TWITTER BAN AND REGULATIONS WEIGH ON THE CRYPTOCURRENCY MARKET

CRYPTOCURRENCIES DRIFT LOWER

The cryptocurrencies market remained under pressure this week, as the social media platform Twitter became the latest company to ban advertising of initial coin offerings and cryptocurrency trading. The move from Twitter weighed on the broader digital currency market and followed social media giants Google, and Facebook decision to ban cryptocurrency advertising. Bitcoin prices fell towards the key $7,000 level, after finding weekly resistance at $8,271, while Ethereum suffered steep losses under below $400, with the ETHUSD pair now technically bearish below its two-hundred day moving average.

• The ETHUSD pair is strongly bearish whilst trading below the $500 level, further declines towards $360 and $290 remain possible.

• Should price-action move above the $500 level, key technical resistance is then found at the $530 and $582 level.

DOLLAR SWITCH

The U.S dollar index recovered early week trading losses, as demand for greenbacks and better than expected U.S economic data reversed sentiment. The U.S dollar index moved back towards the 90.00 level, after finding support at the $88.94 level, as the EURUSD and GBPUSD pair turned lower from fresh March trading highs. The U.S dollar index has suffered wild fluctuations during the month of March, with the greenback unable to form a clear trend, as investors become confused about the direction of financial markets.

• The U.S dollar index remains bullish whilst trading above the 90.00 level, further upside towards the 90.38 and 91.20 levels seems possible.

• Should price-action fail to gain traction above the 90.00 level, a decline towards the 89.40 and 88.94 level remains possible.

USDJPY RECOVERS

The U.S dollar recovered monthly trading losses against the Japanese yen currency this week, as overall U.S dollar demand and a breakthrough in denuclearization talks with North Korea supported riskier asset classes. The USDJPY pair moved towards the 107.00 level, after earlier coming under selling pressure, and falling to its lowest trading in over sixteen months, hitting 104.64. The pair however started to recover bullish momentum above the 106.00 handle as the U.S dollar index recovered, and North Korea's leader Kim Jong-un agreed to meet with the South Korea premier in an official summit between the two nations.

• The USDJPY pair remains bullish whilst trading above the 106.00 level, further upside towards 107.38 and 108.10 remains possible.

• Should the USDJPY pair move below the 106.00 level, further declines towards 105.50 and 105.24 cannot be ruled out.

EURO MIXED

The euro currency suffered a week of mixed trading, with the euro losing ground against the U.S dollar, staging a recovery against the Japanese yen and British pound currencies. The EURUSD pair fell back towards the 1.2300 level, after a lack of overall demand above the 1.2500 level, and a bearish double-top price-pattern. The EURJPY pair recovered above the 131.00 level on Japanese yen weakness, whilst the EURGBP pair found demand above the 0.8700 level again, as the British pounds weekly losses outstripped the single currencies.

• The EURUSD pair remains short-term bearish whilst trading below the 1.2382 level, further declines towards the 1.2239 and 1.2160 levels seems possible.

• A sustained move above the 1.2382 level should support further EURUSD buying, with the pair targeting the 1.2430 and 1.2500 resistance levels.