Fed Chair Powell Testifies Ahead!

The EUR/USD was closed at $1.1912 after placing a high of $1.1921 and a low of $1.1848. EUR/USD recovered some of its previous losses on Monday as buying interest in the currency pair remained well and sound. The EUR/USD currency pair extended its rebound from the multi-week lowest level near the mid-1.1800 level recorded earlier on Monday. Some suggested that it was a price correction, and some said it came in after the broad-based improvement in the market's risk sentiment.

Another reason behind the upward momentum in the single currency Euro was the rising key German 10-year yields that gathered extra strength and reached the -0.17% zone. There was nothing from the macroeconomic docket from both sides; however, the declining prices of the U.S. pushed EUR/USD pair higher on the board. The European single currency remained high against the U.S. dollar after the President of the European Central bank said that the Eurozone and the United States were in a different situation regarding the inflation outlook and played down any impact across the Atlantic.

Federal Reserve has started discussing ending their bond purchases program with the U.S. economy reopening and the fast rebounding prices. Last week, the central bank officials brought forward their expectations for the first-rate hike since the start of the pandemic, which triggered the market speculation about rising inflation and a tightening of monetary policy across the globe. However, Lagarde rejected comparisons between both economies and said that the U.S. recovery was farther ahead of the recovery of the eurozone economy. The United States and Europe were clearly in a different situation as it was tempting to compare but not very reasonable given the many differences between the two economies.

On the other hand, the U.S. dollar remained weak across the board on Monday as the U.S. Dollar Index that measures the greenback value against the basket of six major currencies, fell and reached 91.83 level and pushed EUR/USD currency pair higher. Furthermore, the U.S. dollar came under pressure ahead of the testimony of the U.S. Federal Reserve Chief Jerome Powell on the Fed's emergency lending programs and current policies before the House Select Subcommittee on the coronavirus crisis.

Furthermore, the experts at Goldman Sachs have laid down their expectations for an expected recovery in the eurozone region and highlighted when they believe the European Central bank will lift its unprecedented stimulus measures while suggesting that the austerity measures might no longer be relied upon. According to the chief European economist at Goldman Sachs, the latest position from the Fed should make the ECB Governing Council more confident that it can start to reduce the PEPP purchases later this year. These comments added strength to the single currency Euro and supported the rising prices of the EUR/USD pair.

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EURUSD Intraday Technical Levels**

Support Resistance

1.1858 1.1881

1.1844 1.1890

1.1835 1.1904

Pivot Point: 1.1867

EUR/USD - Technical Outlook

The EUR/USD consolidates at the 1.1898 level, facing immediate resistance at the 1.1916 level that's extended by 23.6% Fibonacci retracement level. The direct currency pair is gaining support at the previously placed low level of 1.1848 level. On the 4-hour timeframe, the EUR/USD pair has closed a Doji pattern below the 1.1916 resistance level, suggesting the possibility of bearish pressure on the EUR/USD pair. The MACD indicator supports a strong selling bias. However, the EMA is still far away from the current market price level of 1.1888. This demonstrates the oversold situation of the EUR/USD pair. A bullish breakout of 1.1889 level can expose the pair towards 1.1975 and 1.2010 levels. All the best!

Bitcoin Supported Over Triple Bottom $31K

The BTC/USD was closed at $31761.0 after placing a high of $35631.0 and a low of $31475.0. Bitcoin fell below the $32,000 level on Monday and continued its bearish streak for the 6th consecutive session amid China's intensified crypto mining crackdown. As a result, BTC/USD fell below the $32,000 level for the first time since June 8. Bitcoin sank to its 2-week lowest level on Monday after reports from China suggested that the country's government has intensified its crackdown on the mining of cryptocurrencies. According to a report from a newspaper backed by the Communist Party, Global Times, the authorities in the southwestern Chinese province had ordered to halt crypto mining that shut down many bitcoin mines in the Sichuan region.

Following this order, the third-largest bank in China, the Agricultural Bank of China (ABC), banned its customers from interacting with bitcoin and other cryptocurrencies, leading to a massive price drop in BTC/USD. According to a report printed by ABC on Monday, the ban will prohibit its customers from doing any transaction or business related to cryptocurrencies. Furthermore, it means the client's account will be immediately terminated if the bank will discover any activity or interaction with bitcoin or other digital assets.

