Eyes on U.S. Retail Sales Figures

The USD/JPY closed at 109.23 after placing a high of 109.76 and a low of 109.11. The USD/JPY pair continued its bearish streak for the 5th consecutive session on Monday and reached its lowest since Aug 4 amid the renewed safe-haven appeal in the market and the weakness of the U.S. dollar.

The safe-haven Japanese Yen gathered strength on Monday after political uncertainty surged in the market amid the recent Afghan government's sudden collapse along with fading recovery hopes. The political situation in Afghanistan deteriorated drastically over the weekend after Taliban insurgents seized the capital city of Kabul. Markets saw a surge in the demand for safe-haven currencies like the Japanese Yen over rising concerns about the geopolitical implications of the sudden collapse of the Afghan government.

The uncertainties regarding political stability in the region kept the safe-haven appeal high on Monday and, hence, the safe-haven currency Japanese Yen gathered strength against the U.S. dollar and dragged the currency pair USD/JPY further towards the downside.

On the data front, at 04:50 GMT, the Prelim GDP Price Index for the year came in at-0.7% against the projected-0.9% and supported the Japanese Yen and added to the loss in the USD/JPY pair. The Prelim GDP for the quarter rose to 0.3% against the predicted 0.1% and supported the Japanese Yen and added further downside pressure on the USD/JPY pair. At 09:30 GMT, the Revised Industrial Production surged to 6.5% against the forecasted 6.2% and pushed the Japanese Yen higher and dragged the currency pair USD/JPY on the downside.

On the U.S. side, the Empire State Manufacturing Index for the month of August was reduced to 18.3 against an estimated 28.9 and weighed on the U.S. dollar and added further loss to the USD/JPY currency pair.

Meanwhile, the U.S. Dollar Index that measures the value of the greenback against the basket of six major currencies gained a minor difference on Monday and reached 92.66 level, whereas the U.S. Treasury Yields on the 10-year note fell for the 5th consecutive session and reached 1.22% level that added further weight to the greenback and dragged the USD/JPY pair further to the downside.

Furthermore, the disappointing economic data from China, along with the rising number of coronavirus cases due to the continuous spread of the Delta variant, also added to the risk-off market sentiment and supported the safe-haven currency Japanese Yen, and dragged the currency pair USD/JPY to the downside. The data about retail sales and industrial production from China showed that the world's second-largest economy struggled to deal with the latest coronavirus outbreak. It raised concerns over the faded economic recovery added to the risk-off market sentiment and weighed on the currency pair USD/JPY on Monday.

USD/JPY Intraday Technical Levels

Support Resistance

108.98 109.63

108.72 110.02

108.33 110.28

Pivot Pont: 109.37

USD/JPY - Technical Outlook

The USD/JPY pair is trading with a bearish bias at the 109.200 level. The pair's immediate resistance stays at the 109.350 level, and below this, the JPY is exposed to the 10.900 and 108.730 support levels. At the same time, the immediate resistance remains at the 109.350 level. A bullish crossover above the 109.350 resistance level exposes the USD/JPY pair towards 109.700 and 109.990 resistance levels. The MACD suggests a bearish trend in the USD/JPY pair, whereas the 50 day SMA (simple moving average) supports a selling trend. The recent bearish engulfing candle below 109.350 makes a bearish trend solid. On Tuesday, the focus will be on the U.S. retail sales data as it has the potential to drive price action in the USD/JPY pair. All the best.

Focus on US Retail Sales

Gold prices reached a high of $1791.30 and a low of $1772.15, closing at $1789.30. Gold rose for the fifth straight session, approaching $1800, as U.S. Treasury yields fell and fears about the Federal Reserve's early tapering subsided following a drop in consumer sentiment in the United States.

The U.S. Dollar Index, which estimates the value of the greenback against a basket of six major currencies, rose slightly to 92.66, indicating that the greenback is gaining strength. On the other hand, 10-year Treasury yields resumed their bearish trend on Monday, falling for the third straight session to 1.223, their lowest level since Aug 5.

On the statistics front, the United States supplied very little information on Monday. The Empire State Manufacturing Index for August slipped to 18.3 against a forecast of 28.9 at 17:30 GMT, weighing on the U.S. dollar and adding to gold price rises.

