UoM Consumer Sentiment!

Gold prices were closed at $1775.25 after placing a high of $1778.40 and a low of $1772.90. Gold came under fresh pressure on Thursday after the United States President Joe Biden and a bipartisan group of senators seized a deal on an infrastructure plan. The U.S. Dollar Index that measures the greenback value against the basket of six major currencies remained firm onboard despite poor-than-expected macroeconomic data from the economic docket. The DXY reached 92 levels at 91.91 level amid the recent agreement between the U.S. President and a bipartisan group and kept gold under pressure.

On Thursday, a bipartisan deal on infrastructure emerged in the U.S. Senate and was accepted by U.S. President Joe Biden and a bipartisan group. They reached an agreement on a $1.2 trillion infrastructure plan which was a rare breakthrough as Washington was deeply divided and was facing a complicated path to passage in Congress. Biden excitedly announced that a group of senators, including five Democrats and five Republican officials, have come together and agreed on an infrastructure agreement that is expected to create millions of jobs for Americans. The agreement includes traditional infrastructure spending on roads and bridges and new-transport-related items such as a national network of electric vehicle chargers. After this announcement, the U.S. dollar gathered strength in the hopes of economic growth associated with economic development. The strong U.S. dollar then added pressure on yellow metal's prices and dragged them downwards.

At 17:30 GMT, the Final GDP for the quarter remained flat, with the expectations at 6.4% on the data front. The Unemployment Claims from last week soared to 411K against the expected 382K and weighed on the U.S. dollar that capped further losses in gold. The Core Durable Goods Orders declined to 0.3% against the expected 0.8% and weighed on the U.S. dollar and limited the decline in gold prices. The Durable Goods Orders also fell to 2.3% against the forecasted 2.9% and weighed on the U.S. dollar and limited the loss in gold. The Goods Trade Balance remained unchanged at -88.1B. The Prelim Wholesale Inventories rose to 1.1% against the projected 0.8% and weighed on the U.S. dollar that kept gold supportive. At 17:36 GMT, the Final GDP Price Index for the quarter remained flat with the forecasts of 4.3%.

Meanwhile, the Atlanta Federal Reserve President Raphael Bostic said that a spell of high inflation in the United States could last as long as nine months; however, the central bank should still avoid declaring victory too soon in the battle to regain 7.5M jobs lost during the pandemic. Bostic added that the recent jump in the prices was temporary, but it will go a little longer than the expectations of the Fed.

On the other hand, the New York Federal Reserve Bank President John Williams said that the U.S. economy was still far from maximum employment on Thursday, and it was not the time to change interest rates. He added that once the recovery was completed and the economy reached a good place, the lower interest rates would be set to lift back to normal levels. These comments from Fed officials added some pressure on the U.S. dollar and kept losses in gold checked for the day.

Gold Intraday Technical Level

Support Resistance

1769.30 1784.80

1763.35 1794.35

1753.80 1800.30

Pivot Point: 1778.85

Gold - XAU/USD - Technical Outlook

On Friday, the precious metal gold is trading at a 1,776 level, trading between a tight trading range of 1,796 – 1,765 levels. Gold fails to violate as the GDP figure didn't show any surprise and came out precisely as analysts forecasted. A few days ago, gold completed 61.8% Fibonacci retracement level, and this level is still intact despite the release of high impact events like GDP. On the daily timeframe, the Fibonacci indicator offers resistance at 1,795 and 1,822, which are extended by 50% and 38.2% Fibonacci retracement levels. The leading indicator, such as MACD, is still holding below 0, supporting a selling bias in gold. Furthermore, the 50 periods EMA is extending resistance at 1,821 level, and below this, the selling pressure remains strong. All the best!

UoM Consumer Sentiment in Focus!

The EUR/USD closed at $1.1930 after placing a high of $1.1957 and a low of $1.1918. EUR/USD extended its losses for the second consecutive session but remained flat throughout the day. Despite the stronger than expected economic data from the European side and poor-than-expected economic figures from the U.S. side, the currency pair EUR/USD remained under pressure mainly due to the comeback in the U.S. dollar.

