Bitcoin Supported at $31,450

The BTC/USD was closed at $31857.0 after placing a high of $33194.0 and a low of $31170.0. BTC/USD dropped on Thursday and extended its decline after research by the Cambridge Centre for Alternative Finance showed that the mining power of China disappeared overnight as soon as the crackdown was started.

The article suggested that the share of bitcoin mining from China has been declining since 2019 as it has fallen from 75.5% in September 2019 to 46% in April of this year. The crackdown is still enacted, and the further moves from various Chinese provinces will reduce the figure a lot smaller. The research also revealed that the bitcoin mining in China was already reducing far before the recent heavy crackdown last month. In June, Chinese authorities ordered banks and financial institutions to cease any crypto-related services.

Meanwhile, the U.K.'s FCA launched a $15 million digital marketing campaign to warn traders of the risks associated with the cryptocurrency. As part of its efforts to educate millennials, the country's financial watchdog, the Financial Conduct Authority (FCA), planned a marketing campaign to warn young investors about the risks associated with the crypto investment. The targeted age for the campaign is set as 18 to 30 years.

According to the FCA Chief executive, Nikhil Rathi, the move came in after previous warnings from governments that stated that cryptocurrency investment was associated with high risk and investors should be prepared to lose their money while investing. These comments and the campaign's launch added weighed on the Bitcoin that dragged BTC/USD downwards.

On the flip side, MicroStrategy's Michael Saylor has said that Bitcoin was a big tech without the company. He compared the leading cryptocurrency with Apple, Google, and Facebook. He said that bitcoin has similar dominance to these big tech giants, but it lacked a company. Furthermore, the former U.S. Treasury Secretary, Steve Mnuchin, said that the decision to invest or store value in bitcoin was a personal choice of anyone; however, the asset must be governed by a regulatory body to prevent its use for illegal activities.

He further said that he would not want to add bitcoin to his portfolio, but if people wanted to buy bitcoin as a substitute for gold or some other asset, it was fine. He reiterated that bitcoin should be regulated and put under BSA compliance.

Moreover, the comeback of the U.S. dollar also played an essential role in driving down the prices of BTC/USD. The U.S. Dollar Index measures the greenback value against the basket of six major currencies, moved up to 92.69 level, and supported the U.S. dollar that ultimately weighed on BTC/USD as both have a negative correlation between them.

BTC/USD Intraday Technical Levels

Support Resistance

30953.4 32977.4

30049.7 34097.7

28929.4 35001.4

Pivot Point: 32073.7

BTC/USD - Technical Outlook 

On Friday, the leading cryptocurrency is trading with a slightly bullish bias at 31,937 level, bounced off above the support level of 31,470. On the 4 hour timeframe, the BTC/USD has closed a hammer pattern at 31,470 level, suggesting odds of a bullish reversal in Bitcoin. However, the breakout of 31,470 support levels exposes the Bitcoin price towards 30,219 and 29,185. The 32,850 will be the to extend hurdle to the BTC/USD pair on the resistance side. Besides this, the downward trendline and 50 periods EMA will be extending resistance at 33,418 levels today. A leading indicator like MACD is staying below 0, demonstrating a selling trend in Bitcoin. However, a slight bullish correction seems imminent above the 31,450 level today. All the best!

Unemployment Claims Ahead!

Gold prices were closed at $1827.30 after placing a high of $1831.00 and a low of $1804.85. Gold prices jumped on Wednesday and marked the highest settlement since mid-June on the back of the declining U.S. dollar for the day. The U.S. Dollar Index (DXY) that measures the greenback value against the basket of six major currencies was on the back foot on Wednesday and fell to 92.35 level amid the fresh remarks from the President of the U.S. Federal Reserve, Jerome Powell.

In his testimony before Congress, Powell reassured investors that the central bank of the United States would extend its accommodative monetary policy despite a hike in inflation last month. He added that the U.S. economic recovery has not yet progressed enough to start easing the central bank's massive monthly asset purchases. He further added that inflation was likely to stay high in the coming months.

For the job market, Powell reiterated that it "was still a ways off" from the progress that Fed would like to see before it starts reducing its support from the economy. About the recent PPI data that was released on Wednesday, Powell said that the strong surge in PPI cemented the belief that the central bank will remain on course to be pretty accommodative despite hotter inflation data.

