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

**

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!

Symmetrical Triangle Pattern Retest

The BTC/USD was closed at $38332.0 after placing a high of $40394.0 and a low of $38332.0. BTC/USD extended its losses on Wednesday and dropped for the second consecutive session amid various negative developments in the market along with the strong comeback in the U.S. dollar. A professor of applied economics at Johns Hopkins University, Steve Hanke, slammed the decision of El Salvador to adopt bitcoin as a legal tender and questioned how bitcoin could function in day-to-day transactions. Hanke warned that the recent adoption of bitcoin as legal tender by El Salvador could completely collapse the economy.

The 78-year-old professor has served as a senior economist under President Ronald Reagan's administration from 1981 to 1982. Hanke has previously said that Bitcoin was a speculative asset with a fundamental value of zero. He has also tweeted that cryptocurrencies are the future of money, but bitcoin is not. Hanke said that BTC holders from regions like Russia and China could now target El Salvador to cash out their holdings that would essentially drain the country of its U.S. dollars. He added that bitcoin has the potential to completely collapse the economy as all the dollars in the country could be vacuumed up, and there will be no money in the country as they do not have a domestic currency. He also questioned the use of bitcoin in day-to-day transactions as the country's citizens rely more on cash transactions. He explained that if one wants to pay a taxi fare in El Salvador with a bitcoin, it would not be possible as about 70% of the people in that country do not even have a bank account. After his comments, bitcoin faced heavy pressure and experienced a selloff for the day.

Furthermore, the central bank of Indonesia revealed its plans to prohibit the use of cryptos for payments in the country. Perry Warjiyo, the apex bank governor, announced that digital assets like bitcoin must not be allowed to other financial services tools. Warijiyo said that cryptocurrencies were not recognized as a legal means of payment by the central bank, so financial institutions must avoid any dealings with the asset class. The central bank has also revealed that it will mobilize teams to enforce the restriction and ensure that institutions comply with the ban. This news also added further pressure on the prices of Bitcoin.

Meanwhile, theU.S. dollar gathered strength across the board on Wednesday after the Federal Reserve announced its monetary policy decision. The U.S. Fed kept its interest rates and QE program unchanged but showed expectations for higher inflation this year. It also projected two interest rates hike in 2023 and supported the U.S. dollar on Wednesday. The DXY reached its highest level since May 5 at 91.43 level and added extra pressure on BTC/USD as both share a negative correlation.

BTC/USD Intraday Technical Levels

Support Resistance

37644.6 39706.6

36957.3 41081.3

35582.6 41768.6

Pivot Point: 39019.3

BTC/USD - Technical Outlook

On Thursday, Bitcoin has shown a slight bearish correction falling from 40,500 level to 38,037 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. On the higher side, the BTC/USD can go after 42,150 and 45,379 levels, 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!

FOMC & FED Rate Decision in Highlights!

Gold prices were closed at $1859.45 after placing a high of $1870.85 and a low of $1853.10. Gold dropped for 3rd consecutive session on Tuesday and remained consolidated in a tight range ahead of the U.S. Federal Reserve meeting expected to indicate the tapering of asset purchases. However, the demand for the Federal Reserve's repo facility was surging, which suggested that liquid conditions in the market were more than abundant. This portrays that the market was probably prepared to survive a gradual scaling back of asset purchases.

The U.S. dollar surged and reached near the 1-month highest level as the DXY strengthened 0.1%, made the dollar strong against its rival currencies that made gold more expensive for other currency holders and dragged its prices downward. Despite substantial growth in the economy and a patchy recovery in the job market, many economists anticipate a taper announcement in the upcoming two-day policy meeting by the Federal Reserve, whose outcome will be announced today on Wednesday.

Market participants were highly anticipating that the Fed would stick to its previous script of the minutes; however, the recent improvements in the labor market along with the higher numbers of inflation raised concerns that Fed could be less dovish this week.

On the data front, at 17:30 GMT, the Core Retail Sales in May dropped to -0.7% against the expected 0.4% and weighed on the U.S. dollar that limited the downfall in gold prices. The PPI in May surged to 0.8% against the projected 0.5% and supported the U.S. dollar that added further loss in the yellow metal prices. In May, the Retail Sales declined to -1.3% against the forecasted -0.6% and weighed on the U.S. dollar that further caped loss in gold prices. The Core PPI also surged to 0.7% against the expected 0.5% and supported the U.S. dollar that dragged gold further downside.

