U.S. Unemployment Claims Ahead

The EUR/USD was closed at $1.1835 after placing a high of $1.1901 and a low of $1.1832. EUR/USD currency pair dropped for the 4th consecutive session on Wednesday amid the strength of the U.S. dollar and weakness of the single currency Euro. The U.S. dollar was strong across the board as the U.S. Dollar Index, which measures the greenback's value against the basket of six major currencies, surged on Wednesday and reached 92.31. The rising prices of the U.S. dollar on that day were due to the positive comments from the Federal Reserve Vice Chairman and the higher readings on the ISM Services PMI. The rising prices of the U.S. dollar kept the currency pair EUR/USD lower for the day.

At 12:50 GMT, the French Final Services PMI remained flat with the expectations of 56.8. At 12:55 GMT, the German Final Services PMI dropped to 61.8 against the anticipated 62.2, weighed on Euro, and added further loss in EUR/USD.

At 13:00 GMT, the Final Services PMI from the whole bloc also declined to 59.8 against the forecasted 60.4 and weighed on Euro and dragged the currency pair EUR/USD downside. In June, the Italian Retail Sales plunged to 0.7% against the anticipated 1.9% and weighed on Euro that added the downward momentum of the EUR/USD pair. At 13:29 GMT, the French Gov. Budget Balance Came in as -131.3B compared to the previous -118.8B. At 14:00 GMT, the Retail Sales from June for the whole bloc also reduced to 1.5% against the estimated 1.6%, weighed on the single currency Euro, and added further loss in EUR/USD pair.

From the U.S. side, at 17:15 GMT, the ADP Non-Farm Employment Change for July declined to 330K against the predicted 695K and weighed on the U.S. dollar and capped further decline in EUR/USD currency pair. At 18:45 GMT, the Final Services PMI remained flat with projections of 59.9. At 19:00 GMT, the ISM Services PMI rose to 64.1 against the estimated 60.5, supported the U.S. dollar, and dragged the currency pair EUR/USD further towards the downside.

EUR/USD Intraday Technical Levels

Support Resistance

1.1811 1.1880

1.1788 1.1924

1.1743 1.1948

Pivot Point: 1.1856

EUR/USD - Technical Outlook

The EUR/USD is trading with a bearish bias at the 1.1835 level, having violated the 50% Fibonacci retracement and support level of 1.1835. Closing of candle below 1.1835 level is adding extra selling pressure on the EUR/USD pair. Therefore, the pair's bearish is stronger below 1.1835, and it's exposed towards the next support level of 1.1820 level. On the 4-hour timeframe, the EUR/USD is heading lower to complete 61.8% Fibonacci retracement, and failure to violate this level can trigger a buying trend in the EUR/USD pair. The pair has crossed below 50 periods moving average that's now pressing the pair at 1.1845 level, and further selling can be seen in the pair. All the best!

Fibonacci Retracement to Play

The ETH/USD was closed at $2725.33 after placing a high of $2768.77 and a low of $2459.27. After falling for a day in the previous 14-days, ETH/USD regained its strength and came back stronger to place massive gains for the day on Wednesday. ETH/USD placed highest gains since May 31 and rose more than 1% on a single day amid the upcoming London-hard fork upgrade scheduled to launch on Thursday.

The rising price of Ethereum could also be attributed to the latest announcement from global payments giant Mastercard that it has partnered with the cryptocurrency exchange CoinJar to launch the first payment card that can support digital currencies in Australia.

The partnership of CoinJar & Mastercard came in intending to make digital asset services accessible to mainstream users. The card will operate whenever the Mastercard is accepted and will automatically convert the selected cryptocurrency into Australian dollars before the transaction is made.

Activation of the card will be free of cost; however, it will carry a transaction fee of 1%, which could be returned to the user at CoinJar rewards. The interesting thing about the card is that there will be no monthly charges for using the card. This news added strength in the overall cryptocurrency market, and hence, the second-largest cryptocurrency also followed the trend and moved upward.

