Series of Manufacturing PMI in Focus!

The EUR/USD closed at 1.2020 after placing a high of 1.2127 and a low of 1.2017.EUR/USD pair extended its losses on Friday and reached its lowest level since 22nd April. The major reason behind the sharp dip in EUR/USD prices at the end of the week was the strong come-back in the U.S. dollar. The EUR/USD pair ended this week with losses after rising for three consecutive weeks, and the month the currency pair posted gains for the first time since the year 2021 started. Apart from the strength in the U.S. dollar, the exchange rate EUR/USD was also under pressure because of the rising risk-off market sentiment and month-end flows.

The U.S. Dollar Index rose sharply on Friday and reached a 91.32 level that added strength to the greenback and weighed on EUR/USD pair. The strong come-back in the U.S. dollar was driven by better-than-expected economic data from the United States on Friday. The macroeconomic data from the European side remained dismal and failed to provide any strength to the single currency Euro against the U.S. dollar. At 10:30 GMT, the French Consumer Spending in March declined to -1.1% against the expected 0.5% ad weighed on the single currency Euro and added losses in EUR/USD.

The French Flash GDP for the quarter rose to 0.4% from the expected 0.0% and supported Euro and capped further downfall in EUR/USD. At 11:45 GMT, the French Prelim CPI remained flat with the expectations of 0.2%. At 12:00 GMT, the Spanish Flash GDP for the quarter also came in line with the projections of -0.5%. Italian Monthly Unemployment Rate surged to 10.1% compared to the predicted 10.3% and supported Euro and limited losses in EUR/USD. At 13:00 GMT, the German Prelim GDP for the quarter reduced to -1.7% from the predicted-1.5% and weighed on the Euro and added further downside pressure on EUR/USD pair.

Italian Prelim GDP for the quarter surpassed the expectations of -0.5% and came in as -0.4% and supported Euro that limited losses in EUR/USD pair. At 14:00 GMT, the CPI Flash Estimates for the year from the whole bloc remained unchanged as expected 1.6%. The Core CPI Flash Estimate also came in line with the projections of 0.8%. Italian Prelim CPI also rose to 0.4% from the predicted 0.3%and supported Euro. The Prelim Flash GDP for the quarter from the whole bloc supported Euro when ditched the forecasts of -0.8% and came in as -0.6%. In March, the Unemployment Rate from the European Union was reported as 8.1% that was less than the forecasted 8.3% and supported Euro, and capped further losses in EUR/USD pair.

From the U.S. side, at 17:30 GMT, the Core PCE Price Index increased to 0.4% against the forecasted 0.3% and supported the U.S. dollar that added further losses in EUR/USD pair. The Employment Cost Index for the quarter improved to 0.9% against the expected 0.7% and supported the U.S. dollar, and dragged EUR/USD further on the downside. Personal Income also rose to 21.1% compared to the anticipated 20.1% and supported the U.S. dollar and added losses in EUR/USD.

Personal Spending in March reduced to 4.2% against the predicted 4.3% and weighed on the U.S. dollar that limited the losses in EUR/USD pair. At 18:45 GMT, Chicago PMI rose to 72.1 in April against the projected 65.4 and supported the U.S. dollar. At 19:00 GMT, the Revised UoM Consumer Sentiment in April rose to 88.3 from the forecasted 87.3 and supported the U.S. dollar that dragged EUR/USD pair lower. The Revised UoM Inflation Expectations in April reduced to 3.4% compared to the 3.7% in March.

The U.S. dollar was also strong because of the successful vaccination campaigns that lifted hopes for quick economic recovery. On Friday, the White House announced that nearly one-third population of the United States had been fully vaccinated against the novel coronavirus. This news added further to the prevailing optimism about economic recovery and pushed the greenback higher that weighed on EUR/USD pair. Furthermore, the single currency Euro also remained under pressure on Friday after the official data from the whole bloc revealed that the eurozone economy contracted by 0.6% in the first quarter of this year. Despite providing relief funds, Europe ended up in a so-called double-dip recession in the first 3-months of the year. Europe’s less promising outlook compared to the outlook of the United States added pressure on the currency for 19 nations and dragged EUR/USD pair lower.

