Bullish Greenback Continues to Weight on Gold

After hitting a high of $1804.40 and a low of $1783.10, gold prices settled at $1793.50. Due to the strengthening of the US dollar, gold has lost ground for the fourth consecutive session. Moreover, it has lost ground for the fourth straight session. On Wednesday, the US Dollar Index, which measures the dollar's value against a basket of six major currencies, rose for the second straight day, reaching 92.86. On the other hand, 10-year Treasury yields were unchanged at 1.32 percent on Wednesday.

On the statistics front, JOLTS Job Openings jumped to 10.93 million in July against an estimate of 10.03 million at 19:00 GMT, supporting the US dollar and pushing gold prices lower. The IBD/TIPP Economic Optimism for September fell to 48.5 from 55.3 expected at 19:02 GMT, weighing on the US dollar and causing more losses in gold prices.

Even if the job market increases at an uninspired pace in the following month, President of the New York Federal Reserve Bank, Jon C. Williams, said on Wednesday that the central bank would be able to start cutting support for the economy before the end of the year.

He went on to say that he had been looking at the cumulative amount of job growth rather than monthly variations and that slowing job growth would not necessarily rule out a start to the so-called tapering process. He also stated that reducing asset purchases will be the first step in decreasing assistance and that the Fed's policy interest rate will remain at zero for some time.

The dollar gained strength due to Fed President Williams' comments, in which he hinted at tapering. Investors praised Williams' comments since they had been waiting for any hint of tapering for a long time, and the greenback rose, driving gold lower. Meanwhile, yellow metal's losses were limited because of market concerns about a worldwide downturn, which weighed on the market's risk sentiment.

Rising coronavirus infections in the United States hampered employment growth in the United States last month, prompting speculation that the Fed will postpone tapering. These concerns continued to bolster gold prices, preventing further declines.

In addition, the market's attention has been drawn to the upcoming European Central Bank meeting, where policymakers are likely to decide on cutting PEPP purchases. For the rest of the day, this kept gold prices under pressure.

GOLD Intraday Technical Level

Support Resistance

1782.94 1804.24

1772.37 1814.97

1761.64 1825.54

Pivot Point: 1793.67

GOLD - Technical Outlook

The precious metal gold is trading with a bearish bias, holding below a pivot point trading level of 1,791. Gold, on the other hand, is expected to find immediate support near 1780. The breakout at the 1,780 level is likely to extend a selling trend until the next support level of 1771, and below this, the next support will prevail around the 1,760 level.

The pair's immediate resistance stays at the 1,791 level, which is being extended by the intraday pivot point level. In the event of a bullish breakout, gold prices will be exposed to the 1,800 level, with the next resistance located around the 1,811 level. In the 4-hour time frame, the 50-period exponential moving average is likely to extend resistance around the 1,811 level.

The closing of candles below this level suggests a selling bias in the precious metal, gold. Take a look at the leading technical indicator, RSI. It simply indicates that there is a strong selling bias in the precious metal gold today. On Thursday, gold's bearish bias remains strong below 1,791 level and vice versa. All the best!

Pivot Point to Extend Resistance at 1.1820

After hitting a high of $1.1852 and a low of $1.1802, the EUR/USD was closed at $1.1813. The EUR/USD currency pair fell for the third straight session on Wednesday, owing to the strengthening of the US dollar. On Wednesday, the US Dollar Index jumped to 92.86 after the New York Federal Reserve Bank President hinted at reducing economic support.

Rather than focusing on monthly variations in employment growth, he said he was monitoring cumulative job numbers. Even if the jobs statistic does not show significant progress for the month, he believes the central bank will begin tapering by the end of the month.

On the data front, the French Final Private Payrolls for the quarter climbed to 1.4 percent, beating expectations of 1.2 percent and bolstering the single currency Euro. This, in turn, capped any losses in EUR/USD at 10:30 GMT. At 11:45 GMT, the French Trade Balance for July indicated a deficit of -7.0 billion euros versus an anticipated deficit of -6.2 billion euros, weighing on the Euro, which led to more losses in EUR/USD. At 13:00 GMT, the Italian Retail Sales for July fell to -0.4 percent, vs. a forecast of 0.3 percent, weighing on the single currency Euro and adding to the EUR/USD drop.