Meanwhile, another piece of news pushed the rising prices of ETH/USD further higher, which was from India. An Indian-based cryptocurrency exchange revealed plans to open a systematic investment plan in digital assets for Indian athletes who will win medals at the ongoing Tokyo Olympics.

It is reported that the exchange will grant around $2,700 in crypto for gold medal winners. In simple terms, the Indian Olympic medal winners will get free bitcoin and Ethereum from an Indian-based cryptocurrency exchange. This news also supported the rising prices of ETH/USD on Wednesday.

ETH/USD Intraday Technical Levels

Support Resistance

2533.47 2842.97

2341.62 2960.62

2223.97 3152.47

Pivot Point: 2651.12

ETH/USD - Technical Outlook

On Thursday, the ETH/USD is trading with a bearish bias at 2,679, having crossed below the support level of 2,705. On the 4-hour timeframe, ETH/USD has completed 23.6% Fibonacci retracement at the $2,700 level. There break below this level exposes Ether price towards 38.2% Fibonacci retracement level of 2,650 and 2,600. The MACD is holding in a buying zone. Therefore, ETH/USD bias will be short-lived. The resistance prevails at 2,715, and a bullish breakout exposes the pair towards 2,770 and 2,960. All the best!

50 EMA Crossover Drive Sellers

The BTC/USD was closed at $39,754 after placing a high of $39,965 and a low of $37,564. After declining for the previous four consecutive sessions, Bitcoin found some support, reversed its course on Wednesday, and turned green for the day. A crypto social trading platform, Bingbon has announced a partnership with a global cryptocurrency trading platform, Paxful, intending to make Bitcoin purchasing and other cryptos more convenient on its platform.

The partnership will also allow the users of Bingbon to take full advantage of Paxful’s fiat-to-crypto network. The partnership will enable the Bingbon users to fund their accounts directly with local fiat currency using Paxful’s vast payment methods. This partnership added strength to the prices of BTC/USD on Wednesday.

Furthermore, the world’s famous cryptocurrency exchange platform, Binance, has continued expanding its operations and announced a partnership with crypto-fiat hybrid payment platform Alchemy Pay, enabling Binance Pay users to pay millions of merchants with crypto. Alchemy Pay will allow peer-to-peer crypto transactions across over 2 million global merchants via the Binance Pay app.

This new partnership will incorporate a new crypto-to-fiat payment system into companies such as Shopify, mobile payment provider QFPay, software technology company Arcadier, and all are partners with Alchemy Pay. Meanwhile, Federal authorities in Russia were moving forward with a plan to closely monitor cryptocurrency activity for illegal transactions and de-anonymize the identity of crypto users.

Rosfin monitoring, the Russian Federal Financial Monitoring Service, has selected a contractor for developing a platform for tracking cryptocurrency activity.

According to the latest release, the country will allocate 14.7 million rubles, equal to $200,000 from its budget, to create a module for monitoring and analyzing cryptocurrency transactions using Bitcoin. This procurement contract was granted to a company referred to as RCO, reportedly indirectly backed by the Russian largest bank, Sber, formerly known as Sberbank.

Furthermore, Alex Mashinsky, the CEO of cryptocurrency lender Celsius Network reaffirmed that the price of bitcoin would hit $140,000 to $160,000 this year after it traded significant levels over the last few weeks. He reiterated that bitcoin was a perfect store of value and should be used as such and not for everyday transactions. These comments from Mashinsky added value in BTC/USD and pushed its prices higher on Wednesday.

BTC/USD Intraday Technical Levels

Support Resistance

38434.4 40159.4

37712.7 41162.7

36709.4 41884.4

Pivot Point: 39437.7

BTC/USD - Technical Outlook

On Thursday, the BTC/USD pair continues trading with a bearish bias at the 39,135 level. It’s gaining immediate support at the 38,650 level. Violation of this support level exposes the Bitcoin price towards the next support level of 36,345 level. A double bottom pattern gives this support level on the 4-hourly chart.

