Descending Triangle Pattern in Play

The EUR/USD was closed at $1.1694 after placing a high of $1.1728 and a low of $1.1684. EUR/USD currency pair continued its bearish streak for the third consecutive session amid the strong U.S. dollar. On Monday, the greenback was strong across the board, reaching 93.49, and U.S. Treasury Yields backed it up, reaching a three-month high of 1.51%. The strong U.S. dollar added pressure on the riskier asset, the EUR/USD pair, and dragged its prices to the downside.

The U.S. dollar rose as Federal Reserve policymakers backed up comments made by Fed Chair Jerome Powell last week. The officials from the Federal Reserve were of the view that the standard for tapering set by the Fed for employment and inflation was close to being met. One official said that tapering asset purchases might begin soon, and the Fed might raise interest rates by 2023.

At 13:00 GMT, the M3 money supply for the year remained flat, with expectations of 7.9%. The year's private loan growth fell to 4.2%, compared to the forecasted 4.3%, weighing on the single currency euro, adding to the currency pair EUR/USD's losses. From the U.S. side, at 17:30 GMT, the Core Durable Goods Orders in August dropped to 0.2% against the anticipated 0.5% and weighed on the U.S. dollar, which caused a further loss in EUR/USD. Durable Goods Orders increased by 1.8% in August, versus the predicted 0.7%, bolstering the U.S. dollar and adding to the EUR/USD loss.

From the European side, the President of the European Central Bank, Christine Lagarde, said that inflation in the eurozone could exceed the European Central Bank's already raised projections. However, there were few signs of this already happening. She believed that inflation would ease back below 2% next year, but she was also concerned about the increasing prices. She acknowledged that Eurozone inflation reached 3% in August and was largely fueled by energy costs.

The ECB forecasts that the scaling back of its pandemic emergency asset purchases will end in March 2022 and that price growth will be 2.2% this year, 1.7% next year, and 1.5% in 2023. The ECB President's comments were insufficient to support the single currency euro, and the currency pair EUR/USD fell.

EUR/USD Intraday Technical Levels

Support Resistance

1.1676 1.1720

1.1659 1.1745

1.1633 1.1763

Pivot Point: 1.1702

EUR/USD - Technical Outlook

On Tuesday, the currency pair is trading with a bearish bias at 1.1687 level as the Euro has violated a strong support level of 1.1700. A closing of candles below this level suggests a strong selling bias in the currency pair. On the lower side, the bears may find support at the 1.1685 level, whereas the violation of 1.1685 exposes towards 1.1659 and 1.1633 levels. On the bullish side, the immediate resistance stays at the 1.1720 level, and a breakout about this level can expose EUR/USD towards the 1.1763 level.

On the hourly timeframe, the pair has formed a descending triangle pattern which supports the pair at 1.1648 level. Thus, the chances of a bullish bounce off above 1.1685 remain high. However, the breaker below 1.1685 has the potential to dominate selling bias in EUR/USD. All the best!

Pivot Point Breakout at 43,150

The BTC/USD was closed at $42,191.0 after placing a high of $44,354.0 and a low of $42,144.0. BTC/USD dropped on Monday and reversed its course amid the negative developments surrounding the cryptocurrency market. Once again, China came forward with another blow to Bitcoin and cryptocurrencies, which ultimately weighed on the market sentiment. However, this time on a lighter note, as there was nothing new for investors.

The country has previously sought to remove all miners, and now it has come up with further restrictions by outright banning crypto on a broad scale. The latest announcement from the People’s Bank of China stated that the virtual currency derivative transactions were all illegal financial activities and were strictly prohibited.

It looks like China was trying to eliminate all potential competition for its digital yuan. According to the government of China, the currency can be tracked by them, which means it can be used to spy on people, which will enable regulators to know what the people are spending on. China argues that cryptocurrencies can potentially hide illicit financial activities due to their anonymity from the agencies trying to keep the public safe.

