Dovish FOMC Underpin EUR/USD

The EUR/USD pair was closed at $1.1686 after placing a high of $1.1757 and a low of $1.1683. EUR/USD dropped for the 5th consecutive session on board and reached its one-month lowest since 20th August level amid the renewed strength of the U.S. dollar.

In the absence of any macroeconomic data releases from the European side, the currency pair EUR/USD followed the trend set by U.S. dollar investors. On Wednesday, the greenback was higher onboard after the Federal Reserve finally gave some hints about tapering economic support.

According to a decision made at the Federal Reserve's most recent policy meeting, the economic assistance provided by the bank during the coronavirus pandemic may begin to diminish soon, as the Fed intends to wind it down by the middle of next year.

Furthermore, the central bank also said that it might start increasing interest rates next year. These comments from the Chairman of the Federal Reserve, Jerome Powell, added strength to the U.S. dollar and pushed its prices higher to the one-month highest level against rival currencies.

The U.S. Dollar Index, which measures the greenback's value against a basket of six major currencies, reached 93.51 on Wednesday and had a negative impact on the currency pair EUR/USD. Meanwhile, the pair was already under pressure for the past few days following the risk-off market mod set by the fears of Evergrande's potential collapse due to the inability to repay its debt dues this month. However, on Wednesday, the market mood became slightly lighter after the Chinese government helped and added cash flow into the industry to help Evergrande fulfill its debt obligations due this month.

The act from the government of China was highly anticipated as the collapse of the real estate giant could damage the economy of China along with the global economy. Furthermore, the euro was under pressure as a result of the uncertainty surrounding the upcoming German elections. The elections will be held on September 26 to elect members of the lower house of parliament. These polls are considered crucial as they will determine the successor of Chancellor Angela Merkel as she is stepping down after 16 years.

EUR/USD Intraday Technical Levels

Support Resistance

1.1661 1.1735

1.1636 1.1782

1.1588 1.1808

Pivot Point: 1.1709

EUR/USD - Technical Outlook

The EUR/USD is trading with a bullish bias at the 1.1708 level, heading towards a 38.2% Fibonacci retracement level. On the 4-hour timeframe, the EUR/USD has closed "three white soldiers" that are supporting bullish trends in the pair.

On the upward side, EUR/USD's immediate resistance stays at 1.1720 and 1.1735 levels. At the same time, the breakout of the 1.1732 level exposes the pair towards the 1.1750 level. On the support side, the EUR/USD's support stays at the 1.1708 level, which is extended by a pivot point level.

On the bearish side, the breakout of the 1.1708 level exposes the EUR/USD towards the 1.1685 level. All the best!

Get Ready for FOMC

After hitting a high of $1782.70 and a low of $1758.40, gold prices settled at $1758.40. The risk-off market attitude is fuelled by China Evergrande's financial problem. Moreover, investors' cautious behaviour ahead of the Fed's advice on reducing asset purchases and interest rate hikes helped gold prices extend their gains and settle higher for the second consecutive session.

The US Dollar Index (DXY), which measures the greenback's value against a basket of six major currencies, dipped on Tuesday to 93.05, putting pressure on the greenback and supporting the rise in gold prices. Despite better-than-expected macroeconomic statistics for the day, the US dollar remained under pressure on Tuesday, as a safe-haven appeal for gold remained higher amid Evergrande's debt issue in China.

Depending on how the scenario around Evergrande plays out in the market, gold is expected to continue to find safe-haven buyers. Market investors expect that the Chinese government will ease the issue by extending the deadline for the real estate behemoth. If this happens, the increased demand for bullion among investors will vanish as soon as it appears on the market.

Evergrande is a Chinese real estate behemoth with more than $300 billion in liabilities, making it the world's most indebted real estate business. Due to a major continuous fall in contract sales in the month, the firm's cash flow and liquidity position in the market has been impacted, and the company has announced that it may not be able to fulfil its debts due this month. If the real estate behemoth fails, it will have a massive influence on global businesses, lowering Chinese demand for worldwide goods, commodities, and services. As a result, markets worldwide will be affected, as China is a significant trading partner for over 100 countries.