Speaking about resistance, it’s holding at 39,400 level, and bullish breakout of this level can expose Bitcoin price towards next resistance level of 39,950 level. The 50 period moving average is also pushing Bitcoin lower, as it extends resistance at 39,850 level. The closing of Tweezer’s top pattern on the 4-hour timeframe is suggesting selling bias among investors. Therefore, the bearish trend dominates below 39,850 levels today. The MACD is also supporting a selling trend in Bitcoin. All the best!

Dramatic Buying in NZD

The NZD/USD pair extended its previous bullish rally and drew further bids above the 0.7017 level. The NZD/USD was supported by the sharp upticks in the AUD/USD pair following the Reserve Bank of Australia's policy announcements, which helped the positively-correlated NZD/USD pair.

Apart from this, the broad-based U.S. dollar weakness was also seen as one of the key factors that boost the NZD/USD currency pair. The downticks in the U.S. dollar have appeared after Federal Reserve Chairman Jerome Powell indicated last week that interest rate hikes were still a long way away. Thus, the weakness in the dollar seems to be allowing the NZD/USD currency pair to preserve its momentum.

As of writing, the NZD/USD currency pair price is trading at 0.7014 and consolidating in the range between 0.6964 - 0.7019. Moving on, the traders seem cautious to place any strong position ahead of N.Z. Unemployment Rate data is expected to drop further to 4.5% in Q2 2021 after unexpectedly falling to 4.7% in Q1.

Despite the growing tensions over the coronavirus (COVID-19) cases, the market trading sentiment extended its previous-day positive performance and remained well supported on the day. This was witnessed by the positive attitude of Asia-Pacific stocks and gains in the S&P 500 Futures, highlighting the risk-on mood. As of today, the S&P 500 Index is rose by 0.45% at 4,415. While the Dow Jones Industrial Average is up 0.43% at 35,082 and the Nasdaq Composite is gaining positive traction near 14,995.

However, the market risk-on mood could be attributed to the progressing discussions over U.S. President Joe Biden's infrastructure spending, which instantly positively impacted the market trading sentiment and contributed to the safe-haven U.S. dollar losses.

At the USD front, the broad-based U.S. dollar extended its previous-day downward rally and dropped further on the day as the market's bullish bias tends to undermine the safe-haven dollar.

The Fed's dovish stance in the recent conference has also played a significant role in undermining the U.S. dollar. Federal Reserve Chairman Jerome Powell's announcement that "interest rate hikes were still a long way away. In addition to this, the sluggish US PMI data put some further burden around the U.S. dollar. Thus, the declines in the U.S. dollar were seen as one of the critical factors that help the NZD/USD pair stay bid.

NZD/USD Intraday Technical Levels

Support Resistance

0.6980 0.7036

0.6943 0.7055

0.6924 0.7092

Pivot Point: 0.6996

NZD/USD - Technical Outlook

The NZD/USD pair is trading with a bullish trend at the 0.7050 level. Taking a look at the MACD, the pair has entered the overbought zone, and typically in such situations, the pair starts exhibiting a bearish correction. The investor's major focus stays on the 0.7065 resistance level as a bullish crossover can expose the NZD/USD pair towards the 0.7095 level.

The overbought NZD/USD pair can show a bearish correction until a 23.6% Fibonacci retracement level of 0.7850 and 38.2% Fibonacci correction level of 0.7034 level. On Wednesday, the investor's focus will stay on the U.S. ADP figures as this may offer them further clues about the NZD/USD trend. All the best!

Eyes on U.S. Advance NFP Data

Gold prices were closed at $1814.15 after placing a high of $1818.15 and a low of $1809.75. It reversed its course and dropped on Tuesday as traders remained on the sidelines ahead of the U.S. jobs data expected to release later this week. The traders were waiting for this report cautiously as it could influence when the Federal Reserve cuts back on its asset purchases.

Despite the declining prices of the U.S. dollar, the precious metal remained on the back foot and turned red for the trading session on Tuesday. The U.S. Dollar Index also dropped for the 2nd consecutive session and reached the 91.89 level; however, the greenback remained steady for the whole trading session as investors were not cautious about placing strong bets ahead of the key U.S. jobs market data.