The U.S. Producer Price Index rose more than projections and posted its most significant annual increase in more than ten and a half years. At the same time, Powell said that Fed was firmly believed that current increased prices were associated with the economic reopening and were temporary. He maintained the dovish tone and pushed back against the Fed's concerns would start tapering sooner than expected. This slow path to tapering asset purchases added weight on the U.S. dollar and helped the precious metal to post gains for the day.

On the data front, at 17:30 GMT, the Producer Price Index for June surged to 1.0% against the expected 0.6% and supported the U.S. dollar that further capped gains in precious metal. The Core PPI from June also rose to 1.0% against the projected 0.5% and kept the U.S. dollar that limited the surge in the yellow metal. Meanwhile, the safe-haven yellow metal was also supported by the prevailing risk-off market sentiment driven by the statement from Japan. In its annual defense white paper, Japan reiterated that the growing military tension around Taiwan and the economic and technological rivalry between China and the United States increases the prospects of crisis in the zone as the power balance transfers in favor of China.

Gold Intraday Technical Level

Support Resistance

1811.10 1837.25

1794.90 1847.20

1784.95 1863.40

Pivot point: 1821.05

Gold - XAU/USD - Technical Outlook

The precious metal gold has traded sharply bullish at a 1,827 level amid weakness in the U.S. dollar. On the technical side, gold's immediate resistance prevails at 1,829 levels, and the closing of Doji candles demonstrates indecision among investors. It can be due to the high impact events due to come out during the U.S. sessions like the U.S. Jobless Claims and Fed Chair Powell Testimony. A bullish breakout of 1,829 levels can lead the gold price towards the next resistance area of 1,843 levels. In contrast, the support stays around 1,818 levels today. The 50 periods EMA supports gold at 1,804 level, and the MACD is also closing histograms in the buying zone. Bullish bias dominates in gold today; however, the significant events will remain in focus. All the best!

Three Black Crows, Selling Bias Dominates

The USD/JPY was closed at 109.99 after placing a high of 110.71 and a low of 109.93. After rising for three consecutive sessions, USD/JPY declined on Wednesday amid the recent decline in the U.S. dollar. The U.S. dollar was weak during Wednesday's trading session as the DXY reached 92.35 level after the Federal Reserve Chairman dismissed the concerns about starting tapering of asset purchases sooner than expected. In his testimony before Congress, Powell stated that the Fed would continue to provide its monetary support to the economy despite higher inflation readings last month.

Powell added that the spike in inflation was transitory as the rising consumer prices were due to increased demand from the reopening of the economy. He said that inflation would likely continue to grow in the coming months. The central bank will continue providing support as the economy has not reached the targeted levels set by the central bank for tapering asset purchases.

On the data front, at 09:30 GMT, the Revised Industrial Production for May declined by -6.5% against the expected -5.9% and weighed on the Japanese Yen that further caped loss in USD/JPY pair. From the U.S. side, at 17:30 GMT, the Producer Price Index for June rose to 1.0% against the estimated 0.6% and supported the U.S. dollar that further caped loss in USD/JPY. The Core PPI from June also surged to 1.0% against the predicted 0.5% and helped the U.S. dollar limit the downward momentum in USD/JPY.

Despite better than expected macroeconomic readings from the U.S. side, the U.S. dollar remained under pressure. It kept the USD/JPY pair depressed throughout the day as the dovish comments from Jerome Powell weighed on the greenback. Fed's concerns might start tapering soon were dismissed, and the greenback fell against its rival currencies.

Meanwhile, in its annual defense white paper, Japan said that growing military tensions around Taiwan and the economic and technological rivalry between China and the United States were threatening the peace and stability in East Asia as the regional power balance was shifting in favor of Beijing.

The paper revealed that it was necessary to pay close attention to the situation with a sense of crisis. The report said about the US-China tussle that the competition in technological fields was likely to become more intense in particular. The defense review was approved by the government of Prime Minister Yoshihide Suga on Tuesday and pointed to China as a primary national security concern of Japan. This added in the risk-off market sentiment that added further loss in the USD/JPY pair.