The crackdown from China appeared to have to lead a significant decline in the hash rate of bitcoin. The prices of bitcoin, along with the hash rate, have fallen sharply in the last month. China has been engaged in doing an estimated 65% on the global bitcoin mining. Reports have suggested that about 90% of the bitcoin mining in China has been stopped due to China's recent ban on crypto mining. The hash rate of bitcoin has been dropped to its lowest in 8-months amid the halted mining operations in China.

Furthermore, the host of CNBC's Mad Money, Jim Cramer, said that he has sold almost all of his bitcoin holdings and highlighted the reason behind this move as the renewed regulatory crackdown in China and the role of bitcoin in ransomware attacks.

A former hedge fund manager, Cramer, argued that the BTC's drop in hash rate should have resulted in gains for the asset's price. He said that instead of going up because of limited mining, bitcoin was going down as people were redeeming. When the coin is outlawed or is made more challenging to be mined, it should go up unless there is a worldwide redemption.

On the flip side, MicroStrategy, the U.S.-based publicly traded business intelligence, continued to hoard the leading currency despite the crypto markets were erasing more than $300 billion in market cap. MicroStrategy reported on Monday that it had made an additional purchase of 13,005 BTC for about $489 Million in cash. This news gave some support to the declining prices of BTC/USD on Monday.

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 technical side of Bitcoin hasn't changed a lot as its price continues to consolidate at 32,600 zones. However, considering the daily timeframe, the BTC/USD is supported by an upward channel extending support at the 31,110 level. The Bitcoin is also gaining support over the triple bottom support level of 31,110 mark, but the violation of this level exposes bitcoin price towards next support level of 29,562 level.

The leading technical tool MACD is supporting a selling bias in Bitcoin. Likewise, the 50 periods EMA is also supporting a selling trend. Thus, bearish bias still continues to dominate the market on Tuesday. All the best!

Gold Completes 61.8% Fibonacci Retracement!

Gold closed at $1769.00 after placing a high of $1797.90 and a low of $1761.20. Gold extended its loss and continued its bearish streak for the 6th consecutive session and dropped to its lowest level since 28th April. The worst week suffered by gold since the coronavirus outbreak of 2020. The prices dropped almost 6% amid the accelerated timetable from the Federal Reserve for hiking interest rates and tapering stimulus measures.

On Wednesday, the Federal Reserve signaled at its monthly policy meeting that it would raise interest rates at least twice by the end of 2023 to 0.6% from the current level of 0.25%. The central bank also said that it was monitoring data to determine when to start tapering its monthly asset purchase of $120 billion. Since the coronavirus outbreak last year, the Federal Reserve has purchased at least $80 billion in Treasury bonds and $40 billion in mortgage bonds to support the economy and the credit markets.

The rate hike expectations and declining commodities prices added strength to the U.S. dollar and pushed it towards high monthly levels. On Friday, the U.S. Dollar Index jumped and reached $92.40, its highest since 9th April after rising for six consecutive sessions. At the same time, the U.S. Treasury Yields on 10-year Note fell to 1.43%.

Furthermore, the gold prices were also declining due to the latest comments from St. Louis President James Bullard. He said on Friday that the central bank might have to consider increasing interest rates by next year instead of 2023 as inflation could run ahead of its predictions. These comments from Bullard added pressure on yellow metal prices and dragged them downward.

Meanwhile, according to Johns Hopkins University, the overall global coronavirus caseload has topped 177.7 Million, and the deaths have risen to more than 3.84 Million. The U.S. continued to be the worst-hit country with the world’s highest number of cases and deaths. India followed the U.S. and topped on the second rank in terms of infections. The other worst-hit countries include Brazil, France, Turkey, Russia, U.K., Italy, and Argentina. Despite the vaccination rollout, the rising number of cases across the globe gave some support to the declining prices of yellow metal and capped further loss on Friday.