The market was fixated on finding the exact timing of tapering from the Fed, which could be determined by the upcoming jobs number that is due to release on Friday. According to some analysts, the near-term outlook of the precious metal was still bullish; however, it could be changed from the two robust nonfarm payroll reports.

At 19:00 GMT, the Factory Orders from June surged to 1.5% against the forecasted 1.0% and supported the U.S. dollar and added loss in the yellow metal price. At 19:01 GMT, the IBD/TIPP Economic Optimism in August dropped to 53.6 against the projected 55.3, weighed on the U.S. dollar, and further caped loss in gold. The Wards Total Vehicle Sales also declined to 14.8M against the forecasted 15.2M and weighed on the U.S. dollar and limited the downward momentum in the yellow metal.

Meanwhile, on Tuesday, Federal Reserve Governor Michelle Bowman said that the healing of the labour market from the impact of the coronavirus pandemic would take some time. More needed to be done for the U.S. economy to push it back towards full recovery.

Bowman said in the prepared remarks that employment was still below the level where it should be despite the significant pace of the hiring. She was hopeful that the recent positive momentum would continue to build, but more work was to be done to get the economy back on a strong foot.

Another reason behind the declining prices of the yellow metal could be the latest comments from another governor of the Federal Reserve, Christopher Waller. Along with Waller, St. Louis Fed President James Bullard believes that the job market recovery was near completion. The Fed will soon start reducing its billion dollars’ worth of monthly asset purchases.

However, as for the Fed, the central bank has said that it will start tapering the asset purchases when substantial further progress is seen towards its maximum employment and flexible 2% inflation goals.

Gold Intraday Technical Level

Support Resistance

1809.89 1818.29

1805.62 1822.42

1801.49 1826.69

Pivot Point: 1814.02

Gold - XAU/USD - Technical Outlook

On Wednesday, the yellow metal gold is trading with a bullish bias at a 1,814 level. Gold price is holding over 50 EMA line, that’s supporting its prices at 1,809 level. On the 4-hour timeframe, the yellow metal has closed a bullish engulfing candle suggesting chances of a bullish trend continuation. On the higher side, the resistance stays at 1,816 and 1,821 levels. Whereas, a bullish breakout of these levels can expose gold price towards the 1,832 level.

Alternatively, the support holds around 1,809/07 level, and bearish crossover below this exposes gold price towards 1,792 level. This week will be crucial for the U.S. dollar and gold, as the U.S. economy will be releasing its NFP & Unemployment figures on Friday. Today, the focus will remain on the U.S. Advance NFP figures. All the best!

38.2% Fibonacci Retracement Supports

The EUR/USD was closed at $1.1860 after placing a high of $1.1894 and a low of $1.1853. EUR/USD dropped for the third consecutive session on Tuesday however remained steady for the day. From the U.S. side, at 18:45 GMT, The Final Manufacturing PMI remained flat with the projections of 63.4. At 19:00 GMT, the ISM Manufacturing PMI declined in July to 59.5 against the anticipated 60.8 and weighed on the U.S. dollar that limited the loss in EUR/USD.

For June, the Construction Spending also dropped to 0.1% against the forecasted 0.4% and weighed on the U.S. dollar that further caped decline in EUR/USD. The ISM Manufacturing Prices fell to 85.7 against the expected 87.9 and weighed on the U.S. dollar, and helped EUR/USD reduce its daily loss.

Meanwhile, on Monday, U.S. Federal Reserve Governor Christopher Waller said that the Federal Reserve could start tapering of asset purchases as early as October if the job employment data falls in a range of 800,000 and 10,000,000 for the next two months.

Waller suggested that if jobs data falls in this range during August and September, it would mean that the U.S. economy had reached near the pre-pandemic level and would force the central bank to reduce its bond purchases worth $120 billion per month. These comments during late American hours added strength to the depressed U.S. dollar and dragged the currency pair EUR/USD.