EURUSD Intraday Technical Levels

Support Resistance

1.2102 1.2149

1.2078 1.2174

1.2054 1.2197

Pivot Point: 1.2126

EUR/USD - Technical Outlook

The EUR/USD fell dramatically to trade at 1.2035, maintaining a new trading range of 1.2034 – 1.2050. The breakout of this range will open further room for buying or selling in the EUR/USD pair. In case of a bullish breakout, the EUR/USD’s next resistance prevails at 1.2057 and 1.2075 levels. Alternatively, the bearish breakout can expose the pair towards a 1.2000 support level. Traders will focus on the European Manufacturing PMI figures due to European economies like Germany, Italy, and Spain. Economists expect better results than previous months; therefore, the expectations keep the sentiment bullish for the single currency Euro. All the best!

Sideways Range Breakout!

The BTC/USD was closed at $57,637 after placing a high of $57,637 and a low of $53,339. Bitcoin rose on Friday and reversed its course after the U.S. started creating Bitcoin regulations to fight ransomware attacks. The United States's government and the private sector were creating new Bitcoin regulations that have plans to combat cryptocurrency as payment for ransomware attacks. The new bitcoin regulation will also collude with the FBI, Secret Service, and tech and security companies.

This group of organizations will help others form effective regulations against the abuse of bitcoin in cyberwar attacks. Another news that pushed bitcoin prices higher was from the cryptocurrency exchange, ShapeShift. The cryptocurrency exchange announced that it had enabled cross-chain swaps via THORchain and Ethereum based DEX trading. These new functions have made ShapeShift the first cryptocurrency exchange to allow BTC and ETH trades on hardware wallets.

A publicly registered company that produces business analytics and one of the most prominent institutional investors into Bitcoin, MicroStrategy has recently announced that its holdings of bitcoin have reached 91,000 BTC worth $5 billion. According to the financial reports released by the firm for the 1st quarter of 2021, the CEO of the company, Michael J. Saylor, noted that the firm has around 91,579 Bitcoins, and the firm has raised over $1 billion, that was invested by increasing its bitcoin holdings.

The number of companies and businesses receiving bitcoin and other crypto-assets as a payment method has been developing faster. The food sector has also not been left behind as Muscle Maker Grill and numerous chain restaurants operated by one parent company, Landry's, have also announced Bitcoin payments.

The Chairman and CEO of the food chain Landry's Inc., Tilman Fertitta, announced that most of the restaurant chain's brands would accept bitcoin payments soon, which means Americans who hold bitcoin will be able to purchase food from different US-based food chain restaurants.

Furthermore, China might be making plans towards increasing regulations in crypto mining as worries about the results of bitcoin mining on the carbon footprint raised.

It is reported that crypto miners from China may be looking towards strict supervision when mining in the future. This came in after the government was allegedly concerned over the high amounts of energy consumed during bitcoin mining. All the above-market updates favored bitcoin prices and pushed them higher above $57,000 on Friday.

BTC/USD Intraday Technical Levels

Support Resistance

57267 58273

56760 58772

56261 59279

Pivot Point: 57766

BTC/USD - Technical Outlook

Technically, the BTC/USD pair has violated the sideways trading range of 52,255 – 56,452. Violation of this level is exposing Bitcoin prices towards the next resistance area of 59,960 level. The 20 and 50 periods EMA (Exponential Moving Averages) support a buying trend; therefore, the bull power stays strong. On the 4 hour timeframe, the BTC/USD pair has also completed 38.2% Fibonacci correction at 56,450. Above this, the pair’s next resistance stays at 59,996. The leading indicators are holding in the bullish zone, suggesting buying trend in Bitcoin. The BTC/USD pair’s support stay at 56,450 and 53,335 levels. Below these levels, the BTC next support holds around 47,736. Conversely, the violation of 59,966 resistance exposes Bitcoin towards resistance areas of 62,800. All the best!

20 & 50 EMA Extends Resistance!