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 Monday, the precious metal gold is trading at a 1,777 level, having bounced off over 1,765 support levels. We can see precious metal has completed 61.8% Fibonacci retracement at 1,765 levels, and closing the daily candle suggests that bullish correction is coming ahead. On the daily timeframe, the Fibonacci indicator is offering resistance levels of 1,795 and 1,822 that marks 23.6% and 38.2% Fibonacci retracement levels. The MACD is showing a bearish crossover, indicating the overall trend is still looking bearish. The 50 periods EMA is holding at 1,822 level, indicating a bearish trend. Since the current market price of gold is far away from EMA, the odds of bullish correction remain high. Gold's support level stays at 1,769 and 1,750 levels. All the best!

ECB President Lagarde Speech Ahead!

The EUR/USD closed at $1.1860 after placing a high of $1.1926 and a low of $1.1846. EUR/USD dropped to its lowest level since April 6 after continuously declining for three consecutive days. The strength in the U.S. dollar caused the steep fall in EUR/USD currency pair amid the latest hawkish comments from the Federal Reserve. The U.S. dollar edged higher in early European trade Friday. It continued to benefit from the surprise move by the Federal Reserve as it brought forward the timetable for raising interest rates. The U.S. Dollar Index, which tracks the greenback against the basket of six major currencies, traded at 91.93 after hitting a more than 2-month high level above 92. The rising greenback prices added to pressure on the currency pair EUR/USD and dragged it downwards.

On the data front, there was no macroeconomic data to be released from the U.S. side. Still, from the European side, the German PPI for April rose to 1.5% against the forecasted 0.7% and supported a single currency Euro that capped further loss in the EUR/USD pair. Furthermore, at 13:00 GMT, the Current Account Balance rose to 22.8B against the predicted 20.3B and supported the single currency Euro that limited the decline in EUR/USD pair.

The U.S. dollar was onboard solid after the Federal Reserve showed a willingness to raise interest rates by the end of 2023 at least two times from the current level of 0.25% to 0.6%. Some officials from the Fed also expressed plans to start tapering stimulus measures, and for that purpose, they said that the Fed would keep a close eye on the economic data. The Fed Chairman Jerome Powell also noted that FOMC members were discussing reducing the $120 billion a month in asset purchases amid the progress due to immunization campaigns. However, he also said that the economy's path would continue to depend on the pandemic developments and warned that economic projections should be taken with a big grain of salt.

On the other hand, last week, the European Central bank noted that the GOverning COuncil decided to confirm its very accommodative monetary policy stance despite rising inflation and improving economic conditions. On Friday, ECB member Jens Weidmann said that the central bank's PEPP program should end soon as he was foreseeing the monetary policy to come back to normal in 2022.

The U.S. dollar was gaining strength amid the imbalance between central banks and the faster immunization campaigns and subsequent reopening of the economy. However, the EU has also started reopening and moving towards speeding up its economic growth. On Friday, the European Union officially lifted travel restrictions for the residents of the United States.

EURUSD Intraday Technical Levels

Support Resistance

1.1858 1.1881

1.1844 1.1890

1.1835 1.1904

Pivot Point: 1.1867

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EUR/USD - Technical Outlook**

The EUR/USD pair fell dramatically from 1.2091 level to trade at 1.1848 level. On the 4 hour timeframe, the EUR/USD pair is stuck in between a narrow trading range of 1.1889 – 1.1848 level. On the 4 hour timeframe, the EUR/USD is staying far away from 50 periods EMA that's extending resistance at 1.2070 level. The MACD indicator supports a strong selling bias. However, the EMA is far away from the current market price level of 1.1875. This demonstrates the oversold situation of the EUR/USD pair. A bullish breakout of 1.1889 level can expose the pair towards 1.1975 and 1.2010 levels. All the best!

Double Bottom Breakout, Upward Channel Support

The BTC/USD was closed at $35631.0 after placing a high of $35966.0 and a low of $33725.0. Bitcoin continued its decline for the 6th consecutive session and reached below the $34000 level on Sunday amid various negative developments around the market. A professor of economics from Cornell University and former head of the IMF’s China division, Eswar Prasad, entails three significant flaws in bitcoin. According to Prasad, these flaws drive people in search of better alternatives. The first flaw he mentioned was the high energy consumption in bitcoin mining which is harmful to the environment. He said that Ethereum was working on a project that will enable it to use less energy.