USD/JPY Intraday Technical Levels

Support Resistance

109.71 110.49

109.43 110.99

108.94 111.27

Pivot Point: 110.21

USD/JPY - Technical Outlook

The safe-haven currency pair USD/JPY is trading with a strong selling bias at 109.750 level, disrupting the support area of 110.023 level. On the 4 hour timeframe, the pair has closed three black crows pattern that demonstrates strong selling bias among investors. Besides, the USD/JPY has also violated the upward channel on the 4-hour timeframe, driving a solid selling trend in the USD/JPY pair. On the downside, the USD/JPY pair is exposed towards the next support level of 109.520 level, and the breakout of this level exposes it towards the support level of 108.940. Traders will be closely monitoring the U.S. Jobless claims and Fed Chair Powell Testimony as both of these events have the potential to drive price action. All the best!

Bitcoin Rejected Below 50 EMA

The BTC/USD was closed at $32822.6 after placing a high of $33117.0 and a low of $31596.0. After declining for two consecutive sessions, BTC/USD ended its trading session on Wednesday with minor gains. During the first half of the day, BTC/USD remained depressed and extended its loss; however, in the second half of the session, bitcoin managed to recover its daily loss and ended its day with a little to no gain.

The flat movement of bitcoin during Wednesday could be attributed to the speculations indicating that bitcoin was on its way to face intensified government conspired opposition. After the conspiracy theories on possible attacks on cryptocurrencies, especially on Bitcoin, emerged in the market.

At CoinShares, Meltem Demirors, a Chief Strategy Officer, said that the bitcoin and crypto market would possibly see a crackdown during the coming months from elites and institutions as they were preparing for hyperinflation. She added that they would crush the middle class for this purpose and acquire all of their productive assets. She also called it 21st-century feudalism. Bitcoin and other unregulated, decentralized digital money revolutionized the financial markets and posed a threat to governments.

Thus, central banks have become sceptical and are looking for ways to control the flow of capital and profit from the blockchain. The increasing global coordinated regulatory actions against the crypto market give a view for a possible alarming situation where the efforts by governments might intensify in the coming months. These concerns and speculations kept BTC/USD lower for the day during early trading hours on Wednesday.

Meanwhile, the Anhui province in China also announced that Bitcoin mining in the area would be shut down as the crackdown on crypto miners continues. The Chinese government has plans to rot out all bitcoin miners and related projects from the nation within the next three years. This also kept BTC/USD under pressure on Wednesday.

However, Bitcoin managed to gain traction in the market and recover its loss for the day after the Brazilian Securities Commission announced that it had approved the first exchange-traded fund after tracking the performance of Ethereum in Latin America.

Furthermore, the global payment giant Visa was moving forward with its commitment to digital currency adoption and approved the development and issuance of a new BTC debit card. According to CryptoSpend, a Sydney-based crypto spending app, on July 14, Visa has approved the issuance of a physical debit card which will enable Australians to spend their bitcoin at local merchant shops. This news added a spark to the crypto market's dark environment and pushed BTC/USD higher.

Moreover, the declining value of the U.S. dollar on Wednesday also played an important factor in driving the BTC/USD higher on board. The U.S. dollar was sluggish across the board following the Fed chair, Jerome Powell, who said that Fed would continue to support its economy with stimulus measures until further progress growth. He said that the target level set by the Fed for a threshold of tapering was far from reaching, and the higher prices were just an effect of economic reopening and were temporary. These dovish comments weighed on the U.S. dollar negatively correlated with BTC/USD; hence it pushed the crypto higher.

BTC/USD Intraday Technical Levels

Support Resistance

31906.8 33427.8

30990.9 34032.9

30385.8 34948.8

Pivot Point: 32511.9

BTC/USD - Technical Outlook

On Thursday, the bearish sentiment continues to dominate Bitcoin price as it's trading at the 32,528 level. The BTC/USD pair has bounced off the support level of 31,580 level to retest the resistance level of 33,155 extended by 50 periods EMA line. At the moment, Bitcoin's immediate support prevails at 31,580 level, and the breakout of this level exposes the BTC towards the next support level of 30,219 level. Alternatively, the violation of the 33,150 - 33,418 range exposes its prices towards the next resistance area of 34,450 level. Technically, the bearish bias dominates the market as the 50 EMA and MACD support a selling bias. All the best!