Gold prices were closed at $1772.85 after placing a high of $1789.85 and a low of 1754.85. Gold prices edged down on Thursday as higher U.S. Treasury yields supported the U.S. dollar and weighed on the metal’s appeal. The benchmark U.S. Treasury yield on a 10-year note rose on Thursday to 1.68%, its two-week highest level, and supported the U.S. Dollar Index to reach 90.79. The rising U.S. treasury yield increased the opportunity cost of holding non-yielding bullion and dragged the precious metal on the downside.

The U.S. President Joe Biden unveiled an additional $1.8 trillion federal investment in education, child care, and paid family leave during his first address to Congress on Wednesday. This massive American Families Plan came in a month after he lay out a roughly $2 trillion infrastructure plan aimed at helping the nation recover from the coronavirus pandemic. The American Families Plan and Biden’s Infrastructure Plan are jointly known as the American Jobs Plan, aiming to improve the nation’s roads, bridges, broadband, railways, and schools. The corporate hiking taxes would pay this. These plans gave strength to the U.S. dollar and added pressure on yellow metal prices. Meanwhile, on Thursday, the World Gold Council (WGC) said that China’s gold demand in 2021 would see annual growth and revert to pre-pandemic levels if there are no dramatic changes to the global economic geopolitical situation.

On the data front, at 17:30 GMT, the Advance GDP for the quarter dropped to 6.4% against the forecasted 6.8% and weighed on the U.S. dollar that capped further losses in Gold. The Advance GDP Price Index for the quarter exceeded the expectations of 2.6% and came in as 4.1% that supported the U.S. dollar, and added further pressure on gold prices. The Unemployment Claims from last week also surged to 553K compared to the forecasted 545K and weighed on the U.S. dollar that kept the losses in Gold checked. At 19:00 GMT, the Pending Home sales in March declined to 1.9% against the projected 4.2% and weighed on the U.S. dollar and limited the losses in Gold.

On the coronavirus front, global cases of COVID-19 reached near 150 million on Thursday as the global tally was recorded as 149.6 million, with the death toll climbed above 3.15 million. The outbreak was hurting the Indian economy more than any other country as the death toll from COOVID-19 in India surpassed 200,000 due to the rising number of infections from the second wave. These negative developments related to coronavirus and its impact on the economy kept the losses in precious metal limited for the day.

Gold Intraday Technical Level

Support Resistance

1755.19 1790.19

1737.52 1807.52

1720.19 1825.19

Pivot Point: 1772.52

Gold - XAU/USD - Technical Outlook

Gold is trading slightly bullish at 1,770 level, facing immediate resistance at 1,777 level. On the 4-hour timeframe, the precious metal gold has formed series of neutral candles, suggesting a mixed bias among gold traders. On the downside, Gold has the potential to go after the next support area of 1,763. On the 4-hour timeframe, Gold is holding below the 20 & 50 periods EMA which extend solid resistance around 1,777 level today. Besides, the RSI and MACD exhibit mixed bias as the RSI value stays in a selling zone, and MACD holds in a buy zone. On Friday, Gold’s immediate resistance stays at 1,782 and 1,789, while support stays at 1,777 and 1,763. All the best!

German Prelim GDP q/q in Focus!

The EUR/USD pair was closed at 1.2125 after placing a high of 1.2150 and a low of 1.2103. EUR/USD pair rose during European trading hours on Thursday but started to reverse its course in American trading hours. The U-turn was caused by the strength of the U.S. dollar driven by rising U.S. treasury yields. During early European trading hours, the currency pair EUR/USD took advantage of better-than-expected macroeconomic data. Despite poor-than-expected macroeconomic data from the U.S., the currency pair EUR/USD continued moving in downward momentum amid the strength in greenback driven by the rising U.S. treasury yields.

At 11:00 GMT, the German Import Prices for March improved to 1.8% against the projected 0.9% and supported single currency Euro and capped further losses in EUR/USD pair. The German Prelim CPI also increased to 0.7% from the predicted 0.5% and supported Euro and pushed EUR/USD higher during the first half of the day. At 12:00 GMT, Spanish Flash CPI for the year reached 2.2% that was forecasted as 1.9% and supported the single currency Euro and limited the losses in EUR/USD pair.

