Pivot Point Breakout

The EUR/USD closed at $1.1319 after reaching a high of $1.1333 and a low of $1.1264. The EUR/USD continued its decline and dropped for the 7th consecutive session on Wednesday, reaching its lowest since July 2020. The currency pair EUR/USD remained under pressure on Wednesday during early trading hours, mainly due to the rising price of the U.S. dollar. The greenback reached a 96.24 level during early trading hours, which ultimately added negative pressure on the currency pair EUR/USD and dragged its prices to the downside.

On the data front, at 14:02 GMT, the Italian Trade Balance surged to 2.45B against the anticipated 2.07B and supported the Euro, which capitulated a further loss in EUR/USD pair. At 15:00 GMT, the Final CPI for the year came in line with the expectations of 4.1%. The Final Core CPI declined to 2.0% against the projected 2.1% and weighed on Euro, which added further loss in the EUR/USD pair.

From the U.S. side, at 02:00 GMT, the TIC Long-Term Purchases declined to 26.3B against the anticipated 64.1B and weighed on the U.S. dollar, which further caped loss in EUR/USD pair. At 18:30 GMT, the Building Permits remained flat with the anticipations of 1.63M. The Housing Starts fell to 1.52M against the predicted 1.58M and weighed on the U.S. dollar, limiting the downward trend in EUR/USD.

The single currency euro came under pressure when the World Health Organization (WHO) reported that Europe was the only sector in the world where COVID-related deaths increased last week after a rise of 5%. On Tuesday, the weekly report issued by the WHO reported that cases jumped 6% globally, driven by a surge in the USA, Europe, and Asia.

The report suggested that COVID-19 deaths in all regions other than Europe remained stable or declined last week, bringing the total to 50,000 worldwide. Of the 3.3 million new infections reported, about 2.1 million came from Europe. These figures added a negative impression on the single currency Euro and added further loss in the EUR/USD currency pair.

Furthermore, the prevailing risk-off market sentiment also kept the riskier currency pair EUR/USD under pressure during the trading session of Wednesday. The rising inflationary pressures, a higher number of coronavirus cases around the globe, and the energy crisis in the European region added to the risk-off market sentiment, which ultimately added pressure on the riskier single currency and added further decline in EUR/USD pair.

EUR/USD Intraday Technical Levels

Support Resistance

1.1277 1.1346

1.1236 1.1374

1.1208 1.1416

Pivot Point: 1.1305

EUR/USD - Technical Outlook

On the hourly timeframe, the EUR/USD pair is trading at the 1.1319 level, facing immediate resistance at the 1.1335 level. The closing of candles below the 1.1335 level supports the selling trend in the EUR/USD pair. whereas the immediate support stays at the 1.1304 level, which is being extended by the pivot point level.

The breakout of the 1.1304 level opens up further room for selling until the 1.1277 level. Below this, the next levels of support are at 1.1236 and 1.1208. The EUR/USD’s immediate resistance stays at the 1.1335 level. A break above this level exposes the pair towards the 1.1346 and 1.1373 levels.

The RSI and stochastic indicators are tossing above and below crossover levels, suggesting indecision among investors. On the hourly timeframe, the EUR/USD’s ascending triangle suggests a bullish bias. All the best!

Bitcoin Price Prediction

The BTC/USD ended the day at $60,386.1, having reached a high of $60,847.0 and a low of $58,427.0. The BTC/USD continued its bearish trend for the third session in a row, falling to its lowest level since October 28th. The declining pressure surrounding Bitcoin was already declining amid the newly approved legislation requiring brokers to report every transaction worth more than $10,000. Two to three days ago, the declining pressure surrounding the BTC/USD increased after China expanded its cryptocurrency mining crackdown.

China has compelled its state-owned businesses to halt all cryptocurrency mining operations to enforce harsh penalties on firms that do not comply, including higher energy expenses. Because of the bitcoin miners, China has been striving to fulfil its carbon-neutral goal. The government has been blaming them for incidents like energy wastage and deadly coal mining accidents, which has prompted the government to take serious steps against cryptocurrency miners.

Furthermore, the intensified crackdown on miners in September was evoked by concerns over the country’s power supplies for the winter season. It was also why authorities started haunting impersonators of data researchers and storage facilities who were hiding the digital assets. All these developments surrounding the cryptocurrency market were weighing on the whole market, and hence, BTC/USD also started to decline.