JOLTS Job Openings in July increased to 10.93M vs. the predicted 10.03M at 19:00 GMT, supporting the US dollar and adding to the loss in EUR/USD. The IBD/TIPP Economic Optimism for September fell to 48.5 from 55.3 expected at 19:02 GMT, weighing on the US dollar and limiting the slide in the EUR/USD pair.

On Wednesday, a day before the European Central Bank's monetary policy meeting, the single currency Euro was under pressure. PEPP purchases might fall as low as 60 billion euros per month, according to investors, down from the current 80 billion. These predictions have kept the Euro somewhat supportive, and losses in the EUR/USD currency pair have been restrained.

Market risk sentiment was also harmed by growing fears that the coronavirus's accelerated spread would stifle the economy's recovery. Because of the risk-off market sentiment on Wednesday, the riskier currency pairs were under pressure for the day, and the EUR/USD pair was also under pressure.

EUR/USD Intraday Technical Levels

Support Resistance

1.1792 1.1842

1.1772 1.1872

1.1742 1.1893

Pivot Point: 1.1822

EUR/USD - Technical Outlook

The EUR/USD is trading bearish, holding below a pivot point level of 1.1821. On the hourly timeframe, the pivot point is a resistance for the EUR/USD price at the 1.1821 level. Below this, the EUR/USD is exhibiting a bearish bias and is gaining immediate support at the 1.18016 level. A breakout below the 1.18016 level exposes the EUR/USD pair towards the following support areas of 1.1792 and 1.1770. Furthermore, the breakout of the 1.1772 level exposes the pair towards the next support area of the 1.1743 level.

On the other hand, the breakout of a resistance level of 1.1821 exposes the EUR/USD towards 1.1840 and 1.1870 levels. Since the EUR/USD is holding below the pivot point, the bearish bias dominates below 1.1821 and vice versa. All the best.

Bitcoin Supported Over 45,933 Pivot Point

After reaching a high of $52,888.0 and a low of $43,347.0, the BTC/USD pair was closed at $46,778.0. The BTC/USD fell below $44,000 for the first time in a month due to El Salvador's new Bitcoin Law. The sharp drop in BTC/USD could be attributed to profit-taking by BTC holders on Tuesday, shortly after El Salvador moved forward with the acknowledgment of the digital currency as legal tender in a landmark decision. Investors were wary of the move, which could have substantial implications for global adoption.

The big sell-off in BTC/USD occurred during President Bukele's first national Bitcoin day in El Salvador. The government offered all residents who downloaded Chivo, the government's BTC wallet, $30 in BTC. On Tuesday, the wallet software was in such high demand that the site went down for a time, providing evidence of the bitcoin frenzy in Central America.

El Salvador's Bitcoin Day was supposed to be highly favorable for the cryptocurrency, as several worldwide supporters, including President Bukele, had committed to buy $30 worth of Bitcoin on Tuesday to show their support for the country's courageous decision. The sharp drop in Bitcoin prices was unanticipated, and Bukele made no apologies for blaming it on IMF and World Bank activities.

The International Monetary Fund had previously rejected Bukele's plan to make Bitcoin legal tender on macroeconomic, financial, and legal grounds. Similarly, the World Bank has refused to assist El Salvador in implementing the Bitcoin Law. When BTC/USD values unexpectedly fell on Tuesday, Bukele and others accused the IMF and World Bank of manipulating the market to portray his policy idea as a failure in the press.

However, several observers attributed the abrupt drop in BTC/USD prices to numerous investors' huge liquidation of long holdings to enter the alt-coins market, which had recently taken a beating. Meanwhile, Bitso, a Mexican crypto exchange, has announced that it would be the exclusive crypto service provider for Chivo, El Salvador's official Bitcoin wallet. Along with Silvergate Bank, Athena Bitcoin, and Algorand, the company announced on Tuesday that it would help build a state-backed BTC wallet.