The U.S. dollar was strong across the board as the U.S. President announced that they had touched a bipartisan deal on the $1.2 trillion infrastructure spending plan. The agreement includes traditional infrastructural spending on roads, bridges, and a project to introduce a nationwide electrical vehicle charger. The strength of the greenback kept the EUR/USD currency pair under pressure throughout Thursday. On the data front, at 13:00 GMT, the German IFO Business Climate for June surged to 101.8 against the forecasted 100.8 and supported the single currency Euro that capped further loss in EUR/USD pair. At 17:56 GMT, the Belgian NBB Business Climate also rose to 9.8 against the forecasted 8.5 and supported Euro that capped further loss in EUR/USD currency pair.

At 17:30 GMT, the quarter's final GDP remained unchanged, with the estimations at 6.4%. The Unemployment Claims from last week soared to 411K against the projected 382K and weighed on the U.S. dollar that capped further losses in EUR/USD pair. The Core Durable Goods Orders dropped to 0.3% against the predicted 0.8% and weighed on the U.S. dollar that kept loss in EUR/USD checked. The Durable Goods Orders also dropped to 2.3% against the anticipated 2.9% and weighed on the U.S. dollar. The Goods Trade Balance remained flat at -88.1B. The Prelim Wholesale Inventories surged to 1.1% against the predicted 0.8% and weighed the U.S. dollar that kept EUR/USD currency pair under pressure. At 17:36 GMT, the Final GDP Price Index for the quarter remained flat with the expectations of 4.3%.

Meanwhile, another reason behind the declining prices of EUR/USD could be the spread of the Delta coronavirus variant in the continent. German Chancellor Angela Merkel warned that Europe was on thin ice as the Delta variant of coronavirus was spreading fast on the continent. This warning came in after the health officials from Europe suggested that the variant would account for 90% of the cases in Europe by late August. Delta variant is considered 40-60% more transmissible than the Alpha variant first discovered in the U.K. and hit Europe hard early this year. This warning added pressure on the single currency Euro and kept EUR/USD pair under pressure on Thursday.

EURUSD Intraday Technical Levels

Support Resistance

1.1913 1.1952

1.1896 1.1974

1.1873 1.1992

Pivot Point: 1.1935

**

EUR/USD - Technical Outlook**

The EUR/USD is trading choppy but with a slight bullish bias at the 1.1941 level. The direct currency pair may face resistance at the 1.1958 level that's being extended by a 38.2% Fibonacci retracement level. On the higher side, a breakout of 1.1958 level extends resistance at 1.1990 level (the 50% Fibonacci level). However, the 50 periods EMA will be there to extend resistance at the 1.1958 mark. Conversely, the 1.1916 support level breakout can expose the EUR/USD pair towards 1.1881 and 1.1848 level today. Let's keep an eye on the UoM consumer sentiment as this can trigger a breakout and drive further trends in the EUR/USD pair. All the best!

50 EMA & Downward Trendline Pressures Bitcoin!

The BTC/USD was closed at $34656.6 after placing a high of $35137.2 and a low of $32530.0. Bitcoin extended its rally for the third consecutive session and moved higher above the $35,000 level on Thursday. The latest news that encouraged the upward momentum in bitcoin was that Brazil had become the second country inside America to launch a bitcoin exchange-traded fund. The Securities and Exchange Commission of Brazil authorized QR Capital's bitcoin ETF to begin trading on the Sao Paulo-based B3 exchange. This news added strength to the already increasing prices of BTC/USD on Thursday.

On the other hand, the U.S. Securities and Exchange Commission has still not approved a bitcoin exchange-traded fund as it recently delayed its rulings for the second time on VanEck. The global reach of cryptocurrencies extends with exchange-traded funds in Canada and Brazil, while the United States is struggling with deciding in favor of ETFs.

Meanwhile, according to a report on Bloomberg, the Winklevoss twins, including Tyler and Cameron Winklevoss, acquired $4 Million in carbon credits through the cryptocurrency exchange they founded, Gemini. The purchase was made to counterbalance the bitcoin held in custody at the exchange. This came in after Tesla CEO Elon Musk highlighted bitcoin's carbon footprint in May, triggering a bearish trend in the whole crypto market.

On the other hand, the President of El Salvador, Nayib Bukele, defended and explained the Bitcoin law. Some analysts say that he explained the law in a way that left a little doubt behind; however, some analysts praised it and said that the law was thorough and was made while keeping in mind all kinds of people, including people without bank accounts.

