looking bearish, but the bulls are always eager to turn it around if given the chance, there is after all, still a lot of belief in it.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


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