EUR/USD Intraday Technical Levels

Support Resistance

1.1851 1.1890

1.1835 1.1913

1.1811 1.1930

Pivot Point: 1.1874

EUR/USD - Technical Outlook

The technical side of the EUR/USD pair hasn't changed a lot, as the EUR/USD continues to trade sideways between a narrow trading range of 1.1900 – 1.1845 level. On the upper side, the resistance stays at the 1.1900 level. On the 4-hourly chart, the EUR/USD pair has already violated the downward trendline that's now extending support at the 1.1850 level. A bearish breakout of this support level can expose the EUR/USD pair towards 1.1810 support. That's where the 50 M.A. (moving average) stays and can trigger a bounce off in the EUR/USD. However, the bearish crossover below this level can expose the EUR/USD pair towards the 1.1760 support level. The bullish bias dominates the EUR/USD above 1.1850 today. On Wednesday, the investor's focus will stay on the U.S. ADP figures as this may offer them further clues about the EUR/USD trend. All the best!

Sideways Trading 1,816 – 1,807

Gold prices were closed at $1816.05 after placing a high of $1823.25 and a low of $1808.35. Gold remained flat throughout the trading session on Monday despite declining prices of the U.S. dollar and a slump in the benchmark U.S. Treasury Yields. The U.S. Dollar Index that measures the greenback value against the basket of six major currencies rose to 92.20 level and supported the U.S. dollar. At the same time, the benchmark Treasury yield on a 10-year note from the U.S. remained under pressure on Friday and reached a 1.22% level.

On the data front, at 17:30 GMT, the Core CPE Price Index for June dropped to 0.4% against the forecasted 0.6% and weighed on the U.S. dollar that capped further loss in gold prices. The Employment Cost Index dropped to 0.7% against the projected 0.9% and weighed on the U.S. dollar that limited the rise of gold prices. Personal Income from June rose to 0.1% against the predicted -0.4% and supported the U.S. dollar that added loss in gold prices.

Personal Spending in June also surged to 1.0% against the anticipated 0.7% and supported the U.S. dollar that dragged gold even lower for the day. At 18:45 GMT, the Chicago PMI for July increased to 73.4 against the projected 64.2 and supported the U.S. dollar that added extra loss in gold prices. At 19:00 GMT, the Revised UoM Consumer Sentiment in July remained flat at 81.2. The Revised UoM Inflation Expectations dropped in July to 4.7% against the previous 4.8%.

Meanwhile, the cases rose in Germany as the European Union struggled to cope with the difference between demand and vaccine shots. Given this fact, Pfizer and Moderna increased their prices of vaccine shots as Europe saw side effects from other shots and supply constraints. These developments surrounding the coronavirus vaccine and spread kept the losses in gold prices limited for the day.

Gold Intraday Technical Level

Support Resistance

1808.51 1823.41

1800.98 1830.78

1793.61 1838.31

Pivot Point: 1815.88

Gold - XAU/USD - Technical Outlook

Gold is trading with a bearish bias at 1,810 levels. It’s trading above 50 periods moving average that’s providing support at 1,807 level. Bearish crossover of 1,807 support level can expose gold price further lower towards 1,800 and 1,792 level. On the bullish side, the breakout of 1,816 level can expose gold price towards 1,832 level. Gold has closed a double top pattern at 1,832, and now it’s working as a solid resistance.

The MACD is still holding in a buy zone; therefore, gold’s bullish bias remains strong above the 1,807 level. The choppy sessions can continue for a while as investors await the U.S. NFP and Unemployment data that’s due on Friday. All the best!

Sideways Trading Range

The EUR/USD was closed at $1.1867 after placing a high of $1.1897 and a low of $1.1858. EUR/USD continued its bearish momentum for the 2nd straight session on Monday despite the declining prices of the U.S. dollar throughout the day. The EUR/USD currency pair remained higher during early trading hours on Monday as the U.S. dollar was suffering amid the reduced number of investors entering the market ahead of the critical jobs data from the U.S. that is expected to release later this week.