The dollar, on the other hand, was under pressure as speculation grew that the Federal Reserve will not quickly cut its bond-buying programme or change the timing of its first lift-off. Furthermore, the growing number of coronavirus cases around the world contributed to the greenback's weight and helped the yellow metal gain momentum as a safe-haven asset.

The precious metal maintained its gains after a mixed bag of economic data led investors to anticipate that the Fed would delay an early tapering and probable interest rate hike, despite the fact that a growing number of policymakers have been discussing it. The statistics released on Friday showed that consumer morale in the United States plummeted drastically last month to its lowest level in a decade, easing concerns about the central bank reducing economic support sooner than planned.

Investors will now be watching the release of the Fed's July meeting minutes, as well as Jerome Powell's comments, on Wednesday.

Furthermore, on Tuesday, monthly data on U.S. retail sales will provide additional clues about consumer sentiment, and investors will be watching the data intently.

Another explanation for the rise in gold prices could be the political uncertainty that arose as a result of the Afghan government's abrupt fall, which pushed the demand for a safe-haven appeal, and the yellow metal gained on Monday as a result of its safe-haven reputation. After the collapse of the Afghan government over the weekend, political stability in the region was called into doubt, and gold prices moved higher on board, as they do when there is uncertainty.

Gold Intraday Technical Level

Support Resistance

1777.20 1796.35

1765.10 1803.40

1758.05 1815.50

Pivot Point: 1784.25

Gold - XAU/USD - Technical Outlook

At the 1,791 level, the precious metal is trading with a strong bullish bias on the technical side. On the upside, gold is approaching the next barrier level of 1,794, and a bullish breakout might open its price to levels of resistance of 1,800 and 1,812.

On the downside, the daily pivot point mark of 1,780 serves as immediate support for gold. If the price of gold breaks through this level, it may head toward the 1,775 level. Key indicators such as the RSI & MACD indicate a bullish trend. All the best!

Sideways Trading Session Breakout

The BTC/USD was closed at $45,940.0 after placing a high of $48,059.0 and a low of $45,689.0. BTC/USD dropped for a third consecutive session on Monday after a popular investor and famous actor known as Mr. Wonderful, from his performance on Shark Tank, Kevin O’Leary explained the reason behind less involvement of institutions in crypto yet.

O’Leary talked about essential considerations of the crypto industry, like portfolio diversification, institutional involvement, ESG concerns, and the most recent investment, WonderFi. He argued that institutions generally were not participating in cryptocurrency investment despite some of the big names like Tesla and MicroStrategy.

He said that these companies had put a small portion of their funds into crypto while big institutions were still skeptical as big investors were looking for compliance because none of them were scared of volatility; rather they wanted to play. He explained that he recently became a shareholder and ambassador for a leading cryptocurrency exchange, FTX, because the CEO of the exchange assured him that they would offer the compliance needed.

According to a new filing with the United States Securities and Exchange Commission, four wealth management companies have acquired shares of Grayscale’s Bitcoin Investment Trust, which offers further evidence of institutional adoption of digital assets. Many firms were exploring new and diverse ways to gain exposure to Bitcoin and other cryptocurrencies, which should have supported BTC/USD prices, but failed to do so, and the leading digital asset remained under pressure on Monday.

Furthermore, Wealthfront, a robo-advisor firm with about $25 billion in AUM, has announced that it will now provide options for crypto exposure to its more than 450,000 clients. Two crypto assets were added to the firm’s investment options, named the Grayscale Bitcoin Trust and the Grayscale Ethereum Trust. Investors can add up to 10% of their portfolio to cryptocurrencies. This allocation was put in place to help clients avoid creating overly risky portfolios.

Meanwhile, a reason behind the declining prices of Bitcoin could be a study conducted by Geminin crypto exchange in partnership with CoinMarketCap and Seedly, which stated that more than 2-3rd of investors from Singapore currently hold cryptocurrencies.

According to the study, the second-largest cryptocurrency, Ether, was more popular in Singapore than Bitcoin as four of five crypto investors in the country own ETH, followed by BTC, ADA, and then Binance Coin. This report weighed on leading cryptocurrency as Singaporean crypto investors were more inclined towards ETH than BTC and, hence, BTC/USD declined on Monday.