The Empire State Manufacturing Index dropped to 17.4 against the expected 22.2 and weighed on the U.S. dollar. At 18:15 GMT, the Industrial Production in May rose to 0.8% against the anticipated 0.6% and supported greenback that added weight on gold. The Capacity Utilization Rate remained flat with the expected 75.2%. At 19:00 GMT, the Business Inventories dropped to -0.2% against the estimated -0.1% and supported theU.S. dollar that added further loss in gold prices. The NAHBB Housing Market dropped to 81 against the forecasted 83 and weighed on the greenback. The mixed macro-economic data release from the U.S. on Tuesday kept the U.S. dollar under highlights and dragged gold on the downside.

**

Gold Intraday Technical Level**

Support Resistance

1851.41 1869.16

1843.38 1878.88

1833.66 1886.91

Pivot Point: 1861.13

Gold - XAU/USD - Technical Outlook

On Wednesday, the precious metal gold price continues to trade with a bearish bias at the 1,859 level as traders failed to break above the 38.2% Fibonacci retracement lead resistance area of 1,867. At the moment, gold is consolidating at 1,860 levels, gaining immediate support at 1,851 and 1,843 levels. At the same time, the next resistance level stays at 1,866 and 1,873 levels. The 1,866 level is extended by a 38.2% Fibonacci retracement level, for your information, while a 50% Fibonacci correction level extends 1,873. On Wednesday, the U.S. FOMC and FED monitory policy decisions will be the main highlight of the day. As discussed above, the FED is likely to sound less dovish now amid improved economic events; therefore, the gold's price can face bearish pressure. All the best!

Big Day -Eyes on FED Monitory Policy Meeting

The EUR/USD was closed at $1.2124 after placing a high of $1.2149 and a low of $1.2100. EUR/USD posted minor gains on Tuesday and remained green for the second consecutive session. During the early trading session, the EUR/USD remained higher, but after the release of U.S. macroeconomic data, the currency pair lost some of its gains and left them unchanged.

The U.S. Dollar Index that measures the greenback value against its rival currencies rose to its one-month highest level at 90.68 and gave strength to the greenback that ultimately caped further upward momentum in the EUR/USD currency pair. On the data front, at 11:00 GMT, the German Final CPI for May remained flat with the expectations of 0.5%. At 11:45 GMT, the French Final CPI for May also came in line with the expectations of 0.3%. At 14:00 GMT, the Trade Balance dropped to 9.4B against the projected 14.9B and weighed on Euro, which capped further EUR/USD pair.

From the U.S. side, at 17:30 GMT, the Core Retail Sales in May declined to -0.7% against the estimated 0.4% and weighed on the U.S. dollar that pushed EUR/USD higher. The PPI in May rose to 0.8% against the predicted 0.5% and supported the U.S. dollar that limited the gains in EUR/USD. In May, the Retail Sales dropped to -1.3% against the anticipated -0.6% and weighed on the U.S. dollar that pushed EUR/USD higher. The Core PPI also rose to 0.7% against the estimated 0.5% and supported the U.S. dollar that limited the rising prices of EUR/USD.

The Empire State Manufacturing Index decreased to 17.4 against the estimated 22.2 and weighed on the U.S. dollar, adding further gains in EUR/USD. At 18:15 GMT, the Industrial Production in May surged to 0.8% against the projected 0.6% and supported the greenback. The Capacity Utilization Rate remained flat with the forecasts of 75.2%. At 19:00 GMT, the Business Inventories declined to -0.2% against the expected-0.1% and supported the U.S. dollar. The NAHBB Housing Market was reduced to 81 against the anticipated 83 and weighed on greenback that added gains in EUR/USD.

The central bank of the U.S. will announce its latest decision on monetary policy on Wednesday, where the Fed is expected to maintain its accommodative policy throughout the year. However, as the labor market has shown improvements and the economic growth has started moving towards recovery, there are chances that the rising price pressures would force Fed to start thinking about tapering the asset purchases. These hopes also kept market participants cautious from placing any strong bid ahead of the decision. Hence, the U.S. dollar remained primarily flat and kept the currency pair EUR/USD consolidated.