This cautious behaviour of investors kept them away from the market for a while and gave strength to the single currency against the greenback that pushed EUR/USD higher. However, during late trading hours on Monday, some hawkish comments from a governor of the U.S. Federal Reserve added some strength back to the U.S. dollar that dragged the riskier currency pair EUR.USD on the downside. The currency pair EUR/USD lost about its gains and turned red for the day with minor losses.

On the data front, at 11:00 GMT, The German Retail Sales for June surged to 4.2% against the forecasted 1.9% and supported the single currency Euro that pushed EUR/USD higher in early trading hours. At 12:15 GMT, the Spanish Manufacturing PMI for July dropped to 59.0 against the forecasted 59.4 and weighed on Euro that added a loss in EUR/USD.

AT 12:45 GMT, the Italian Manufacturing PMI also declined to 60.3 against the anticipated 61.4 and weighed on the Euro and kept EUR/USD under pressure. At 12:50 GMT, the French Final Manufacturing PMI remained flat with the expectations of 58.1. At 12:55 GMT, the German Final Manufacturing PMI for July also remained unchanged as expected 65.9. At 13:00 GMT, the Final Manufacturing PMI from the whole bloc came in as forecasted 62.8.

EUR/USD Intraday Technical Levels

Support Resistance

1.1851 1.1890

1.1835 1.1913

1.1811 1.1930

Pivot Point: 1.1874

EUR/USD - Technical Outlook

The EUR/USD is trading sideways between a narrow trading range of 1.1900 – 1.1845 level. On the upper side, the resistance stays at the 1.1900 level. On the 4-hourly chart, the EUR/USD pair has already violated the downward trendline that’s now extending support at the 1.1850 level. A bearish breakout of this support level can expose the EUR/USD pair towards 1.1810 support. That’s where the 50 M.A. (moving average) stays and can trigger a bounce off in the EUR/USD. However, the bearish crossover below this level can expose the EUR/USD pair towards the 1.1760 support level. The bullish bias dominates the EUR/USD above 1.1850 today. All the best.

50 EMA Crossover Drive Sellers

The BTC/USD was closed at $39,156.0 after placing a high of $40,441.0 and a low of $38,716.0. BTC/USD continued its bearish streak for the third consecutive session on Monday and settled below the $39,000 level. A U.S. asset management giant, GoldenTree Asset Management which has $45 billion in assets under management AUM, announced that it has purchases portions of Bitcoins and added them to its balance sheet.

The company is said to add bitcoin because it wanted to diversify from traditional debt investment strategies. The wealth management firm was looking for staff that understands crypto solutions and blockchain tech. This news added to the price of bitcoin during early trading hours on Friday.

Furthermore, the government of Germany passed the law that will enable German institutional funds to hold up to about 20% of their assets in terms of cryptocurrencies. The latest German law will go into effect from Aug 02, and this initiative could bring about $415 billion worth of investments via cryptocurrencies. This was another piece of news that added further strength to the prices of Bitcoin over the weekend. Meanwhile, Wealthfront has also announced that it would increase the cryptocurrency exposure to its clients by adding Grayscale Bitcoin Trust and Grayscale Ethereum Trust.

This service will not require the clients to use wallets or open an account in a cryptocurrency exchange. The company also warned that such investment could be risky and more volatile than most ETFs and would limit the initiative. This was another factor involved in the rising prices of BTC/USD. Moreover, there were also reports that the former SEC Chairman Jay Clayton was fighting for an approval of Bitcoin ETF.

While, on the other hand, the newly-appointed SEC Chairman, Gary Gensler, was continuously working towards establishing a regulatory framework for digital assets.

Currently serving on the One River Asset Management board, Clayton has recently submitted a registration statement for One River Carbon Neutral Bitcoin Trust. This fund is the latest attempt at getting the long-awaited Bitcoin ETF approval in the U.S. Clayton is actively involved in the application process and is considering the experience of the former SCE head, and people are suggesting that this fund has good odds at getting approval from SEC.