BTC/USD Intraday Technical Levels

Support Resistance

45066.4 47436.4

44192.7 48932.7

42696.4 49806.4

Pivot Point: 46562.7

BTC/USD - Technical Outlook

The leading crypto pair BTC/USD is exhibiting a selling bias, violating the narrow trading range of 48,019 – 47,161 level. On the 4-hour chart, Bitcoin is now gaining support at the 45,550 level, and a bearish crossover of this level could expose its price towards the 43,839 level. The BTC/USD has violated the upward channel that provided support at the 46,630 level and now the same level is working as resistance for Bitcoin.

The double bottom pattern on the 4-hour timeframe is supporting Bitcoin at the 45,550 level. However, the breakout below this level exposes the pair towards the next support level of 43,850 level. The 50 day SMA (simple moving average) is supporting the pair at the 45,800 level, and a bearish crossover below this level exposes the BTC to a selling trend. All the best!

Upward Trendline to Supprot Gold

During Monday's Asian trading session, the precious metal price failed to stop its previous week's downward performance and remained sour at the week's start as the mounting coronavirus woes, geopolitical tussles in the Middle East, and U.S. stimulus deadlock weighs on the market's trading sentiment. Therefore, the downbeat market mood boosted the safe-haven U.S. dollar and became one of the key factors that kept the gold price under pressure due to its inverse relationship with the dollar.

Earlier, the yellow-metal price took some modest advantage of a drop in the U.S. dollar on Friday after a fall in U.S. consumer confidence, which boosted demand for the safe-haven metal. The survey showed that U.S. consumer sentiment fell sharply to its lowest level in a decade in early August. In the same line, the downbeat statistics from China put a further burden on the market's trading sentiment.

On the other hand, the Taliban's pursuit of power in Afghanistan and the US-Iran, as well as the Sino-American tussles, put some additional burden on the market's trading mood. Therefore, the downbeat market mood helps the safe-haven gold price to cap its losses. The gold price is trading at 1,773.58 and consolidating in the range between 1,773.07-1,782.65.

The market's trading sentiment failed to stop its previous week's negative performance and remained sour on the day as the coronavirus woes, geopolitical tussles in the Middle East, and the U.S. stimulus deadlock kept weighing on the market's trading mood. In addition to this, the downbeat key economic data from the U.S. and China raised doubts over the global economic recovery, which also played a major role in undermining the market trading mood.

As a result, the risk barometers like the U.S. 10-year Treasury yields & S&P 500 Futures remain pressured, extending Friday's downbeat performance on the day. This was witnessed after the U.S. bond coupon dropped three basis points (bps) to 1.268%, following the heaviest drop since July 06, the previous day. At the same time, the key U.S. stock futures gauge was also showcasing sour risk appetite and declined for the first time in five days, down 0.25% at 4,452 at the latest. However, the reason could be tied to the latest jump in the virus figures and the Taliban's takeover of Afghanistan.

Looking forward, the market traders will keep their eyes on the virus concerns, which are expected to keep weighing on the global supply market. Meanwhile, the headlines over the Sino-US tussle and the Taliban-Afghanistan matter will also be essential to watch. In addition to this, investors also await the Fed's next move on asset tapering and interest rate hikes. Fed Chairman Jerome Powell is set to speak at a virtual town hall meeting with educators and students on Tuesday.

Gold Intraday Technical Level

Support Resistance

1799.46 1781.21

1778.78 1782.28

1777.71 1782.96

Pivot Point: 1780.53

Gold - XAU/USD - Technical Outlook

On Monday, the precious metal was trading with a slightly bearish bias at the 1,773 level. Gold slipped lower after testing a strong resistance level of 1,782 level. On the 4-hourly timeframe, the metal has completed a 50% Fibonacci retracement at 1,757 level. A bullish crossover at the 1,750 level exposes the gold price towards the 61.8% Fibonacci correction level of 1,776. The closing of candles below this 50% level will suggest the chances of a bearish reversal in gold.