The scenario surrounding Evergrande caused stock markets around the world to be shocked, and investors began buying safe-haven assets such as gold, which soared to $1782 per ounce. Meanwhile, despite higher data releases, the US dollar was under pressure on Tuesday due to investors' cautious conduct ahead of the Fed's cutting economic support. On Wednesday, the Fed is scheduled to disclose its monetary policy meeting decision from September's meeting. Investors were reluctant to place significant bids a day ahead of the announcement, keeping the greenback under pressure throughout the day, adding strength to yellow metal prices.

On the statistics front, the August Building Permits increased to 1.73 million against the anticipated 1.60 million, supporting the US dollar and capping further increases in gold prices at 17:30 GMT. The June Current Account revealed a deficit of -190 billion dollars vs. a forecast of -193 billion dollars, bolstering the dollar and limiting the rise in gold prices. Housing Starts increased to 1.62 million in August, compared to a forecast of 1.55 million, bolstering the US dollar and driving up gold prices.

GOLD Intraday Technical Level

Support Resistance

1751.85 1756.00

1749.45 1757.75

1747.70 1760.15

Pivot Point: 1753.60

GOLD - Technical Outlook

The precious metals gold is trading with a bullish trend at 1,772, with immediate support at 1,771. An intraday pivot point is extending this support level, and gold has the ability to go surge above this. Thus, gold's next immediate resistance stays at 1,781 and 1,794 levels.

On the support side, the precious metal gold images support remains at the 1771 level, extended by an intraday pivot point level. On the bearish side, a breakout of the 1771 support level exposes gold price towards 1760. Overall, the primary focus will remain on the FOMC as it may help determine further trends in the XAU/USD today. All the best!

Eyes on FOMC Today

After hitting a high of $1.3693 and a low of $1.3641, the GBP/USD pair finished at $1.3659. GBP/USD fell for the fourth straight session, reaching its lowest level since August 23, owing to current risk-off market sentiment and cautious investor behavior. On Tuesday, the GBP/USD exchange rate held at its four-week low as investors awaited the conclusions of this week's meetings of the Bank of England and the Federal Reserve in the United States. Furthermore, the Chinese real estate behemoth Evergrande's debt problems exacerbated the market's risk aversion.

The currency pair GBP/USD recovered some of its losses during early trading hours on Tuesday, thanks to support from a record $137 billion demand for the green government bond by the UK, which totaled $10 billion. However, the gains were short-lived and failed to counter the bearish pressure. Risk-off market sentiment was high due to the Delta variation spread and fears about possible economic ramifications from Evergrande's debt troubles.

The GBP/USD fell on Tuesday, owing to the general market downturn brought on by Evergrande. The company's revelation that it might not be able to repay its debts related to its $300 billion in borrowings this month brought Wall Street down to its lowest level since May on Monday. The currency pair GBP/USD is a risk-correlated currency pair closely linked to global equity market developments. The news that Evergrande was approaching its debt payment deadline on Thursday had a significant impact on GBP/USD since it caused a risk-off market reaction.

On the other hand, at 11:00 GMT, the Public Sector Net Borrowing for August increased to 19.8 billion dollars, up from 14.5 billion dollars expected, weighing on the British Pound and adding to the loss in GBP/USD. At 15:00 GMT, the CBI Industrial Order Expectations rose to 22 from 15 previously, bolstering the British Pound and preventing additional losses in GBP/USD. Building permits for August surged to 1.73 million, below a forecast of 1.60 million, supporting the US dollar and adding to the drop in GBP/USD at 17:30 GMT. The June Current Account revealed a deficit of -190 billion dollars, vs. a forecast of -193 billion dollars, which bolstered the US currency and pulled GBP/USD lower. The number of housing starts increased to 1.62 million in August, exceeding expectations of 1.55 million, bolstering the US dollar and adding to the GBP/USD loss.

GBP/USD Intraday Technical Levels

Support Resistance

1.3635 1.3687

1.3611 1.3717

1.3582 1.3740

Pivot Point: 1.3664

GBP/USD - Technical Outlook

The GBP/USD is trading with a bearish bias at the 1.3640 level, gaining immediate support at the 1.3630 level. On the 4-hour chart, the pier is heading towards the next support level of 1.3630. A break below this specific support level exposes the GBP/USD pair to the next support level of 1.3604 level.