Spanish Unemployment Rate declined to 16.0% and dismissed the expectations of 16.5% for supporting Euro and kept losses in EUR/USD pair checked. At 12:55 GMT, the German Unemployment Change surpassed the expectations of -10K and came in as 9K that weighed on Euro and added further losses in EUR/USD pair. At 13:00 GMT, the Private Loans from bloc reached 3.3% against the expected 3.2% and supported Euro, limiting the losses in EUR/USD pair on Thursday. From the U.S. side, at 17:30 GMT, the Advance GDP for the quarter fell to 6.4% against the anticipated 6.8% and weighed on the U.S. dollar. The Advance GDP Price Index for the quarter surpassed the expectations of 2.6% and came in as 4.1% that supported the U.S. dollar that added further losses in EUR/USD pair. The Unemployment Claims from last week also rose to 553K in comparison to the anticipated 545K and weighed on the U.S. dollar and limited the downfall in EUR/USD pair. At 19:00 GMT, the Pending Home sales in March dropped to 1.9% against the predicted 4.2% and weighed on the U.S. dollar.

On Thursday, the World Health Organization (WHO) said that the threat for Europe posed by the coronavirus remained present despite a recent decline in new cases, hospitalizations, and deaths in the bloc. The regional director for Europe at WHO, Dr. Hans Kluge, said that about 5.5% of the entire population had had COVID-19, while 7% have completed a whole vaccination series.

The total cases of coronavirus in Europe surpassed 50 million, out of which 1,382,000 were recorded in the past seven days. This represented an average of 197,400 cases per day.

On the other hand, the U.S. dollar was strong on the board after the U.S. treasury yield on the 10-year note rose to 1.68% and pushed the U.S. Dollar Index to 90.70 helped the greenback find its strength back and add losses in EUR/USD pair.

EURUSD Intraday Technical Levels

Support Resistance

1.2102 1.2149

1.2078 1.2174

1.2054 1.2197

Pivot Point: 1.2126

EUR/USD - Technical Outlook

On Friday, the EUR/USD continues trading at choppy at 1.2115, maintaining a new trading range of 1.2100 – 1.2150. The EUR/USD is exhibiting bearish retracement on the hourly timeframe, having completed 38.2% at 1.2118. Currently, it’s heading further lower towards the next support level of 50% Fibo retracement at 1.2103. On the hourly chart, the EUR/USD is also gaining support by an upward trendline. The 20 & 50 periods exponential moving averages buying trend at 1.2100 level. The EUR/USD pair may find support at 1.2100 and 1.2078 levels. Traders will focus on the German Prelim GDP q/q figures due to come out from the European economy. The data is expected to plunge from 0.3% to -1.5%, and it can help support bearish bias in the EUR/USD today. All the best!

Choppy Session in Play!

The BTC/USD was closed at 53,566 after placing a high of 54,860 and a low of 52,631. Bitcoin extended its losses on Thursday and fell amid several negative developments surrounding the crypto market. JP Morgan, one of the leading banks on Wall Street, issued a notice to investors that notified them that Ethereum would perform better than Bitcoin in terms of liquidity and turnover. JP Morgan supported claims that Ethereum was performing better than Bitcoin and expected that its performance would go even better in the future. This report by a leading bank exerted a negative impression on bitcoin and added losses in its value.

A Russian-Sweden citizen, Roman Sterling, was arrested by the USA Federal Service on suspicion of laundering nearly $336 million in bitcoin for the last ten years. The criminal is set to appear before the court and faces three charges of money laundering, money laundering without authorization, and unlicensed money transmission. Meanwhile, the author of "Black Swan" Nassim Taleb lashed out at Bitcoin and said it was not a hedge against inflation. The influx did not convince Taleb of institutional investors or the growing narrative that Bitcoin was a possible hedge against inflation. He doubled down on his criticism of Bitcoin and concluded that there was no reasonable argument in favor of Bitcoin as an inflationary hedge.

He also criticized the recent bitcoin rally and called it an open Ponzi scheme; he argued that there was no fundamental reason behind it as it should be linked to something economical. He repeated that there was no link between inflation and bitcoin. Furthermore, the U.S. government and private sector players were pushing for extensive bitcoin regulations to limit the use of cryptos as payment for ransomware attacks. According to some sources, a panel of experts including members from the U.S. Secret Service, FBI, technology, and security companies was expected to recommend new measures that will make digital assets less anonymous.

