UK Manufacturing and Services PMI

GBP/USD finished the day at $1.3621, with a top of $1.3649 as well as a low of $1.3601. Due to increased risk-off market sentiment and the strengthening of the US dollar, the GBP/USD fell for the second straight session, dropping to near one-month lows.

Due to the instability of the British Pound and the risk-off market attitude on Friday, the riskier asset GBP/USD fell. The overall number of coronavirus cases in the UK was 6,492,906, including 131,640 deaths. Fears of the Delta variation spreading across the country weighed on the British Pound, contributing to the GBP/USD drop on Friday.

Furthermore, the UK Health Security Agency has stated that a new national surveillance program will begin next week, which will offer antibody testing to those who test positive in the UK. According to the agency's statement, this will aid in improving the authorities' understanding of virus immunity from vaccination and infection.

Additionally, experts in the United Kingdom were investigating whether smaller booster doses could be used to store vaccines for the rest of the world. Despite the shortage of vaccines, a new plan to employ "fractional dosages" has been proposed to ensure that more individuals can be immunized.

All of the British government's and health authorities' attempts to combat the coronavirus have raised fears that the virus will continue to harm the economy for some time and that immunizations will not be enough to stop the illness from spreading. These concerns continued to weigh on the British Pound, contributing to a further drop in GBP/USD.

On the data front, the GfK Consumer Confidence in August fell to-8 against the expected-7 at 04:01 GMT, putting pressure on the British Pound. The GBP/USD exchange rate dropped even further as a result of this. At 11:00 GMT, retail sales in the UK had fallen by-2.5 percent in July, vs. a forecast of 0.2 percent, putting pressure on the British Pound. The GBP/USD was driven even lower as a result of this.

In July, the Public Sector Net Borrowing fell to 9.6 billion dollars, vs. a projection of 10.5 billion dollars, bolstering the British Pound, which led to a further drop in GBP/USD on Friday.

On the other hand, the US Dollar Index hit a nine-and-a-half-month high of 93.73 on Friday, adding to the GBP/losses. USD's Because of its safe-haven character, the dollar was gaining support in the market amid growing fears about the global economic recovery. The GBP/USD currency pair's downward trend was aided by rising US rates on the benchmark 10-year note, which reached 1.267 percent.

The loss of GBP/USD on Friday was exacerbated by the risk-off market mood prompted by increased concerns about the coronavirus transmission due to the Delta strain, as it is a riskier currency pair that tends to decrease in risk-off market sentiment.

GBP/USD Intraday Technical Levels

Support Resistance

1.3726 1.3785

1.3696 1.3816

1.3666 1.3845

Pivot Point: 1.3756

GBP/USD - Technical Outlook

The GBP/USD is trading with a bearish bias at the 1.3640 level. In the 4-hour timeframe, the GBP/USD pair’s immediate support prevails at the 1.3621 level, which marks the pivot point support. A bearish breakout of this support level exposes the cable towards the following support areas of 1.3602 and 1.3563 levels.

On the flip side, the bullish bias dominates above an intraday pivot point level of 1.3621. A bullish crossover at the 1.3660 level exposes the GBP/USD pair until the 1.3680 level. The Stochastic indicator is holding in a bearish zone, supporting the odds of a selling trend. However, the failure to break below the 1.3620 level can potentially trigger a bullish reversal in the GBP/USD pair today. The primary focus will be on the UK manufacturing and services PMI that will come out during the UK session. It may help drive further price action in the GBP/USD prices. All the best!

Bitcoin Breaks Above 50K Level

The BTC/USD reached a high of $48,487.0 as well as a low of $48,121.0 before closing at $48,264.0. Due to recent good developments in the Bitcoin ecosystem, BTC/USD stayed positive throughout the day and gained during the weekend.

According to recent reports, Missouri Mayor Jayson Stewart indicated that he would like to see Bitcoin distributed to every single household within his city. He mentioned that he was considering donating up to $1000 in bitcoin to some of the valley's residents. He planned to set aside $1.4 million in bitcoin and distribute it to the city's 1500 citizens.