An additional break out of the 1.3604 level exposes the currency pair towards the next support level of the 1.3573 level. On the bullish side, GBP/USD may find immediate resistance at the 1.3661 level, which is being extended by an intraday pivot point level. The RSI and stochastically suggest a selling trend in the GBP/USD pair. Bearish bias dominates below 1.3661 level today. All the best!

Bitcoin Recovers from $40K Low Level

After reaching a top of $43622.3 and a low of $39678.0, BTC/USD closed at $40664.0. The BTC/USD slipped for the third straight session on Tuesday, reaching its lowest level since August 5. Following the meltdown in global financial markets, Bitcoin fell below the $40K threshold on Tuesday. In the midst of the rising uncertainty, the cryptocurrency market joined the world stock markets and hit fresh monthly lows on Tuesday. Whereas bitcoin experienced multi-thousand-dollar price drops in a single day, altcoins were hit even harder, with enormous double-digit price drops.

The bitcoin market was not immune to the anxieties sparked by Evergrande's imminent collapse. Bitcoin, the market's most valuable cryptocurrency, has plummeted from $48K to under $40K in a significant sell-off. ETH/USD plummeted as well, falling below the 3K mark.

The recent statements by bitcoin enthusiast and American TV celebrity Jim Cramer may have also prompted the market's big sell-off. He believes that the Chinese Evergrande debt issue will continue to affect financial markets, including the cryptocurrency industry. To avoid future losses, he urged consumers to cash out some of their cryptocurrency assets.

Cramer believes that real estate companies' debt troubles will continue to affect the digital asset market in the near future and that crypto investors should profit while they can rather than risk losing money. People began selling their holdings while they could still profit from them due to these comments, and the price of Bitcoin decreased as a result.

Meanwhile, BTG Pactual, Latin America's largest investment bank, and a 38-year-old Brazilian financial institution, has announced the launch of its crypto trading and custody platform. According to the press release, the company has an annual revenue of more than $1.8 billion and has successfully launched the Mynt digital currency platform.

This platform will provide clients with direct bank exposure to bitcoin and well-known altcoins such as Ether. The Brazilian firm claims to be the region's first lender to develop a specialized bitcoin trading platform to accommodate other blockchain-based assets. This news held the day's losses in BTC/USD to a minimum.

BTC/USD Intraday Technical Levels

Support Resistance

39020.5 42964.8

37377.1 45265.7

35076.3 46909.1

Pivot Point: 41321.4

BTC/USD - Technical Outlook

Bitcoin dropped below $40000 in a very short period of time. It's already back above the 41,271 mark. Bitcoin is currently trading at 42304, and it is on its way to the 42968 level, which is the next resistance level. The Bitcoin price broke through this resistance level, exposing the Bitcoin price to the next barrier level of 44269. An upward trend line may be noticed on the 4-hourly timescale extending this particular resistance level. The closure of candles below the 44269 level can assist us in capturing a Bitcoin sell trade.

On the downside, Bitcoin may find immediate support at 41271, with a break above this level exposing Bitcoin prices to the next support level of 38898. The leading technical indicator, the RSI, is still in the selling zone today. As a result, the chances of a selling trend remain higher today. A selling trade below the 45341 level is also suggested by the 50-simple moving average. In general, Bitcoin is dominated by a bearish bias. All the best!

Gold to Exhibit Bullish Retracement

After hitting a high of $1767.80 and a low of $1747.10, gold prices settled at $1751.40. Gold fell for the third day in a row and continued lower on Friday, despite renewed dollar strength.

The greenback was at an all-time high on Friday, reaching 93.25, its highest level since August 28th. The yield on the benchmark 10-year note in the United States continued to rise on Friday, reaching 1.38 percent.

Due to the strengthening of the US dollar, gold suffered its greatest weekly loss in six years. The dollar stayed near a three-week high versus a basket of six major currencies as investors awaited the outcome of a key US Federal Reserve meeting for hints on when the central bank may begin unwinding its stimulus programme.

On September 21 and 22, the Federal Open Market Committee will hold a two-day policy meeting, and investors will be looking for hints as to when the US central bank would begin removing its asset purchases.

Reduced central bank stimulus tends to raise bond yields, increasing the potential cost of storing non-interest bearing bullion, therefore these forecasts pushed the yellow metal lower for the day. It also serves to raise demand for the dollar, which impacted on the yellow metal even more.