Furthermore, the CEO of JPMorgan Chase, Jamie Dimon, also added to the downward momentum of Bitcoin on Monday by saying that he would not buy the leading digital asset even though he believed that it could increase 10X in a matter of five years. In 2017, Dimon called Bitcoin fraud due to the capability of criminals to escape capture by authorities by operating their financial transactions in BTC rather than in U.S. dollars. These comments from the CEO of one of the biggest banks in the U.S. added to the loss in the already declining BTC/USD prices.

Additionally, the analysts at JPMorgan said that many institutional investors were dumping bitcoin for Ethereum, and this news added to the further decline in BTC/USD prices. According to analysts at JPMorgan, a big flow of money has been flowing into the second largest cryptocurrency in recent months amid the success of decentralized finance. The recent data showed that big institutional investors have started exiting bitcoin futures to invest in Ethereum futures. The restrictions on the purchase of actual cryptocurrencies have left investors with the option of trading crypto futures.

BTC/USD Intraday Technical Levels

Support Resistance

41438.6 43648.6

40686.3 45106.3

39228.6 45858.6

Pivot Point: 42896.3

BTC/USD - Technical Outlook

The BTC/USD pair is currently trading with a bearish bias at 42,224, with immediate resistance around 43,129. Bitcoin is currently encountering significant resistance on the 4-hourly timeframes at the 42,600 level, which is being extended by a current high level. Closing a bearish engulfing candle right below this level supports the odds of a bearish correction in Bitcoin.

A bearish breakout of the 42,005 level exposes the Bitcoin price towards the support levels of 41,411and 40,995, respectively. An additional breakout at the 40,995 level exposes the pair towards the 40,535 level. At the same time, the resistance continues to stay at the 43,150 level, which is being extended by a pivot point. A bullish breakout above this level exposes the BTC/USD towards 43,765 and 44,289 levels. Bitcoin’s selling bias dominates below 42,650 level and vice versa. All the best!

Intraday Pivot Point to Underpin Gold at $1,749

Today in the Asian trading session, the safe-haven-metal price managed to extend its early-day upward rally and drew some additional bids around the $1,760 level as the latest declines in the U.S. dollar tend to underpin gold prices amid their inverse relationship with the price of gold.

In the meantime, the demand for physical gold in China, a top consumer, grew during the previous week as investors perceived safety in the safe-haven yellow metal as they monitored the ongoing situation at China Evergrande. Thus, it's seen as one of the factors that lent some support to the yellow metal prices.

Furthermore, the concerns over China Evergrande Group's (HK:3333) debt situation and its potential economic impact kept challenging the market's upbeat mood and boosted further the yellow-metal safe-have appeal. Furthermore, the bullish bias around the yellow-metal prices was also sponsored by the ongoing cautious sentiment ahead of the U.S. Durable Goods Orders, China's Evergrande, and U.S. stimulus headlines.

Alternatively, the market's upbeat mood, backed by multiple factors, put some burden on the safe-haven U.S. dollar. Thus, the weaker U.S. dollar tends to underpin gold prices, as the price of gold is negatively related to the price of the U.S. dollar. As of writing, the precious metal price is trading at 1,758.39 and consolidating in the range between 1,748.32 and 1,760.87.

The market's trading sentiment succeeded in extending its previous four-day upward performance and drew some further bids while refreshing the one-week high on the day. The S&P 500 Futures rose for the fourth day in a row to reclaim a one-week high, up 0.36% at around 4,461 at writing. However, the marker trading sentiment was buoyed by expectations of U.S. stimulus and positive coronavirus news from Australia and Japan. Furthermore, the chatter surrounding the release of Huawei's CFO and economic optimism and the fewer highlights over China's Evergrande also played a major role in supporting the market's trading sentiment.

The U.S. House Speaker Nancy Pelosi backed off from her first hints of a Monday vote on the U.S. infrastructure spending bill. However, her choice for Thursday and optimism over the passage tend to underpin the market's risk-on mood. Moreover, the expectations that the U.S. Democrats will use diplomatic power to reject Republicans if they stick to their demands over the debt limit as it expires on October 01 positively impacting the market's trading sentiment.

