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Technical Analysis

ETH/USD Analysis – July 23, 2021

Upward Trendline Supports Ethereum at $1,860

The ETH/USD closed at $2,013.98 after placing a high of $2,044.74 and a low of $1,939.16. ETH/USD soared dramatically on Thursday and crossed over the $2000 mark after continuously trading bearish. It consolidated in a narrow trading range almost for more than 2-weeks.

The price of Ethereum soared following Tesla, and SpaceX CEO Elon Musk announced he holds the cryptocurrency at The B Word conference, a contest hosted by the Crypto Council for Innovation.
Ethereum, which was previously surging on the day, reached its highest point during the session after Musk’s specifying. The ETH/USD pair surged over 12% and was around the highest levels of the day.

Elon Musk also reiterated his backing for cryptocurrency in general, despite possible environmental risks, stating, “One thing you do need to watch out for with crypto, especially bitcoin, using proof of work, using energy that’s a bit too much and not necessarily good for the environment.” Ethereum gained support after Elon Mush said the bitcoin mining is powered mainly by renewable energy, and Tesla will likely move to allow bitcoin for businesses once again.

The U.S. Dollar Index that estimates the greenback worth versus the basket of six major currencies slipped and touched 92.76 level, appending additional gains in Ethereum prices. Both of these currencies share a negative correlation. The bearishness in the greenback could be credited to the sunk risk-off market bias and eased down concerns of coronavirus radiated across the market.

ETH/USD Intraday Technical Levels

Support Resistance
1953.85 2059.43
1893.71 2104.87
1848.27 2165.01
Pivot Point: 1999.49

ETH/USD – Technical Outlook

The second most traded cryptocurrency, ETH/USD, is trading with a solid bullish bias at the 2,055 level. It’s gaining immediate support at 2,045 level that’s being extended by a double top pattern that has already been violated during the Asian session. Now, this double top resistance level is working as a support for Ethereum.

On the 4-hour timeframe, Ethereum’s MACD and 50 EMA indicators are supporting buying trend. Therefore, Ethereum’s next resistance stays at 2,170 level. Bullish crossover of this level exposes the ETH/USD price towards 2,285 and 2,385 levels. At the same time, the support remains at 2,045 and 1,947 levels. All the best!

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Technical Analysis

DOGE/USD Analysis – July 23, 2021

Elon Musk Supports Dogecoin

The DOGE/USD pair is trading with a slight bullish bias at the 0.1953 level on Friday. Having soared from 0.1852 support level on the 4-hour chart. Most of the bullish trend is triggered amid fundamentals support. Coinbase now takes business payments in Dogecoin. Coinbase Commerce now permits clients to check out and spend with seven cryptocurrencies, including the Dogecoin, the meme crypto.

DOGE/USD remains on Elon Musk’s account as the billionaire validated he held Bitcoin, Ethereum, and Dogecoin. On Thursday at the B-Word conference, Elon Musk validated that he had a couple of cryptos. The digital assets he carries including Bitcoin, Ethereum, and Dogecoin. The SpaceX CEO is fondly remembered in the community as the Doge father.

It seems the Doge father has not yet abandoned his favourite crypto. Musk verified that he held more BTC than Doge or Eth. This came as no shock as the billionaire had forever been bullish on the BTC/USD coin and proceeded to back the asset.

As we know, the BTC/USD and DOGE/USD share a positive correlation, and any news supporting Bitcoin also underpins the price of Dogecoin. With that being said, Dogecoin is gaining support over comments from Elon Musk regarding Bitcoin.

As per Elon Musk, bitcoin is turning towards renewable energy, and several of the heavy-duty coal factories employed in China have been closed. Musk continued that he needed to verify that the usage of renewable energy was at or over 50% for bitcoin mining.

The U.S. Dollar Index that estimates the greenback worth versus the basket of six major currencies slipped and touched 92.76 level, appending additional gains in Dogecoin prices. Both of these currencies share a negative correlation. The bearishness in the greenback could be credited to the sunk risk-off market bias and eased down concerns of coronavirus radiated across the market.