After the announcement of U.S. Retail Sales, which unexpectedly climbed in August and knocked down forecasts for a dramatic slowdown in economic growth in the third quarter, the dollar surged as well.

On the statistics front, the TIC Long-Term Purchases in July fell to 2.0 billion against a projection of 60.5 billion at 01:00 GMT, weighing on the US Dollar and causing further losses in gold prices. The Prelim UoM Consumer Sentiment fell to 71.0 from 71.9 expected at 19:00 GMT, weighing on the US dollar and limiting the slide in gold prices. The Prelim UoM Inflation Expectation for September increased to 4.7 percent from 4.6 percent previously.

Despite weaker-than-expected macroeconomic data on Friday, the greenback remained strong on the basis of rising prospects of Fed tapering at the forthcoming policy meeting.

GOLD Intraday Technical Level

Support Resistance

1751.85 1756.00

1749.45 1757.75

1747.70 1760.15

Pivot Point: 1753.60

GOLD - Technical Outlook

On Monday, precious metal gold has bounced off about the support level of 1,745, and now it's heading towards an intraday pivot point level of 1,753. Furthermore, a bullish breakout of 1,753 levels exposes gold prices towards the next resistance level of 1,765. Moreover, gold me find next resistance at 1,776 level.

On the support side, the breakout of 1,745 support exposes gold prices towards 1,736 and 1,724 levels. The RSI and Stochastic indicators are in the mixed zone, and typically this can drive a bullish or a bearish trend in the gold price depending upon market fundamentals. Overall, gold's bullish bias dominates over 1,745 and vice versa. All the best!

Major Resistance at 1.1745

After hitting a high of $1.1789 and a low of $1.1724, the EUR/USD ended the day at $1.1725. On Friday, the EUR/USD pair fell in the previous ten sessions for the eighth time, reaching its lowest level since August 23rd.

The drop in the currency pair EUR/USD can be linked to the strengthening of the US dollar following the release of the US Retail Sales data on Thursday, which soared unexpectedly in August, adding to predictions of Fed tapering at its forthcoming policy meeting. The US dollar's strength brought the EUR/USD currency pair to its three-week low on the board.

Despite the negative macroeconomic statistics released on Friday, the US Dollar Index, which measures the dollar's value against a basket of six major currencies, surged to 93.25. The yield on the benchmark 10-year note in the United States also increased to 1.38 percent, adding to the strength of the US dollar, which dragged the EUR/USD currency pair lower. Furthermore, the risk-off market mood maintained US government yields higher and stock indices in the 0.26 percent to 1.19 percent range.

On the statistics front, the July Current Account Balance fell to 21.6 billion dollars against a forecast of 22.3 billion dollars, weighing on the single currency Euro and adding to the EUR/USD loss. The Final CPI for the year stayed unchanged at 14:00 GMT, against projections of 3.0 percent. The Final Core CPI was also 1.6 percent, which was in line with expectations.

On the US side, the TIC Long-Term Purchases in July fell to 2.0 billion dollars at 01:00 GMT, versus a forecast of 60.5 billion dollars, weighing on the US Dollar and causing more losses in EUR/USD. The Prelim UoM Consumer Sentiment dipped to 71.0 from 71.9 expected at 19:00 GMT, weighing on the US dollar and limiting the decline in EUR/USD. The Prelim UoM Inflation Expectation for September increased to 4.7 percent from 4.6 percent previously.

Meanwhile, market investors are eagerly awaiting the publication of the Federal Reserve's monthly policy meeting, as they anticipate signals of unwinding stimulus measures that have kept the US currency strong. Furthermore, the rising tensions between China and its Western allies, such as the United States, Australia, and the United Kingdom, weighed on market sentiment and kept riskier assets like the EUR/USD under pressure.

EUR/USD Intraday Technical Levels

Support Resistance

1.1736 1.1807

1.1708 1.1850

1.1666 1.1878

Pivot Point: 1.1779

EUR/USD - Technical Outlook

On Monday, the EUR/USD currency pair is trading with a strong bearish bias at the 1.1706 level. The pair has violated the intraday pivot point level of 1.1745 level. The closing of candles below this level is suggesting a strong selling bias among investors. On the support side, and immediate support prevails at the 1.1701 level whereas a bearish breakout of this support level exposes the currency pair towards the 1.1695 level.