Fed Chair Powell Testifies

The safe-haven-metal price succeeded in extending its previous-day winning streak and picked up some further bids around above $1,810 level on the day as the downbeat market sentiment, triggered by the resurgence of the coronavirus (COVID-19), tends to underpin the safe-haven gold. The fears of the covid resurgence are getting more vital daily amid the variants' ability to spread faster, which adds further burden to market sentiment. Moreover, the pressure surrounding the market trading sentiment was further bolstered by the higher-than-expected inflation in the U.S.

This triggered bets that the U.S. Federal Reserve will tighten its monetary policy faster than expected, raising reflation fears and contributing to the downticks in the market trading sentiment. Besides this, the broad-based U.S. dollar bearish bias has also played a significant role in underpinning the dollar-dominated commodities (gold).

On the different page, the previously released upbeat U.S. data keeps challenging the market's risk-off mood. Meanwhile, the latest announcement from the Aussie PM Scott Morrison to increase emergency disaster payments to individuals and jointly funded payments to businesses also helps the market sentiment limit its deeper losses. It was seen as one of the key factors that kept the lid on any additional gains in the safe-haven gold. Gold is currently trading at 1,812.72 and consolidating in the range between 1,804.62 - 1,813.97.

Despite the previously released upbeat U.S. data, the market trading sentiment extended its previous-day poor performance and remained depressed on the day amid multiple reasons. Be it the increasing coronavirus (COVID-19) woes in the West or reflation fears; markets have all the reasons to put the trading mood under pressure. As per the latest report, the United Kingdom recorded the most covid-led deaths since April while the total infections ease in Australia from 120, the highest in 10 months to 100. Elsewhere, the death toll in New South Wales (NSW) and Queensland is increasing day by day, which keeps policymakers concerned and rushes for more jabbing in the Oz nation. Meanwhile, the U.S. authorities discuss the need for the 3rd-covid vaccine shot. Other than the covid fears, the higher-than-expected inflation in the U.S. triggered bets that the U.S. Federal Reserve will tighten its monetary policy faster than expected, raising reflation fears.

The monthly data issued by the U.S. Bureau of Labor Statistics showed that the Consumer Price Index (CPI) climbed to 5.4% yearly in June from 5% in May. This print surpassed the market expectation of 4.9% by a broad margin, which provided a temporary boost to the USD. At the USD front, the U.S. dollar dropped on the day but remained trading near a three-month high against the euro and a one-week high against the yen. The upticks in the U.S. dollar were short-lived as the investors await Fed Chairman Jerome Powell's testimony before Congress on Wednesday and Thursday. Although Powell has frequently asked that higher inflationary pressures be temporary, his testimony will be examined for any clues on when Fed will begin asset tapering and hike interest rates.

Conversely, the downbeat market sentiment could help the safe-haven U.S. dollar to limit its deeper losses. However, the continuous declines in the dollar could be associated with the cautious sentiment ahead of Fed Chairman Jerome Powell's testimony. Therefore, the weaker U.S. dollar tends to benefit dollar-denominated commodities, including gold. Aussie PM Scott Morrison announced an extension in emergency disaster payments to individuals and jointly funded payments to businesses to battle the covid-led losses, which keeps challenging the market's risk-off mood.

Gold Intraday Technical Level

Support Resistance

1795.70 1815.10

1783.90 1822.70

1776.30 1834.50

Pivot Point: 1803.30

Gold - XAU/USD - Technical Outlook

Gold is trading with a solid bullish bias at a 1,813 level, violating the resistance level of 1,811 level. On the 4 hour timeframe, gold has formed a bullish engulfing candle supporting a solid buying trend in the yellow metal. On the upside, the metal's next resistance prevails at 1,817 level, and break out of this level can expose its price towards the resistance area of 1,822 and 1,834 resistance levels. On the flip side, the breakout of 1,811 levels exposes gold prices towards the support level of 1,805 level. The leading and lagging indicators such as MACD and 50 EMA are in favor of a bullish trend. Therefore, the buying trend dominates today, especially over the support level of 1,811 level today. All the best!

The U.K. Inflation Figures in Highlights!