In addition to this, the Japanese media's decision to remove all the virus-led emergencies this week and the recent easing of COVID counts from Australia add further to the market's optimism. Meanwhile, China and Canada did a prisoner swap on the weekend, resulting in the release of Meng Wanzhou, daughter of Huawei's founder and the CFO of the company, eased the tension between the U.S. and China. These headlines also favour risk sentiment. Consequently, the buying bias surrounding the market's trading sentiment was a key factor that kept the U.S. dollar lower.

At the USD front, the greenback failed to stop its early-day declining streak and dropped further on the day as the market risk-on mood tends to undermine the safe-haven U.S. dollar. Meanwhile, the declines were further bolstered as U.S. 10-year Treasury yields eased from their highest since June, snapping a five-week uptrend. The U.S. Dollar Index tracks the U.S. dollar against a bucket of other currencies dropped by 0.12% to 93.222.

Looking forward, the global markets' traders will keep their eyes on the U.S. Durable Goods Orders, which are due for release later in the day. Meanwhile, China's Evergrande and U.S. stimulus headlines will also be key to watch.

GOLD Intraday Technical Level

Support Resistance

1741.16 1758.22

1732.28 1766.40

1724.10 1775.87

Pivot Point: 1749.37

GOLD - Technical Outlook

Gold is trading with a bullish bias at the 1,758 level, trying to break and close above a strong resistance level at the 1,757 level. On the resistance side, the metal’s immediate resistance will stay at 1,766 level, especially upon a breakout of 1,758 level. Further, on the higher side, a breakout of the 1,766 level exposes the pair towards the 1,775 level, which is being extended by a previous high level placed on September 23.

On the support side, the major support prevails around the 1,749 pivot point level and a breakout below this exposes a bearish bias until the 1,741 level. The RSI and stochastic are in an overbought zone now, thus gold has the potential to trigger a bearish correction until Monday at the 1,749 level. A breakout of the 1,761 level exposes gold towards 1,766 and 1,775. All the best!

Euro Breaks Below 1.1722 Pivot Point

EUR/USD closed at $1.1714 after setting a high of $1.1748 and a low of $1.1700. EUR/USD fell for the 6th session in the previous seven days on Friday and continued its decline amid the rising prices of the U.S. dollar. The fresh buying in the U.S. dollar was a key factor in the reversal of the EUR/USD currency pair's movement. The recent optimism came under pressure after uncertainty increased about potential risks from the debt crisis at China Evergrande Group, along with the prospects for an early rate hike by the Fed. It dampened the appetite of investors for riskier assets and helped revive the demand for safe-haven greenbacks.

The rising strength of the U.S. dollar then dragged the currency pair EUR/USD to the downside on Friday. The U.S. Dollar Index reached 93.4 on Friday, while the U.S. Treasury Yield on the benchmark 10-year note rose to 1.46%, putting additional pressure on the riskier asset, EUR/USD.

On the data front, at 13:00 GMT, the German IFO Business Climate in September remained flat with the expectations of 98.8. At 17:56 GMT, the Belgian NBB Business Climate dropped in September to 4.0 against the expected 6.7 and weighed on the single currency euro. That added a further loss in the EUR/USD currency pair. On the U.S. side, at 19:00 GMT, new home sales in August increased to 740K versus the expected 712K, supporting the U.S. dollar and adding to the EUR/USD pair's losses.

Meanwhile, on Wednesday, the Federal Reserve indicated that it will likely start rolling back the massive pandemic-related stimulus toward the end of this year and will complete the process by mid-2022. The Fed also revealed its plans to raise interest rates in 2022, which raised Treasury bond yields to their highest levels. The U.S. Treasury yield on a 10-year note moved above the 1.40% threshold for the first time since June and further underpinned the U.S. dollar, which added pressure on the EUR/USD currency pair.