An additional break out of the 1.1694 level can expose EUR/USD prices toward next support level of 1.1635 level. Moreover, the RSI and Stochastic have entered the sell zone. Thus, the EUR/USD's bearish bias dominates below 1.1740 and vice versa. All the best!

Bitcoin Violates Upward Trendline at 46,399

BTC/USD reached a high of $48,370.0 and a low of $46,837.0 before closing at $47,239.0. Despite the numerous good developments surrounding the market, BTC/USD fell on Sunday, owing to the weekend's low trading activity. According to the reports, the U.S. The SEC has issued an extension notice, stating that it will evaluate VanEck Bitcoin Trust's plan for an extra 60 days.

VanEck had produced a preliminary prospectus for the trust in December 2020, and the application was filed with the SEC in March of this year. According to the extension notification, the SEC would approve or reject the request by November 14, 2021. The SEC's sluggish approach to issuing bitcoin ETFs has kept the top currency under pressure, and as a result, BTC/USD fell over the weekend.

There were also complaints from El Salvador concerning suspected inconsistencies in bitcoin purchases and the development of ATM kiosks in the country. The El Salvadorian court of accounts has received an upsurge in concerns about the bitcoin purchasing operations' transparency and suspected funds theft. The ATM kiosk's installation objections contributed to the BTC/USD exchange rate falling over the weekend.

Furthermore, as bitcoin prices have risen, many miners with less efficient computers have joined the network, increasing energy consumption. The Bitcoin network used around 67TWh of electricity in 2020, which was already surpassed in 2021 by using approximately 91TWh of electricity. According to Bloomberg, bitcoin's energy use will be similar to Pakistan's energy consumption by the end of 2021.

Many institutions worried about climate change are placing enormous risks on the adoption of bitcoin due to the lack of energy-efficient crypto mining devices and miners' low intents to move to a low-carbon energy source for electricity. BTC/USD values have also been under pressure recently as a result of this.

On the other hand, Anthony Scaramucci, the creator and managing partner of SkyBridge Capital in the United States, has expressed his views on Bitcoin. He described bitcoin as a monetary standard with the potential to become a worldwide reserve currency in the future. He explained that the currency was still in its early stages of acceptance, which explains the asset's significant volatility. He compared the volatility to Amazon's and said it was to be expected for such a new asset class.

In addition, on September 166, the first statue of Bitcoin developer Satoshi Nakamoto was unveiled in Budapest, Hungary. Even though the identity of the famed bitcoin creator remains a mystery, the people of Hungary hailed Satoshi Nakamoto's contribution to eliminating intermediaries and generating independent money.

The goal of creating a bronze monument of Satoshi was to honour and appreciate their work, as bitcoin produces value and gives people financial autonomy. Some speculated that the statue was erected to remind people that courage is a virtue and never give up on their dreams.

BTC/USD Intraday Technical Levels

Support Resistance

46594.0 48127.0

45949.0 49015.0

45061.0 49660.0

Pivot Point: 47482.0

BTC/USD - Technical Outlook

Bitcoin prices are now trading at 45,525 on Monday. Bitcoin has now breached the daily pivot point resistance mark of $47,224. On the upside, the 46,399 mark will likely act as immediate resistance for the BTC/USD. Additional bullish developments till the 47,224 and 50600 resistance marks could be triggered by a breakout at the 46,399 level.

Bitcoin is expected to find immediate support at the 44,990 level, which is prolonged by a double bottom pattern. Furthermore, a break underneath this level could extend the selling trend to the levels of 43,95. Today, Bitcoin has a bearish tendency, particularly below 46,399 levels. Good luck!

Gold to Exhibit Bullish Retracement

After hitting a top of $1797.25 and a low of $1745.55, gold prices settled at $1754.15 per ounce. On the back of a firmer US dollar and higher US Treasury Yields, gold lost ground for the second straight session on Thursday, falling to its lowest level since August 12.

With better-than-expected Retail Sales figures released on Thursday, the greenback was strong across the board. The DXY rose to 92.96 on Thursday, putting pressure on the precious metal. The benchmark 10-year Treasury yield climbed higher for the second straight day, reaching 1.35 percent, adding to the greenback's gains and dragging precious metal further to the south.