He discussed the funding sources and stated that the majority of the funds would come from generous donors. He would not rule out the possibility of using funds from the government's pandemic relief fund to undertake this program. The exact total has yet to be determined, but the mayor stated that each citizen might receive roughly 1000 USD, equal to around $1.5 million or 30 BTC. This news boosted BTC/value USD and drove it higher over the weekend.

Another issue emerged in the market that exemplified how cryptocurrencies were posing legal challenges to governments worldwide as they attempted to comprehend cryptos' volatile and technical aspects. When the Swedish government was forced to pay a drug dealer $1.5 million in bitcoin, it found itself in a unique situation. A Swedish court found a man guilty of selling drugs online while illegally earning 36 BTC from those sales two years ago. His prosecutor utilized the currency value of the coin at the time to make his argument.

The court then confiscated the illegally obtained Bitcoin for $100,000, which was a blunder, as the court eventually discovered. Because of this blunder, the court was forced to pay a drug dealer $1.5 million when he was released after two years because the value of bitcoin had increased during his time in prison.

The court's original $100,000 payment was met by selling merely three bitcoins. The remaining 33 BTC, worth $1.5 million, are still in the criminal's wallet, which the government must now restore. This problem may have been averted if the state had sold out all 36 BTC at the time of detention. Another option would have been for the prosecutor to record funds in cryptocurrency rather than dollars.

Meanwhile, Gary Gensler, the Chairman of the US Securities and Exchange Commission, has pledged a crypto crackdown, claiming that the prominence of bitcoin and other cryptocurrencies has attracted negative actors such as hackers who demand Bitcoin ransomware payments. According to Gensler, a lack of openness and rules encourages hackers, which has increased the number of cyber thefts and heists. As the necessity and desire for cryptocurrency regulation has grown, authorities have been given permission to establish new rules.

BTC/USD Intraday Technical Levels

Support Resistance

48427.6 49793.6

47591.3 50323.3

47061.6 51159.6

Pivot Point: 48957.3

BTC/USD - Technical Outlook

The leading cryptocurrency pair, BTC/USD, is trading sharply bullish above the 50,000 level. On the hour timeframe, Bitcoin has violated the resistance level of 49,650, and a bullish crossover of this level is making its way clear until 50,700 resistance. However, the pair is already in the overbought zone, and investors can experience profit-taking before further bullish trend continuation.

The BTC/USD has closed a tweezer's top pattern on the hourly chart that typically initiates profit-taking. Therefore, a slight bearish correction can be seen in Bitcoin. The Bitcoin's immediate support stays at the 49,650 level, and a breakout below this exposes the pair towards the 49,023 level. In contrast, the pivot point level holds at around 47,989 level. Bullish bias dominated on Monday. All the best!

Bullish Bias Dominates Ethereum

•    Green believes that ETH will soon overtake Bitcoin as the most popular cryptocurrency.

•    ETH/USD is trading with a bullish bias at the 3,224 level, with immediate support at the 3,190 level.

•    Ethereum is forming neutral candles in between a narrow trading range of 3300 – 3200.

After hitting a high of $3123.48 as well as a low of $2951.66, the ETH/USD pair closed at $3015.62. The ETH/USD fell for the third straight session a day before, extending its losses amid recent poor cryptocurrency market sentiment and rising dollar strength.

The 1inch, a decentralized exchange aggregator, stated that its network would use the optimistic rollout Layer 2 solution. For 1inch users, the collaboration with Optimism will result in faster transaction speeds and decreased gas costs. The Optimistic Ethereum, according to Sergej Kunz, co-founder of 1inch, was an up-and-coming L2 solution directed at scalability, and the 1inch launch on Optimistic will allow a considerable boost in transaction speed.

Meanwhile, Nigel Green, the CEO of deVere, believes that Ethereum will outperform Bitcoin in the long run. The CEO of one of the world's top financial organizations, who has long been a proponent of cryptocurrency, has forecast that ETH will surpass BTC in the near future. Green added that this year has proven that Ethereum has outperformed Bitcoin, stating that ETH has increased by 240 percent this year while BTC has risen by less than 38 percent.

Green believes that ETH will soon overtake Bitcoin as the most popular cryptocurrency, as the pattern of ETH's greater growth rate is expected to continue throughout the year. All of these promising developments should have driven ETH/USD prices higher, but given recent poor market sentiment and the strength of the US dollar, the second-largest cryptocurrency by market size, remained under pressure.