DOGE/USD Intraday Technical Levels

Support Resistance
0.1848 0.19632
0.1789 0.20194
0.1733 0.20781
Pivot Point: 0.19045

DOGE/USD – Technical Outlook

The DOGE/USD pair is trading with a slightly bullish bias at 0.1952, having rejected at the double top resistance mark of 0.1963 level. Dogecoin is trying to close the “shooting star” candle below the 0.1963 level, making it a more solid resistance now.

The indicators like MACD and 50 EMA support a buying trend as the 50 EMA provides support at 0.1852 level. Bullish trend continuation and a breakout of 0.1963 level can expose DOGE/USD price towards 0.2048 and 0.2145 levels.

Besides, the bearish breakout of 0.1852 level can expose Doge towards 0.1789 and 0.1733 support levels on Friday. Bullish bias dominates over 0.1852 today. All the best!

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Technical Analysis

BTC/USD Analysis – July 23, 2021

Bitcoin to Face Resistance at $33,000

The BTC/USD was closed at $32,226.51 after placing a high of $32,573.13 and a low of $31,692.10. After plunging for consecutive two sessions, the Bitcoin prices recovered on Thursday as they soared upward, reversing it’s momentum. Most of the bullish trend was triggered by Tesla CEO Elon Musk. According to him, the organization would likely re-accept bitcoin for its vehicle buying as the cryptocurrency seemed environmentally friendly.

As per Elon Musk, bitcoin is turning towards renewable energy, and several of the heavy-duty coal factories employed in China have been closed. Musk continued that he needed to verify that the usage of renewable energy was at or over 50% for bitcoin mining.

As per the latest figures from Cambridge University, many miners have been directed to the United States., which has become the second-biggest target for the world’s bitcoin miners. Musk stated that long-term renewable energy would be the most affordable energy; however, it could not be accomplished overnight. He further added that as long as there is determined solid effort from the mining industry to move towards renewables, Tesla would promote the BTC. These remarks from Elon Musk appended in the worth of BTC/USD, and the cryptocurrency rose around 8% in value.

The U.S. Dollar Index that estimates the greenback worth versus the basket of six major currencies slipped and touched 92.76 level, appending additional gains in Ethereum prices. Both of these currencies share a negative correlation. The bearishness in the greenback could be credited to the sunk risk-off market bias and eased down concerns of coronavirus radiated across the market.

BTC/USD Intraday Technical Levels

Support Resistance
31,754 32,635
31,285 33,044
30,873 33,516
Pivot Point: 32,163

BTC/USD – Technical Outlook

The leading cryptocurrency, Bitcoin, continues trading with a bullish bias at 32,610 level. On Friday, the BTC/USD is facing a double top resistance level at 33,094 level and bullish breakout of this level can expose Bitcoin price towards next resistance levels of 33,516 and 34,492 level. Below this double top pattern of 33,094 level, the BTC/USD support prevails at 31,745 and 30,995 levels. In addition to this, the 4-hour chart’s MACD and 50 EMA are exhibiting a bullish crossover, suggesting buyers are taking control. Thus, the bullish breakout of 33,094 level exposes the Bitcoin price towards 34,100 (daily 50 EMA) resistance level. All the best!

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Technical Analysis

Gold – XAU/USD Analysis – July 22, 2021

Triple Bottom Pattern Support

The XAU/USD was closed at $1805.25 after placing a high of $1814.35 and a low of $1794.55. Gold dropped for the 5th consecutive session on Wednesday and extended its loss to hit its 1-week lowest level amid the renewed risk appetite in the market along with the rebounding U.S. Treasury Yields.

The stocks and bond yields saw a massive sell-off on Monday due to rising risk-off market sentiment driven by the concerns over stalling global economic recovery amid the rising number of Delta variant COVID-19 infections throughout the globe. However, on Wednesday, the riskier assets like stocks and yields recovered and dimmed the safe-haven appeal for bullion.

Meanwhile, the fears about the recent surge in coronavirus cases caused by the Delta variant eased down and took away the rising demand for the U.S. dollar triggered by its safe-haven status. The return of risk appetite also played an essential role in pulling back the price of the U.S. dollar that had reached its highest since late March at 93.19 level on Wednesday before dropping.