The second flaw noted by Prasad was that bitcoin was not so anonymous, and other cryptocurrencies like Monero and zcash offered more anonymity than bitcoin. Finally, the third flaw he explained was that bitcoin could not work well as a currency as its transactions were slow and cumbersome for payment use. Finally, he added that bitcoin had become a speculative asset due to its highly volatile nature. These comments from Prasad added pressure on BTC/USD.

In addition, the NCB announced that it had arrested a suspect who allegedly exchanged bitcoin for LSD and was later identified as Crypto King. Furthermore, a 63-year old retired British teacher, Teresa Jackson, has said that she has lost her life savings worth 120 K pounds to the bitcoin scam in a fake Bitcoin investment scheme. She said that the lost funds were the collective amount of her life savings and pension funds. She explained that the scam appeared in an ad on Instagram and said that a stranger contacted her as a financial investor soon after she found the ad on Instagram.

The crypto scammer convinced her to stake 120,000 pounds, and she transferred the cash directly to him after feeling confident by the knowledge and trustworthy nature of the scammer. After transferring the amount, she tried to contact the person but got no answer and lost all of her life savings. This scam also added to the negative side of bitcoin that dragged BTC/USD further on the downside. On the flip side, Goldman Sachs has debuted a Bitcoin futures trading product in collaboration with crypto investment giant Galaxy Digital to offer to its clients.

One of the wealthiest Russians, Oleg Deripaska, blamed the Bank of Russia for its strict regulations imposed on digital assets. He said that the central bank prohibits the citizens from investing in cryptocurrencies like Bitcoin and asked the country to add the primary cryptocurrency as a payment method. He also gave an example with the Latin country of El Salvador that has already laid the foundations for making bitcoin legal tender.

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

On Monday, the BTC/USD pair plunged dramatically from 35,246 level to trade at 33,122 level. On the 4-hour timeframe, bitcoin has disrupted the support level of 35,246, which is now working as a resistance level. Furthermore, Bitcoin is supported by an upward channel on the 4-hour timeframe. The pair is gaining support at the triple bottom support level of 31,170 level, whereas the violation of 31,170 level can expose the pair towards the next support level of 29,562 level. The leading technical tool MACD is supporting a selling bias in Bitcoin. Likewise, the 50 periods EMA is also supporting a selling trend. Bearish bias continues to dominate the market. All the best!

Gold Completes 61.8% Fibonacci Retracement!

Gold prices were closed at $1777.05 after placing a high of $1826.20 and a low of $1768.00. Precious metal extended its losses for the 5th consecutive session on Thursday and reached its lowest level since April 30. Gold slipped by more than 2% on the day and reached below the $1800 level on Thursday on the back of a higher jump in the U.S. dollar after the U.S. Federal Reserve held a more hawkish tone on monetary policy.

The U.S. Dollar Index that measures the greenback value against the basket of six major currencies, rose above 92 levels after surging for three consecutive sessions. The Fed's expectations will raise interest rates in 2023 to 0.6% from the current level of 0.25%, supported by the rising prices of the U.S. dollar. A majority of Fed officials predicted at least two hikes in interest rates in 2023. However, Fed officials kept the policy support for this month to encourage recovery in the jobs sector. The announcement from Fed pushed the U.S. dollar to an over 2-month high level and weighed heavily on the yellow metal. The U.S. Treasury yields, however, remained under pressure on Thursday but failed to reverse gold prices.

On Wednesday, the Federal Reserve also signaled that it was monitoring data to know when to start tapering its monthly asset purchases of $120 billion. Since last year when the pandemic began, the U.S. central bank has been buying at least $40 billion in mortgage bonds and $80 billion in Treasury bonds to support the credit markets and the economy. On the data front, at 17:30 GMT, the Philly Fed Manufacturing Index rose to 30.7 against the expected 30.3 and supported the U.S. dollar that added in the loss of precious metal. The Unemployment claims from last week soared to 412K against the projected 360K and weighed on the U.S. dollar that limited further decline in the yellow metal. At 19:00 GMT, the CB Leading Index in June remained flat with a projection of 1.3%.