Furthermore, the chief economist at Allianz, Mohamed El-Erian, has said that bitcoin would not be a global currency and would not replace the US dollar. However, he believes that cryptocurrency will always exist in the ecosystem and will not be regulated out of existence. He believed that bitcoin was a disruptive force and would never become a global currency against the US dollar.

The economic advisor revealed that he repurchased some bitcoins in 2018 when bitcoin fell to $3, and he was able to catch the entry point. He said he held on to his BTC position until late 2020, when BTC reached a $19,000 level. He also admitted that he misjudged when to sell due to behavioural mistakes. His comments also added extra negative pressure on BTC/USD, and the leading cryptocurrency dropped further.

BTC/USD Intraday Technical Levels

Support Resistance

58926.4 61346.4

57466.7 62306.7

56506.4 63766.4

Pivot Point: 59886.7

BTC/USD - Technical Outlook

Bitcoin is trading at 59,859 level, maintaining a narrow trading range of 61,350 – 58,550 level. Closing of doji and shooting star candles within this range is supporting indecision among investors. The double bottom support level provides solid support at the 58,000 level. However, Bitcoin has violated the intraday pivot point support level of 59,886.

The break below the 58,000 support level exposes the bitcoin price towards 57,850, 55,609, and 52,650 levels. The bullish crossover at 60,944 exposes the BTC/USD pair to 63,320 and 66,279 levels. All the best!

Gold’s Daily Price Analysis

Gold prices closed at $1851.90 after setting a high of $1879.35 and a low of $1851.00. Gold plunged for the second consecutive session on the back of the US dollar rally. The US Dollar Index continued its bullish momentum and surged for another day to reach the 95.98 level, which added strength to the US dollar and dragged yellow metal prices to the downside.

The US Treasury Yield on the benchmark 10-year note also continued to rise towards 1.65%, assisting the greenback in gaining further strength in the market, which eventually weighed over the precious metal on Tuesday. The US dollar gathered strength against other rival currencies after the US macroeconomic data favored the local currency.

At 18:30 GMT, the Core Retail Sales for October surged to 1.7% against the forecasted 1.0% and supported the US dollar. That added further pressure on gold prices. The retail sales also increased to 1.7% versus the anticipated 1.3% and supported the US dollar, which dragged gold prices further to the downside. Import prices in October also rose to 1.2% against the forecasted 1.0% and supported the US dollar, ultimately dragging gold prices to the downside.

At 19:15 GMT, industrial production increased to 1.6%, versus the expected 0.9%, supporting the greenback and adding to gold price losses. The capacity utilization rate soared to 76.4%, up from 75.9% expected, adding strength to the US dollar and keeping gold prices on the downside. At 20:00 GMT, business inventories increased by 0.7% against the predicted 0.6% and weighed on the US dollar, gold prices. The NAHB Housing Market Index surged to 83 against the forecasted 80 and supported the US dollar, which ultimately added to the further decline in precious metals.

Furthermore, on Tuesday, President Joe Biden signed his hard-fought $1 trillion infrastructure deal into law. The President hoped to use the infrastructure law to build back his popularity, which has hit amid rising inflation and the inability to thoroughly shake the public health and economic risks from COVID-19. This news also added strength to the US dollar, which dragged gold prices to the downside.

Gold was higher last week amid high inflation fears and rose for about seven consecutive sessions. However, gold started this week with minor losses triggered by profit-taking and a correction.

GOLD Intraday Technical Level

Support Resistance

1842.15 1870.50

1832.40 1889.10

1813.80 1898.85

Pivot Point: 1860.75

GOLD - Technical Outlook

On Wednesday, the XAU/USD is trading at the 1,854 level, dropping below the pivot point level of 1,858. For now, it’s gaining immediate support at the 1,849 level and any violation of this exposes the metal towards the 1,849, 1,840, and 1,831 levels.

On the bullish side, the major resistance stays at the 1,858 level and a bullish breakout of that level exposes the metal towards the 1,868 and 1,877 resistance levels.

The RSI and stochastics suggest a mixed bias as the RSI holds in a sell zone, while the stochastics stays above 50 and supports a bullish bias. Therefore, gold is consolidating in a narrow trading range of 1,858 – 1,849 levels. All the best!