Moreover, the U.S. SEC has requested more time to review the application by VanEck for a Bitcoin ETF. If approved, it will become the first Bitcoin ETF in the country. SEC has demanded more time before deciding whether to approve or not request the launch of VanEck's Bitcoin ETF. ETF targets investors who do not want to invest directly into cryptocurrency rather, and they buy stocks of companies operating in crypto to mitigate risk. Hence, Bitcoin ETF will give investors direct exposure to crypto assets.

BTC/USD Intraday Technical Levels

Support Resistance

52511.4 54740.4

51456.7 55914.7

50282.4 56969.4

Pivot Point: 53685.7

BTC/USD - Technical Outlook 

Technically, the BTC/USD pair has mostly consolidated in a narrow trading ranges amid lack of trading volume and violatility. The Bitcoin is trading at 54,960 level, having completed 50% Fibonacci retracement at 56,000 level. On the 4 hour timeframe, the leading crypto pair is consolidating in a narrow trading range of 56,450 – 53,350 trading range. The leading indicators have started shifting in the selling zone on the hourly timeframe, such as RSI is crossing below 50 and BTC price is falling below 20 EMA. The BTC/USD pair may find support at 53,335 and 50,549 levels. Below these levels, the BTC next support holds around 47,736. Conversely, the violation of 55,850 resistance exposes Bitcoin towards resistance areas of 57,300 and 58650. All the best!

Choppy Session in Play!

Gold prices were closed at 1773.20 after placing a high of 1774.00 and a low of 1764.60. gold prices rebounded on Wednesday after falling for four consecutive days. The precious metal prices rose after the U.S. Federal Reserve pledged to maintain an easy monetary policy to aid economic recovery. At the same time, the weakness in the U.S. dollar provided further support.

During the first half of the session, gold remained under pressure ahead of the Fed monetary policy decision. However, after its announcement during late trading American trading hours, precious metal started to recover its previous losses and reversed its course.

On Wednesday, the Federal Reserve said the vaccine rollout had improved the U.S. economy. However, still, it held interest rates near zero as part of its commitment to aggressive economic stimulus. Fed also maintained the USD 120 billion bond-buying programs. The Fed said that inflation has risen, but the higher readings were attributed to transitory factors. The Central Bank warned that higher inflation could result from the base effect of measuring year-over-year changes in addition to supply chain constraints.

Fed said that the policy-setting will continue to provide accommodation to the economy as more than 8 million people were still out of jobs than pre-pandemic levels. The statement released by Fed did not show any signs of slowing on its QE program, which is currently absorbing the U.S. Treasuries and agency mortgage-backed securities worth $120 billion a month. The U.S. Treasury yields on a 10-year note that reached above 1.65% level during the first half of the day retreated and fell to 1.60% level after the speech of Fed Chair Jerome Powell on Wednesday. Powell reaffirmed that it was not the time to discuss tapering that sent the treasury yields lower sharply. This drop-in yields added pressure on the already weak U.S. dollar and sent the U.S. Dollar Index to its lowest level since February 26 at 90.53.

The weak U.S. dollar then added further strength to the rising prices of yellow metal on Wednesday. On the data front, at 17:30 GMT, the Goods Trade Balance from the U.S. dropped to -90.6B against the expected -88.2B and weighed on the U.S. dollar that added strength n the yellow metal prices. The Prelim Wholesale Inventories increased to 1.4% against the anticipated 0.5% and weighed on the U.S. dollar and added further gains in precious metal prices.

Gold Intraday Technical Level

Support Resistance

1776.46 1780.76

1774.93 1783.53

1772.16 1785.06

Pivot Point: 1779.23

Gold - XAU/USD - Technical Outlook

Gold is trading with a strong bearish bias at 1,779 level, violating the support level at 1,782. On the 4-hour timeframe, gold has formed bearish engulfing candles on the hourly timeframe, demonstrating a strong selling trend in gold. On the downside, gold has the potential to go after the next support area of 1,763. Gold is exhibiting bearish crossover on the 4-hour timeframe, not only on the 20 & 50 periods EMA but also on the RSI and MACD, suggesting a strong selling trend. The closing of candles below 1,778 is demonstrating the dominance of sellers in gold. Gold’s immediate resistance stays at 1,782 ad 1,789 while support stays at 1,777 and 1,763. All the best!