Furthermore, the preliminary results of the German election showed that the Social Democratic Party (SPD) had won the most seats in the federal election of Germany. The formal official results will be announced weeks later. There was a very narrow margin between the Social Democratic Party and the Christian Democratic Union (CDU). A large number of postal ballots remain to be counted, and it is expected that whichever party comes first, there will be lengthy coalition negotiations before a government can be formed.

EUR/USD Intraday Technical Levels

Support Resistance

1.1716 1.1728

1.1710 1.1734

1.1704 1.1740

Pivot Point: 1.1722

EUR/USD - Technical Outlook

The EUR/USD is trading at the 1.1704 level, having slipped below the 1.1722 pivot point. On the 4-hour timeframe, the EUR/USD has closed a bearish engulfing candle that suggests a bearish trend in the EUR/USD pair. Further on the lower side, the EUR/USD’s immediate support stays at 1.17004 level and a break below this exposes the pair towards 1.1685 level.

On the resistance side, the breakout of 1.1722 resistance exposes the EUR/USD towards 1.1743 and even towards the 1.1768 mark. Taking a look at the leading technical tools like RSI and Stochastic, these are held in a sell zone, suggesting a bearish bias in the EUR/USD currency pair. At the moment, the major currency is closing strong sell candles in a range of 1.1722–1.17004. Thus, a breakout of this narrow range will determine further trends in the EUR/USD pair. All the best!

Descending Triangle Pattern in Play

After reaching a high of $43,931.0 and a low of $40,830.0, the BTC/USD pair was closed at $43,180.0. Despite recent encouraging developments in the bitcoin sector, BTC/USD remained green over the weekend. Dennis Lynch, the Head of Counterpoint Global at Morgan Stanley Investment Management, has stated that bitcoin can gain value during economic downturns and has described the asset as anti-fragile.

He compared bitcoin to Kenny from "South Park," who dies in every episode before reappearing in the next. He believes that bitcoin will withstand market volatility and even thrive when other assets are crashing. He also admitted to holding bitcoin, stating that it was becoming a global trend to do so. This continued to strengthen the BTC/USD pair, causing its prices to rise.

PortAventura World, a Spanish amusement and leisure park, has announced that it will be the first in its field to provide bitcoin payments to its customers. This effort is planned to start next season and will allow crypto transactions at the resort's hotels at first.

PortAventura World was developing software that would introduce a new cryptocurrency option for its clients, so guests of the resort hotel will pay for their accommodations in bitcoin starting in January 2022. The decision was made in response to the rising demand for cryptocurrency solutions and the company's desire to stay current with current trends. This increased the value of BTC/USD and pushed its prices up on the exchange.

The Giving Block, focusing on bitcoin donations, has increased its crypto charity reach with a new relationship. The company stated that it would collaborate with RenPSG, a charity platform that will allow its contributors to transfer cryptocurrencies such as Bitcoin into new donor-advised funds to help non-profits and other charitable organizations. On the other hand, this pushed BTC/USD prices higher on the board.

Marion Lambourne, a Deutsche Bank analyst, believes bitcoin can become a digital gold standard. She went on to say that bitcoin will be used as digital gold for generations to come and that it will be unique in that it will be free of political control. This confirmation was not unexpected in the cryptocurrency industry, as many analysts had anticipated it previously. However, the Deutsche Bank is a reputable financial institution, and such statements from its analysts propelled BTC/USD values higher over the weekend.

On the other hand, the Chinese Central Bank has published a fresh statement stating that all services that assist the exchange of fiat currency for crypto assets or crypto-assets will be considered illegal from now on.

BTC/USD Intraday Technical Levels

Support Resistance

41363.0 44464.0

39546.0 45748.0

38262.0 47565.0

Pivot Point: 42647.0

BTC/USD - Technical Outlook

The BTC/USD pair is currently trading with a bullish bias at 43,884, with immediate resistance around 45,129. Bitcoin is currently encountering significant resistance on the 4-hourly timeframes at the 44,250 level which is being extended by a downward trendline. Closing of a Doji candle right below this downward trendline is supporting odds of a bearish correction in Bitcoin.