Pivot Point Breakout

The EUR/USD closed at $1.1319 after setting a high of $1.1386 and a low of $1.1309. The EUR/USD currency pair dropped for the sixth consecutive session on Tuesday and reached its lowest since July 2020 amid the renewed strength of the US dollar. The US dollar index was higher on board as it reached near the 96.00 level and added strength to the greenback that dragged EUR/USD further to the downside. While the US Treasury yield on the benchmark 10-year note increased, the US dollar strengthened, resulting in a loss for the EUR/USD pair.

On the data front, at 12:45 GMT, the French Final CPI remained flat with expectations of 0.4%. At 15:00 GMT, the Flash Employment Change surged to 0.9% against the forecasted 0.6% and supported the single currency euro, which capitulated further losses in the EUR/USD pair. Flash GDP for the quarter also remained flat, with expectations of 2.2%.

From the US side, at 18:30 GMT, the Core Retail Sales for October rose to 1.7% against the projected 1.0% and supported the US dollar. That added further pressure on EUR/USD. Retail sales increased to 1.7%, versus the expected 1.3%, bolstering the US dollar and dragging EUR/USD lower. Import prices in October also increased to 1.2%, against an estimated 1.0%, and supported the US dollar, which ultimately dragged EUR/USD to the downside.

At 19:15 GMT, industrial production had also increased to 1.6%, versus the expected 0.9%, and the greenback had added to the EUR/USD loss. The Capacity Utilization Rate also surged to 76.4% against the predicted 75.9% and added strength to the US dollar that kept EUR/USD to the downside. At 20:00 GMT, business inventories had risen to 0.7%, versus the expected 0.6%, weighing on the US dollar, which had succumbed to further losses in the EUR/USD. The NAHB Housing Market Index soared to 83 from the expected 80 and underpinned the greenback, further declining EUR/USD.

Additionally, ECB President Christine Lagarde said that tightening monetary policy now to rein in inflation could choke off the recovery of the euro zone’s economy. She kept pushing back on rate hike bets and hopes despite inflation being twice the 2% target of the ECB.

On the other hand, Richmond Federal Reserve President Thomas Barkin stated that it might take several months for the Fed to determine whether high inflation and labor shortages resulting from the pandemic will eventually subside or if they reflect more long-term changes in the economy. These comments from Fed officials added further strength to the US dollar, which ultimately dragged the EUR/USD currency pair to the downside.

EUR/USD Intraday Technical Levels

Support Resistance

1.1290 1.1367

1.1261 1.1415

1.1212 1.1444

Pivot Point: 1.1338

EUR/USD - Technical Outlook

The EUR/USD continues to fall dramatically, with the pair plunging to 1.1261 on Wednesday. During the early Asian session, the EUR/USD violated an intraday pivot point support level of 1.1337, and now it’s operating as a resistance. The closing of candles below this pivot point confirms the bearish breakout and strengthens the bearish trend.

With that being said, the EUR/USD’s immediate support stays at the 1.1290 level, and a break below this exposes the pair towards the 1.1260 and 1.1213 levels. Conversely, the pivot point works as resistance at the 1.1337 level, and a bullish crossover above 1.1337 exposes the pair towards 1.1385 and 1.1415 levels.

The RSI and Stochastic indicators have entered the oversold zone, and typically such situations trigger a bullish bounce-off/correction in the market. All the best!

Bitcoin Price Prediction

The BTC/USD closed at $60089.1 after setting a high of $63605.6 and a low of $58655.9. The BTC/USD extended its loss on Tuesday and dropped to its 20-day lowest level amid the cryptocurrency market's recent negative developments. On Tuesday, Bitcoin fell below $60,000 for the first time since Nov. 1st, after the US infrastructure bill was passed and China hardened its stance on cryptocurrency mining.

On Monday, U.S. President Joe Biden signed the US infrastructure bill, including new rules for the cryptocurrency industry. According to the law, brokers will be required to report much more than they are currently reporting.

The law requires that digital asset transactions worth more than $10,000 be reported to the Internal Revenue Service (IRS). The transaction recipient will need to verify the sender's personal information within 15 days of the transaction. These new reporting requirements will take effect in 2024. Moreover, this news reinforced negative perceptions of the cryptocurrency market by imposing regulations on the market, which ultimately contributed to the loss in BTC/USD.