The GBP/USD was closed at $1.3808 after placing a high of $1.3907 and a low of $1.3800. GBP/USD extended its loss and dropped for the second consecutive session on Tuesday amid the renewed strength in the U.S. dollar. The U.S. dollar was strong across the board as the U.S. CPI report from June came in higher than the expectations and supported the bets that Fed might start easing stimulus measures soon. The DXY surged to 92.81 level after rising for about 0.5% on the day and weighed on the currency pair GBP/USD.

At 04:01 GMT, the BRC Retail Sales Monitor for the year declined to 6.7% against the expected 11.5% and weighed on the British Pound that dragged GBP/USD pair further on the downside. From the U.S. side, at 14:57 GMT, the NFIB Small Business Index for June rose to 102.5 against the anticipated 99.5 and supported the U.S. dollar that added further loss in GBP/USD. At 17:30 GMT, the Consumer Price Index for June also surged to 0.9% against the predicted 0.5% and supported the U.S. dollar that added extra pressure on GBP/USD currency pair. The Core CPI for June rose to 0.9% against the estimated 0.4% that supported the greenback and added loss in GBP/USD.

At 23:00 GMT, the Federal Budget Balance was declined to -174.2B against the projected -205.0B that weighed on the U.S. dollar and further caped loss in GBP/USD. Investors have been optimistic about the anticipated tightening monetary policy from the central bank as the latest FOMC meeting minutes revealed that Fed officials were talking about early tapering. The June inflation data came in higher than expectations and supported the bets that Fed will soon start tapering asset purchases. These bets drove the U.S. dollar prices higher on Tuesday and kept GBP/USD pair under pressure.

However, some analysts believe that one month reading of higher inflation was not enough for Fed to start easing stimulus measures. Whereas, others believed that as the U.S. Consumer Prices rose to their 13-year higher level during last month, it should be enough for Fed to assume that prices were at alarmingly high levels.

On the flip side , the GBP struggled to gain strength against the U.S. dollar after a warning from the Bank of England. The BOE warned that an increase in risk-taking behavior triggers the danger of a sharp correction in asset valuation. If this occurred, it could directly impact the financial system, tightened financial conditions, and consequently, over the debt vulnerabilities within U.K. households and businesses.

British Pound was also under pressure as, despite the warnings from several global health experts, the U.K. Prime Minister Boris Johnson insisted on lifting all restrictions at Freedom Day on July 19 and said that the success of the U.K. vaccination drive should mitigate any significant risk to the healthcare system. However, the coronavirus cases and hospitalizations were continuously increasing in the region and were threatening the economy’s return to normal. Furthermore, the disputes over the size of the Brexit bill in the U.K. were also raising the international tensions that deteriorated the outlook of the Sterling and kept the GBP/USD pair under pressure throughout Tuesday.

GBP/USD Intraday Technical Levels

Support Resistance

1.3769 1.3876

1.3731 1.3945

1.3662 1.3983

Pivot Point: 1.3838

GBP/USD - Technical Outlook

The GBP/USD is trading at 1.3842 level, having crossed over the 50 periods EMA at 1.3825 level. Continuation of a bullish trend extends bullish momentum towards the 1.3851 level, and violation of this level exposes the Sterling price towards the 1.3906 level. On the downside, the Cable pair’s support holds at 1.3801 level, and break out of this exposes Sterling towards 1.3755 level. The MACD has also crossed over the 0 levels, supporting an upward trend in the GBP/USD price. It will be a big day for the GBP as the U.K. economy is due to report the CPI figures. Economists are expecting these figures to perform better than in previous months. CPI data is forecasted to surge from 2.1% to 2.2%, and if this happens, the Sterling can gain support. Let’s keep an eye on the 1.3838 level as Sterling’s bullish bias remains strong over this pivot point level. All the best!

Bearish Bias Dominates Bitcoin

The BTC/USD was closed at $32,727.0 after placing a high of $33,333.0 and a low of $32,210.0. BTC/USD extended its loss on Tuesday and remained depressed for the second consecutive session amid the strength in the greenback and the surrounding hostile environment of the cryptocurrency. The SEC delayed the decision-making on another bitcoin ETF proposal named the First Trust Skybridge Bitcoin ETF. It was revealed in the July 7 filing by the U.S. SEC.