An upward breakout of the 40,250 level exposes the Bitcoin price towards the resistance levels of 45,130 and 47,335 respectively. An additional breakout at the 47,334 level exposes the pair towards the 49,557 level. While the support continues to stay at the 42,906 level, which is being extended by a pivot point. A bearish breakout below this level exposes the BTC/USD to levels as low as 41,363 and 40,700. However, Bitcoin’s bullish bias dominates over the 42,650 level and vice versa. All the best!

Eyes on Fed Chair Powell Speaks

After hitting a high of $1777.05 and a low of $1737.70, gold prices settled at $1746.30. Despite a sharp decrease in the U.S. dollar, gold prices fell for the second consecutive session on Thursday, reaching their lowest level since August 11th.

On Thursday, the U.S. Dollar Index, which measures the dollar's value against a basket of six major currencies, fell to 92.98. On the other hand, 10-year Treasury yields soared on the day to their highest level since July 6th, 1.43 percent. The sharp increase in yield reflected market expectations for real inflation and how swiftly the Fed will have to respond to keep pressures under control.

The demand for high-yielding assets like Treasury Yields surged by more than 1.4 percent on Thursday after the Federal Reserve announced that it will terminate its pandemic-related stimulus support for the U.S. economy by the middle of next year and begin raising rates by the end of 2022. As a result, the price of non-yielding bullion fell by around 1.6 percent in a single day.

New forecasts from the Fed policy meeting revealed that half of the officials were prepared to raise interest rates next year due to strong inflation. Gold is typically considered a hedge against inflation, but a prospective interest rate hike raised the opportunity cost of owning gold because it pays no interest.

Fed Chair Jerome Powell has also stated that following November's policy meeting, the central bank might begin removing its $120 billion in asset purchases, as long as employment growth in the United States remained reasonably solid through September. However, a jump in the number of U.S. jobless claims from the previous week weighed heavily on the dollar on Thursday, limiting the yellow metal's downward pressure.

On the data front, last week's Unemployment Claims jumped to 351K against a forecast of 322K, weighing on the U.S. dollar and capping additional losses in the yellow metal at 17:30 GMT. The Flash Manufacturing PMI for September remained unchanged at 18:45 GMT, with forecasts of 60.7. In September, the Flash Services PMI fell to 54.4, below the predicted 55.1. At 19:00 GMT, the C.B. Leading Index jumped to 0.9 percent, well over the forecasted 0.7 percent, bolstering the U.S. dollar and adding to yellow metal price losses.

GOLD Intraday Technical Level

Support Resistance

1759.29 1782.29

1750.77 1796.77

1736.29 1805.29

Pivot Point: 1773.77

GOLD - Technical Outlook

At 1,750, gold is trading with a negative bias, with immediate resistance at 1,752. An intraday pivot point level is extending this level. The precious metal is trading with a selling bias on the 4-hourly timeframe, as it is trading below the 50-day SMA (simple moving average) at 1,771.

Gold's immediate support levels are 1,740 and 1,727 on the downside. Failure to break above the 1,752 level could lead to a gold sell-off. As a result, the 1,752 level will be the main focus. Gold's strong resistance remains at 1,766 and 1,782 levels on the higher side. Consider selling below 1,752 and buying above 1,752. All the best!

Choppy Session in Play

The EUR/USD was closed at $1.1736 after placing a high of $1.1751 and a low of $1.1683. The currency pair EUR/USD reversed its course on Thursday and surged after declining for five consecutive sessions. The reversal could be attributed to the declining prices of the U.S. dollar on Thursday. The rise in riskier asset EUR/USD on Thursday came out unexpected as the macroeconomic data from the European side fell short of expected figures and weighed heavily on the single currency Euro.