On Tuesday, the further decline in BTC/USD was driven by the latest crackdown on cryptocurrency mining in China. The National Development and Reform Commission unveiled its plans to further crackdown on industrial-scale bitcoin mining and involvement by state companies.

China also announced that it would consider punitive measures like higher power prices on companies that flout the rules. It was not the first time China has attempted to rein in the cryptocurrency industry. In June this year, China issued a notice to banks and other financial institutions to stop facilitating transactions and banned mining of currencies. In September, China banned all other cryptocurrency transactions and called them illegal. The latest crackdown on cryptocurrency mining from China added fresh downward pressure on BTC/USD, which was already declining amid the approval of an infrastructure law in the US.

On the other hand, another factor involved in the declining prices of BTC/USD was the renewed strength of the US dollar. The US dollar was strong across the market, which ultimately weighed on the leading cryptocurrency as both have a negative correlation. The DXY, which measures the greenback value against the basket of six major currencies, surged and reached the 95.90 level, which added further strength to the US dollar as macroeconomic data released on the day was also in favor of the local currency.

BTC/USD Intraday Technical Levels

Support Resistance

58034.0 62888.0

55944.0 65652.0

53180.0 67742.0

Pivot Point: 60798.0

BTC/USD - Technical Outlook

The leading cryptocurrency pair, BTC/USD, is trading with a bearish bias at the 59,600 level. The double bottom support level provides solid support at the 58,000 level. However, Bitcoin has violated the intraday pivot point support level of 60,944. The closing of candles below this support zone is demonstrating a selling bias, but at the same time, the formation of Doji candles above the 58,000 support level is signalling weakness in the selling trend.

The break below the 58,000 support level exposes the bitcoin price towards 57,850, 55,609, and 52,650 levels. The bullish crossover at 60,944 exposes the BTC/USD pair to 63,320 and 66,279 levels. All the best!

Gold’s Daily Price Analysis

Gold prices were closed at $1864.35 after setting a high of $1872.95 and a low of $1858.55. Gold broke its 8-day bullish streak and dropped on Monday amid the increased strength of the US dollar.

The US Dollar Index soared to its highest level since mid-July 2020 at 95.60, this eventually added strength to the US dollar and dragged gold prices lower for the day.

The main reason behind the declining prices of gold was associated with the higher US Treasury yields, which climbed to 1.63%. The yields were rising higher as investors continued to digest data from the previous session, which showed workers quitting their jobs in record numbers. According to data released on Friday, the Labor Department showed that 4.43 million Americans quit their jobs in September.

On the data front, there was not much data to be released from the US side. At 18:30 GMT, the Empire State Manufacturing Index surged to 30.9 against the anticipated 22.1 and supported the US dollar, which added to the further loss in gold prices.

Another reason behind the declining prices of precious metals was the cautious behaviour of investors assessing whether rising inflation would prompt a more aggressive response by central banks. Neel Kashkari, President of the Minneapolis Federal Reserve Bank, stated over the weekend that he expects greater inflation in the coming months but cautioned that the US central bank should not overreact to heightened inflation because it is likely to be temporary.

Moreover, the market mood was also improved on Monday with the resumed talks between the US and China to reassure that misunderstandings would not lead to unintended clashes. The talks between US President Joe Biden and their Chinese counterpart Xi Jinping lasted for about three hours. Some of the main potential topics of the meeting included the US-China trade deal and the Taiwan issue. The resumed talks between both countries triggered risk sentiment in the market as both countries' tone improved and weighed on metal prices on Monday.

GOLD Intraday Technical Level

Support Resistance

1857.61 1872.01

1850.88 1879.68

1843.21 1886.41

Pivot Point: 1865.28

GOLD - Technical Outlook

On Tuesday, the XAU/USD continued trading with a strong bullish bias at 1,873 levels right now. It’s gaining immediate support at 1,870 levels along with a pivot point support level of 1,863 levels.

On the bullish side, the breakout of a major resistance level at 1,877 exposes gold towards the next resistance levels of 1,879 and 1,884 levels. On the other hand, gold’s immediate support stays at 1,870 and 1,863 levels.

On the 4-hour timeframe, gold closed with a bullish engulfing candlestick, indicating that gold demand is strong.Therefore, gold’s bullish bias remains strong above 1,865 and vice versa. All the best!