Meanwhile, the tensions between the U.S. and China are likely to worsen under the Biden administration as the relationship was going down a path of great confrontation. Some analysts believe that before elections last year, it was expected that the Biden administration would prove fruitful in terms of resolving the conflict between the U.S. and China. However, the U.S. recently has passed an expensive bill on investing a quarter of a trillion dollars in boosting domestic manufacturing to compete with China. Furthermore, President Joe Biden has also signed an executive order to expand a Trump-era ban on U.S. investment in Chinese companies that have any connection with the Chinese military. These negative developments surrounding U.S. & China kept the losses in gold prices limited on Thursday.

Gold Intraday Technical Level

Support Resistance

1754.64 1812.84

1732.22n1848.62

1696.44 1871.04

Pivot Point: 1790.42

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Gold - XAU/USD - Technical Outlook**

The precious metal gold is trading at a 1,784 level on Friday, having bounced off over 1,769 support level. The precious metal has completed 61.8% Fibonacci retracement at 1,769 level, and closing the daily candle suggests a bullish correction. On the daily timeframe, the Fibonacci indicator is suggesting resistance levels of 1,795 and 1,822 that marks 23.6% and 38.2% Fibonacci retracement levels. The MACD is showing a bearish crossover, indicating the overall trend is still looking bearish. The 50 periods EMA is holding at 1,822 level, indicating a bearish trend. Since the current market price of gold is far away from EMA, the odds of bullish correction remain high. Gold's support level stays at 1,769 and 1,750 levels. All the best!

Symmertical Triangle Pattern

The ETH/USD was closed at $2610.65 after placing a high of $2610.65 and a low of $2461.43. After declining for two consecutive sessions, ETH/USD rose and posted slight gains on Wednesday. Most of the bullish trend triggered amid the prevailing improved market sentiment driven primarily by upbeat bitcoin prices. Lately, the Ethereum network's transaction fees have fallen to their lowest level since the beginning of the year as the crypto market cooled down following the recent market crash in May. The entire crypto-market came under pressure during mid-May after Tesla announced that it was no longer accepting bitcoin as payment. The downfall was further escalated by the news that China was going against all cryptocurrency activities, including mining and trading. Since then, the market has found it challenging to reclaim its previous levels.

The down-trending market has some advantages, including the decline in demand for digital assets, resulting in a drop in transaction fees. According to data from BitInfoCharts, the Ethereum network's average transaction fee dropped to a low of $3.70 over the weekend, which was the lowest level since the end of December 2020. However, the transaction fees have climbed to $5.45 amid the increased activity in the network.

Another reason behind the upward trend in the Ethereum prices was the news from EL Salvador that BTC will be officially recognized as legal tender and will allow people to use it to spend for goods and services in the Central American country. The uptick caused by this news raised the overall market cap for all cryptocurrencies combined back above $1.5 trillion and has halted the declining prices of all markets for the moment that began in mid-April. Besides, the U.S. dollar that negatively correlated with the ETH/USD remained flat throughout the day but ended the day with minor gains. The U.S. Dollar Index (DXY) dropped 89.84 on the day and helped Ethereum post higher gains on Wednesday.

ETH/USD Intraday Technical Levels

Support Resistance

2346.89 2418.95

2321.50 2465.62

2274.83 2491.01

Pivot Point: 2393.56

ETH/USD - Technical Outlook

The ETH/USD consolidates at a 2,329 mark, falling below the support level of 2,454 level. On the 4-hour chart, the ETH/USD pair is now facing resistance at 2,450 level that's being extended by a previously violated support level which currently is working as a resistance. At the same time, the upward violation of the 2,450 level can lead the ETH/USD pair towards the 2,633 level. The 50 periods EMA is extending resistance, suggesting bearish bias and its extending resistance at 2,450 level. On the lower side, the ETH/USD may find support at 2,272 and 2,162 level. All the best!

Upward Channel Support

The BTC/USD was closed at $38061.0 after placing a high of $39324.0 and a low of $37733.7. Bitcoin extended its losses and continued its bearish streak for three sessions amid various negative developments surrounding cryptocurrencies. On Wednesday, the Finance Minister of El Salvador said that the country had sought technical assistance from the World Bank. Consequently, the World Bank said that it could not assist El Salvador’s bitcoin implementation due to its environmental issues and transparency drawbacks. The World Bank said they were committed to helping El Salvador in numerous ways, including currency transparency and regulatory processes. However, as the government has approached them for assistance on bitcoin, the World Bank has denied its support given the shortcomings related to environmental impact and transparency.