According to the filing, the review period was extended by 45 days, and the new date for a decision was set at August 25. The SEC can extend the review period for 240-days maximum before it must make an official decision. This summer, the SEC has delayed multiple application reviews for bitcoin funds, including the proposed Wisdom Tree Bitcoin Trust and VanEck Bitcoin Trust. Skybridge initially filed for the bitcoin ETF with the SEC on March 19 and later submitted an amended proposal on May 6. However, SEC has delayed the decision and extended it for 45 days, and this news added a negative impression on BTC/USD on Tuesday. Meanwhile, the U.K. police confiscated about 180 million pounds, equal to about $250 million worth of digital assets, in money-laundering suspects.

The Met's Economic Crime Command, British Police, made one of the largest global crypto seizures worth $250 million of numerous digital assets as part of a thorough investigation for international money laundering. This news also added a bad impression on the crypto-environment and added loss in BTC/USD. Meanwhile, the ICIC Bank of India has warned users not to use their remittance services for transferring any form of crypto or digital currency. The bank has clearly stated in its latest Retail Outward Remittance Application form its intent to stop users from using the service for crypto transfers. This also exerted downside pressure on BTC/USD.

Furthermore, the U.S. Dollar Index that measures the greenback value against the value of six major currencies also surged on Tuesday to 92.81 level amid the upbeat U.S. CPI data for the day. The Fed's hopes to start tapering asset purchases sooner than expected kept the U.S. dollar higher and BTC/USD lower for the day as both have a negative correlation.

BTC/USD Intraday Technical Levels

Support Resistance

32180.4 33303.4

31633.7 33879.7

31057.4 34426.4

Pivot Point: 32756.7

BTC/USD - Technical Outlook

The BTC/USD is trading with a dramatic bearish bias at the 31,800 level since it has violated the symmetrical triangle pattern. On the 4-hour timeframe, the symmetrical triangle pattern supported Bitcoin at 33,335 levels, but the violation of this support brings significant selling pressure in Bitcoin. For the moment, the same resistance level of 33,335 is working at a solid resistance level; however, the BTC/USD will be facing a minor hurdle at 32,139 on the way.

On the downside, the BTC/USD's support holds around 31,050 level that's being extended by a double bottom support level. Breakout of this support level exposes the BTC price towards the next support area of 30,160 level. Selling bias dominates in Bitcoin today. All the best!

U.S. Inflation Figures in the Limelight!

Gold prices were closed at $1807.50 after placing a high of $1810.90 and a low of $1791.50. Gold dropped on Monday during early trading hours as the U.S. dollar gained some ground. However, the precious metal managed to recover its daily loss and ended its session with minor gains.

The U.S. dollar was strong across the board as investors were cautiously looking forward to the U.S. inflation data that could influence the timeline of the Federal Reserve for tapering the bond purchases. On Tuesday, the highly awaited U.S. Consumer Price Index report will be released to give some hints about the decision of the Federal Reserve related to the tapering of bond purchases.

If inflation data remains concerning, the Fed will move with tapering, but if the data about inflation becomes benign, the Fed will feel less need for tapering that could benefit precious metals. Gold fell to its worst month since November 2016 in June after a surprise hawkish tilt by the U.S. Federal Reserve. Fed announced that it might start increasing interest rates in 2023 to 0.6% from the current level of 0.25%. HigherHigher interest rates increase the opportunity cost of holding non-yielding bullion. Meanwhile, the U.S. Dollar Index that measures the greenback value against the basket of six major currencies remained green for the day and reached 92.42 that weighed on the yellow metal prices, and kept the XAU/USD limited gains.

Furthermore, on Monday, the New York Federal Reserve Bank President, John Williams, said that the purchases of mortgage-backed securities and Treasury securities from the Federal Reserve were both affecting interest rates and overall financial conditions. He added that one group did not have a significantly larger impact on the housing market. He said that both of them affect the interest rates; therefore, both affect the cost of housing. He also repeated his comments that the U.S. economy was yet far from the substantial further progress threshold set by the Central bank for reducing the asset purchases. He rejected to offer a timeline for starting the process of tapering and said that when the time comes, it would be natural for Fed to ease asset purchases and adjust interest rates. These comments from Williams also supported the U.S. dollar and kept gold under pressure throughout the day.