Furthermore, Visa's Vice President stated the company's plans to integrate crypto assets into its platform for use as both a payment and a store of value. The CEO of Brazil VISA, Fernando Teles, outlined the concept of tokenized payments. At the same time, an API is meant to bridge the gap between traditional financial institutions and cryptocurrency businesses. The VISA aims to incorporate Bitcoin and other crypto payments in Brazil; however, this news failed to stop BTC/USD from falling.

BTC/USD Intraday Technical Levels

Support Resistance

42454.0 51995.0

38130.0 57212.0

32913.0 61536.0

Pivot Point: 47671.0

BTC/USD - Technical Outlook

On Thursday, Bitcoin is trading with a neutral bias as it was consolidating above a pivot point trading level of 45,933. Overall, Bitcoin has triggered a bullish bounce off after testing the support level of 42,985 on several occasions. At the moment, Bitcoin is gaining strong support at the 45,933 level, and above this, the next resistance prevails at the 47,462 level.

The bullish break out of the 47,462 level exposes Bitcoin prices towards the next resistance level of 48,842. At the same time, a breakup of the 48,884 level would likely expose Bitcoin prices to the next resistance level, which is the 50,413 level.

Looking at the 4-hours timeframe, the leading technical indicator, Stochastic, is holding on to a bullish zone. At the same time, the 50-period exponential moving average supports the selling trend in the Bitcoin prices.

Currently, Bitcoin is forming Doji and Spinning top candlesticks above the 45,933 level, which means indecision among investors. Therefore, the bullish past remains strong above the 45,933 level and vice versa. All the best

Bullish Greenback Triggers Sell-off in Gold

After hitting a high of $1829.40 and a low of $1793.95, gold prices settled at $1797.55. Gold continued to lose ground, falling below $1800 for the third straight session. Gold fell more than 1.5 percent in a single day, its most significant intraday decrease in a month, as demand for the US dollar increased and Treasury yields increased.

The US Dollar Index (DEX), which measures the dollar's value against a basket of six major currencies, ended a seven-day losing trend by rising 0.5 percent to 92.5, recouping some of its prior losses. The yield on the benchmark 10-year note in the United States also rose on Tuesday, reaching 1.38 percent, its highest level since mid-July. The desire for safe-haven gold was stifled by a stronger dollar and rising US yields, pulling gold prices below $1800.

Gold slid further from its two-and-a-half-month high set on Friday, following a shockingly weak August payroll data that fueled speculation that the Fed may delay the tapering of its bond purchases. The market's attention has now shifted to the European Central Bank's meeting on Thursday, where officials are expected to begin debating whether or not to begin pulling back stimulus measures as the eurozone economy recovers from the pandemic.

Gold is seen as a safe haven against currency depreciation and inflation due to significant stimulus efforts. The prospect of central banks reducing their stimulus measures throughout the world hurts bullion's appeal, and gold has fallen as a result. Another factor contributing to the precious metal's decline could be the market's nervousness due to gold's failed attempt to break above its primary area of resistance around the $1835 level.

Nevertheless, as per Johns Hopkins University, the total number of people infected with the coronavirus has surpassed 221 million, with a mortality toll of over 4.57 million. With 40 million cases of the disease and approximately 650,000 deaths, the United States leads the globe. Only 53% of the country's population is fully vaccinated against COVID-19, putting the remaining 47% at risk of serious disease and death. For the first time since March, the country was averaging more than 1500 deaths each day, according to a New York Times tracker, and the daily case count has surged fivefold since the beginning of August.

For the first time since March, the nation was averaging more than 1500 deaths each day, as per a New York Times tracker, and the daily case count has surged fivefold since the beginning of August.

The Fed refrained from providing a firm schedule for the withdrawal of stimulus measures due to the poor developments on the coronavirus front in the United States. The development of the Delta form of coronavirus has triggered the country's third wave, which has impacted the country's job market and weighed on the dollar. Despite these unfavorable developments, the dollar managed to stay green for the day despite the lack of macroeconomic data and continued to weigh on the precious metal.