The dollar rose after the release of minutes from the Federal Open Market Committee's July meeting, which revealed that many Fed officials agreed to begin tapering monetary support to the economy as soon as the new year begins, with some believing it could start even sooner given the progress of the economy toward the central bank's employment and inflation goals. The dollar rose versus a basket of other major currencies, and the DXY hit a new high of 93.26, putting more pressure on the ETH/USD pair, which has a negative correlation.

ETH/USD Intraday Technical Level

Support Resistance

2937.02 3108.84

2858.43 3202.07

2765.20 3280.66

Pivot Point: 3030.25

ETH/USD - Technical Outlook

The second leading crypto pair, ETH/USD, is trading with a bullish bias at the 3,224 level. The pair is gaining support at the 3,190 level along with resistance at the 3,245 level. A bullish crossover above the 3,245 level could expose the ETH price towards the 3,295 and 3,430 levels. The Stoasctic is holding at 69, supporting a bullish trend in the ETH/USD pair.

On the downside, the breakout of the 3,200 support level exposes the pair’s selling trend until the 3,160 and 3,090 support levels. The pair is forming neutral candles in between a narrow trading range of 3300 – 3200 and the breakout of this range will determine further trends in the ETH pair today. All the best.

BTC Violates Yesterday’s High at 46,856

•    El Salvador's central bank, the Banco Central de Reserva (BCR), has released a draft regulation for financial institutions.

•    BCR's move bolstered BTC/USD prices, pushing them higher on Thursday.

•    Bitcoin’s bullish bias remains dominant above 46,850 and vice versa.

The BTC/USD reached a high of $47,060.0 as well as a low of $43,992.0 before closing at $46,765.0. After falling for five straight sessions, BTC/USD reversed course on Thursday, recouping some of its prior losses.

Wells Fargo, a US global banking behemoth, has applied to the Securities and Exchange Commission to launch a bitcoin fund. With the help of FS Investments and New York Digital Investment Group, this program was launched. FS NYDIG Bitcoin Fund, LP will be the name of the fund. This news boosted market sentiment, thus driving the BTC/USD exchange rate higher.

Another piece of market news that contributed to the rise in BTC/USD prices was Coinbase's latest cooperation with one of Japan's top banks. Coinbase has announced a new cooperation with Mitsubishi UFJ (MUFG) Financial Group to begin in Japan. This move will allow MUFG's 40 million account holders to instantly access Coinbase and begin purchasing Bitcoin.

According to Nao Kitazawa, CEO of Coinbase Japan, the goal was to reach out to a wide range of clients and provide them with low-barrier services. Customers in Japan will be able to acquire bitcoin right away through the Coinbase platform due to the program. Coinbase will face competition from 30 other companies licensed to trade cryptocurrency in Japan, according to Bloomberg. On Thursday, the price of BTC/USD increased as a result of this news.

On Thursday, the price of BTC/USD increased as a result of this news. Furthermore, JPMorgan Chase, one of the country's largest financial institutions, has apparently suspended all Compass Mining account activities. Compass Mining is a bitcoin mining firm situated in Delaware, and its CEO, Whit Gibbs, revealed the news. No further details have been released by either party, leaving the market in limbo, and the news had little to no influence on BTC/USD values on Thursday.

On the other hand, El Salvador's central bank, the Banco Central de Reserva (BCR), has released a draft regulation for financial institutions and other banks interested in providing bitcoin-related services. On Tuesday, the BCR released a paper with recommendations for banks, corporate banks, and savings and credit societies that want to offer bitcoin and dollar digital wallet services. These financial firms must seek authorisation from the central bank to provide such services, according to the draught regulations.

Applicants will also be expected to provide risk management procedures for the financing of terrorism, laundering, and cybersecurity concerns. The bitcoin-to-dollar and conversely services will cost money and will not be supplied for free. Despite warnings from the IMF, World Bank, and other regulatory bodies, this regulatory guidance signaled that the country was pressing forward with its decision to make bitcoin legal tender. BCR's move bolstered BTC/USD prices, pushing them higher on Thursday.