Gold’s immediate support stays at the 1,765 level and a breakout below this level exposes the metal towards the next support level of 1,762. On the resistance side, 1,782 is working as a major resistance today. Whereas, a bullish breakout of the 1,782 level could expose gold prices towards the 1,792 level. The MACD is holding above 0, exhibiting a bullish bias among investors. All the best!

Fibonacci Retracement Levels

The EUR/USD closed at $1.1791 after placing a high of $1.1805 and a low of $1.1791. The EUR/USD reversed and turned green for the day amid the renewed weakness in the U.S. dollar. After the release of U.S. consumer sentiment data in August, the greenback started declining and reached the 92.47 level and the U.S. Treasury Yield on the benchmark 10-year note also declined to 1.280%. The prices of greenbacks suffered amid concerns that the Fed might not start tapering sooner after U.S. consumer sentiment declined in August.

Apart from the weakness of the U.S. dollar, the single currency euro was also strong on Friday amid the better-than-expected macroeconomic data release from the bloc. The single currency was also strong in the market as the European Central Bank announced its plans to reduce its pandemic-related asset purchases in the next quarter.

The news that the ECB will start tapering asset purchases in the 4th quarter of 2021 added strength to the Euro and pushed EUR/USD higher on board. The central bank said that as the eurozone economy was growing at its fastest pace on record and inflation was set to rise further, the pressure on the bank was increasing day by day to taper its Pandemic Emergency Purchase Programme. The rising strength of the Euro versus the U.S. dollar pushed EUR/USD higher on Friday and turned it green for the day.

On the data front, at 11:00 GMT, the German WPI in July rose to 1.1% against the forecasted 0.9% and supported the single currency Euro and added further gains to EUR/USD. At 11:45 GMT, the French Final CPI for July remained flat with projections of 0.1%. The Trade Balance from June showed a surplus of 12.4B against the forecasted 10.9B and supported the single currency Euro and pushed EUR/USD higher.

From the U.S. side, at 17:30 GMT, the Import Prices for July declined to 0.3% against the anticipated 0.6% and weighed on the U.S. dollar and added further gains to the EUR/USD pair. At 19:00 GMT, the Prelim UoM Consumer Sentiment from August also dropped to 70.2 against the projected 81.2 and weighed on the U.S. dollar and pushed EUR/USD higher on board. Prelim UoM Inflation Expectations fell in August to 4.6% against the previous 4.7%.

Meanwhile, the new variants of the coronavirus remain a threat to the global economy. However, with successful vaccination drives, most European countries have lowered their public health risks and the likelihood of further lockdowns. This optimism also supported the single currency euro and kept EUR/USD prices higher for the day. Whereas, the U.S. dollar remained weak for the day not only because of the dismal economic data but also because of the rising number of coronavirus cases globally despite the vaccination rollout throughout the globe.

EUR/USD Intraday Technical Levels

Support Resistance

1.1791 1.1801

1.1787 1.1805

1.1782 1.1810

Pivot Point: 1.1796

EUR/USD - Technical Outlook

On Monday, the EUR/USD is trading at 1.1744 with a bullish bias. The pair has reversed after falling into the oversold zone, and is now trading above the 1.1706 support level. The resistance level for the EUR/USD pair is around 1.1753, and a bullish crossover of this level could expose the pair to the 1.1765 and 1.1799 levels. On the 4-hour timeframe, these levels are extended by 38.2 percent and 61.8 percent Fibonacci retracement, respectively. The 50-day simple moving average remains far away at 1.1799, indicating a selling trend in the EUR/USD pair. While the MACD is also below zero, indicating a bearish bias in the market. Today, investors' primary focus will be on the German Buba Monthly Report, which may spark additional market price action. All the best.

Sideways Trading Session

The BTC/USD closed at $47084.0 after placing a high of $4810.0 and a low of $46036.0. BTC/USD rose to its highest since 17th May, above the $48,000 level on Saturday. However, it failed to hold on to gains and declined for the day. Alberto Fernandez, the President of Argentina, has indicated support for digital assets and said there was no reason to push back against the emerging asset class. While asked about his intentions of considering exploring a central bank digital currency or recognizing Bitcoin as legal tender, Fernando said that there was no reason to say no to this question as this move would provide an advantage of a nullified inflationary effect.