The U.S. Dollar Index, which measures the greenback's value against the basket of six major currencies, fell more than 1% in a single day and reached 92.98, which weighed on the U.S. dollar and helped push the prices of EUR/USD on Thursday. Furthermore, the PMI data from countries across Europe showed growth in the manufacturing and services sectors, but the growth fell short of the market’s expectations and weighed on the single currency Euro on Thursday. However, the currency pair EUR/USD remained green on the board and rose for the day.

On the data front, at 01:00 GMT, the Consumer Confidence in September dropped to -4 against the projected-6 and supported the single currency euro, which lifted EUR/USD higher. At 12:15 GMT, the French Flash Manufacturing PMI in September dropped to 55.2 against the predicted 57.1 and weighed on the single currency Euro that further caped gains in EUR/USD. The French Flash Services PMI remained unchanged at 56.1.

At 12:30 GMT, the German Flash Manufacturing PMI was reduced to 58.5 from an estimated 61.3 and weighed on the Euro and limited the upward momentum in EUR/USD. The German Flash Services PMI declined to 56.0 from the anticipated 60.3 and weighed on the Euro. At 13:00 GMT, the Flash Manufacturing PMI fell to 58.7 from the projected 60.4 and weighed on the Euro. The Flash Services PMI also dropped to 56.3 against the anticipated 58.4, weighed on the Euro, and capitulated further upside momentum in the EUR/USD pair.

From the U.S. side, at 17:30 GMT, the Unemployment Claims from last week advanced to 351K against the predicted 322K and weighed on the U.S. dollar and added further gains in EUR/USD. At 18:45 GMT, the Flash Manufacturing PMI in September remained flat with the forecasted reading of 60.7. The Flash Services PMI declined in September to 54.4 against the anticipated 55.1. At 19:00 GMT, the CB Leading Index rose to 0.9% against the estimated 0.7% and supported the U.S. dollar, limiting the upward momentum in EUR/USD.

EUR/USD Intraday Technical Levels

Support Resistance

1.1695 1.1763

1.1656 1.1790

1.1628 1.1830

Pivot Point: 1.1723

EUR/USD - Technical Outlook

The EUR/USD has made a slight upward movement to the 1.1735 level, facing immediate resistance at the 1.1745 level. This level is being extended by a downward trend line that we can see in the 1-hourly timeframe. On the bearish side, the euro currency pair’s next support prevails at the 1.1723 level, which is being extended by an intraday pivot point level. The violation of the 1.1723 pivot point level can expose EUR/USD prices towards the next support level of the 1.1697 level.

Taking a look at the leading technical tools like RSI and Stochastic, these are held in a sell zone, suggesting a bearish bias in the EUR/USD currency pair. At the moment, the major currency is closing neutral candles in a range of 1.1723-1.1749. Later today, the violation of this range will be determined further. All the best!

Upward Channel Continues to Support

BTC/USD was last seen at $44,882.0, with a high of $44,986.0 and a low of $43,121.0.BTC/USD rose for a second day on Thursday as market sentiment improved. The CEO of Twitter, Jack Dorsey, has already integrated bitcoin into his payments company, Square. With the help of the Cash App, users can buy and sell bitcoin. Furthermore, Square holds thousands of bitcoin on its balance sheet worth more than $350 million. Currently, Dorsey has shown his plans to expand bitcoin-related features to his social media platform, Twitter.

Twitter has recently announced its plans to roll out its Tips feature to global users, including bitcoin payments. This feature will allow users to link to payment platforms like Cash App, Venmo and others. According to Twitter, the tips feature will be integrated into iOS as well as Android devices. This news added to the positive market sentiment and pushed BTC/USD prices higher. Meanwhile, the Dubai World Trade Center Authority (DWTCA) has recently announced that it has partnered with the UAE’s Securities and Commodities Authorities (SCA) to make trading, issuance, and regulation of cryptocurrency utterly legal within the jurisdiction of the DWTCA free zone.

According to the partnership, the SCA will be in charge of regulatory oversight of all digital asset activities relating to the offering, listing, trading, and licensing of all tokens within the DWTCA economic free zone. This information also added to the value of BTC/USD on Thursday.