BTC/USD Intraday Technical Levels

Support Resistance

44848.0 47886.0

42871.0 49007.0

41750.0 50954.0

Pivot Point: 45939.0

BTC/USD - Technical Outlook

The leading crypto currency pair, BTC/USD, is trading with a bullish bias at the 47,046 level. The pair has violated the pivot point resistance level of 45,771. On the support side, the BTC/USD’s immediate support prevails at 46,800 and a breakout below this level exposes the pair towards 45,771 and 44,685 levels.

On the other hand, the breakout of the 47,620 resistance level exposes the Bitcoin towards 48,714 and 50,571 levels. The Stochastic indicator supports a bullish bias in Bitcoin. However, the major focus will remain on the 46,856 support level. The bullish bias remains dominant above 46,850 and vice versa. All the best!

Unemployment Claims in Highlights

After hitting a high of $1795.65 as well as a low of $1778.90, gold prices settled at $1789.25. On Wednesday, gold prices were steady for the second day in a row as minutes from the Federal Reserve's July meeting revealed that most members were leaning toward slowing of bond-buying this year, citing progress toward inflation and employment targets.

The US Dollar Index (DXY), which gauges the dollar's value against a basket of six major currencies, rose to 93.26 on Wednesday, putting pressure on precious metals for the day. In contrast, Treasury yields in the United States fell to 1.25 percent on Wednesday after climbing to 1.30 percent earlier in the day.

Despite an intensified spreading of the Delta variant and higher coronavirus infections and ongoing talks about the central bank slowing asset purchases, the Federal Reserve's July meeting minutes demonstrated that officials still maintained optimism in the economy's recovery.

According to the minutes, many participants stated that financial and economic conditions would likely necessitate a reduction in the coming months, while others stated that asset purchases should not be tapered until the early months of next year. On the other side, other members thought that cutting back on asset purchases this year may be a good idea.

According to Jerome Powell, head of the Federal Reserve, the Fed's removal of stimulus will require significant progress in the labor market. The Fed meeting was dominated by discussions over the timing for slowing asset purchases, which has pushed gold prices lower. Due to its successful vaccine implementations, better-than-expected development, and recovery in some economic sectors, as well as the likelihood of rising interest rates, gold has been under pressure this year.

On the statistics front, the Building Permits in July soared to 1.64 million against a forecast of 1.61 million, supporting the US dollar and adding to the fall in gold prices at 17:30 GMT. Housing Starts in July fell to 1.53 million, vs. an expectation of 1.60 million, weighing on the US dollar and capping a decline in gold prices on Wednesday.

Furthermore, the spreading of the Delta strain of the coronavirus around the world and concerns about a fading economic recovery kept gold prices supported. Because of the conflicting market sentiment, the precious metal has been consolidating, and XAU/USD has been flat for the trading session.

Gold Intraday Technical Level

Support Resistance

1780.21 1796.96

1771.18 1804.68

1763.46 1813.71

Pivot Point: 1787.93

Gold - XAU/USD - Technical Outlook

On Thursday, the precious metal gold is trading with a bearish bias below the pivot point support level of 1,786. Gold’s immediate resistance stays at the 1,795 level and a bullish crossover above this level could expose its prices to 1,802 and 1,809 levels at first. Continuation of the additional buying trend could also expose gold prices to the 1,832 level.

Speaking of the support levels, gold’s immediate support prevails at 1,777 and 1,769 levels. The Stochastic indicator is holding in a sell zone. However, the 1,786 level is very crucial today as the bearish bias remains strong below this level.

The major focus will be on the U.S. unemployment claims that are due to come out during the New York session. It may help drive further price action in the XAU/USD prices.

All the best!

US Unemployment Claims in Focus

After hitting a top of $1.3786 and a low of $1.3727, the GBP/USD was finished at $1.3755. Despite the strength of the US dollar, the currency pair GBP/USD gained some support on Wednesday and regained a little bit of the previous day's loss.

The US dollar was strong on Wednesday, with the DXY rising to 93.26 after announcing the Fed's July meeting minutes. The 10-year Treasury yield, on the other hand, dipped to 1.25 percent from its daily high of 1.30 percent, halting additional dollar advances.