GOLD Intraday Technical Level

Support Resistance

1784.54 1819.99

1771.52 1842.42

1749.09 1855.44

Pivot Point: 1806.97

GOLD - Technical Outlook

On Wednesday, the precious metal gold was trading with a bearish trend at the 1,799 level. Taking a look at the 4-hour timeframe, the precious metal gold is holding in an oversold zone, which means that the investors are getting exhausted, and the bulls may enter the market very soon.

Gold is facing immediate support at the 1,792 level, and a bearish breakout of this level exposes gold prices towards the next support level of 1,781 and 1,769. On the other side, gold's immediate resistance stays at the 1,804 level, and in case of a bullish breakout, gold prices will be exposed towards the next resistance level of 1,816 and 1,827 levels.

In the 4-hour timeframe, gold has violated an upward trendline, suggesting a solid bearish market trend. Furthermore, since gold has entered the oversold zone, we can expect a slight bullish correction in the precious metal today. Lastly, let's watch the 1,804 level as bullish bias dominates above this and vice versa. All the best!

Upward Trendline Breakout at 1.1850

After hitting a top of $1.1885 and a low of $1.1837, the EUR/USD pair was settled at $1.1839. The EUR/USD pair fell for the second day in a row on Tuesday as the US dollar regained momentum.

The United States did not release any macroeconomic data on Tuesday, leaving the dollar to continue the market trend. On the benchmark 10-year note, the yield rose sharply to 1.38 percent, its highest level since mid-July, helping the greenback find demand. The US Dollar Index increased by around 0.5 percent to 92.5, putting more pressure on the EUR/USD currency pair.

The single currency was under pressure on the European side due to lower-than-expected ZEW Economic Sentiment from the Eurozone and Germany, which highlighted the Eurozone's dismal economic health and weighed on the Euro. However, during the second quarter, the bloc's GDP showed a significant increase, which the single currency could not benefit from due to high negative pressure.

In July, the German Industrial Production stayed unchanged at 11:00 GMT, despite a 1.0 percent increase predictions. The ZEW Economic Sentiment Index for September fell to 31.1 from 35.3 expected at 14:00 GMT, weighing on the single currency Euro and adding to the EUR/USD decline. The German ZEW Economic Sentiment Index fell in September, reaching 26.5 versus a projection of 30.2.

The Final Employment Change for the quarter jumped to 0.7 percent, beating expectations of 0.5 percent, and bolstered the Euro, preventing additional losses in the EUR/USD. The quarter's revised GDP increased to 2.2 percent, up from 2.0 percent expected, bolstering the Euro and limiting the decline in EUR/USD prices.

The market's attention has switched to the European Central Bank's upcoming monetary policy meeting, planned for Thursday this week. Investors expect the ECB to report slower PEPP purchases in Q4 due to strengthening economic circumstances in the EU. On the other hand, investors were wary of placing big bids in the riskier currency combination EUR/USD ahead of the meeting, putting the pair under pressure for the rest of the week.

EUR/USD Intraday Technical Levels

Support Resistance

1.1823 1.1871

1.1805 1.1903

1.1774 1.1920

Pivot Point: 1.1854

EUR/USD - Technical Outlook

The EUR/USD is trading bearish, holding below a pivot point level of 1.1841. On the hourly timeframe, the pivot point is working as a resistance for the EUR/USD price at the 1.1854 level. Below this, the EUR/USD is exhibiting a bearish bias and is gaining immediate support at the 1.1836 level. A breakout below the 1.1836 level exposes the EUR/USD pair towards the next support areas of 1.1820 and 1.1804. Furthermore, the breakout of the 1.1804 level exposes the pair towards the next support area of the 1.1775 level.

On the other hand, the breakout of a resistance level of 1.1852 exposes the EUR/USD towards 1.1868 and 1.1885 levels. On the 4-hour timeframe, the pair has violated an upward trendline resistance at 1.1840. Thus, the bearish bias dominates below 1.1850 and vice versa.

All the best.