Furthermore, the declining price of the U.S. dollar on Thursday added further gains in BTC.USD as both have a negative correlation. The U.S. Dollar Index, which measures the greenback's value against a basket of six major currencies, was down to 92.98, a level that weighed on the greenback.

The rising number of jobless claims from last week in the U.S. weighed on the U.S. dollar and pushed up the prices of BTC/USD.

On the flip side, the leading banks in Europe and the United States have come together to object to a set of rules related to crypto holdings. The major banks, among all others, included Deutsche Bank and JP Morgan Chase.

According to the new set of rules, the financial organizations that hold Bitcoin will be expected to put aside a dollar in capital equivalent to a dollar of bitcoin held. The Basel Committee for Banking Supervision (BCBS) published this proposal of strict capital requirements. The committee consists of global regulators and representatives of central banks, including the U.S. Federal Reserve and the European Central Bank.

The Global Financial Markets Association, which includes Deutsche Bank, JP Morgan, and five other financial industry associations, has issued a letter arguing that cryptocurrencies, including Bitcoin, should not be subject to these stringent capital requirements. Strict rules like these could prevent financial institutions from becoming involved in the crypto market. These developments kept the crypt market prices under pressure and caped the gains in BTC/USD on Thursday.

BTC/USD Intraday Technical Levels

Support Resistance

43673.4 45538.4

42464.7 46194.7

41808.4 47403.4

Pivot Point: 44329.7

BTC/USD - Technical Outlook

On Friday, the BTC/USD pair is currently trading with a bullish bias at 44,884, with immediate resistance around 44,887. Bitcoin is currently encountering significant resistance on the 4-hourly timeframes at the 44,887 level of a bullish engulfing candle above the 44,143 level has the potential to continue the bullish trend in Bitcoin.

An upward breakout of the 44,885 level exposes the Bitcoin price towards the resistance levels of 45,330 and 46,071 respectively. An additional breakout at the 46,071 level exposes the pair towards the 47,258 level. While the support continues to stay at the 44,143 level, which is being extended by a pivot point. A bearish breakout below this level exposes the BTC/USD to levels as low as 43,402 and as high as 42,215.However, Bitcoin’s bullish bias dominates over the 44,143 level and vice versa. All the best!

Dovish FOMC Underpins XAU/USD

Gold prices ended the day at $1767.80, with a high of $1788.25 and a low of $1765.25.After rising for two consecutive sessions, gold dropped on Wednesday amid the strength of the U.S. dollar. On Wednesday, the greenback was strong across the board as it reached 93.51, its highest since August 20. The U.S. dollar pushed down the price of gold after the Federal Reserve signaled it would ease its monthly bond purchases by next year and increase interest rates sooner than expected.

The appeal for the yellow metal was subdued after the U.S. Federal Reserve mentioned in its latest policy meeting on Wednesday that tapering economic support will begin this year and interest rates will potentially rise next year in response to inflation. As a result, the U.S. Dollar Index reached its one-month highest level and decreased the appeal of gold. The precious metal is often considered a hedge against higher inflation. However, it tends to lose its value if the Fed increases its interest rates or reduces its support for the economy.

Meanwhile, on Wednesday, Fed Chair Jerome Powell said that the Fed was pushing ahead with its study into implementing its digital currency. The Fed has also revealed its plans to release a paper on the issue shortly. According to Powell, there has been no decision made regarding the matter yet, and the Fed was not under any pressure to rush into a decision like this without proper research of its own.

Powell also said that the Federal Reserve could wrap up the tapering of its bond purchases by the middle of the following year. The central bank has been buying $120 billion a month of Treasuries and mortgage-backed securities to support the economy’s recovery from the coronavirus pandemic. These comments led the U.S. Dollar Index to its one-month highest level and weighed heavily on the precious metal, turning its momentum red for the day. At 19:00 GMT, the existing home sales in August remained flat with expectations of 5.87M. It had a null impact on the prices of the U.S. dollar and gold.