The U.S. bond yields recovered on Wednesday after falling to their lowest since February on Tuesday and reached 1.297%. The U.S. Dollar Index that measures the greenback value against the basket of six major currencies fell on Wednesday after rising for the previous four consecutive sessions and reached 92.73.

The rise in Treasury Yields continues to pull back the prices of gold on Wednesday as the rising yields tend to increase the opportunity cost of holding nonyielding bullion. According to some analysts, the possibility of the Fed’s transitory view being proved correct, especially in the rising COVID-19 cases situation, proved negative for an inflation-hedge like gold. However, an accommodative monetary policy in this scenario could prove beneficial for the yellow metal.

There was no macroeconomic data from the U.S. side on Wednesday. However, the U.S. Federal Reserve officials will meet next week, while the meeting of the European Central Bank is scheduled for Thursday that has got the attention of most investors right now.

On the coronavirus front, the World Health Organization reported that the highly transmissible delta variant of the coronavirus was now spread to 124 countries. It will become the dominant strain globally as it was outcompeting other virus variants in the coming months.

In the last week, the global number of coronavirus cases rose by 3.4million, which was up by 12% from the previous week. The average daily count of the cases worldwide became 490,000 cases compared to the 400,000 cases a week ago. Approximately 190 million confirmed coronavirus cases had been reported throughout the globe, along with a death rate of 4 million.

Australia went into lockdown again on Tuesday while the re-openings in the U.K. and the United States were putting pressure on the government. Meanwhile, the President of the U.S., Joe Biden, said that children below 12 would receive vaccination within months and urged unvaccinated Americans to get their vaccine shots as the virus surged across the nation.

Gold Intraday Technical Level

Support Resistance
1802.44 1823.14
1793.47 1834.87
1781.74 1843.84
Pivot Point: 1814.17

Gold – XAU/USD – Technical Outlook

On Thursday, the precious metal gold is trading with a bearish bias at a 1,798 level. It has violated the upward channel support at the 1,802 level supporting selling bias in metal now. Furthermore, gold has failed to cross above the 50 EMA level at 1,811, and closing below this EMA is adding additional selling pressure on gold. The bearish breakout of gold’s support level of 1,796 exposes gold price towards the next support area of 1,784. Conversely, a bullish crossover of 1,811 levels can reveal gold price towards 1,824 resistance. The MACD supports a selling bias; therefore, the trader’s attention will be on the 1,796 level to determine whether to short below a stay long above this level. All the best!

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Technical Analysis

EUR/USD Analysis – July 22, 2021

ECB Monetary Policy Decision in Highlights

The EUR/USD pair consolidates in a narrow trading range of 1.1800 – 1.1780 level on Thursday. Today, the investor’s major focus will remain on the ECB policy decision. Yesterday, the calendar wasn’t offering any major economic event, as the E.U. won’t publish relevant data. However, the E.U. issued weekly MBA Mortgage Applications. However, on Thursday, the calendar will have significant events like ECB (European Central Bank) monetary policy decisions.

On Thursday, European Central Bank executives will describe how their fresh inflation aim concerns their plans for monetary policy in the future. The officials from ECB will have to adjust their language on the main refinancing rate, asset purchases, and other means for an updated strategy acknowledged earlier this month.

This updated strategy now aims for inflation of 2% and admits that it may momentarily run higher. The review will cover the way for a crucial debate in September on whether and how to repeal emergency bond-buying.

The backcloth is a resurgent euro-area economy that allows abrupt price hikes but also significant uncertainty. Mounting coronavirus cases are helping some nations to re-tighten travel curbs, and the influence of other hazards, such as Germany’s disastrous floods, is still unknown. ECB officials say inflation pressures will subside and repeatedly caution against relaxing stimulus too soon.