Dramatic Dip in Bitcoin – What's Behind It?

After reaching a high of $52,888.0 and a low of $43,347.0, the BTC/USD pair was closed at $46,778.0. The BTC/USD fell below $44,000 for the first time in a month due to El Salvador's new Bitcoin Law. The sharp drop in BTC/USD could be attributed to profit-taking by BTC holders on Tuesday, shortly after El Salvador moved forward with the acknowledgment of the digital currency as legal tender in a landmark decision. Investors were wary of the move, which could have substantial implications for global adoption.

The big sell-off in BTC/USD occurred during President Bukele's first national Bitcoin day in El Salvador. The government offered all residents who downloaded Chivo, the government's BTC wallet, $30 in BTC. On Tuesday, the wallet software was in such high demand that the site went down for a time, providing evidence of the bitcoin frenzy in Central America.

El Salvador's Bitcoin Day was supposed to be highly favorable for the cryptocurrency, as several worldwide supporters, including President Bukele, had committed to buy $30 worth of Bitcoin on Tuesday to show their support for the country's courageous decision. The sharp drop in Bitcoin prices was unanticipated, and Bukele made no apologies for blaming it on IMF and World Bank activities.

The International Monetary Fund had previously rejected Bukele's plan to make Bitcoin legal tender on macroeconomic, financial, and legal grounds. Similarly, the World Bank has refused to assist El Salvador in implementing the Bitcoin Law. When BTC/USD values unexpectedly fell on Tuesday, Bukele and others accused the IMF and World Bank of manipulating the market to portray his policy idea as a failure in the press.

However, several observers attributed the abrupt drop in BTC/USD prices to numerous investors' huge liquidation of long holdings to enter the alt-coins market, which had recently taken a beating. Meanwhile, Bitso, a Mexican crypto exchange, has announced that it would be the exclusive crypto service provider for Chivo, El Salvador's official Bitcoin wallet. Along with Silvergate Bank, Athena Bitcoin, and Algorand, the company announced on Tuesday that it would help build a state-backed BTC wallet.

Furthermore, Visa's Vice President stated the company's plans to integrate crypto assets into its platform for use as both a payment and a store of value. The CEO of Brazil VISA, Fernando Teles, outlined the concept of tokenized payments. At the same time, an API is meant to bridge the gap between traditional financial institutions and cryptocurrency businesses. The VISA aims to incorporate Bitcoin and other crypto payments in Brazil; however, this news failed to stop BTC/USD from falling.

BTC/USD Intraday Technical Levels

Support Resistance

42454.0 51995.0

38130.0 57212.0

32913.0 61536.0

Pivot Point: 47671.0

BTC/USD - Technical Outlook

Bitcoin is currently trading with a significant bearish bias underneath the 47,574 pivot point mark. Bitcoin has produced three black-crow candlestick formations in the 4-hour timeframe, indicating a solid selling tendency among investors.

Having said that, Bitcoin is currently trading at 45,450 and is on its way to the next support level of 42195. Bitcoin is currently trading at 45,448 and is on its way to the next support level of 42,195. On the negative side, a breach of the 42,192 level is expected to push Bitcoin prices down to the next support level of 37,517.

The RSI is steady in the oversold region while the 50-period simple moving average is hovering around 49437, and candlesticks closing below this level indicate a strong selling bias in Bitcoin. As a result, the strategy is to search for a selling opportunity underneath a pivot point resistance mark of 47,575 with a target price of 42,250.

All the best!

Upward Channel Support Bullish Trend

After reaching a high of $52,709.0 and a low of $51,062.0, the BTC/USD pair was closed at $52,676.0. On Monday, BTC/USD maintained its positive trend for the seventh straight session, reaching $52,000, its highest level in four months. Bitcoin was trading at a high level a day before the country's president, Nayib Bukele, announced that the cryptocurrency would be formally proclaimed legal tender in El Salvador. He claimed that the government has purchased its first 200 bitcoins ahead of schedule and intends to purchase many more in the future.