On the data front, the Consumer Price Index for July fell to 2.0 percent from 2.3 percent projected at 11:00 GMT, weighing on the British Pound, thus capping upward momentum in GBP/USD. The Core CPI for July fell to 1.8 percent, below expectations of 2.0 percent, weighing on the British Pound & limiting advances in GBP/USD. The PPI Input rose to 0.8 percent in July, compared to a forecast of 0.5 percent, bolstering the British Pound and adding to GBP/USD gains.

The PPI Output stayed unchanged, as expected, at 0.6 percent. The Retail Price Index increased to 3.8 percent from 3.6 percent expected, bolstering the British Pound and pushing GBP/USD higher. At 13:30 GMT, the Housing Price Index for July jumped to 13.2 percent, up from 11.3 percent expected, bolstering the British Pound and adding upward momentum to the GBP/USD pair.

Building Permits in July climbed to 1.64 million, below a forecast of 1.61 million, supporting the US dollar and capping any advances in GBP/USD at 17:30 GMT. Housing Starts fell to 1.53 million in July, below expectations of 1.60 million, weighing on the US dollar and adding to GBP/USD advances.

Furthermore, the Federal Reserve's minutes revealed that many Fed officials discussed tapering the economy's monetary stimulus. Several FOMC members were leaning toward reducing economic support early next year, while others thought the pace of bond purchases would pick up in the coming months. Following the publishing of meeting minutes, the US dollar gained strength versus other currencies, and the GBP/USD stayed under pressure for the rest of the day.

Meanwhile, compared to the United States, the coronavirus situation in the British countryside has stabilized, with 33,904 new cases and 111 deaths reported. In the United Kingdom, around 61 percent of the total population has been fully vaccinated, and the rate of vaccination is projected to accelerate as 16 and 17-year-olds in England begin receiving vaccine shots on August 23. This news also pushed the British Pound higher on Wednesday, adding to the GBP/USD gains.

GBP/USD Intraday Technical Levels

Support Resistance

1.3726 1.3785

1.3696 1.3816

1.3666 1.3845

Pivot Point: 1.3756

GBP/USD - Technical Outlook

The GBP/USD is trading with a bearish bias at the 1.3714 level. In the 4-hour timeframe, the GBP/USD pair’s immediate support prevails at the 1.3718 level, which marks the double bottom support. A bearish breakout of this support level exposes the cable towards the next support areas of 1.3686 and 1.3650 levels.

On the flip side, the bearish bias dominates below an intraday pivot point level of 1.3750. A bullish crossover at the 1.3750 level exposes the GBP/USD pair until the 1.3785 level. The Stochastic indicator is holding in a bearish zone, suggesting strong odds of a selling trend. However, the failure to break below the 1.3718 level has the potential to trigger a bullish reversal in the GBP/USD pair today. The major focus will be on the U.S. unemployment claims that are due to come out during the New York session. It may help drive further price action in the GBP/USD prices. All the best!

Double Bottom Pattern to Support at 43,800

After hitting a high of $46,007.8 as well as a low of $44,290.0, BTC/USD was finished at $44,744.0. BTC/USD remained downward for the fifth straight session on Wednesday, with a neutral movement for a day. A creator and operator of the bitcoin mining business, Helix was convicted guilty of money laundering charges. Larry Dean Harmon's guilty plea came after the US Treasury's Financial Crimes Enforcement Network fined him $60 million last year.

Larry Harmon agreed to plead guilty to money laundering and conspiring counts, according to the court-issued plea. After being charged with operating a bitcoin blending service named Helix from 2014 to 2017, Harmon stated that he intended to cooperate with federal investigators.

According to US prosecutors, more than $300 million in bitcoin was allegedly deposited into Helix then anonymously transmitted out. On the other hand, using a double-blind system leaves the operator uninformed of how much BTF is being routed, according to Harmon's defense attorney. On the other hand, the perpetrator admitted to breaking the law while knowing it was money laundering and narcotics revenues. He didn't know how much money had been laundered. This news hurt BTC/USD on Wednesday, causing its prices to fall.

The CEO from one of the world's top financial organizations predicts that Ethereum will eventually surpass Bitcoin. Ethereum has potential, according to Nigel Green, and it is projected to outperform the pioneering cryptocurrency in the future. He went on to say that Ethereum had already surpassed the leading crypto this year, citing the percentage difference in their market performance.