**

EURUSD Intraday Technical Levels**

Support Resistance

1.2099 1.2148

1.2075 1.2173

1.2050 1.2196

Pivot Point: 1.2124

EUR/USD - Technical Outlook

The technical side of the EUR/USD pair hasn't changed a lot as the pair continues to trade at the 1.2128 level, facing immediate resistance at the 50% Fibonacci correction level of 1.2145. Bullish crossover of 1.2142 level exposes the EUR/USD price towards 61.8% Fibonacci retracement level of 1.2154. On the downside, the pair's support stays at 1.2131 and 1.2116 levels. The 50 periods EMA suggests an upward trend in the EUR/USD pair and supports it at the 1.2124 level. The MACD has crossed over 0 levels, supporting a bullish trend in the EUR/USD pair. The pair's support holds at 1.2131 and 1.2116 while the resistance stays at 1.2142 and 1.2154 levels. Although the technical side isn't offering anything new, today's primary focus will remain on the U.S. monitory policy meeting. It has the potential to drive sharp price action in the U.S. dollar and related currency pairs. All the best!

Bitcoin Heading towards 38.2% Fibo Level

The BTC/USD was closed at $40139.0 after placing a high of $40708.8 and a low of $39726.0. After rising sharply for two consecutive sessions, BTC/USD reversed its course on Tuesday and placed minor losses for the day. The losses in bitcoin could be a price correction or profit-taking, but there were also some adverse developments in the market. The Dutch Bureau for Economic Analysis director, Pieter Hasekamp, called for a complete ban on bitcoin. He published an essay titled "The Netherlands must ban bitcoin" and argued that bitcoin does not support money's three functions. The Netherlands must ban the mining, holding, or trading of the leading cryptocurrency.

He explained that bitcoin has no intrinsic value and is only considered valuable because others might accept it. He added that bitcoin does not support the functions like a unit of account, a means of payment, or a store of value. Finally, he put forward the most popular drawback of bitcoin-related to security concerns, including the fact that it can be used in illegal activities. There were high risks of scams involved with the usage of bitcoin. Besides, the U.S. Securities and Exchange Commission issued its regulatory agenda for 2021 in front of the public. The agenda conspicuously missed any mentioning of cryptocurrencies, blockchain, or specific tokens like bitcoin or Ethereum in its list of regulatory priorities for the year.

The omission of cryptocurrencies from the possible policy punch list of SEC was surprising as the recent issues regarding cryptocurrencies were not something that could be ignored, such as the mining energy consumption, increasing ransomware attacks paid in bitcoin, the potential threat of private cryptocurrencies to sovereign currencies declared by IMF and politicians and much more.

None of these reasons were enough for SEC to include regulation of cryptocurrencies in its list of priorities. This fact shocked the investors and weighed over the prices of bitcoin on Tuesday. Meanwhile, the law enforcement agents in China have arrested approximately 1,100 individuals on charges of using crypto in money laundering. This move by China gave a clear reminder that China is actively working towards a society where crypto holds no existence.

Additionally, China has long been home to more than half the world's bitcoin miners. Still, now Beijing has decided to send them out as the government has called for a severe crackdown in bitcoin mining and trading activities. These negative developments added further losses in BTC/USD prices on Tuesday. However, on Wednesday, the BTC/USD is trading with a bullish bias; let's take a look at the technical side of the market.

BTC/USD Intraday Technical Levels

Support Resistance

39255.53 40985.23

38549.87 42009.27

36820.17 43738.97

Pivot Point: 40279.57

BTC/USD - Technical Outlook

Bitcoin's bullish bias dominates in the market as the BTC/USD is trading at the 40,180 level. The BTC/USD pair has violated the symmetrical triangle pattern that's driving buying trends in BTC on a daily timeframe. On the higher side, the BTC/USD has the potential to go after 42,150 and 45,379 levels, primarily because of the symmetrical triangle breakout. Whereas 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!

U.S. Core Retail Sales in Focus!