However, on the other hand, the head of the central bank of Argentina, Miguel Pesce, was not in favor of exploring digital assets and appeared to be threatening a crackdown on the industry. He said that digital assets were a threat to economic stability, and he also asked for tighter regulations for the sector. These comments from Pesce added weight to BTC/USD over the weekend.

On the other hand, the Switzerland-based financial institution, Leonteq AG, has announced that it will now allow its investors in Germany and Austria to operate with 18 cryptocurrencies. Leonteq is a significant fintech company headquartered in Zurich which provides structured financial products along with insurance products. The company is said to serve more than 50 markets and has about $140 billion in AUM.

The latest announcement of expanding its cryptocurrency services to Germany and Austria will be delivered through a partnership with the Frankfurt-based institution ICF BANK AG. This news added some strength to the cryptocurrency market and prevented the further loss in BTC/USD. Meanwhile, the CEO and Chairman of MicroStrategy, Michael Saylor, has said that Bitcoin was hope for Canada. Saylor has been in favor of cryptocurrencies and is famous for his holdings of bitcoins. The CEO of MicroStrategy has said that Canada alone has enough unused hydroelectric power to operate the whole Bitcoin Network.

According to Saylor, Canada has 400 TWh of hydroelectric capacity, whereas Bitcoin runs only 129 TWh. Saylor, the self-named crypto-guru, once advised everyone to turn their cash into bitcoin as it was a once-in-a-lifetime transformation. He has even called bitcoin the most powerful technology in the 21st century. These comments from Saylor capped a further loss in BTC/USD that was likely to be triggered by profit-taking as the prices reached above $48,000 over the weekend.

BTC/USD Intraday Technical Levels

Support Resistance

45939.6 47738.6

44848.3 48446.3

44140.6 49537.6

Pivot Point: 46647.3

BTC/USD - Technical Outlook

The leading crypto pair BTC/USD is exhibiting a choppy session, maintaining a narrow trading range of 48,019 – 47,161 level. On the 4-hour chart, Bitcoin has formed a double top pattern at the 48,019 level and a bullish crossover at the 48,019 level exposes the BTC price towards the 48,750 and 49,766 levels. The support prevails at 47,161 and 46,600 levels.

The 50-period simple moving average supports Bitcoin's bullish trend, whereas the MACD is also holding in the buying zone. The breakout below the 47,160 level could determine further trends in the BTC/USD pair. On the 4-hour timeframe, the BTC/USD pair has formed an upward channel and an ascending triangle pattern. Both of these patterns demonstrate a bullish bias in Bitcoin. All the best!

Ascending Triangle Suggest Buying Trend

Gold prices were closed at $1751.80 after placing a high of $1759.60 and a low of $1742.60. The XAU/USD remained steady throughout Thursday’s trading session despite the rising prices of the U.S. dollar. Metal edged higher on the previous day amid the weakness in greenback driven by the disappointing inflation data; however, on Thursday, after the release of better than expected PPI data, the greenback gathered its strength again and turned green for the day.

According to economist estimates, the consumer price index rose 0.5% last month but down from the 0.9% advance in June. Inflation eased in some areas where Fed policymakers had indicated price pressures would likely prove temporary, such as used cars. Thus, the growing hopes for a near-term taper can support the greenback.

In the meantime, the market risk-off mood may give some further support to the U.S. dollar. Therefore, the prevalent declines in the U.S. dollar were seen as critical factors that help the gold prices stay bid as the price of gold is negatively related to the value of a greenback.

Moving on, the market traders will keep their eyes on the U.S. Prelim UoM Consumer Sentiment data for July and Prelim UoM Inflation Expectations. The UoM Consumer Sentiment is a survey of nearly 500 users which urges respondents to assess the relative level of existing and future economic health. The actual data release greater than anticipated is considered suitable for the U.S. dollar. Across the ocean, the Us dollar prices action will also be essential to watch.

Gold Intraday Technical Level

Support Resistance

1711.45 1754.25

1689.80 1775.40

1668.65 1797.05

Pivot Point: 1732.60

Gold - XAU/USD - Technical Outlook

On Friday, the technical side of gold hasn’t changed a lot as it continues trading with a bullish bias at the $1,754 level. On the 4- hourly timeframe, the metal has completed 50% Fibonacci retracement at 1,757 level. A bullish crossover of 1,750 level is exposing gold price towards 61.8% Fibonacci correction level of 1,776. Closing of candles below this 50% level will be suggesting chances of a bearish reversal in gold.