The precious metal managed to end its day with minor gains on the back of concerns over the highly contagious Delta variant of the coronavirus. The U.S. saw the daily count of coronavirus cases rise above the 20,000 level for three days in a row. These levels have not been seen since May, but now the spread of the Delta variant of coronavirus, especially in the areas of low vaccination, has caused a rising number of infections in the United States.

As perthe Centers for Disease Control and Prevention director, Rochelle Walensky has said that more than 9 in 10 recent coronavirus cases have occurred in countries with vaccination rates lower than 40%. These concerns kept the safe-haven appeal alive in the market, and hence, gold gained against the U.S. dollar on Monday’s trading session despite the strength in the greenback.

Gold Intraday Technical Level

Support Resistance

1795.70 1815.10

1783.90 1822.70

1776.30 1834.50

Pivot Point: 1803.30

Gold - XAU/USD - Technical Outlook

On Tuesday, the precious metal gold is trading with a bullish bias at a 1,809 level. On the 4 hour timeframe, gold has tested and formed a double top pattern at 1,812 levels. Closing of candles below this level is supporting sellers. However, the bullish breakout of this level can expose the XAU/USD price towards the 1,818 level. As we can see on the 4-hour chart, gold has formed a bearish engulfing candle below 1,812 resistance levels. That’s adding solid bearish pressure on gold; however, the leading and lagging technical indicators favor a bullish bias. The 50 periods EMA supports gold at 1,804 level while the MACD is also closing histograms in the buying zone. Today, the primary focus will remain on the U.S. CPI and Core CPI figures as these have the potential to drive sharp price action in the gold and dollar-related pairs. All the best!

Brace for the U.S. Inflation Figures!

The EUR/USD was closed at $1.1859 after placing a high of $1.1881 and a low of $1.1836. EUR/USD broke its 2-days bullish streak and fell on Monday amid the strength of the U.S. dollar. The U.S. dollar was strong across the board as the attention of investors was diverted to the release of inflation data that is due on Tuesday and the congressional testimony by the Federal Reserve Chairman Jerome Powell that is scheduled later for the week. The U.S. Dollar Index that measures the greenback value against the basket of six major currencies, rose to 92.42 level and supported the greenback. Whereas the benchmark U.S. Treasury Yields on 10-year note remained steady on Monday at 1.36%.

Meanwhile, the ministers of Finance and Economic of the Eurogroup held a meeting on Monday with the U.S. Treasury Secretary, Janet Yellen, to discuss the financial and banking stability and the recovery after the pandemic. According to the sources, the debate will focus on economic policies to accelerate economic recovery and maintain and strengthen transatlantic ties in the economic sphere. More importantly, rebuilding ties that were temporarily weakened in the presidential mandate of Donald Trump.

On the data front, there was no data released on Monday from the U.S. side; however, from the EU side, at 11:00 GMT, the German WPI for June surged to 1.5% against the expected 0.9% and supported the single currency Euro that further caped loss in EUR/USD. Furthermore, the New York Federal Reserve Bank President John Williams said that the purchases of mortgage-backed securities and Treasury securities from the Federal Reserve both impact interest rates and overall financial conditions. He noted that one group did not have a considerably more impact on the housing market. He added that both of them impact the interest rates; hence, both affect the cost of housing.

He also reiterated that the U.S. economy was still far from the substantial further progress threshold set by the Federal Reserve for easing the asset purchases. He declined to provide a timeline for beginning the process of easing asset purchases and said that Fed would naturally reduce bond-buying and increase interest rates when the time comes. These comments from Williams gave strength to the U.S. dollar, which eventually dragged the currency pair EUR/USD. Furthermore, the risk-off market sentiment driven by the Delta variant of coronavirus concerns also kept the riskier assets like EUR/USD under pressure on Monday.

The Delta variant of the coronavirus has caused an increased number of cases in the U.S., too, with the third day of reporting more than 20,000 daily cases. Researches suggested that the cases were growing rapidly in the areas where the vaccination was lower than 40%. These concerns kept the risk-off market sentiment supported, and hence, EUR/USD dropped on Monday.