On the statistics front, at 17:30 GMT, Core Retail Sales for August jumped to 1.8 percent, above expectations of -0.1 percent, bolstering the US currency and dragging gold prices lower. Retail Sales increased by 0.7 percent in August, compared to a forecast of -0.7 percent, supporting the US dollar and adding to gold's losses. In September, the Philadelphia Fed Manufacturing Index rose to 30.7 from 18.9 in August, bolstering the US dollar and adding to gold's negative momentum.

Last week's Unemployment Claims increased to 332K from 325K expected, putting pressure on the US dollar, which led to more losses in the yellow metal. Business Inventories were unchanged at 19:00 GMT, against predictions of a 0.5 percent increase.

On the back of reignited expectations for quicker tapering by the US Federal Reserve, the dollar climbed significantly in August, holding near its 3-week high against a basket of major currencies.

The attention of the market has switched to the two-day policy meeting on September 21 and 22. Investors are expecting signs from the Fed about when the US central bank would begin to remove its asset purchases. These prospects continued to strengthen US Treasury Yields, which in turn increased the opportunity cost of owning non-yielding bullion, causing the precious metal to fall on Thursday.

Furthermore, many members of the Federal Reserve were in favor of reducing economic stimulus measures this year, and as a result, the outlook for gold has deteriorated. Despite higher-than-expected initial unemployment claims last week, the US dollar stayed strong on the back of the Fed's plan to taper more than anything else.

GOLD Intraday Technical Level

Support Resistance

1734.05 1785.75

1713.95 1817.35

1682.35 1837.45

Pivot Point: 1765.65

GOLD - Technical Outlook

On Friday, the precious metal gold has bounced off about the support level of 1,745, and now it's heading towards an intraday pivot point level of 1,764. Furthermore, a bullish breakout of 1,764 levels exposes gold prices towards the next resistance level of 1,784. Moreover, gold me find next resistance at 1,795 level.

On the support side, the breakout of 1,746 support exposes gold prices towards 1,733 and 1,714 levels. The RSI and Stochastic indicators are in the oversold zone, and typically this can drive a bullish correction in the gold price. Overall, gold's bullish bias dominates over 1,765 and vice versa. All the best!

Major Resistance at 1.1780

After hitting a top of $1.1822 and a low of $1.1751, the EUR/USD pair was closed at $1.1764. The EUR/USD pair fell to its lowest level since August 27 on Thursday, owing to further US dollar strength. Following the announcement of robust Retail Sales data on Thursday, the US Dollar gained ground versus its rival currencies, paving the way for anticipation of tapering signals at the upcoming Fed policy meeting next week. The US Dollar Index hit 92.96, its highest level in three weeks, while the US Treasury Yield hit 1.35 percent, pushing the greenback higher and dragging the EUR/USD currency pair lower.

On the data front, the Italian Trade Balance in July jumped to 8.76 billion euros against a projection of 6.22 billion euros, supporting the single currency Euro and capping any losses in EUR/USD at 13:03 GMT. At 14:00 GMT, the Trade Balance for the entire EU fell to 13.4 billion euros in July, down from 16.8 billion euros expected, weighing on the Euro and adding to the slide in EUR/USD values.

At 17:30 GMT, the US Core Retail Sales grew to 1.8 percent in August, beating expectations of -0.1 percent, bolstering the US currency and adding to the EUR/USD loss. Retail Sales increased by 0.7 percent in August, compared to a forecast of -0.7 percent, bolstering the US dollar, which lowered the EUR/USD pair. The Philadelphia Fed Manufacturing Index increased to 30.7 in September, up from 18.9 in August, bolstering the US dollar, which pressured the EUR/USD pair. Last week's Unemployment Claims increased to 332K from 325K predicted, weighing on the US currency and limiting the fall in EUR/USD. Business Inventories remained unchanged at 19:00 GMT, with an estimate of 0.5 percent.

Meanwhile, Christine Lagarde, the president of the European Central Bank, stated on Thursday that the eurozone economy is rebounding faster than expected just six months ago. She credited the speedy rebound to a vaccination campaign that allowed vast areas of the economy to reopen quickly. Lagarde also stated that the combined GDP of the 19 Eurozone countries should return to pre-crisis levels by the end of the year, even though the growth trend has yet to recover fully. These statements from Lagarde were positive for the Euro, but they didn't help it because the market's attention was diverted to the next Fed policy meeting.

