USDCAD Continues South, Bitcoin Volatility Skyrockets

Asian indices finished lower today as investors focus turn to G20 meeting which started in Osaka, Japan. The Nikkei225 finished 0.29 percent lower to 21,275, the Hang Seng benchmark in Hong Kong finished 0.28 percent lower at 28,542. The Shanghai Composite finished 0.28 percent lower to 2,978, while in Singapore, the FTSE Straits Times index finished 0.21 percent lower to 3,321. Australian equities ended weaker on Friday by 47.5 points or 0.7% to 6618.

European equities trading higher midday as markets await the G20 meeting in Osaka, Japan. DAX30 is adding 0.49 percent to 12,331, CAC40 is 0.32 percent higher at 5,511 while the FTSE MIB in Milan is trading 0.40 percent higher at 21,195. The London Stock Exchange is 0,20 percent higher to 7,417 amid Brexit uncertainty.

In commodities markets, crude oil trades higher at $59.52 after getting a boost yesterday from better EIA report and an increase in geopolitical tensions around the globe. Brent oil trades lower at $65,75 per barrel as major oil producers have yet to agree on adjustments on output. Gold trades higher at 1,418 holdings above all the major daily moving averages, on the upside strong resistance will be met at 1,439 recent high.      

In cryptocurrencies market, Bitcoin (BTCUSD) has been on a rollercoaster for the last 24 hours. The crypto-coin hit the daily low for BTC at 10,434 and the daily high at 12,087. Immediate support for BTC stands now at $10,434, the daily low, while the next support stands at 10,000. On the upside, strong resistance now stands at 13,291 today’s high while I expect extra pressure from sellers at 13,500 and then at 14,000. Ethereum (ETHUSD) trades lower giving up 20 dollars at 302, with capitalization now to 32.60 billion. On the upside, the immediate resistance stands at 342.70 the daily high while the support stands at 300 the previous resistance which now turns into support, Litecoin (LTCUSD) also trades lower at 116. The crypto market cap now stands above $335.0 billion.

On the Lookout: The Japanese Housing Starts, Year on Year, came in at -8.7% worst than analyst’s forecasts of -4.3% for May. In Australia, the Private Sector Credit, Month on Month came in at 0.2%, worst than analyst’s forecasts of 0.3% in May. In New Zealand, the Roy Morgan Consumer Confidence for the economy added 3 points in June to 123.

In macro news from America, we await the US Core Personal Consumption Expenditure Price Index data due at 12:30 GMT while from Canada April GDP report and industrial figures will be released. The US Michigan Consumer Sentiment Index data will be reported at 02:00 GMT.

osaka, japan

Trading Perspective: In forex markets, USD trades lower at 96.10 after the comments from Fed members that calm the markets, the Aussie dollar continues higher for the sixth day at 0.7010, while Kiwi also trades higher at 0.6710 after New Zealand’s Roy Morgan Consumer Confidence for the economy added 3 points in June to 123.

GBPUSD is trading flat at 1.2688 as traders are still cautious around the Brexit developments. Major support now stands at 1.2652 the 200-hour moving average which if broken might accelerate the slide further towards 1.2600 round figure. On the upside, immediate resistance now stands at 1.2717 the 100-hour moving average while more offers will emerge at 1.2815 the 50-day moving average. 

In Sterling futures markets the open interest increased by 2,600 contracts while volume increased by 1,200 contracts. 

EURUSD trades slightly higher at 1.1380 as the pair rejected earlier this week at 1.14. The pair on Friday broke above the 200-day moving average and that attracted extra bids that pushed the pair up to 1.1390. Immediate resistance for the pair stands at 1.14 round figure. A convincing close above 1.14 can lead prices to 1.1450. Support now stands at 1.1344, the low from Tuesday, while more bids will emerge at 1.1260 the 100-day moving average. 

In euro futures markets, the open interest increase by 760 contracts, while volume increased by 14.900 contracts. 

USDJPY trades flat at 107.78 having hit the daily low at 107.55 and the daily high at 107.82. USDJPY pair will find support around 107.00 round figure and then at 106.70 the YTD low. On the upside, immediate resistance for the pair now stands at 108.15 the daily high. 

In Yen futures markets, the open interest shrunk by 2,100 contracts, while volume also shrunk by 9.100 contracts. 

USDCAD trades lower for one more day at 1.3084 close to a five-month low, as the rally continues in crude oil prices, Canada’s main export item seems to have added further strength in the Canadian Dollar (CAD). The pair will find immediate support at 1.3060 the low from February 1st while extra support stands at 1.30 round figure. The pair has reached oversold levels so a rebound can’t be ruled out. On the upside immediate resistance now stands at the 1.32 zone before an attempt to 1.3450 recent high from 31st May. 

osaka, japan
USDCAD Daily Chart