Upward Momentum Continues!

The EUR/USD pair was closed at 1.2135 after placing a high of 1.2136 and a low of 1.2056. EUR/USD pair reached its highest level since February 26 on Wednesday amid fresh weakness in the U.S. dollar after the Federal Reserve meeting. As expected, the Fed kept its interest rates unchanged at the near-zero level and the monthly pace of asset purchases at the same $120 billion level. The statement issued after the meeting indicated that the economy and the labor market have strengthened due to successful vaccination campaigns. Still, the bank said that it would continue to support the economy through stimulus and lower interest rates as more than 8 million people were still jobless compared to the pre-pandemic levels.

During Powell's conference, the Fed chair explained that a transitory rise of inflation would not warrant a hike in interest rate. He also said that this was not the time to start talking about reducing the asset purchase program. His comments added further pressure on the already weak U.S. dollar as U.S. Treasury yield on benchmark note of 10-year fell to 1.60% from 1.65%.

The U.S. Dollar Index that measures the greenback's value against the basket of six major currencies fell to 90.53 level on Wednesday and weighed on the U.S. dollar. The comments of Powell also triggered a rally in Wall Street and in metals that added further weakness in greenback and supported the gains in EUR/USD pair.

On the data front, at 11:00 GMT, the German GfK Consumer Climate dropped to -8.8 against the expected -4.1 and weighed on the single currency Euro that capped further gains in EUR/USD pair. From the U.S. side, at 17:30 GMT, the Goods Trade Balance from the U.S. declined to -90.6B against the projected -88.2B and weighed on the U.S. dollar added further gains in EUR/USD pair. The Prelim Wholesale Inventories rose to 1.4% against the estimated 0.5% and weighed on the U.S. dollar and supported the upward trend in EUR/USD pair. Furthermore, the upward momentum in EUR/USD pair could also be attributed to the latest comments from the German pharmaceutical company BioNTech. On Wednesday, Ugur Sahin, whose company developed the first widely approves shot against coronavirus with U.S. partner Pfizer, predicted that about 50-60% of the European population would have received the vaccination end of June.

Sahin said that more than half of Europe's population should have received the coronavirus vaccine in the next two months that will allow governments to consider easing lockdown rules for immunized people. He suggested that Europe could reach herd immunity in July and August and cautioned that children would still be among those at risk. These comments from Ugur Sahin added strength to the single currency euro and pushed EUR/USD prices even higher on Wednesday.

EURUSD Intraday Technical Levels

1.2067 1.2104

1.2043 1.2117

1.2030 1.2140

Pivot Point: 1.2080

EUR/USD - Technical Outlook

The EUR/USD is trading at 1.2129 level on Thursday, having violated the narrow trading range of 1.2065 – 1.211. The recent bullish breakout has driven EUR/USD pair into the overbought zone; as we can see, the RSI is testing 70. The 20 & 50 periods exponential moving averages support buying trends; however, their values hold far away from the CMP (current market price). This demonstrates that the bulls are getting exhausted, and the EUR/USD is ready for a bearish correction. The EUR/USD pair may find support at 1.2115 and 1.2078 levels. Traders will be keeping their focus on the Advance GDP q/q figures due to come out from the U.S. economy. The data is expected to rise from 4.3% to 6.8%, and it can help support bullish bias in the U.S. dollar today. All the best!

Choppy Session in Play!

The BTC/USD was closed at $54860.0 after placing a high of $55575.0 and a low of $54090 after making an impressive recovery in the previous two sessions; Bitcoin reached above $55,000 level on Wednesday but faced pressure and started retracement. During the first half of the trading session on Wednesday, Bitcoin prices improved and reached $55,000 in positive news like the Japanese gaming giant. Nexon announced the purchase of 1717 Bitcoin worth an estimated $100 million, an average price of $58.226. According to the announcement, Nexon stated that the Bitcoin investment represents less than 2% of its total cash and cash equivalents on hand.