EUR/USD Intraday Technical Levels

Support Resistance
1.1762 1.1822
1.1733 1.1853
1.1702 1.1882
Pivot Point: 1.1793

EUR/USD – Technical Outlook

The EUR/USD pair consolidates in a narrow trading range of 1.1800 – 1.1780 level on Thursday. Investors seem to feel hesitant before the release of the ECB monetary policy decision as this has the potential to drive trendy moves in the market. On the hourly chart, the direct currency pair EUR/USD has crossed above 50 SMA (simple moving average), which’s now supporting the pair at the 1.1785 level.

At the same time, the triple top pattern is providing resistance at 1.1802 level. A bullish breakout of 1.1802 level can expose the EUR/USD price towards the next resistance level of 1.1825. At the same time, the support continues to hold at 1.1786. a breakout of 1.1786 support level exposes the EUR/USD price towards the 1.1760 level today. Let’s wait for the ECB policy decision as to the trend heavily relay on the decision. All the best!

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Technical Analysis

BTC/USD Analysis – July 22, 2021

Bitcoin Bounce off -32K Next Resistance

The BTC/USD was closed at $31767.0 after placing a high of $32804.0 and a low of $29545.0. After falling for two consecutive sessions, BTC/USD recovered on Wednesday as it moved upward and reversed its momentum. On Wednesday, Tesla CEO Elon Musk said that the company would likely start re-accepting bitcoin for its vehicle purchases as the cryptocurrency looked a lot more environmentally friendly. According to Musk, bitcoin was shifting more towards renewable energy, and many of the heavy-duty coal plants used in China have been shut down.
Musk added that he wanted to confirm that the renewable energy usage was most likely at or above 50% for bitcoin mining purposes. There was a trend towards increasing that number to approve Tesla for resuming the acceptance of bitcoin against its vehicle sale.

In May, the CEO of Tesla announced on Twitter that the company was suspending the vehicle purchases made with bitcoin out of concern over the rapidly increasing use of coal and fossil fuels for bitcoin mining. Since then, Beijing started cracking down on crypto and expelled the crypto miners from the country, who have reportedly started their practice elsewhere.

According to the latest data from Cambridge University, many miners have headed to the U.S., which has now become the second-biggest destination for the world’s bitcoin miners. Musk said that long-term renewable energy would be the cheapest energy; however, it could not be achieved overnight. He continued that as long as there is a conscious and determined real effort from the mining community to move towards renewables, Tesla would support the bitcoin. These comments from Elon Musk added in the value of BTC/USD, and the cryptocurrency gained about 8% in the value.
Meanwhile, during the B-Word webinar on Wednesday, the CEO of Square, Jack Dorsey, had high hopes for the digital asset and aspired to the cryptocurrency bitcoin. He said that he hoped that bitcoin create world peace or help in creating world peace. These positive comments from big tech celebrities added to bitcoin’s value and supported its surge on Wednesday.

However, some investors also believed that the jump in BTC/USD on Wednesday was also because of the so-called “buy the dip” opportunity. Many institutional investors, along with others, were waiting for a plunge in its value so that they can enter the market to book profits while it increases in value. Furthermore, the declining prices of the U.S. dollar on the day also added extra upward pressure on BTC/USD as both have a negative correlation. The U.S. Dollar Index that measures the greenback value against the basket of six major currencies fell to 92.73 from its daily high of 93.19 on Wednesday as risk-off market sentiment eased a little.

BTC/USD Intraday Technical Levels

Support Resistance
29073.0 30807.0
28340.0 31808.0
27339.0 32541.0
Pivot Point: 30074.0

BTC/USD – Technical Outlook

The leading cryptocurrency, Bitcoin, has bounced off above 29,350 level to trade at 32,070 level. On Thursday, the BTC/USD pair is trading in a descending triangle pattern that extends resistance at 32,830 levels along with a support level of 29,380.

Bitcoin has formed a triple bottom level at 29,380 level, and the closing of candles above this level supports a bullish bias. Since the BTC/USD has closed a bullish engulfing candle on the daily chart, the bullish power is getting dominant. In addition to this, the 4-hour chart’s MACD and 50 EMA are exhibiting a bullish crossover, suggesting buyers are taking control.