El Salvador has become the first nation in the world to place bitcoin on its balance sheet and store it in its reserves, thanks to the acquisition of bitcoin. Putting a cryptocurrency to their savings could be a sound investment in the country's future. Because it is the first of its type, the saving and growth of wealth that no government or central bank can create more of due to its finite quantity of 21 million BTC will be a once-in-a-lifetime event for a country.

El Salvador's Congress enacted a measure on August 31 to create a $150 million fund to assist conversions from bitcoin to US dollars in preparation for bitcoin becoming legal cash. Meanwhile, an increasing number of bitcoin enthusiasts planned to purchase $30 worth of BTC to demonstrate their support for El Salvador's Bitcoin Law. Nayib Bukele, the country's president, has vowed to provide everybody who uses the government's Chivo bitcoin wallet #40 worth of BTC.

Furthermore, more than 200 ATMs and 50 bank branches with the government's Chivo wallet have been installed in various parts of the country, allowing users to deposit and withdraw funds without paying commissions. BTC/USD was enjoying the build-up to the launch of Bitcoin Law on Monday, and it remained higher on the day. Meanwhile, on Monday, Ricardo Salinas Pliego, the founder, and CEO of Group Elektra, a significant banking and retail organisation in Mexico, stated that the company would support the Bitcoin Lightning Network by incorporating Bitcoin's layer two solutions into its Elektra store network.

Elektra's new payment system will be launched soon, and consumers will be able to buy bitcoin via the MuunWallet, which will help to increase acceptance in Mexico. Pleigo's ambitions to allow consumers access to bitcoin were promptly shot down by Mexico's Central Bank, which emphasized that virtual assets were outlawed in the Mexican financial system due to the risks associated with the asset class. This news caused a mixed reaction in the BTC/USD market, but the cryptocurrency rose.

Additionally, the BTC/USD exchange rate rose on Monday as oil producers and bitcoin miners met in Houston to discuss the possibility of on-site crypto mining. More than 200 traders attended the meeting to learn more about the alliance, which would help oil companies manage their resources more efficiently and benefit miners of direct sources of energy that would otherwise be wasted.

Furthermore, given the soaring prices of Bitcoin, Ether, and other cryptos, Vietnam has lately reported growing demands for crypto mining equipment as more people enter the field. Bitcoin is currently trading at a multi-month high of around $51,000, prompting many Vietnamese to turn their attention to crypto mining. According to an entrepreneur, in early September, sales at a chain of businesses in Ho Chi Minh City that offer mining equipment tripled compared to the previous month's data. BTC.USD prices were also supported and pushed higher as a result of this.

BTC/USD Intraday Technical Levels

Support Resistance

51589.0 53236.0

50502.0 53796.0

49942.0 54883.0

Pivot Point: 52149.0

BTC/USD - Technical Outlook 

On Tuesday, the leading cryptocurrency BTC/USD is trading with a bullish bias at 52,642 level, gaining an immediate support at 52,300 level. On the downside, the pair is facing another support at the 51,650 level. However, the 51,650 support level breakout exposes the BTC/USD pair to 51,200 and 50,850 support zones.

Conversely, the breakout of the 52,850 resistance level exposes the Bitcoin towards the 53,450 and 54,025 levels. The RSI and 50 EMA support a bullish bias in Bitcoin. Thus, the focus should remain on 52,150 as the bullish bias remains dominant above this level and vice versa. All the best!

Pivot Point Support at 1.1870

After hitting a high of $1.1888 and a low of $1.1855, the EUR/USD pair was closed at $1.1868. After climbing for the previous six days in a row, the EUR/USD currency pair reversed course on Monday. After the US dollar gained minimal strength on Monday, the EUR/USD currency pair came under pressure and ended the day in the negative.

After an uptick in greenback demand, the currency pair EUR/USD remained on the defensive mode on Monday. The Euro was under pressure ahead of Thursday's meeting of the European Central Bank. Moreover, the German Factory Orders report disappointed euro traders and provided little support, keeping the EUR/USD currency pair under pressure throughout the day.