Alternatively, a bullish crossover above 1,757 exposes the XAU/USD towards the 1,776 level, a 61.8% Fibonacci retracement level. However, the 50-day simple moving average will be providing a hurdle at the 1,764 level. The MACD is still under 0; however, the histograms are becoming smaller and smaller, suggesting a bullish reversal in gold. All the best!

Bullish Engulfing to Support Buying

The ETH/USD was closed at $3047.01 after placing a high of $3237.89 and a low of $2980.41. On Thursday, ETH/USD turned red despite the Ethereum network's latest upgrade continuously burning the base fees for a week straight.

ETH burned has hit $100 million, and over 32,000 burned ETH in the cryptocurrency space in only seven days. According to the latest estimate, the burn rate is expected to hit 4 ETH per minute very soon. Recently the burn rate has reached around 3.38 ETH per minute. In monetary terms, about $10,000 has been burning per minute, and the price is rising day by day.

All this burning has raised hopes that it will eventually make the nature of ETH deflationary. However, it was still very far as the burning of base fees was at early stages right now. The burning of base fees will reduce the supply of ETH in circulation, making ETH more valuable and would drive up the prices of the second leading cryptocurrency.

Meanwhile, a Delaware-based Kryptoin Investment Advisors has also filed with SEC for an Ethereum exchange-traded fund. The company previously tried and failed to get approval for bitcoin ETF greenlit back in 2019. In April 2021, it came back with another attempt and filed for a Bitcoin ETF; however, the SEC is still under investigation.

On Thursday, the company announced that the Krypto in Ethereum ETF Trust has projects to publish its ordinary shares on the Chicago Board Options Exchange's BZX Exchange under a ticker that will be announced before the commencement of trading. This news should have pushed ETH/USD prices higher. Still, the cryptocurrency remained under pressure amid the bullishness of the greenback along with the recent sell-off after investors started booking profits at a three-month high level.

The U.S. Dollar Index that measures the greenback's value against the basket of six major currencies rose above 93 levels on Thursday as the macroeconomic data related to PPI favored the currency. Furthermore, the sooner-than-expected rate hike and tapering by Federal Reserve amid the improvement in the Jobs sector and inflation added further strength to the U.S. dollar that ultimately kept ETH/USD lower as both have a negative correlation.

ETH/USD Intraday Technical Levels

Support Resistance

2938.99 3196.47

2830.96 3345.92

2681.51 3453.95

Pivot Point: 3088.44

ETH/USD - Technical Outlook

The ETH/USD is trading with a bullish bias at a 3,199 level on Friday. The second leading cryptocurrency has crossed over the 50-day simple moving average, and a bullish crossover of 3,150 levels exposes the pair towards a 3,260 resistance level. On the hourly timeframe, ETH/USD has formed a bullish engulfing candle supporting a buying strong buying trend. The ETH/USD's immediate support prevails at 3,150, a 50 SMA extends that, and below this, the double bottom pattern will support at 3,085. Furthermore, the 2,975 level will be supporting the ETH/USD in case of a 3,080 breakout. On Friday, the bullish bias dominates the ETH/USD pair. All the best!

Ascending Triangle Pattern In-Play

The BTC/USD was closed at $44,423.0 after placing a high of $46,185.0 and a low of $43,789.0. BTC/USD dropped on Thursday for the third consecutive session amid the recent downward trend triggered after touching the three-month highest level.

The declining prices of BTC/USD could be attributed to the recent announcement made by the President of the Central Bank of Argentina. Miguel Pesce hinted at some regulation coming for the transactions of bitcoin soon. He added that they needed to avoid linking bitcoin with the traditional exchange market. He said they were going to the intersection of bitcoin with the payment system and the exchange market.

He said that Bitcoin could not fall into the category of a financial asset as an asset did not back it, and it also does not guarantee a stable yield. On the other hand, he also ascertained that the scarcity of bitcoin helps move its prices upward, giving an impression that it was a financial asset. He continued that the Central Bank was not affected because bitcoin can be used for transactions.