Furthermore, the New York Digital Investment Group has announced its partnership with Q2, and a firm specialized in providing digital services to financial institutions. The partnership was made to provide access to bitcoin for bank holders in the United States. The partnership will potentially provide services including buying, selling, and holding of bitcoin to about 18.3 million bank customers in America.

Additionally, the American University of Paraguay said that it will now accept payments in bitcoin and other cryptocurrencies from August 1, 2021. The university is one of the most prestigious educational centers and has been in operation for over 30 years. The university did not reveal the technical background of accepting and holding the payments, but the university said it would accept cryptocurrency payments, including bitcoin. This news also added to the strength of the BTC/USD on Thursday.

BTC/USD Intraday Technical Levels

Support Resistance

33078.6 35685.8

31500.7 36715.1

30471.4 38293.0

Pivot Point: 34107.9

BTC/USD - Technical Outlook

The BTC/USD pair has soared to 34,112 level, having bounced off the support level of 32,495. On the 4 hour timeframe, the downward trendline is extending resistance at 35,290 level. It's the same level that's being extended by the 50 periods EMA, and the closing of Doji candles is supporting odds of bearish bias. Today, the investor's focus will be on an immediate resistance area of 35,290, as this bearish bias seems strong. On the downside, the support stays at 32,495 areas, and a bearish breakout can expose BTC towards a 29,562 level. The MACD is holding right below 0 marks, and traders will be keeping an eye on it for a crossover. In case of a bullish crossover, the BTC/USD's next resistance stays at 36,665 and 38,765. All the best!

Eyes on Final GDP q/q

Gold was closed at $1777.30 after placing a high of $1795.45 and a low of $1773.25. Gold prices surged during the early trading session on Wednesday; however, it could not remain higher for longer and reversed its course on the late trading hours. Hence, the yellow metal remained flat throughout the day as it ended the session at the same level it started its day with.

The U.S. Dollar Index that measures the greenback value against the basket of six major currencies, ended its day with minor gains at 91.80. The greenback remained under pressure after Fed Chair Jerome Powell reassured markets and said that the central bank would continue to watch a broad set of market data related to jobs for assessing the economic recovery from the pandemic rather than rising interest rates based on fear of inflation. Whereas, the U.S. Treasury Yield on 10-year note also inched higher but remained well below the 1.5% mark that caused a muted trading for the day.

On the data front, at 17:30 GMT, the Current Account from the U.S. showed a deficit of -196B against the expected -250B and supported the U.S. dollar that added pressure on gold. At 18:45 GMT, the Flash Manufacturing PMI surged to 62.6 against the forecasted 61.5 and helped the U.S. dollar that also weighed on the yellow metal. The Flash Services PMI declined to 64.8 against the forecasted 70.0 and weighed on the U.S. dollar that added gains in the yellow metal. At 19:00 GMT, the New Home Sales dropped to 769K against the projected 864K and weighed on the U.S. dollar that pushed gold higher.

According to the Atlanta Fed President Raphael Bostic, the growth rose to an estimated 7% this year, and inflation was well above the target set by the Fed of 2%; he expected an interest rate hike in late 2022. Lower interest rates support the precious metal gold as it suggests reduced opportunity cost of holding bullion that pays no interest. After Fed reiterated a more hawkish tone last week in its monetary policy meeting, the yellow metal came under pressure and declined since then. However, the poor-than-expected Services PMI data from the U.S. reversed the movement of gold, and the yellow metal started to rise again on Wednesday.

Meanwhile, on Wednesday, Fed Governor Michelle Bowman said that the recent price increase would prove temporary. Rather than inflation being there for two to three months, it could be extended to six to nine months. Bowman added in her remarks to a Cleveland Federal Reserve Bank Conference and said that she acknowledged that prices were moving higher by the disrupted supply chains and rising demand as the economy was reopening. However, she was hopeful that these temporary factors should ease eventually. However, she was also concerned that it might take longer than anticipated for inflation to fade away.