There was no report from the United States on the data front, so the currency pair was left with the European data issued on Monday. At 11:00 GMT, German Factory Orders for July increased by 3.4 percent, above expectations of -0.9 percent, bolstering the single currency Euro and limiting the drop in the EUR/USD currency pair. At 13:30 GMT, the Sentix Investor Confidence Index for September rose to 19.6 from 18.3, bolstering the single currency Euro and preventing additional losses in EUR/USD. The data from Europe revealed that the rebound in Europe's economic powerhouse's manufacturing sector was gaining traction.

Even though there are high expectations for the ECB to reduce PEPP at its forthcoming meeting, the Euro currency was under pressure on Monday due to weak trading circumstances and investors' cautious behavior ahead of the meeting. The European Central Bank will deliver its interest rate decision and monetary policy statement on Thursday.

Furthermore, Eurostat will issue GDP growth estimates for the second quarter of 2021 on Tuesday. The expectation is that the economy will drop by 0.6 percent every quarter, and any statistic indicating a greater contraction will weaken the Euro, while any figure indicating a smaller contraction will help it.

On Tuesday, the ZEW Economic Sentiment Survey from Germany will also be revealed. This release will also be watched closely by investors for additional motivation.

EUR/USD Intraday Technical Levels

Support Resistance

1.1852 1.1885

1.1837 1.1903

1.1820 1.1917

Pivot Point: 1.1870

EUR/USD - Technical Outlook 

The EUR/USD is trading choppy, tossing above and below a pivot point level of 1.1870 level. On the hourly timeframe, the pivot point supports the EUR/USD price at the 1.1870 level. A breakout of this support level exposes the pair to the next level of 1.1840 and 1.1815.

Alternatively, the chances of a bullish bounce-off remain high above the 1.1870 support level. A bounce-off in EUR/USD exposes its price towards 1.1885 and 1.1902 resistance levels. Further on the higher side, the breakout of 1.1902 exposes the pair towards the 1.1927 and 1.1935 regions. The RSI is heading lower, entering the sell zone.

It means the sellers may soon get dominance. However, it’s essential for them first to violate pivot point support. The EUR/USD bullish bias dominates over 1.1870 and vice versa. All the best.

XAU/USD Breaking Below Intraday Pivot Point

After hitting a top of $1830.65 and a low of $1823.65, gold prices settled at $1825.65. Owing to the absence of U.S. investors due to the Bank Holiday, gold reversed course and suffered correction pressure on Monday, turning red for the day.

Gold fell on Monday, but it was still at a two-and-a-half-month high, as the U.S. Dollar Index gained momentum versus its rival currencies and turned green for the day after a seven-day losing streak. On Monday, the DXY rose to 92.3, recouping some of its recent losses and putting pressure on gold.

Following the release of U.S. Non-Farm Payrolls data last week, the dollar was under pressure amid hopes that the Federal Reserve would take its time unwinding economic support measures. Because the U.S. market was closed on Monday due to a holiday, the lower trading volume kept gold price losses to a minimum for the day. The precious metal held firm for the day as Fed Chair Jerome Powell's denial shattered investors' expectations for Fed tapering. The Fed has set strong job growth as a yardstick for starting to withdraw economic stimulus measures. Thus the disappointing Labor statistics last week added selling pressure to the currency.

Dr. Anthony Fauci, the top U.S. health expert, stated on Monday that in the United States, coronavirus booster shots would most likely start with Pfizer and BioNTech's vaccine, while Moderna shots may be postponed.

On the other hand, White House Chief of Staff Ron Klain chastised the Biden administration for pushing booster shots ahead of scientific data. These developments also supported the U.S. currency, putting downward pressure on gold prices. Furthermore, on Monday, the global case count of coronavirus infections topped 220.4 million, with 4.5 million deaths reported worldwide. Meanwhile, about 5.46 billion doses of vaccine shots have been provided globally, but the Delta version continues to proliferate at a quicker rate with no signs of slowing down.