EUR/USD Intraday Technical Levels

Support Resistance

1.1835 1.1880

1.1813 1.1903

1.1790 1.1926

Pivot Point: 1.1858

EUR/USD - Technical Outlook

The EUR/USD is trading at 1.1863 level, facing immediate resistance at 1.1879 level that marks a double top pattern. On the hourly timeframe, the EUR/USD pair has formed a symmetrical triangle pattern that’s extending resistance at 1.1879 level along with a support area of 1.1860. Typically, the ascending triangle breakout on the higher side, and if this happens, the EUR/USD price will be exposed to the next resistance level of 1.1908. Likewise, the bearish breakout of 1.1860 exposes the pair towards the next support area of 1.1836. The MACD is holding in a buying zone, but the recent histograms show a weakness in the bullish trend. It looks like the traders are looking for a fundamental reason to trade the market, and the U.S. Inflation figures can be that reason. Let’s keep an eye on the CPI and Core CPI data to determine further trends in the direct currency pair. All the best!

Symmetrical Triangle Breakout

The BTC/USD was closed at $33090.0 after placing a high of $34624.0 and a low of $32616.0. BTC/USD remained under pressure on Monday amid some adverse developments surrounding Bitcoin and the strength in the U.S. dollar. A sales consultant from the United Kingdom, Hisham Chaudhary, has been found guilty of seven offenses under the Terrorism Act by a jury at Birmingham Crown Court. The 28-year old sales consultant was found guilty of using Bitcoin to fund the IS group, and the court has announced that he will be sentenced on September 3.

However, Hisham Chaudhary has denied the accusations and said that he did not use the cryptocurrency to back the terrorism by the organization and spreading propaganda online. As per the investigation, the sales consultant raised thousands of British Pounds and converted them into BTC, which he sent to free IS supporters from detention camps in Syria. Hisham denied the accusation and said that his actions had a humanitarian purpose. However, the court found him guilty and sentenced him on September 3. This news added weight to the BTC/USD as, after this case, it was proved that bitcoin was used in terrorism activities.

According to some analysts, bitcoin and other cryptocurrencies were not necessarily the ideal storage mechanism for illicit funds. It is because, unlike other forms of value transfer like cash, cryptocurrencies are inherently transparent. Every transaction made in BTC can be seen in a publicly visible ledger. Hence, with the right tools, the bad actors could be prevented from terrorism financing and other crimes.

On the other hand, JPMorgan offered its views on the bituminization of El Salvador, the country which made BTC legal tender recently alongside the U.S. dollar. According to JPMorgan, there was no tangible economic benefit attached to adopting bitcoin as a second form of legal tender. The American megabank continued criticizing El Salvador’s decision of making Bitcoin legal tender and warned of the potential risks involved for both country and the cryptocurrency.

According to a report published by the JPMorgan expert group, this move from El Salvador could put pressure on the Bitcoin network. The report suggested that bitcoin was highly illiquid as most of the trading volumes of BTC were internalized by major exchanges, with more than 90% of BTC not changing hands in more than a year. The exerts at JPMorgan said that using BTC as legal tender in the country would potentially put a significant limitation on the capability of bitcoin to serve as a medium of exchange.

All these negative comments and criticism from JPMorgan added further pressure on the prices of BTC/USD on Monday. Additionally, the strength in the U.S. dollar driven by the increased focus of investors over the release of U.S. Consumer Price Index data from June also added extra pressure on BTC/USD and dragged its prices further on the downside.

BTC/USD Intraday Technical Levels

Support Resistance

32262.6 34270.6

31435.3 35451.3

30254.6 36276.6

Pivot Point: 33443.3

BTC/USD - Technical Outlook

On Tuesday, the leading cryptocurrency Bitcoin has violated the symmetrical triangle pattern that supported it at 33,335 levels. The closing of candles below 33,335 support is adding strong selling pressure on Bitcoin. The BTC/USD has closed three black crows patterns on the hourly timeframe, demonstrating strengthening bearish power among investors. On the downside, the BTC/USD’s support holds around 32,575 level that’s being extended by a double bottom support level. Breakout of this support level exposes the BTC price towards the next support area of 32,135 level. At the same time, the resistance continues to hold around 33,335 and 34,060 levels today. Selling bias dominates in Bitcoin today. All the best!