Gold Intraday Technical Level

Support Resistance

1768.55 1790.75

1759.80 1804.20

1746.35 1812.95

Pivot Point: 1782.00

Gold - XAU/USD - Technical Outlook

On Thursday, the price of gold hasn't changed a lot as the investors seem to wait for the major economic release. It looks like today is the day for a breakout as the U.S. economy will release its Final GDP data. The focus will remain on the U.S. final GDP figures, and the U.S. economy is expected to grow at a steady pace of 6.4%. Any significant change in GDP has the potential to drive dramatic price action in gold. Gold continues to trade in a narrow trading range of 1,796 – 1,765 levels. On the 4-hour timeframe, gold has already completed 61.8% Fibonacci retracement level, and this level is still intact. On the daily timeframe, the Fibonacci tool is still offering an immediate resistance at 1,795 and 1,822 that's extended by 50% and 38.2% Fibonacci retracement levels. The leading indicator, such as MACD, is still holding below 0, supporting a selling bias in gold. Furthermore, the 50 periods EMA is extending resistance at 1,821 level, and below this, the selling pressure remains strong. All the best!

German Ifo Business Climate Eyed!

The EUR/USD closed at $1.1925 after placing a high of$1.1970 and a low of $1.1911. After soaring for two consecutive sessions, the EUR/USD pair dropped on Wednesday amid the rising greenback despite a better than expected economic data release from Europe. The U.S. Dollar Index that measures the greenback value against its rival currencies placed minor gains for the day amid recent positive developments surrounding the Fed's decision to hike interest rate and taper monetary measures. However, on Wednesday, the DXY remained a little stressed due to the latest comments from Fed Chair Jerome Powell, who said that the decision to raise interest rates could not be determined only on inflation fears as other factors also contribute to it. Moreover, the DXY remained close to the 91.80 level and kept on pressuring EUR/USD currency pair on the day.

Furthermore, the U.S. Treasury yield on a 10-year note remained steady throughout the day between 1.46% and 1.48% that kept indexes at Wall Street under pressure. Nasdaq hit a new record high before trimming gains, whereas Dow Jones dropped by 0.05%. The recent correction in the equity market limited the decline in the U.S. dollar that kept EUR/USD pair under pressure throughout Wednesday's trading session.

On the data front, at 12:15 GMT, the French Flash Manufacturing PMI for June dropped to 58.6 against the projected 59.0 and weighed on Euro that added further losses in EUR/USD pair. The French Flash Services PMI also fell to 57.4 against the forecasted 59.6 and weighed the single currency Euro that dragged EUR/USD lower. At 12:30 GMT, the German Flash Manufacturing PMI raised to 64.9 against the projected 63.0 and supported Euro that capped further losses in EUR/USD. The German Flash Services PMI rose to 58.1 against the predicted 55.8 and supported Euro, limiting the loss in EUR/USD. The Flash Manufacturing PMI from the whole bloc also surged to 63.1 against the expected 62.4 and supported Euro that kept EUR/USD from falling further. At 13:00 GMT, the Flash Services PMI remained flat with the expectations of 58.0.

From the U.S. side, at 17:30 GMT, the Current Account from the U.S. showed a deficit of -196B against the expected -250B and supported the U.S. dollar that added pressure on EUR/USD. At 18:45 GMT, the Flash Manufacturing PMI rose to 62.6 against the anticipated 61.5 and helped the U.S. dollar, which also weighed EUR/USD. The Flash Services PMI dropped to 64.8 against the predicted 70.0 and weighed on the U.S. dollar that further caped loss in the EUR/USD. At 19:00 GMT, the New Home Sales fell to 769K against the predicted 864K and weighed on the U.S. dollar that limited downward pressure on EUR/USD.

EURUSD Intraday Technical Levels

Support Resistance

1.1900 1.1959

1.1876 1.1994

1.1840 1.2018

Pivot Point: 1.1935

**

EUR/USD - Technical Outlook**

The EUR/USD is trading choppy at the 1.1933 level, facing immediate resistance at the 1.1960 level that's extended by 38.2% Fibonacci retracement level. The direct currency pair is gaining support at the previously placed low level of 1.1916 level, and the same level is also marked as a double bottom. On the 4-hour timeframe, the EUR/USD pair has formed neutral candles, suggesting indecision among investors. However, the series of events coming out from the U.S economy is likely to support the EUR/USD pair. Especially focus will remain on the Final GDP figures as this can drive sharp price action on its release. The MACD indicator is still holding below 0, suggesting a bearish bias. A bullish breakout of 1.1958 level can expose the pair towards 1.1990 and 1.2030 levels. All the best!