Talking about cryptocurrency regulations, Jim Cramer, an American television host, believed that cryptocurrencies need more regulations as the market could collapse without them. He further praised Ethereum as the best performing digital asset and spared bitcoin, which added extra pressure on BTC/USD.

On the flip side, the global investment manager VanEck has filed for the second time with the SEC for a Bitcoin strategy future ETF. The firm with over $60 billion in assets under management had previously filed for the first to file for a bitcoin ETF back in 2017, which was denied by the SEC. The proposed Bitcoin Strategy ETF will not give direct exposure to Bitcoin, but rather, it will provide exposure to Bitcoin futures and other investment vehicles.

However, he mentioned that the risks that these instruments could be used for scams, and if the money coming from cryptocurrencies mixes with the traditional exchange market, it would not be fair for the economy. The central bank was working to find effective ways of warning investors about the dangers of putting their savings behind cryptocurrencies like Bitcoin. These comments from Pesce added weight on already declining BTC/USD.

BTC/USD Intraday Technical Levels

Support Resistance

43413.0 45809.0

42403.0 47195.0

41017.0 48205.0

Pivot Point: 44799.0

BTC/USD - Technical Outlook

The leading crypto pair BTC/USD is exhibiting a bullish bias at 45,694, having bounced off over 43,700 support levels. On the 4-hour chart, Bitcoin has formed an ascending triangle pattern supporting the pair at 43,650 level, along with a resistance level of 46,680 level. The 50 periods simple moving average supports Bitcoin's bullish trend, whereas the MACD is also holding in the buying zone. Alongside, Bitcoin has closed a series of bullish candles that are keeping an upward trend in Bitcoin. On Friday, the breakout of the 46,650 resistance level will expose the Bitcoin pair towards the 48,395 resistance level. Thus the bullish bias seems to dominate the market. All the best!

Eyes on U.S. Inflation Data

Gold closed at $1728.69 after placing a high of $1738.21 and a low of $1717.76. After falling for six consecutive sessions, gold prices continued to consolidate on Tuesday. They reversed their course based on expectations that the Federal Reserve might take monetary action to push the U.S. dollar significantly.

Despite the multiple positive news, the broad-based U.S. dollar succeeded in extending its previous four-day winning streak. It remained well bid during the second half of the Asian session as the passage of U.S. President Joe Biden's infrastructure spending pushed the U.S. dollar up.

The previously released robust U.S. data favoring concerns over tapering and rate hike kept gold under pressure. At the same time, the optimistic data placed a positive impact on U.S. dollar prices. In simple words, the gaining bias in the U.S. dollar was seen as one of the major factors that kept the gold prices under pressure. For all the new members, the price of gold is inversely related to the price of the U.S. dollar.

Alternatively, the continuous global uptick in COVID-19 cases and concerns overextending a lockdown in Australia keep challenging the market trading mood. This may give some support to the safe-haven gold prices. In the meantime, the chatters over the U.S. budget remain n favor of gold. U.S. Republicans showed readiness to stall budget talks and not support Democrats also helped the gold price a bit before the latest pullback.

Looking forward, the traders will keep their focus on the U.S. economic docket, which will highlight the core consumer price index, due to be released later in the day. Meanwhile, virus updates and stimulus news will be crucial to follow.

Gold Intraday Technical Level

Support Resistance

1711.45 1754.25

1689.80 1775.40

1668.65 1797.05

Pivot Point: 1732.60

Gold - XAU/USD - Technical Outlook

On Wednesday, gold is trading with a bearish bias at the 1,731 level. On the hourly timeframe, the metal has already completed 50% Fibonacci retracement at 1,743 level, and now this level is extending resistance to gold. A bearish bias continues, and gold is going after 23.6% Fibonacci retracement at 1,721 levels. This level will be extending solid support on Wednesday. The MACD is coming out of the oversold zone, and the closing of candles below the 1,742 level has the potential to reverse gold's bearish correction. Therefore, the investor's focus will be staying at the 1,732 level. In case of a bullish breakout of 1,732 levels, the next resistance will prevail at 1,745 areas. Bearish bias dominates today. All the best!