Ethereum has increased by around 240 percent this year alone, according to Green, while Bitcoin, the leading cryptocurrency, has risen by less than 38 percent in the same time frame. The trend is projected to continue until the end of the year, and he believes it will eventually exceed Bitcoin. This news also put downward pressure on BTC/USD, dragging the coin lower.

On the other hand, United Wholesale Mortgage, one of the most well-known mortgage lenders in the United States, has announced its intention to be the first American mortgage lender to accept bitcoin and other cryptocurrencies as payment by the end of this year. The corporation stated that they hoped to implement cryptocurrency adoption ahead of the country this year. BTC/USD fell even further on Wednesday as a result of this news.

Furthermore, the US Dollar's rise in value following the release of the FOMC Meeting Minutes on Wednesday added to the pressure on BTC/USD. The dollar gained to 93.26 as minutes suggested that Fed officials were leaning toward slowing down asset purchases. Because both have a negative connection, the strength of the US dollar kept BTC/USD lower throughout the day.

BTC/USD Intraday Technical Levels

Support Resistance

43724.4 46414.4

42750.7 48130.7

41034.4 49104.4

Pivot Point: 45440.7

BTC/USD - Technical Outlook

The leading crypto currency pair, BTC/USD, is trading with a bearish bias at the 44,178 level. The pair has violated the pivot point support level of 44,888. On the support side, the BTC/USD’s immediate support prevails at 43,800 and a breakout below this level exposes the pair towards 43,093 and 42,000 levels.

On the upper hand, the breakout of the 44,880 resistance level exposes the Bitcoin towards 45,600 and 46,684 levels. The Stochastic indicator is supporting a selling bias in Bitcoin. However, the major focus will remain on the 43,800 support level. The bearish bias remains dominant below 43,800 and vice versa. All the best!

FOMC Meeting Minutes In Focus

After hitting a high of $1797.35 and then a low of $1782.25, gold prices settled at $1788.05. Following a five-day rise, gold prices remained unchanged during Tuesday's session, owing to mixed market emotions.

Due to increased uncertainty following the sudden collapse of the Afghan government, the rising safe-haven appeal continued to support safe-haven yellow metal prices. Whereas the strength of the U.S. dollar on Tuesday managed to keep the precious metal under stress, resulting in remaining gold flat during the day.

On Tuesday, the U.S. Dollar Index, which measures the value of the dollar against a basket of 6 major currencies, soared to 93.17, pushing the greenback higher and weighing on gold prices. Meanwhile, U.S. Treasury Yields on the benchmark 10-year note reversed their bearish trend that went green for the day, rising to 1.285 percent, adding to the strength of the U.S. dollar, putting further downward pressure on gold prices.

The TIC Long-Term Purchases from June stayed unchanged at 01:00 GMT, with estimates of 110.9B. The Core Retail Sales for July fell to -0.4% below expectations of 0.2 percent at 17:30 GMT, weighing on the U.S. dollar and supporting gold prices.

In July, retail sales also fell by -1.1 percent against expectations of -0.2 percent, putting pressure on the U.S. dollar and capping losses in the yellow metal. At 18:15 GMT, Industrial Production in July increased by 0.9 percent, beating expectations of 0.5 percent, bolstering the U.S. currency and putting pressure on gold. The Capacity Utilization Rate also soared to 76.1 percent, up from 75.7 percent expected, supporting the U.S. dollar and limiting gold's upward momentum. Business Inventories for June remained unchanged at 19:00 GMT, despite forecasts of 0.8 percent. The NAHB Housing Market Index plunged to 75 in August from an expected 80, putting pressure on the U.S. dollar and helping gold maintain its market position.

Federal Reserve (Fed) Chairman Jerome Powell spoke on Tuesday that it's unclear whether the increased epidemic of the Delta coronavirus will significantly impact the economy. People and businesses are altering their lifestyles in response to the coronavirus, according to Powell, because it is expected to linger and continue to harm the economy.

As per the Centers for Disease Control & Prevention, more than 315 million vaccine doses have been provided, with more than 72 percent of U.S. adults receiving only one shot and 61.8 percent receiving full vaccination. Although more people got vaccinated, Powell noted that the rate of vaccination was modest.