Triple Bottom Pattern Continue to Support

The BTC/USD was closed at $33708.0 after placing a high of $34196.0 and a low of $32553.0. Bitcoin extended its gains on Wednesday and reached near $35,000 level as U.S. Senator Cynthia Lummis said that she was excited about the low prices of bitcoin and was planning to buy the dip. She added that as soon as bitcoin prices drop more, she will proceed with more buying as she has believed that bitcoin was a great store of value. Lummis also affirmed that she wanted a regulation for bitcoin as it will provide her with a level playing field. She also said that the rules should be simple and easy to understand for digital assets and cryptocurrencies. She added that the regulations should not be overly restrictive because she wanted to see increased innovation in the cryptocurrency space. These comments added strength in BTC/USD and pushed it further upward.

Meanwhile, El Salvador was determined to push ahead with making bitcoin a legal tender. The country's President Nayib Bukele said that making bitcoin a legal tender is a process that will bring only small risks but will also prove a leap forward for humanity. He was excited that this move would boost jobs and economic development in the Central American country.

Despite the World Bank declining to offer technical support and the concerns raised by IMF, Bukele said that he was confident that the project would be a success. He also called the process bulletproof. These comments from Bukele also added gains in BTC/USD. Moreover, the CEO of Binance, Changpeng Zhao, reminded everyone not to panic sell their digital assets and cryptocurrency holdings as the prices were declining. He elaborated that 99% of the time market remains dip, yet some people complain about the lack of opportunity to join the crypto community. Some say that they were a little too late for grabbing the opportunity now.

Zhao further explained that investors should learn from past mistakes and suggested that everyone keep it in writing with himself that panic-sell was terrible, to remind himself to calm down during any market crash. He warned everyone to structure risks that will prevent another sell-off out of panic. These comments from Zhao gave relief and supported BTC/USD on Wednesday. Furthermore, the CEO of Galaxy Digital, Michael Novogratz, expressed another positive prediction for the future of the primary digital asset – Bitcoin. He said that he still looks at bitcoin as the better version of gold despite the recent market crash. The Billionaire and most prominent bitcoin bull disregarded the current collapse in the crypto market and said that bitcoin and altcoins represent the future of the financial world. These positive comments from the CEO of Galaxy Digital added strength in BTC/USD on Wednesday.

Meanwhile, the U.S. Dollar Index that measures the greenback value against the basket of six major currencies rose slightly on Wednesday and placed minor gains that kept BTC/USD under pressure and kept its upward momentum limited as both share a negative correlation. The DXY remained steady near the 91.80 level and determined the rising prices of BTC/USD.

BTC/USD Intraday Technical Levels

Support Resistance

32772.0 34415.0

31841.0 35127.0

31129.0 36058.0

Pivot Point: 33484.0

BTC/USD - Technical Outlook

On the technical front, Bitcoin is following the same technical levels as we discussed yesterday. The BTC/USD continues to trade at the 33,013 range, having formed series of spinning top and Doji candles over 29,562 level that demonstrates the weakness in the bearish trend. Therefore, the pair is taking a slight bullish correction for now. On the higher side, the BTC/USD pair's resistance stays at 36,665 level that's being extended by 23.6% Fibonacci retracement level. At the same time, a bullish crossover of this level exposes the pair towards the next resistance area of 40,913 level. The support level continues to stay at 32,000 and 29,562 levels today. All the best!

Eyes on U.S. Manufacturing and Services PMI

Gold was closed at $1777.80 after placing a high of $1790.15 and a low of $1772.25. Gold dropped on Tuesday as traders awaited testimony from the Federal Reserve chairman, Jerome Powell, for additional clarity on monetary policy following the central bank expressed a hawkish tone last week. Last week gold dropped by about 6% after the U.S. Federal Reserve signaled to raise its interest rate from 0.25% to 0.6% in 2023 and also gave hints about starting to taper the asset purchases. Traders were waiting to get acknowledgment from Powell. They were specifically looking to find something out of the ordinary from the prepared text during the question and answers session.