The refusal to assist El Salvador in this matter by World Bank weighed on the cryptocurrency Bitcoin and negatively turned the mood around the crypto market. Furthermore, the crypto market came under fresh pressure after a survey from Bank of America suggested that fund managers still do not trust bitcoin. They rather see biotin as a major bubble despite its massive price bust over the past months.

According to the survey, about 81% of the hedge fund managers that took part in the survey believed that bitcoin was a bubble. The survey included 660 participants who all together manage more than $660 billion in total assets for their clients. BTC/USD prices declined on Thursday after the results from the survey revealed many hedge fund managers still do not trust bitcoin.

On the other hand, the U.S. Dollar was high on board with a strong comeback after the release of the Federal Reserve monetary policy report. The report suggested that Fed officials predicted interest rate hikes in 2023, along with talks of tapering in asset purchases. The U.S. Dollar Index rose above 92 handles and weighed heavily on BTC/USD as both share a negative correlation.

BTC/USD Intraday Technical Levels

Support Resistance

37421.8 39012.1

36782.6 39963.2

35831.5 40602.5

Pivot Point: 38372.9

BTC/USD - Technical Outlook

On Friday, the BTC/USD showing a slight bearish correction falling from 40,500 level to 37,329 level. However, the closing of the recent Doji candle over 38,037 level is demonstrating the bullish power. It looks like the sellers are exhausted, and buyers are ready to take over. Earlier this week, the BTC/USD pair violated the symmetrical triangle pattern that's now ready to drive buying trends in BTC on a daily timeframe. The BTC/USD can go after 42,150 and 45,379 levels on the higher side, primarily because of the symmetrical triangle breakout. At the same time, the support levels stay at 39,120 and 37,880. The MACD has crossed over 0 (crossover point), demonstrating solid bullish bias among investors. The 50 periods EMA also supports an upward movement in the BTC/USD. All the best!

Hawkish FOMC Triggers Sell-off in Gold

Gold prices were closed at $1819.70 after placing a high of $1865.25 and a low of $1805.05. Gold extended its losses for the 4th consecutive session on Wednesday and reached its lowest level since 6th May on the back of a strong pullback in the U.S. dollar. The U.S. Dollar Index that measures the greenback value against the basket of six major currencies jumped higher on Wednesday and reached its highest level since 5th May at $91.43. On the other hand, the U.S. Treasury Yield on a 10-year note also reached 1.59% after the Federal Reserve issued its policy decision.

Gold prices fell more than 1% on Wednesday after the U.S. Federal Reserve officials put forward expectations for the first post-pandemic interest rate hike into 2023. In a statement released after the monetary policy meeting, the officials pledged to keep the policy supportive for now and encouraged an ongoing recovery in the jobs sector. In the statement, 11 out of 18 Fed officials also predicted at least a two-quarter points increase in the interest rate for 2023.

However, the Federal Reserve held its benchmark short-term interest rate near zero and reiterated that it would continue its $120 billion bond purchases each month to fuel the economic recovery. After this announcement, the U.S. dollar and Treasury yields jumped higher on the day. They weighed heavily on the yellow metal as higher yields raise the opportunity cost of holding non-yielding bullion.

On the data front, at 17:30 GMT, the Building Permits from May dropped to 1.68M against the expected 1.73M and weighed on the U.S. dollar that limited the decline in the yellow metal. The Housing Starts also declined to 1.57M against the forecasted 1.64M and weighed on the U.S. dollar and further caped losses in gold prices. The Import Prices rose to 1.1% against the projected 0.8% and supported the U.S. dollar that added extra downward pressure on bullion.

After concluding the two-day meeting on Wednesday, the Federal Reserve signaled higher inflation expectations in 2021 along with an earlier timeframe for the interest rate hikes. The officials at the central bank hoped that there could be two interest rate hikes in 2023, while the FOMC kept its benchmark interest rate close to zero on Wednesday.