Pivot Point Breakout

The EUR/USD closed at $1.1367 after hitting a high of $1.1465 and a low of $1.1356. The EUR/USD pair fell for the sixth consecutive session on Monday, reaching its lowest level since July 2020 amid renewed strength in the US dollar. The US dollar was strong, with the DXY reaching 95.60 and US Treasury yields on the benchmark 10-year note reaching 1.63%. The greenback gathered strength over the basket of six major currencies and weighed on the currency pair EUR/USD.

On Monday, the President of the European Central Bank, Christine Lagarde, pushed back on calls and market bets for tighter policy by saying that tightening monetary policy now to rein in inflation could choke off the euro zone’s recovery. Lagarde stressed that the ECB was coming under increased pressure to abandon its ultra-easy monetary policy and tackle price growth as inflation was already twice its 2% target, with prospects of further moving higher later this year.

Lagarde also admitted that inflation will spike higher and longer than once thought but maintained that it would fade next year, so policy action now would hit the economy just as price growth starts to moderate on its own. She repeated that conditions for a rate hike in 2022 were improbable to be met, but she also said she could not make a similar commitment for the following year. These comments from Lagarde added further pressure on the single currency, the Euro, and dragged the EUR/USD pair further to the downside.

On the data front, at 15:00 GMT, the trade balance from September dropped to 6.1B against the forecasted 12.5B and weighed on the single currency Euro, which ultimately added to the further decline in the EUR/USD pair. From the US side, the Empire State Manufacturing Index increased to 30.9 against the projected 22.1 and supported the US dollar, which added to the further decline in EUR/USD prices on Monday.

Furthermore, coronavirus case numbers increased by more than 50% across the continent, raising concerns about further spread due to the winter season. According to WHO, nearly 2 million cases were reported across Europe during the previous week, the most cases the region has had in a single week since the pandemic began.

Meanwhile, Austria imposed a lockdown on unvaccinated people on Monday as winter approached and infections rose across the region. Germany was also considering tighter curbs, and Britain expanded its booster program to younger adults. All these coronavirus concerns added further weight to the single currency euro, adding to the additional loss in the EUR/USD pair.

EUR/USD Intraday Technical Levels

Support Resistance

1.1327 1.1436

1.1287 1.1505

1.1218 1.1545

Pivot Point: 1.1396

EUR/USD - Technical Outlook

On Tuesday, the EUR/USD is trading with a bearish bias at 1.1356 level, having violated the narrow trading range of 1.1465-1.1445. On the 4-hour timeframe, the EUR/USD has formed bearish engulfing candles that is supporting the pair at 1.1356 level. An intraday pivot point level has already been violated that’s supporting selling bias in the EUR/USD pair. It’s working as a resistance at 1.1396 level. A break below the 1.1356 level exposes the EUR/USD pair towards 1.1327 and 1.1287 levels on the bearish side.

A break above the 1.1395 level exposes the EUR/USD pair towards the 1.1434 and 1.1465 levels. Further on the higher side, the EUR/USD’s next resistance holds around 1.1503 level. The RSI and Stochastic are holding in a sell zone. Therefore, the EUR/USD’s trading bias remains bearish below 1.1395 and vice versa. All the best!

All the best!

Bitcoin Price Prediction

The BTC/USD closed at $63,562.0 after setting a high of $66,320.0 and a low of $63,383.3. On Monday, BTC/USD reversed its movement and dropped amid some negative developments surrounding the cryptocurrency market. Recently, the US SEC rejected the proposal by VanEck for a bitcoin exchange-traded fund that would have held actual currencies rather than just bitcoin futures.

The proposal was submitted in March, according to which the VanEck plan sought to purchase Bitcoin directly on the spot market and keep it in an ETF that investors could then have a stake in. A future-based ETF invests in an indirect contract to buy or sell an asset at a set date in the future. The SEC rejected this proposal on concerns about investor protection, and this news added a negative impression on BTC/USD.

Furthermore, a robbery of a Bitcoin ATM was carried out by a group of hooded youths in one of the wealthiest neighborhoods in Barcelona, Spain, on Friday. Spanish police were investigating the theft of a Bitcoin ATM, which was witnessed by many people who reported the incident on their cell phones. This was the first time a Bitcoin ATM was robbed in this way in Spain. This news added a further negative impression on BTC/USD and dragged its prices to the downside.