Powell said on Monday that the U.S. economy continued to show sustained improvement and established a fall in inflation from the current high levels. As a result, the U.S. Dollar Index that measures the greenback value against the basket of six major currencies extended its decline for the 3rd consecutive session and reached 91.64. The U.S. Treasury yields on a 10-year note also declined below 1.50% and remained depressed throughout Tuesday. Despite declining U.S. dollar and yields, gold failed to maintain its feet on the ground and continued falling because of the comments from Powell.

According to Fed Chair, the U.S. Central Bank had intentions to encourage a broad recovery of the job market while keeping interested lower and not raising them too quickly based only on the fear of inflation reaching higher levels. He reiterated that Fed would wait for the evidence of actual inflation rather than the inflation driven by increased demand after reopening the economy and disrupted the supply chain due to lockdowns. Any other imbalances and real inflation evidence will be used as a gauge for rising interest rates.

Powell continued that the recent high inflation readings did not represent a broadly tight economy that would need higher interest rates. He said the recent price hikes were instead due to rising demand for goods and services and bottlenecks in supplying them as the economy reopened from the pandemic. He repeated that these price pressures would ease on their own.

On the data front, at 18:59 GMT, the Richmond Manufacturing Index raised to 22 against the expected 18 and supported the U.S. dollar that dragged gold prices downwards. At 19:00 GMT, the Existing Home Sales surged to 5.80M against the forecasted 5.71M and helped the U.S. dollar that added further losses in the yellow metal.

Gold Intraday Technical Level

Support Resistance

1769.99 1787.89

1762.17 1797.97

1752.09 1805.79

Pivot Point: 1780.07

Gold - XAU/USD - Technical Outlook

The technical side of gold hasn't changed a lot as it continues to consolidate around 1,783 levels. It's been trading in between a narrow trading range of 1,796 – 1,765 level and still haven't been able to violate despite the FED Chair Powell Speech. On the 4-hour timeframe, gold has already completed 61.8% Fibonacci retracement level, and this level is still intact. On the daily timeframe, the Fibonacci tool is still offering an immediate resistance at 1,795 and 1,822 that's extended by 50% and 38.2% Fibonacci retracement levels. The leading indicator, such as MACD, is still holding below 0, supporting a selling bias in gold.

Furthermore, the 50 periods EMA is extending resistance at 1,821 level, and below this, the selling pressure remains strong. Later today, the focus will remain on Manufacturing and Services PMI, which can drive further movements in the market, especially during the U.S. session. All the best!

Series of Manufacturing & Services PMI in Focus!

The GBP/USD was closed at $1.3947 after placing a high of $1.3965 and a low of $1.3860. GBP/USD extended its gains on Tuesday and reached near the $1.40 level after the U.S. dollar came under pressure amid Powell's testimony and the strengthened GBP. The U.S. Dollar Index (DXY) extended its decline on Tuesday and reached the 91.64 level. It was further supported by the declining U.S. Treasury yields on benchmark 10-year note that also remained depressed throughout the day and went below 1.50%.

In his testimony before the House of Representatives Select Subcommittee, Fed Chair Jerome Powell said that Fed would not increase interest rates pre-emptively because of the fear of the possible onset of inflation. Instead, it would wait for evidence of actual inflation or other imbalances. Meanwhile, the New York Fed President, John Williams, said that Fed would closely monitor economic data to determine the appropriate point to begin adjusting monetary policy, which was quite far away in his point of view. The greenback came under pressure as the hopes for rising interest rates along with the tapering of asset purchases in the market faded away and added pressure on the prices of the U.S. dollar that was high last week. The declining price of the U.S. dollar pushed further the rising prices of the GBP/USD pair.

On the data front, at 11:00 GMT, the Public Sector Net Borrowing dropped to 23.6B against the forecasted 24.5B and supported the British Pound that added further gains in GBP/USD. At 15:00 GMT, the CBI Industrial Order Expectations also raised to 19 against the forecasted 16 and supported the British Pound that added further upside momentum in GBP/USD. From the U.S. side, at 18:59 GMT, the Richmond Manufacturing Index surged to 22 against the estimated 18 and supported the U.S. dollar that capped further gains in GBP/USD. Finally, at 19:00 GMT, the Existing Home Sales rose to 5.80M against the anticipated 5.71M and supported the U.S. dollar, limiting the upward momentum in the GBP/USD pair.