EUR/USD Intraday Technical Levels

Support Resistance

1.1736 1.1807

1.1708 1.1850

1.1666 1.1878

Pivot Point: 1.1779

EUR/USD - Technical Outlook

On Friday, the EUR/USD currency pair is trading with a bearish bias at the 1.1775 level; however, the pair has bounced off over the support level of 1.1750 level. Closing of candles below 1.1779 exposes the pair towards 1.1750 and 1.1709 support levels.

On the resistance side, the downward trendline provides major resistance at the 1.1819 level, and a bullish crossover of this exposes the pair towards 1.1849 and 1.1878 levels. On the 4-hour timeframe, it's closing bullish engulfing and Doji candles above 1.1750 level, supporting correction in the EUR/USD. Moreover, the RSI and Stochastic have started coming out of the oversold zone. Thus, the EUR/USD's bearish bias dominates below 1.1780 and vice versa. All the best!

Bullish Bias to Dominate Over 47,475 Level

The BTC/USD reached a high of $48,518.0 and a low of $47,080.0 before closing at $47,786.0. The Bitcoin remained flat throughout Thursday's trading session and lost a little chunk of its daily gains. Protests against El Salvador's newly enacted Bitcoin Law gathered steam on Thursday, putting pressure on the top cryptocurrency. Protesters in El Salvador kicked against the country's new Bitcoin law on Wednesday, destroying a cryptocurrency shop in the capital city of San Salvador.

The Chivo-supported kiosk was set on fire by a swarm of journalists and protestors, and videos of the incident went viral on the internet, adding to the pressure on BTC/USD values. The protestors did not stop there, placing anti-BTC emblems and placards on the new Bitcoin machines installed by the El Salvadorian government for changing BTC to cash.

Signs such as "democracy is not for sale" were placed on BTC machines in an attempt to express dissatisfaction with El Salvador's recent Bitcoin Law, which made BTC legal tender in the country.

Furthermore, according to a report published by S&P Global, the risks connected with El Salvador's adoption of bitcoin as an alternative legal tender to the US dollar appeared to outweigh the benefits, and there were immediate negative credit implications. It says that the use of bitcoin jeopardises a possible agreement between El Salvador and the IMF. Fears grew that the Central American country would be unable to negotiate an agreement with the IMF for a $1 billion loan and that its usage of bitcoin would result in bad credit consequences. The cryptocurrency BTC/USD fell on Thursday as a result of the bad developments around the environment.

The growing values of the US dollar, which have a negative link, could be another explanation for the decline in BTC/USD on Thursday. The US Dollar Index (DXY) hit a three-week high of 92.96 on Thursday, with the greenback's rise spurred by the stronger-than-expected Retail Sales data release. The higher-than-expected Retail Sales data revealed stronger consumer confidence, raising anticipation that the Fed may hint at decreasing economic stimulus at its upcoming monetary policy meeting.

On the other hand, according to Changpeng Zhao, the CEO of Binance, an increasing number of traditional monetary institutions have recently turned their attention to cryptocurrencies, particularly bitcoin. He also stated that the trading platform's structure would be altered to meet regulatory requirements.

He believes that major financial institutions and investors have already recognised the benefits of cryptocurrencies and have begun to join the cryptocurrency bandwagon. He went on to say that BTC was more than just a currency; it was also a multi-asset class technology and a complete new platform. This is why many financial organisations regard BTC as an investment vehicle.

BTC/USD Intraday Technical Levels

Support Resistance

47071.4 48509.4

46356.7 49232.7

45633.4 49947.4

Pivot Point: 47794.7

BTC/USD - Technical Outlook

Bitcoin prices are now trading at 47,816 on Friday. Bitcoin has now breached the daily pivot point resistance mark of $47,475. On the upside, the 48,843 mark will likely act as immediate resistance for the BTC/USD. Additional bullish developments till the 49536 and 50600 resistance marks could be triggered by a breakout at the 48,843 level.

Bitcoin is expected to find immediate support at the 47,772 level, which is prolonged by an daily pivot point mark. Furthermore, a break underneath this level could extend the selling trend to the levels of 47,080 and 46,009. Today, Bitcoin has a positive tendency, particularly above 47,794 levels. Good luck!