The Chairman of the U.S. central bank said that he was monitoring the economic data and has not decided to end the bond purchases. Powell said that Fed would provide advance notice regarding a decision about tapering; however, the timing of this decision was dependent on the progress of economic recovery. About inflation, the Federal Reserve Chairman said that inflation could run hotter than the central bank's expectations as the reopening continued, hiring difficulties, and a large shift in demand and supply constraints.

The comments from Powell also added strength to the already rising U.S. dollar, which happened to have a negative impression on the bullion. They dragged it to its lowest since the early May level and extended its bearish streak for the 4th consecutive session on Wednesday.

Gold Intraday Technical Level

Support Resistance

1794.75 1854.95

1769.80 1890.20

1734.55 1915.15

Pivot Point: 1830.00

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Gold - XAU/USD - Technical Outlook**

Gold is trading with a strong bearish sentiment at a 1,814 level, disrupting the double bottom support level of 1,843. On the 4-hour timeframe, the precious metal gold has closed a strong bearish engulfing candle that's suggesting odds of a bearish trend continuation. At the moment, gold's immediate support stays at a 1,807 level that's being extended by a double bottom pattern on the four hourly timeframes. Below this, gold's bearish movement remain exposed until 1,777 level. All the best!

Euro's Deep Dive – Hawkish FOMC In-Play

The EUR/USD was closed at $1.1994 after placing a high of $1.2135 and a low of $1.1993. The EUR/USD currency pair fell sharply on Wednesday and reached its lowest level since May 5 amid the strong comeback in the U.S. dollar after the FOMC statement. The U.S. dollar soared on Wednesday on the back of a favorable Federal Reserve decision about its monetary policy. Federal Reserve raised inflation expectations for the year 2021 while FOMC presented a projection that Fed might hike interest rates in 2023 for two times.

The decision of the Fed to keep interest rates and the QE program unchanged came in as expected; however, the statement released by FOMC gave a little different perspective compared to the previous one. The statement did not include any mentioning of tapering the asset purchases; however, it did include an economic projection that predicted two interest rates hike in 2023. The greenback rose sharply against the basket of six major currencies and reached a 91.43 level, further supported by the rising U.S. Treasury yields. The yields on the benchmark 10-year note jumped to 1.59% before pulling back to 1.56% and helped the U.S. dollar that kept the currency pair EUR/USD under pressure for the day.

On the data front, there was no macroeconomic data to be released from the European side, however from the U.S. side, at 17:30 GMT, the Building Permits from May declined to 1.68M against the estimated 1.73M and weighed on the U.S. dollar that limited the losses in EUR/USD. The Housing Starts also dropped to 1.57M against the anticipated 1.64M and weighed on the U.S. dollar that further caped decline in EUR/USD. The Import Prices surged to 1.1% against the predicted 0.8% and supported the U.S. dollar that added extra downward pressure on EUR/USD.

Furthermore, the losses in EUR/USD pair extended after the speech of Chairman of the Federal Reserve, Jerome Powell. According to him, the revision in the projection for interest rate hikes came in after inflation accelerated faster and could be more persistent than the central bank's expectations.

On the other hand, on Wednesday, the European Union decided to add the United States to its safe travel list. It means it will be easier for an American citizen to take a vacation in any EU member state. The coronavirus pandemic had prompted a ban on non-essential travel from the U.S. and other places to avoid the contagion. However, with the increasing pace of vaccination, the 27 EU member states allowed non-essential travelers from eight new countries on Wednesday.

EURUSD Intraday Technical Levels

Support Resistance

1.1947 1.2089

1.1899 1.2183

1.1805 1.2230

Pivot Point: 1.2041

EUR/USD - Technical Outlook

The EUR/USD's bearish bias has dominated the market since the release of the Hawkish FOMC statement from the U.S. FED. The EUR/USD pair is now trading at the 1.1955 level, disrupting the support level of 1.2096 and 1.2060 levels. The EUR/USD has also violated the double bottom support level of 1.1987 level on the lower side. For now, the EUR/USD's next support prevails at the 1.1940 level, and a bearish breakout of 1.1940 exposes the pair's movement further lower until the 1.1875 level. The MACD shows strong selling bias among investors, while the 50 periods EMA suggest an oversold scenario for the EUR/USD. The EUR/USD's support level of 1.1875 will be in highlights to capture bullish correction. All the best!