Investors' emphasis this week will be on the release of the US PPI report, which is set to be released on Friday and is projected to decline to 0.6 percent from the previous 1.0 percent. Any figure higher than 0.6 percent might boost the U.S. dollar and push gold prices lower, while any figure lower than that could weigh on the U.S. currency and push gold prices higher.

GOLD Intraday Technical Level

Support Resistance

1822.65 1829.65

1819.65 1833.65

1815.65 1836.65

Pivot Point: 1826.65

GOLD - Technical Outlook 

On Tuesday, the precious metal gold started coming out of the wide trading range of 1,833 – 1,823 level. The bearish bias seems to dominate the market. Gold’s immediate resistance stays at 1,824, which marks the intraday pivot point level. A bullish breakout of this resistance level exposes the precious metal gold price towards the 1,828 and 1,833 levels.

On the support side, gold’s immediate support prevails around 1,816 and 1,810 levels. While the Stochastic also suggests a selling trend in gold. Furter breakout of the 1,810 level exposes the metal towards the 1,801 level. All the best!

Weaker Dollar Supports Gold

After hitting a high of $1836.90 and a low of $1810.90, gold prices settled at $1833.70. After lingering in consolidation for the previous four sessions, gold switched course and jumped on Friday. On Friday, gold reached a two-and-a-half-month high after climbing more than 1% on slower-than-expected U.S. employment growth in August, which weighed on the dollar and threw doubt on the Federal Reserve's tapering schedule.

The U.S. Dollar Index, which measures the dollar's value against a basket of six major currencies, remained weak on Friday, falling for the sixth straight session to 91.95, its lowest level in a month. On the other hand, the yield on the benchmark 10-year note in the United States climbed to 1.336 percent on Friday.

The highly anticipated labor data from the United States, which has been pushing the market for the past week, fell short of forecasts, showing that employers in the United States added around 235,000 jobs in August, less than a third of the 733,000 expected. August's low job numbers were attributable to the country's ongoing fight with the spread of Delta variations. The much-anticipated statistics failed to live up to investors' expectations who expected the report to come in on time and force the Fed to establish a firm schedule for tapering.

On the statistics front, the August Average Hourly Earnings soared to 0.6 percent against the forecasted 0.3 percent, supporting the U.S. dollar and capping any increases in gold prices at 17:30 GMT. The Non-Farm Employment Change fell to 235K from 720K expected, putting pressure on the U.S. dollar and increasing gold prices. In August, the unemployment rate stayed unchanged at 5.2 percent, as expected. The Final Services PMI, which came in at 55.1 at 18:45 GMT, was similarly aligned with expectations. The ISM Services PMI was again unchanged from the projected 61.7 at 19:00 GMT.

Jerome Powell stated that the timeline for tapering would be guided by job growth and the economy's recovery from the pandemic, but Friday's NFP data showed that job numbers had fallen due to the pandemic, putting pressure on the greenback, which ultimately pushed gold prices higher for the day, reaching multi-month highs.

Meanwhile, the greenback was maintained lower on Friday by the growing strength of the rival currency Euro against the U.S. dollar, adding to the precious metal's price increases. The Euro was strong versus competing currencies such as the U.S. dollar, owing to the prospect of higher Eurozone inflation and the ECB's withdrawal of stimulus. This puts even more pressure on the U.S. dollar, pushing gold prices even higher above the $1818 resistance mark.

GOLD Intraday Technical Level

Support Resistance

1828.96 1831.81

1827.88 1833.58

1826.11 1834.66

Pivot Point: 1830.73

GOLD - Technical Outlook

The precious metal continues to consolidate in a wide trading range of 1,833 – 1,823 level. On Monday, the bullish bias continued to dominate the market. Gold’s immediate resistance stays at the 1,833 level and a bullish breakout of this level exposes the precious metal gold towards 1,837 and 1,848 levels. On the support side, the metal’s immediate support stays at the 1,823 level and a breakout below 1,823 exposes the pair towards the 1,812 level.

Gold is trading on fundamentals and Asian investors seem to have priced in worse than expected US nonfarm payroll data. The RSI is holding in a selling zone now, while the pivot point continues to support gold at the 1,823 level. All the best!