He further added that the United States was ahead of many similar countries in terms of vaccinating its population a few months ago, but that the country has since fallen behind, resulting in an outbreak of the Delta strain of coronavirus in some areas of the country. Powell made no mention of the Fed's intention to taper asset purchases; however, investors can learn more about the Fed's decision in the minutes of the July Fomc meeting, which will be released on Wednesday.

Gold Intraday Technical Level

Support Resistance

1781.09 1796.19

1774.12 1804.32

1765.99 1811.29

Pivot Point: 1789.22

Gold - XAU/USD - Technical Outlook

On Wednesday, the precious metal gold is trading with a slightly bullish bias above the pivot point support level of 1,787. Gold’s immediate resistance stays at the 1,795 level and a bullish crossover above this level could expose its prices towards 1,802 and 1,809 levels at first.

Continuation of the additional buying trend could also expose gold prices to the 1,832 level. Speaking of the support levels, gold’s immediate support prevails at 1,779 and 1,764 levels. The Stochastic indicator is holding in a buy zone. However, the 1,787 level is very crucial today as bullish bias dominates this level and sellers will take charge upon a bearish breakout below this level.

The major focus will be on the U.S. FOMC meeting minutes that are due to come out during the New York session. It may help drive further price action in the XAU/USD prices.

All the best!

FOMC Meeting Minutes In Focus

The EUR/USD pair ended the day at $1.1708, with a high of $1.1786 and a low of $1.1708. Despite the poorer-than-expected Retail Sales data from July, the EUR/USD currency pair lost ground for the second time in a row on Tuesday, owing to the continued strength of the US dollar, which was fueled by increasing demand as a safe-haven currency.

In response to recent encouraging events, the US Dollar Index (DXY) rose and regained strength on Tuesday, reaching 93.17. On a 10-year Treasury note, the yield also rose on Tuesday after falling for three straight sessions, reaching 1.28 percent, supporting the greenback, and weighing on riskier markets like the EUR/USD.

Political uncertainty arose due to the Afghan government's unexpected fall, putting market sentiment under strain. President Joe Biden blamed former US President Donald Trump for the issue, and these geopolitical worries boosted safe-haven appeal in the market, supporting the greenback and putting pressure on the riskier asset EUR/USD. Furthermore, as the rising number of coronavirus infections prompted fears about the economy's recovery, the US dollar gained value based on its safe-haven status. The spread of the Delta coronavirus was accelerating in many regions of the world, lowering chances for economic recovery and strengthening the dollar, leaving EUR/USD less valuable.

On the data front, the Flash Employment Change jumped to 0.5 percent against the anticipated 0.2 percent at 14:00 GMT, bolstering the Euro, which capped additional losses in EUR/USD. With predictions of 2.0 percent, the Flash GDP for the quarter remained unchanged.

On the US side, the TIC Long-Term Purchases from June held steady at 01:00 GMT, with estimates of 110.9B. At 17:30 GMT, Core Retail Sales fell by 0.4 percent in July, versus a forecast of 0.2 percent, weighing on the US dollar and causing more losses in EUR/USD. Retail Sales also fell in July, falling by -1.1 percent against expectations of -0.2 percent, putting pressure on the US dollar, which helped the EUR/USD pair recover some of its losses.

At 18:15 GMT, Industrial Production climbed by 0.9 percent in July, vs a forecast of 0.5 percent, bolstering the US dollar and adding to the loss in the EUR/USD pair. The Capacity Utilization Rate also increased to 76.1 percent, up from 75.7 percent projected, bolstering the US dollar and keeping EUR/USD under pressure for the day. Business Inventories for June remained unchanged at 19:00 GMT, against projections of a 0.8 percent increase. The NAHB Housing Market Index dipped to 75 in August from an expected 80, weighing on the US dollar and adding to EUR/negative USD's pressure.

Nevertheless, Federal Reserve Chairman Jerome Powell spoke on Tuesday that the spread of coronavirus is unlikely to have a significant influence on the economy's revival. He said that the coronavirus will not go away anytime soon and that people had learned to deal with it. He also claimed that, despite an increase in the number of people who have been vaccinated, the rate of immunisation has slowed.