The declining prices of Bitcoin over the weekend could be attributed to profit-taking and the strength of the U.S. dollar. The DXY reached 92.20 level on Friday amid the renewed strength against the basket of six major currencies as the inflation was rising higher than the central bank's expectations. The chairman of the Federal Reserve, Jerome Powell, said that inflation might remain at higher levels for some time, but it would be transitory.

BTC/USD Intraday Technical Levels

Support Resistance

38434.4 40159.4

37712.7 41162.7

36709.4 41884.4

Pivot Point: 39437.7

BTC/USD - Technical Outlook

The BTC/USD pair continues trading with a bearish bias at the 38,275 level, gaining immediate support at the 38,250 level. Violation of this support level exposes the Bitcoin price towards the next support level of 36,345 level. A double bottom pattern gives this support level on the 4-hourly chart. The closing of candles below the 38,250 level will confirm the breakout and expose Bitcoin to further selling trends. Alternatively, closing above 38,350 keeps the Bitcoin bullish until 39,450 and 40,400 resistance levels. The MACD is also supporting a selling trend in Bitcoin on Tuesday. All the best!

Upward Trendline Supports at 1,805

Gold prices were closed at $1812.60 after placing a high of $1830.50 and a low of $1808.90. Gold reversed its momentum on Friday and dropped for the day; however, yellow metal remained green for the week after the U.S. Federal Reserve supported the hopes of investors that interest rates will remain lower for some time. The recent decline in gold prices could also be attributed to the comeback of the U.S. dollar. The greenback became strong across the board and broke its 4-day bearish streak on Friday as market sentiment improved and the U.S. macroeconomic data came in favor of the U.S. dollar.

The U.S. Dollar Index that measures the greenback value against the basket of six major currencies rose to 92.20 level and supported the U.S. dollar. At the same time, the benchmark Treasury yield on a 10-year note from the U.S. remained under pressure on Friday and reached a 1.22% level. On the data front, at 17:30 GMT, the Core CPE Price Index for June dropped to 0.4% against the forecasted 0.6% and weighed on the U.S. dollar that capped further loss in gold prices. The Employment Cost Index dropped to 0.7% against the projected 0.9% and weighed on the U.S. dollar that limited the rise of gold prices. Personal Income from June rose to 0.1% against the predicted -0.4% and supported the U.S. dollar that added loss in gold prices.

Personal Spending in June also surged to 1.0% against the anticipated 0.7% and supported the U.S. dollar that dragged gold even lower for the day. At 18:45 GMT, the Chicago PMI for July increased to 73.4 against the projected 64.2 and supported the U.S. dollar that added extra loss in gold prices. At 19:00 GMT, the Revised UoM Consumer Sentiment in July remained flat at 81.2. The Revised UoM Inflation Expectations dropped in July to 4.7% against the previous 4.8%.

Meanwhile, the cases rose in Germany as the European Union struggled to cope with the difference between demand and supply of the vaccine shots. Given this fact, Pfizer and Moderna increased their prices of vaccine shots as Europe saw side effects from other shots and supply constraints. These developments surrounding the coronavirus vaccine and spread kept the losses in gold prices limited for the day.

Gold Intraday Technical Level

Support Resistance

1815.06 1817.86

1813.58 1819.18

1812.26 1820.66

Pivot Point: 1816.38

Gold - XAU/USD - Technical Outlook

On Monday, gold is trading with a bearish sentiment at 1,808 levels. It has violated the intraday pivot point support level of 1,816 and is now holding near an immediate support level of 1,805. An upward trendline is extending this support level on a 4-hourly chart. A bearish breakout of this level exposes gold prices towards the next support level of 1,797 level. The MACD and 50 M.A. are suggesting strong selling bias in gold. However, above 1,805 level, gold’s immediate resistance stays at 1,818 level. Bullish crossover of this level exposes gold price towards 1,826 level. This week will be crucial for the U.S. dollar and gold, as the U.S. economy will be releasing its NFP & Unemployment figures on Friday. All the best!