Moreover, the E.U. citizens living in the U.K. have been given a 28-day warning to apply to remain in the U.K. from the immigration enforcement officials. There is still a week to go until the application deadline; however, the Home Office will allow people to complete an application for settled status if they have a reasonable excuse for delay.

About 5.6 Million European Economic Area citizens and their dependents have applied for settled status with additional 400,000 cases outstanding while the government's helpline received thousands of calls a day. Poland and Romania are the countries whose nationals have made the highest number of applications. The settled status allows the citizens of the E.U. and EEA living in the U.K. to retain the same rights of residence, travel, employment, and access to healthcare and benefits.

Furthermore, the gains in British Pound were supported by the latest announcement from the U.K. government. Boris Johnson's government was prepared to allow fully vaccinated citizens of the U.K. to travel to more than 150 countries without the requirement to quarantine on their return to England later this summer. The new policy is expected to be signed off by the authorities in the coming days and will pave the way for the reopening of international travel. These positive developments kept the risk sentiment in the market supported and pushed risk-sensitive GBP/USD higher on Tuesday.

GBP/USD Intraday Technical Levels

Support Resistance

1.3883 1.3988

1.3819 1.4029

1.3779 1.4092

Pivot Point: 1.3924

GBP/USD - Technical Outlook

The GBP/USD is trading at the 1.3978 level, and it has violated the double top resistance level of 1.3960. Closing of candles above 1.3960 level is supporting a strong buying trend in Sterling today. On the higher side, the resistance stays at 1.4008, and a bullish crossover of this level can expose the Cable towards the 1.4053 resistance level. On the downside, the GBP/USD pair's support level holds around 1.3922 and 1.3875 today. Let's keep an eye on the series of fundamentals coming out from the U.K. ecnomy and the U.S. economy. Today, the focus will stay on the Manufacturing and Sercvies PMI figures as these can drive solid price action during the European and the U.S. session. All the best!

Triple Bottom Bounce-Off – What's Next?

The BTC/USD was closed at $32,553 after placing a high of $33,300 and a low of $29,927. Bitcoin prolonged its decline and dropped below $30,000 on Tuesday. However, it managed to recover a minor portion of its losses and reversed its track. Bitcoin fell to its lowest since the mid-January level on Tuesday but managed to remain green after declining consecutively for seven days amid various positive developments surrounding the cryptocurrency environment.

The CEO of the giant investment manager, VanEck, Jan van Eck, has reiterated that his firm's customers showed a growing demand for a Bitcoin ETF. He recently unveiled plans of his firm entering the cryptocurrency space through an ETF that tracks the performance of Bitcoin. The firm has already filed for a few ETFs, but the decision is still pending from the U.S. Securities and Exchange Commission. VanEck filed another draft prospectus for a BTC futures mutual fund earlier this week and has said that the demand for such a product was very high.

Meanwhile, the second-largest bank in Spain, BBVA, has recently joined the growing list of institutions that now offer one or other bitcoin products. In a recent press release, BBVA has disclosed that it has launched a crypto trading app for private customers in Switzerland. The official statement revealed that after a trial period of 6 months, the crypto trading service went live on June 21.

This launch by the bank has enabled its clients with direct exposure to Bitcoin. Furthermore, the users can also convert their bitcoin into fiat currencies like EUR or USD. On the other hand, Miami is trying to become the next hub of crypto mining as China has shown consistency with its efforts to crush Bitcoin mining and trading. The Mayor of the city, Francis Saurez, has disclosed that he was working to lower the cost of electricity to attract more BTC miners to the region. He added that he was ready to explore the region's cheap nuclear energy to ensure that the opportunity can be availed.

Another important factor involved in the rising prices of Bitcoin on Tuesday was the reversal in the U.S. dollar. The U.S. Dollar Index (DXY) that measures the greenback value against the basket of six major currencies, fell to 91.6 level and pushed BTC/USD higher. The greenback was weak across the board amid the declining U.S. Treasury Yield that also fell below 1.50% and added further gains in BTC/USD, and both the U.S. dollar and BTC share a negative correlation.