Investors anticipate the publication of the Federal Reserve's July meeting minutes on Wednesday, which are expected to provide clues regarding the central bank's withdrawal of economic support.

EUR/USD Intraday Technical Levels

Support Resistance

1.1682 1.1760

1.1656 1.1812

1.1605 1.1838

Pivot Point: 1.1734

EUR/USD - Technical Outlook

The EUR/USD is trading at 1.1714 with a bearish bias. In the 4-hour timeframe, the EUR/USD pair’s immediate support prevails at the 1.1707 level, which marks the double bottom support. A bearish breakout of this support level exposes the direct currency pair towards the next support areas of 1.1680 and 1.1656 levels.

On the flip side, the bearish bias dominates below an intraday pivot point level of 1.1733. A bullish crossover at the 1.1733 level exposes the EUR/USD pair until the 1.1758 level. The Stochastic indicator has started coming out of the overvbought zone. That means, the chances of a selling trend dominating on Wednesday. Investors’ major focus will stay on the FOMC meeting minutes as this could drive price action during the New York session today. All the best!

Bullish Engulfing Pattern to Support at 44,496

After hitting a high of $47,157.0 as well as a low of $44,467.0, the BTC/USD was finished at $44,698.0. On Tuesday, BTC/USD fell for the fourth time in a row, owing to certain negative developments in the Bitcoin market. Fitch Ratings, one of the world's top financial rating organizations, previously warned El Salvador against accepting Cryptocurrency as legal cash. The agency voiced concerns that digital assets may expose the Latin American nation to systemic threats.

The credit rating agency asserted that adopting bitcoin legal tender without further clarification could increase volatility and operational hazards for the country's citizens. The agency underlined the volatility & operational hazards associated with the cryptocurrency ecosystem and warned of their impact on residents, citing the lack of transparency in the country's deployment of BTC in emerging economies.

El Salvador's move, according to Fitch Ratings, will have a negative effect on insurance firms because the country's parliamentary assembly passed the Bitcoin Law in early June, requiring merchants and enterprises to take bitcoin in exchange for products and services. It implies that if policyholders choose to pay the premiums in bitcoin instead of cash, the insurer will be exposed to price volatility if they keep bitcoins on their balance sheet for just an extended time.

He went on to say that insurance businesses made up around 21% of El Salvador's total capital last year. And the country's insurance sector will be disrupted by the controversial Bitcoin Law, which is set to take effect on September 7. This warning from Fitch, a well-known rating firm, adds to the negative pressure on Bitcoin prices on Tuesday, dragging BTC/USD lower.

Powerbridge Technologies, on the other hand, saw its stock rise by 14% in a single day after acquiring a set number of bitcoin and Ethereum miners and creating and managing to mine in Asia and North America. Their ambitions to engage in cryptocurrency mining boosted the stock's valuation and enhanced the cryptocurrency market environment, causing BTC/USD to drop further on Tuesday.

Meanwhile, the rising strength of the US dollar contributed to a loss in BTC/USD on Tuesday, as the greenback gained strength amid rising safe-haven appeal in the market as a result of increased geopolitical risks and faded economic recovery optimism. The rapid rise of coronavirus infections despite vaccination initiatives, as well as increased geopolitical uncertainty as a result of the collapse of the Afghan government, bolstered the greenback's safe-haven position. Because both have a negative correlation, the rising strength of the US dollar added to the loss in BTC/USD.

BTC/USD Intraday Technical Levels

Support Resistance

43724.4 46414.4

42750.7 48130.7

41034.4 49104.4

Pivot Point: 45440.7

BTC/USD - Technical Outlook

On Wednesday, the BTC/USD is trading with a bullish bias at the 45,266 level. However, the intraday pivot point is going to extend resistance at the 45,518 level. Below this, the BTC/USD’s immediate support stays at 44,450 and 43,920. Whereas, the breakout below the 43,920 level exposes the leading crypto pair towards 42,898 and 41,301 support levels.

The breakout of the 45,518 resistance level exposed the BTC price towards 46,540 and 47,116 levels today. The BTC/USD has formed a tweezer’s bottom pattern on the 4-hourly chart. That suggests the chances of a bullish trend in Bitcoin. Let’s keep an eye on the 45,518 level today as selling bias dominates below this level and vice versa. All the best!