Therefore, the bullish breakout of 32,850 level exposes the Bitcoin price towards 34,650 (daily 50 EMA) resistance level. All the best!

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Technical Analysis

Gold – XAU/USD Analysis – July 21, 2021

50 EMA Crossover

Gold was closed at $1809.45 after placing a high of $1825.80 and a low of $1805.35. Gold was steady throughout Tuesday’s trading session as gold tried to move upward in the first half of the day. However, in the second half of the day, with the strength of the U.S. dollar and reduced inflows into the safe-haven metal despite concerns over the mounting coronavirus cases globally, the precious metal reversed its momentum. It ended its day on a red note.

The U.S. Dollar Index that measures the greenback value against the basket of six major currencies rose for the 4th consecutive session and reached 93.17 level, which is the highest since March 28. The rise in the greenback value was due to increased demand for the U.S. dollar due to its safe-haven status.

Investors preferred the U.S. dollar over yellow metal while considering the safe-haven appeal and risk-off market mood in the market. It was because investors were of the view that concerns were not such alarming as they were at the time when vaccines were not available. Furthermore, the gold outlook was already disturbed due to the rising yields and stocks on the day.

The main indexes on Wall Street rose by almost more than 1% on Tuesday, including Dow Jones Industrial Average that fell on the previous day to a nine-month lowest level. The U.S. Treasury Yields on the 10-year note rose to 1.220 level after dropping to its lowest since the beginning of February.

At 17:30 GMT, the Building Permits for June dropped to 1.60M against the expected 1.69M and weighed on the U.S. dollar that further caped loss in the yellow metal. In June, the Housing Starts rose to 1.64M against the forecasted 1.59M and supported the U.S. dollar, and added further pressure on the precious metal.

On the coronavirus front, the U.S. health officials said that the contagious delta now accounts for more than 80% of new coronavirus cases in the country. Meanwhile, On Monday, Europe became the first region worldwide to cross 50 million coronavirus cases as the most contagious Delta variant accelerated a record increase in the daily new infections.

The Delta variant that is significantly more contagious than the original version of coronavirus has been detected in more than 100 countries and has become a dominant variant worldwide. These concerns kept the safe-haven appeal in the market alive and supported the U.S. dollar more than the yellow metal.

Gold Intraday Technical Level

Support Resistance
1796.80 1819.80
1784.40 1830.40
1773.80 1842.80
Pivot Point: 1807.40

Gold – XAU/USD – Technical Outlook

The yellow metal gold is trading with a bearish bias at 1,810 levels, having crossed below the 50 periods EMA line. This EMA line was extending support at the 1,814 level, and since gold prices are holding below this, it will work as a resistance.

On the downside, the precious metal gold is likely to find support at the 1,802 level that’s extended by an upward trendline. Above this, gold has a chance to bounce off until the 1,813 level. However, the bearish breakout of 1,802 support levels exposes gold prices towards the 1,796 level. In the absence of high-impact fundamentals, the market’s focus will remain on the technical levels of gold that we just discussed. All the best!

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Technical Analysis

EUR/USD Analysis – July 21, 2021

Euro Bounce-off Over Double Bottom 1.1760

The EUR/USD plunged sharply to test the support level of 1,1764 but reversed right after to trade at 1.1780. The E.U. announced the May Current Account on the data front, which reported a surplus of €11.7 billion, missing the market’s forecast. The U.S. announced June Building Permits, which declined 5.1%, while Housing Starts surged 6.3%.

On Wednesday, the calendar isn’t offering any major economic event, as the E.U. won’t publish relevant data. However, the E.U. will publish weekly MBA Mortgage Applications. The calendar will have nothing significant to offer until next Thursday, when the ECB (European Central Bank) will publish its monetary policy decision.

The risk-off market sentiment spurred by the growing number of coronavirus cases amid the delta variant of coronavirus pressed riskier assets. It held the entire global stock market under stress. The risky securities like bonds, stocks, and yields remain depressed as the growing number of cases globally could reduce the global economic revival.