Another positive report in favor of Bitcoin that helped BTC/USD to reach the $55,000 level was the announcement made by the chairman of Landry's hospitality group, the operator of restaurant chains. Tilman Fertitta said that most of his restaurants would be accepting bitcoin as payment very soon. According to a federal court filing, U.S. officials arrested Roman Sterling, the alleged principal operator of cryptocurrency money laundering website Bitcoin Fog. This news also added strength to Bitcoin prices.

However, the gains in Bitcoin could not live for long as Goldman Sachs was questioning whether bitcoin can be a long-term store of value and digital gold. The firm's analysts cited various issues with the cryptocurrency, such as environmental problems, lack of real use, and competition from other cryptocurrencies. These factors were blocking bitcoin from becoming digital gold and caused a negative impression on Bitcoin prices that dragged BTC/USD lower on Wednesday.

BTC/USD Intraday Technical Levels

Support Resistance

54064.4 55619.4

53084.7 56194.7

52509.4 57174.4

Pivot Point: 54639.7

BTC/USD - Technical Outlook

The technical side of Bitcoin hasn't changed a lot as it's trading at 53,960 level, having completed 50% Fibonacci retracement at 56,000 level. On the 4 hour timeframe, the leading crypto pair is consolidating in a narrow trading range of 56,450 – 53,350. The leading indicators have started shifting in the selling zone on the hourly timeframe, such as RSI is crossing below 50 and BTC price is falling below 20 EMA. The BTC/USD pair may find support at 53,335 and 50,549 levels. Below these levels, the BTC next support holds around 47,736. Conversely, the violation of 55,850 resistance exposes Bitcoin towards resistance areas of 57,300 and 58650. All the best!

Choppy Session in Play!

Gold prices closed at $1775.25 after placing a high of $1785.70 and a low of $1773.95. Gold dropped for the 4th consecutive session on Tuesday ahead of the Federal Reserve's interest rate decision. Market participants were also awaiting the post-meeting news conference of Fed chief Jerome Powel that is scheduled for Wednesday.

The U.S. Dollar Index (DXY) that measures the greenback's value against the basket of six major currencies, fell on Tuesday to 90.81. The U.S. Treasury yields on a 10-year note rose on Tuesday to above 1.62% level that decreased the demand for non-yielding bullion.

The April monetary policy meeting of the Federal Reserve has started on Tuesday and will conclude on Wednesday. The FOMC members discussed and evaluated their current monetary policy, and their decision will be published on Wednesday in a statement released by the FED. Chairman Jerome Powell's press conference will follow it.

The Fed members are expected to vote in favor of continuing their current interest rate policy and leave the Fed funds rate unchanged that is currently set between 0% and 0.25%. The Fed is also expected to continue to add monetary liquidity through QE, the asset purchase program of the Fed, which has been purchasing $120 billion worth of treasuries and mortgage-backed securities monthly throughout the pandemic.

The comments from Jerome Powell regarding raising interest rates, ending their asset purchases monthly, and focus on rising U.S. Treasury yields on 10-year notes. If the chairman's comments failed to increase yields on U.S. 10-year Treasury note, then gold prices could break above the key resistance level at $1800. Furthermore, any acknowledgment of inflation and the anticipation that more could help gold break above $1800. No major policy change is anticipated from the Fed meeting; however, investors will pay close attention to Chairman Jerome Powell's economic outlook.

Later this week, U.S. President Joe Biden is also expected to address Congress; this will be his first address to Congress since he was elected approximately 100 days ago. Investors will be looking forward to his comments to find a clue about the next move in gold prices this week.

On the data front, at 18:00 GMT, the Housing Price Index from the U.S. declined to 0.9% against the expected 1.0% and weighed on the U.S. dollar that capped further losses in gold prices on Tuesday. The S&P/CS Composite-20 HPI for the year remained flat at 11.8%. At 18:59 GMT, the Richmond Manufacturing Index dropped to 17 against the forecasted 22 and weighed on the U.S. dollar. At 19:00 GMT, the CB Consumer Confidence surged in April to 121.7 against the expected 113.1 and supported the U.S. dollar that ultimately added losses in yellow metal prices on Tuesday.