Additionally, Dutch authorities seized over 25 million euros worth of Bitcoin, Ethereum, and other cryptocurrencies due to alleged criminal activity. According to the Chain analysis 2021 report, the volume of illicit crypto activity in 2019 represented a small 2.1% of all transactions, and in 2020 that volume fell to 0.34%. However, the expectations for cybercriminal use of DeFi for money laundering increased by 2021.

Regulatory authorities increasingly encounter cryptocurrencies in forms of crime such as drug and human trafficking, fraud, and tax evasion. This news also added a further loss in leading cryptocurrency prices, BTC/USD, on Monday.

Meanwhile, rising US dollar prices on Monday added further downward pressure on BTC/USD, as the US Dollar Index (DXY) reached 95.60 amid higher US Treasury Yields for the day. The US Treasury yields on the benchmark 10-year note surged to 1.63% and gave strength to the US dollar, which ultimately added a negative impression on BTC/USD as both have a negative correlation.

BTC/USD Intraday Technical Levels

Support Resistance

64216.4 66098.4

62961.7 66725.7

62334.4 67980.4

Pivot Point: 64843.7

BTC/USD - Technical Outlook

On Tuesday, the BTC/USD continued to trade with a sharp bearish bias at the 60,158 level. It has violated the upward trendline at the 63,300 level and the closing of candles below this level supports a strong selling trend in BTC.

The breakout of 63,330 support level is exposing the BTC/USD coin towards next support level of 59,687 level. Below this, 58,510 level will be working as next support. The major resistance levels will stay at 62,630 and 64,438 levels. The bearish bias dominates below 62,630 and vice versa. All the best!

Gold’s Daily Price Analysis

Gold prices ended the day at $1850.60, with a high of $1870.35 and a low of $1824.05. Considering the strength of the US dollar, gold rose for the fifth straight session on Wednesday, reaching its highest level since mid-June. The US Dollar Index, which measures the value of the US dollar against a basket of six major currencies, ended a three-day bearish trend on Wednesday and rose to its highest mark since mid-July 2020 at 94.90.

United States Treasury Yield on the benchmark 10-year note rose on the day as well, reaching as high as 1.59 percent. The increasing US dollar index and Treasury yields added to the greenback's strength, weighing on the bullion and wiping off half of its daily gains. The announcement of the US Consumer Price Index, which surged for the year through October, boosted the US dollar. The CPI increased at the quickest rate since November 1990. This acceleration was driven mainly by rising fuel prices, which are at a seven-year high. According to the US Labor Department, the consumer price index, which represents a basket of things ranging from health care to fuel to rentals and groceries, increased by 6.2 percent in October.

Gold has traditionally been considered an inflation hedge, and the CPI figure issued on Wednesday suggested that inflation could continue unreasonably high well into 2022 due to clogged global supply chains. This helped gold gain ground versus the US dollar, and the yellow metal maintained its bullish surge for the fifth straight session, reaching its longest bullish streak since the first week of July when the market was up for seven days.

The market on Wednesday was surprising in that gold continued to rise even though the US 10-year Treasury Note yield rose by roughly 6% on the day. Treasury gold continued to rise throughout the day, as yields are a significant predictor of real interest rates, which often negatively connect with bullion. Markets were startled that the yield rally should have reduced bullion, but gold ended the day higher. It was primarily due to inflation reaching a 30-year high, which was music to gold speculators' ears, given that gold is frequently employed as a hedge against inflation.

On the statistics front, the CPI in October jumped to 0.9 percent against a projected 0.6 percent at 18:30 GMT, supporting the US dollar and limiting further advances in precious metals. The core CPI also increased to 0.6 percent, exceeding the expected 0.4 percent, bolstering the US currency and limiting gold prices. The increase in unemployment claims last week to 267K, vs the predicted 257K, weighed on the US dollar, driving up gold prices. At 20:00 GMT, final wholesale inventories had also risen to 1.4 percent, compared to the projected 1.1 percent, weighing on the US dollar and lifting gold higher on board.

Meanwhile, Mary Daly, President of the San Francisco Federal Reserve, stated that she expects excessive inflation to subside after COVID-19 is through. She also said that raising interest rates or hastening the Fed's bond-buying reduction would be premature. These remarks also aided bullion's bullish momentum, which helped it hit its highest level since mid-June on Wednesday.