Many nations striving to fight the swift spread of coronavirus were required to re-inflict lockdown measures as the Delta variant made cases climb at a dangerous level. The WHO has also advised that the delta variant was now the dominant strain globally. According to U.S. Centers for Disease Control and Prevention, the cases in the U.S. were up by 70% last week, and the deaths were 26%, with outbreaks occurring in parts of the country with low vaccination rates.

The Dow Jones Industrial Average (DJIA) sank to its lowest adjacent with the U.S. Treasury Yields on benchmark 10-year note that extended its drop for 5th consecutive session and fell to its weakest in 6 months at 1.176%. The risk-off market sentiment appended strength to the safe-haven U.S. dollar that eventually reached beyond 93 handles, its highest in 4-months, and added pressure on the currency pair EUR/USD. Thus, the single currency Euro is trading bearish against the U.S. dollar.

EUR/USD Intraday Technical Levels

Support Resistance
1.1762 1.1822
1.1733 1.1853
1.1702 1.1882
Pivot Point: 1.1793

EUR/USD – Technical Outlook

The technical front of the EUR/USD pair hasn’t changed a lot as the pair continues to trade at the 1.1780 level, bouncing off the support level of 1.1760 level. The single currency Euro has crossed below 50 SMA (simple moving average) on the 4-hourly timeframe. This 50 SMA continues to extend resistance at the 1.1820 mark. The closing of candles beneath this mark demonstrates a bearish trend in the EUR/USD currency pair.

On the lower side, the EUR/USD’s support stays at the 1.1765 mark that’s dispensed by a double bottom pattern. Violation of this double bottom pattern can expose the EUR/USD towards the 1.1735 support level. All the best!

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Technical Analysis

BTC/USD Analysis – July 21, 2021

Bitcoin Set to Bounce off Above $29,300

The BTC/USD was closed at $29914.0 after placing a high of $31075.0 and a low of $29341.0. bitcoin extended its loss and reached below the $30,000 level for the first time in four weeks as the panic selling increased. The sudden drop in bitcoin prices led some analysts to believe that it was the time that price of BTC will fall further. This type of mindset added weight to BTC/USD prices on Monday, and the cryptocurrency dropped below its crucial support level of $30,000.

Meanwhile, the former Goldman Sachs executive Raoul Pal explained the history behind his investment in cryptocurrency. He said that he had invested 55% of his wealth in Ethereum, and he also called this move the biggest, clearest bet of all. Pal was bearish on fiat currencies like the U.S. dollar as he believes that they were continuously declining against assets like real estate, stocks, and crypto.

On the other hand, the JP Morgan Asset & Wealth Management CEO, Mary Callahan Erdoes said that the clients of banking giants see the bitcoin as an asset class and wanted to invest in it. In April, JP Morgan announced that it had plans to allow wealthy clients to invest in bitcoin through a forthcoming managed fund. By doing so, JP Morgan will become the second-largest bank to offer access to bitcoin, followed by Morgan Stanley, which is currently at first rank.

Furthermore, the CEO of Osprey Funds, an issuer of over-the-counter Bitcoin trust OBTC, said that the U.S. Securities and Exchange Commission has many things on its plate in 2021 under the leadership of Gary Gensler that a BTC ETF approval was unlikely to cut. He expected the fund might get approval in 2022 at the earliest but not in 2021. These comments also weighed on BTC/USD and added loss in its prices.

Additionally, the decline in BTC/USD could also be attributed to the rising prices of the U.S. dollar. The DXY (U.S. Dollar Index) rose to its highest level since 28th March at 93.17 level and weighed heavily on BTC/USD as both share a negative correlation.

The U.S. dollar was strong across the board amid the rising risk-off market sentiment due to the concerns regarding the fast spread of the Delta variant of coronavirus. The most contagious and dominant variant of the coronavirus is said to be detected in more than 100 countries throughout the globe. Europe has reached a milestone of 50 million coronavirus cases from a region throughout the world. The U.S. officials reported that the new daily coronavirus cases now consist of about 80% of cases infected by delta variants.

The rising tensions around the globe regarding prospects of slow economic recovery added to the risk-off market sentiment, and hence, riskier assets, including yields, stocks, and cryptocurrencies, suffered. Whereas, safe-haven assets like the U.S. dollar gained attraction and dragged BTC/USD further below the $30,000 level and triggered a massive sell-off by breaking the key support level.