GOLD Intraday Technical Level

Support Resistance

1759.29 1782.29

1750.77 1796.77

1736.29 1805.29

Pivot Point: 1773.77

GOLD - Technical Outlook

The precious metals gold slipped below 1,773 pivot point support level and heading towards the next support level of 1,759. The breakout below the 1,759 level exposes gold prices towards a further support level of 1,750 level. At the same time, a bullish breakout of 1,773 levels exposes the metal towards 1,781 levels.

On the 4-hour timeframe, gold has completed 61.8% Fibonacci retracement at 1,781 level. Thus, the closing below this level has triggered a sell-off in gold. The RSI and Stochastic indicators are holding in a sell zone, while the 50 SMA provides resistance at a 1,773 level. Therefore, the bearish bias dominates below the 1,773 level and vice versa. All the best!

Bitcoin Completes 50% Fibonacci Retracement

The BTC/USD reached a high of $43,998.0 and a low of $40,607.0 before closing at $43,582.6. BTC/USD gained support on Wednesday and reversed course after falling for three sessions in a row. Bitcoin recovered almost all of its previous day's losses and turned green due to the market's recent favourable developments.

PayPal, the online payment behemoth, introduced a new app on Wednesday that will offer various financial services, including crypto capabilities, that were previously unavailable on the platform. To introduce the PayPal Savings service, the new app was launched in collaboration with synchrony bank. Other new features include gift card management, QR code payment, and credit access, all from within the same app.

It's also worth mentioning that the new app will allow users to buy, hold, and sell cryptocurrencies. It suggests that the new software will offer the essential features of a cryptocurrency wallet. The value of BTC/USD increased on Wednesday as a result of this news. Meanwhile, Robinhood, a recently public brokerage, revealed on Wednesday that crypto wallets would be added to its app next month, allowing investors to send, receive, and move cryptos in and out of the Robinhood app.

This decision was made in response to numerous concerns from clients who wished to hold the cryptocurrency rather than only have exposure to digital assets. Furthermore, the rising value of cryptocurrencies and the fact that a substantial portion of Robinhood's revenue came from cryptocurrencies influenced the decision. This news boosted BTC/USD even more, as it boosted the entire cryptocurrency market.

Furthermore, the Dfinity Foundation's Internet Computer blockchain revealed that smart-contract capabilities would be added to the Bitcoin network. This could lead to new applications for the world's most popular cryptocurrency.

According to the Dfinity Foundation, the Internet Computer will interact with Bitcoin via its so-called chain key cryptography, paving the path for smart contracts using native BTC addresses hosted directly on the Internet Computer. BTC/USD gained even more on Wednesday as a result of this news.

Furthermore, the recent price drop in Bitcoin caused by Evergrande's issues drove increased buying from El Salvador, pushing BTC/USD prices upward across the board. After bitcoin declined for three consecutive sessions due to fears of Evergrande's collapse, El Salvador saw it as an opportunity and began buying a lot more of the cryptocurrency, helping to boost its prices higher on Wednesday.

BTC/USD Intraday Technical Levels

Support Resistance

41460.4 44851.4

39338.2 46120.2

38069.4 48242.4

Pivot Point: 42729.2

BTC/USD - Technical Outlook

The BTC/USD pair is currently trading with a bullish bias at 44074, with immediate resistance around 44887. Bitcoin confronts heavy resistance on the four hourly timeframes from an upward trend line that has already been breached. The 50-day simple moving average is anticipated to present significant resistance at 46185 levels, while Bitcoin's next obstacle may be found at 48339 levels.

On the downside, Bitcoin is expected to find immediate support at 42733 levels, which is also the level of a daily pivot point. A break below the 42733 level might trigger a strong selling trend that could go till the 41435 and 39283 levels. The top technical instruments, such as the stochastic RSI, indicate that Bitcoin is on a positive trend; hence, the negative bias prevails below 44887, while the bullish bias dominates above 42733. All the best!