Gold Intraday Technical Level

Support Resistance

1770.90 1782.65

1766.55 1790.05

1759.15 1794.40

Pivot Point: 1778.30

Gold - XAU/USD - Technical Outlook

On Thursday, the precious metal gold is trading with a strong bearish bias at 1,771 level, disrupting the support level at 1,778. On the 4-hour timeframe, gold has violated the triangle pattern that was extending support at 1,778 level. This support level is violated and working as resistance now. On the lower side, gold has the potential to go after the next support area of 1,763. Gold is exhibiting bearish crossover on the 4-hour timeframe, not only on the 20 & 50 periods EMA but also on the RSI and MACD, suggesting a strong selling trend. The closing of candles below 1,778 is demonstrating the dominance of sellers in gold. Next, support holds around 1,763 and 1,759.

All the best!

Upward Channel Intact!

The EUR/USD pair closed at 1.2090 after placing a high of 1.2093 and a low of 1.2056. The currency pair moved higher on Tuesday but remained consolidated ahead of the Fed decision. The U.S. dollar was mostly flat on Tuesday due to mixed U.S. macroeconomic data releases and kept the pair EUR/USD under consolidation. On Tuesday, the U.S. Dollar Index (DXY) posted slight losses for the day and reached 90.81. The U.S. Treasury yields on a 10-year note remained on the positive note and reached above 1.62%. EUR/USD pair continued moving in the upward direction and remained green throughout Tuesday amid the weakness in the U.S. dollar driven by the cautious mood of investors ahead of Fed monetary policy decision.

The FOMC April meeting has started on Tuesday, and the committee is expected to release a statement after this meeting ends on Wednesday. In its report, the latest decision about the policy taken by committee members will be disclosed, which will likely affect the prices of the U.S. dollar and drive EUR/USD pair accordingly. After the Federal Reserve monetary policy decision, the Fed, Jerome Powell, is also expected to review the U.S. economic outlook. Investors will closely watch these comments. Investors are cautious about placing any strong bid before this event, and that is why EUR/USD put minimal gains on Tuesday even it moved in a very narrow range throughout the day.

On the data front, there was no macroeconomic data released from the European side. However, at 18:00 GMT, the Housing Price Index from the U.S. dropped to 0.9% against the forecasted 1.0%. It weighed on the U.S. dollar that added further in gains of EUR/USD on Tuesday. The S&P/CS Composite-20 HPI for the year remained flat at 11.8%. At 18:59 GMT, the Richmond Manufacturing Index declined to 17 against the anticipated 22 and weighed on the U.S. dollar that added gains in EUR/USD pair. At 19:00 GMT, the C.B. Consumer Confidence rose in April to 121.7 against the forecasted 113.1 and supported the U.S. dollar that ultimately capped further gains in EUR/USD prices on Tuesday.

Another reason behind the positive movement in EUR/USD pair on Tuesday could be the news that Americans might be able to travel to the E.U. this summer if they are fully vaccinated against the coronavirus. The European Commission President Ursula von der Leyen said that return of American travelers should be possible as both sides have approved the same jabs. European nations have restricted non-essential travel from the U.S. for more than a year, and this latest news added strength in the market sentiment and supported gains in EUR/USD pair.

EURUSD Intraday Technical Levels

Support Resistance

1.2067 1.2104

1.2043 1.2117

1.2030 1.2140

Pivot point: 1.2080

EUR/USD - Technical Outlook

The EUR/USD is trading at 1.2074 level on Wednesday, consolidating in a narrow trading range of 1.2065 – 1.211. The previously violated double top resistance level is now working as a support at 1.2065. On the 4-hour timeframe, the EUR/USD pair maintains an upward channel extending support at 1.2065 level along with the 20 & 50 periods EMA. Above the 1.2065 level, the EUR/USD pair’s next resistance holds at 1.2141 and 1.2240, whereas the bearish breakout of the 1.2065 level exposes the pair until the support area of 1.1998. The RSI and MACD are in a neutral zone, suggesting indecision among investors. Traders will be keeping their eyes on the 1.2065 level today. All the best!