BTC/USD Intraday Technical Levels

Support Resistance
30266.0 31676.0
29685.0 32505.0
28856.0 33086.0
Pivot Point: 31095.0

BTC/USD – Technical Outlook

The leading cryptocurrency, Bitcoin, has traded dramatically bearish at 29,387 levels amid stronger dollar and sell-off in the crypto market. At the moment, the BTC/USD is trading at 29,935 level, having bounced off over 29,385 support level.

On the 4 hour timeframe, Bitcoin has closed series of Doji and Shooting start candles followed by a dramatic bearish trend. Such a pattern demonstrates that sellers are getting exhausted, and bulls may take over the market.

Thus, there’s strong potential for bullish retracement. The BTC/USD is heading north to complete 38.2% Fibonacci retracement at 30,150 level. At the same time, the support continues to hold around 29,385 levels. Bullish crossover of 38.2% Fibonacci level can expose Bitcoin price towards 61.8% Fibo levels of $30,380. All the best!

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Technical Analysis

Gold – XAU/USD Analysis – July 20, 2021

Gold Retests Upward Channel

Gold prices were closed at $1812.15 after placing a high of $1819.80 and a low of $1795.05. Gold fell to its lowest level in one week as investors preferred the U.S. dollar over precious metal amid concerns the spread of the Delta coronavirus variant could slow down the global economic recovery.

The U.S. Dollar Index that measures the greenback value against the basket of six major currencies rose to its highest since the first week of April at 93.05. The strength in the U.S. dollar was limiting the upside in gold prices as the emerging concerns about the delta variant of coronavirus and its impact on global economic growth were giving safe-haven flows to the dollar and bonds.

These inflows added strength to the U.S. dollar and pushed its value 0.2% high to a more than 3-month high against its rival currencies and made gold more expensive for holders of other currencies. The sentiment in the wider financial markets remained weak because of the increased risk appetite by growing inflationary pressures and persistent surge in COVID-19 cases.

The rising coronavirus cases have forced many countries, particularly in Asia that were struggling to reduce the spread of highly contagious variants of the coronavirus, to re-impose lockdown measures that added in the safe-haven appeal in the market and pushed the U.S. dollar further higher against the yellow metal. Meanwhile, on Monday the U.S. President Joe Biden took a softer tone when talking about Facebook Inc. after saying last week that the social media company was killing people by spreading misinformation about the coronavirus vaccines.

On Monday, Biden said that he meant in the previous statement that dozens of users were spreading the most amount of misinformation on the social media platform, but not the company itself. He said that Facebook was not killing people, but 12 people were out there giving misinformation. Anyone listening to the misinformation was getting hurt by it. It was killing people, and it was bad information. He urged Facebook to do more to stop the spread of misinformation.

In its defense, Facebook sharply responded that 85% of its users were vaccinated or wanted to be vaccinated. The goal set by the President for 70% of Americans to be vaccinated by July 4, and the reason that the goal was missed was not Facebook. On the data front, at 19:00 GMT, the NAHB Housing Market Index for July dropped to 80 against the projected 82 and weighed on the U.S. dollar that kept the loss in gold prices limited on Monday.

Gold Intraday Technical Level

Support Resistance
1798.80 1821.75
1785.45 1831.35
1775.85 2844.70
Pivot Point: 1808.40

Gold – XAU/USD – Technical Outlook

On Tuesday, the precious metal gold is trading with a bullish bias at 1,817 levels. Yesterday, gold violated the upward channel at the 1,810 level to retest the double bottom support level of 1,799. However, it soon bounced off to retest the resistance level of 1,819 level. This particular level is extended by a previously violated upward channel. The 50 EMA crossover is also supporting a bullish trend in gold. At the same time, the MACD is holding at +0.357 level, demonstrating a bullish bias. Gold’s resistance stays at 1,819 level on the upper side, and a bullish breakout of this level exposes gold price towards 1,832 level. All the best!