GOLD Intraday Technical Level

Support Resistance

1826.31 1872.61

1802.03 1894.63

1780.01 1918.91

Pivot Point: 1848.33

GOLD - Technical Outlook

Gold prices continue to rise amid stronger inflation figures. Investors are buying gold as it’s considered an inflation hedge. Gold is trading at 1,846 levels right now, gaining immediate support at 1,833 levels along with pivot point resistance at 1,848 levels.

On the bullish side, the significant resistance stays at the 1,870 level, and closing below this level puts selling pressure on gold. However, the violation of this exposes gold prices towards the 1,892 and 1,917 levels. On the lower hand, gold’s immediate support stays at 1,824 and 1,800 levels.

On the 4-hour timeframe, gold has closed a bullish engulfing candle supporting a strong bullish bias in gold. Therefore, gold’s bullish bias remains strong over the 1,833 support level. All the best!

US CPI Triggers a Sell-off in Euro

The EUR/USD pair closed at $1.1478 after hitting a high of $1.1596 and a low of $1.1475. On Wednesday, the EUR/USD reversed course and fell precipitously to a more than one-year low below $1.1500. The selling pressure across the riskier currency pair EUR/USD was triggered by the rising price of the US dollar amid the stronger than expected CPI report. The US Dollar Index was high across the board on Wednesday as it reached its highest since last July at 94.90, which ultimately added heavy selling pressure on the EUR/USD currency pair. Furthermore, US Treasury yields on the benchmark 10-year note rose to 1.59%, adding to the greenback's strength and dragging the EUR/USD pair lower.

On the data front, at 12:00 GMT, the German Final CPI in October remained flat, with expectations of 0.5%. At 14:00 GMT, Italian industrial production increased by 0.1% versus the expected 0.1%, bolstering the single currency Euro and limiting further losses in the EUR/USD pair. From the US side, at 18:30 GMT, the CPI in October surged to 0.9%, against the predicted 0.6%, and supported the US dollar, which ultimately added to the further loss in the EUR/USD pair.

The core CPI increased to 0.6%, versus the expected 0.4%, supporting the US dollar and putting further pressure on the EUR/USD pair. Last week's unemployment claims surged to 267K from an estimated 257K, weighing on the US dollar, which succumbed to further losses in EUR/USD. At 20:00 GMT, the final wholesale inventories also increased to 1.4%, against an estimated 1.1%, and weighed on the US dollar, which limited the downward momentum in the EUR/USD pair.

US inflation hit a 30-year high on Wednesday and reached 0.9% in October after rising for the 12th consecutive month, which ultimately added strength to the US dollar. On the one hand, rising inflation fears were pushing the US dollar higher, but on the other hand, it was also at alarmingly high levels, which raised fears in the market that it could be persistent and remain longer than expected. These fears raised risk-off market sentiment in the market, which weighed further on the already declining prices of the EUR/USD currency pair.

Meanwhile, European coronavirus cases reached record highs as outbreaks surged in many countries across Europe due to resumed trade and tourism. The World Health Organization has warned that a jump of more than 50% in new coronavirus cases over the last month has been seen in Europe, and the continent could see another half-a-million deaths by February. The WHO has said that Europe is again under siege by COVID-19 as vaccination uptake has plateaued in some parts of Europe. On Wednesday, the rising coronavirus infections in Eastern Europe put additional pressure on the single currency, the euro, and added extra downside momentum to the EUR/USD currency pair.

EUR/USD Intraday Technical Levels

Support Resistance

1.1438 1.1559

1.1396 1.1638

1.1317 1.1679

Pivot Point: 1.1517

EUR/USD - Technical Outlook

On Thursday, the EUR/USD's technical side supported a bearish bias below the 1.1516 pivot point level. The EUR/USD has closed a "Three Black Crows" candlestick pattern that supports a selling trend. However, the pair is gaining immediate support at yesterday’s low level of 1.1475.

The violation of the 1.1475 support level exposes the EUR/USD towards 1.1437, 1.1397, and 1.1318 support levels. Alternatively, the resistance stays at the 1.1516 level and a bullish crossover of this exposes the Euro price towards the 1.1557 and 1.1635 levels.

The MACD and RSI support a selling trend, but they have entered the oversold zone now. Typically, the market experiences profit-taking, which results in a bullish rebound. The EUR/USD’s bearish bias dominates below 1.1516 and vice versa. All the best!