BTC/USD Intraday Technical Levels

Support Resistance

34248.6 36489.6

32866.3 37348.3

32007.6 38730.6

Pivot Point: 35107.3

BTC/USD - Technical Outlook

The BTC/USD fell to test the previously mentioned support area of 29,562 level, and now it's trading at 33,913 level. On the daily timeframe, the BTC/USD pair has closed a Doji candle over 29,562 level that demonstrates the weakness in the bearish power, and bulls seem to take over the market. However, we can see that the upward channel is still intact as the BTC/USD pair has bounced off to trade over 32K levels. With this, the BTC/USD price can face resistance around 36,665 level today or in upcoming days. At the same time, the violation of the 36,665 level exposes Bitcoin price towards 40,913 level. Elsewhere, the support level continues to stay at 32,000 and 29,562 levels today. All the best!

U.S. Fed Chair Powell Testimony in Highlights!

Gold was closed at $1783.65 after placing a high of $1787.45 and a low of $1766.35. After falling for six consecutive sessions, gold reversed its course and recovered a minor portion of its massive decline encountered last week. A minor recovery from its biggest weekly percentage drop since March 2020 came in after a pause in the rally of the U.S. dollar that helped yellow metal recover a small portion of its previous losses. Another reason behind the comeback in precious metal could be its price correction as investors booked profits from their selling positions.

On Monday, the U.S. Dollar Index that measures the greenback value against the basket of six major currencies fell and reached 91.83 handles. The dollar index retreated from its two and half month high level that prompted investors to buy gold instead of declining for six consecutive days. The U.S. 10-year Treasury yields also rose on Monday from a four-month lowest level and raised the opportunity cost of non-yielding bullion.

The rally in the U.S. dollar saw a pause after two senior Fed officials suggested that the central bank could wait with a rate hike until 2023, but it will not stay with the tapering of the stimulus measures. According to the St. Louis Fed President James Bullard, the Fed will need to be ready to make changes to tapering. He referred to the shift needed to the monthly purchase of $80 billion in Treasury bonds and $40 billion in mortgage-backed securities by the central bank. He warned that waiting too long to taper could imbalance the situation and prompt the need for taking extra steps.

The Dallas Fed President Robert Kaplan also said that he anticipated the inflation of 2021 to be at3.4%, which is above the current level of 2.4% predicted by the bank for all of the year. Thus, one of the most hotly disputed issues in the U.S. has become the need for stimulus tapering and when such an exercise might start as inflation has risen above the expectations of the Federal Reserve amid the rapid economic recovery from the pandemic. During its June policy meeting, the Federal Reserve has said that it was looking for an appropriate exit for its stimulus program.

In 2020, the U.S. economy contracted by 3.5% due to the lockdowns imposed by the coronavirus pandemic. Nevertheless, since the inception of the new year, the expectations about the recovery have grown with an expansion of 6.4% in the first quarter. For all of 2022, the fed officials have set the expected growth at 6.5%, and some officials have even set the forecast at 7%.

The recent issue faced by the Fed is the rising pace of inflation that has soared the prices of almost everything from the lows of the pandemic. The Fed has acknowledged price pressures raised by the disturbances in the U.S. supply chains. However, Jerome Powell's top official said that the current inflation level was transitory and will eventually fade as the economy moves toward full recovery from the pandemic. According to some analysts, gold will ultimately return to be treated as an inflation hedge and a safe-haven asset; however, it solely trades as a risky asset.

Gold Intraday Technical Level

Support Resistance

1764.80 1772.05

1760.25 1774.75

1757.55 1779.30

Pivot Point: 1767.50

Gold - XAU/USD - Technical Outlook

On Tuesday, the precious metal gold consolidates at 1,783 level, having consolidated in between a narrow trading range of 1,796 – 1,765 level. On the 4-hour timeframe, gold has already completed 61.8% Fibonacci retracement level, and this level is still intact. On the daily timeframe, the Fibonacci tool is still offering an immediate resistance at 1,795 and 1,822 that's extended by 50% and 38.2% Fibonacci retracement levels. The leading indicator, such as MACD, is still holding below 0, supporting a selling bias in gold. Furthermore, the 50 periods EMA is extending resistance at 1,825 level, and below this, the selling pressure remains strong. Later today, the U.S. Fed Chair Powell Testimony will remain in highlights for further price action in the market. All the best!