Gold was closed at $1868.60 after placing a high of $1875.85 and a low of $1846.20. Gold extended its decline on Monday and reached its lowest level since May 17 amid the strength in the U.S. dollar. Yellow metal-faced heavy pressure and dropped to its lowest in a month as the speculations around the market started to get a pace that the Federal Reserve might present some timetable for tapering the asset purchases in its upcoming policy meeting scheduled later this week.

The U.S. Dollar Index that measures the greenback value against the basket of six major currencies remained flat near 90.50 handles. In contrast, the U.S. Treasury Yields on benchmark 10-year note staged a heavy recovery and reached above 1.50%, ultimately added strength to the U.S. dollar. The Federal Reserve officials have repeatedly said that the recent price hike will not last long and was temporary. They were encouraged by the difference between prompted demand from the reopening of the economy and supply chain lags. Chairman Jerome Powell is also expected to favor monetary measures and keep the monetary policies accommodative until 2023.

Speculation of tapering talks in upcoming policy meetings kept the U.S. dollar higher and gold metal under pressure on Monday. However, many analysts were still not expecting the central bank to start discussing scaling back its asset purchasing program until late August, when the annual conference in Jackso Hole, Wyoming, is scheduled. The coronavirus pandemic prompted central banks worldwide to introduce quantitative easing last year and cut interest rates. The U.S. Federal Reserve also followed the trend and started $80 billion in Treasury bond purchases and $40 billion in mortgage bond purchases. Fed also reduced its interest rates near zero at 0.25%, and it has been more than a year that the rates have been this low as the United States fighting with the pandemic.

Market participants are hopeful that the rising price pressure and inflation figures will force Federal Reserve to start talking about scaling back from easing measures to support the economy. If any hint about tapering or interest rate hike would be seen in the upcoming Fed policy meeting, then the U.S. dollar will see a massive spike in its value that could drive yellow metal further lower and vice versa.

According to Johns Hopkins University, the U.S. reached another milestone, as the death toll due to coronavirus approached 600,000 on Monday. The COVID-19 pandemic has taken more lives in the United States than in any other country in the world. However, the governments around the U.S. have started easing the social distancing rules and relaxing the mask requirement. Businesses have also fully reopened due to a steady decline in coronavirus cases and sustained progress in the vaccination campaign. This also helped the U.S. dollar gather strength and kept precious metal below the $1,900 level.

Gold Intraday Technical Level

Support Resistance

1851.25 1880.90

1833.90 1893.20

1821.60 1910.55

Pivot Point: 1863.55

Gold - XAU/USD - Technical Outlook

The precious metal gold is trading at a 1,867 level, exhibiting a bullish correction. On the 4 hour timeframe, gold has completed 38.2% Fibonacci correction level at 1,866 and 1,873 levels. The support continues to hold around 1,858 on the lower side, which marks a 23.6% Fibonacci retracement level. The MACD is holding in a selling zone, supporting strong bearish bias, along with the 50 periods EMA is extending resistance at 1,881 level. On Tuesday, the investor’s focus stays on the U.S. Retail Sales and Core Retail Sales data as these indicators typically drive price action in gold and the U.S. dollar. All the best!

Bullish Retracement in Play

The EUR/USD closed at $1.2106 after placing a high of $1.2196 and a low of $1.2092. EUR/USD currency pair extended its losses on Friday and dropped to its lowest since May 14 on the back of rising strength in the U.S. dollar. The EUR/USD currency pair faced pressure on Friday amid the rebound in the U.S. dollar that gathered strength after an upbeat U.S. CPI data release from the U.S. Labor Department. Another factor involved in the greenback strength on Friday was the latest report from the University of Michigan, which suggested increasing consumer confidence and pushed dollars higher that kept the EUR/USD pair under pressure.

The U.S. Dollar Index reached the 90.60 level on Friday as the U.S. Treasury yields rose and turned green after falling for six consecutive sessions. The discussions about easing bond purchases due to increasing inflationary pressures could further increase the yields on 10-year Treasuries. Furthermore, due to the economic boom in the U.S., the dollar also has an upside potential for the short-term that suggested further pressure over EUR/USD.

On the data front, at 11:00 GMT, the German WPI in May surged to 1.7% against the expected 0.9% and supported the single currency Euro that further capped losses in EUR.USD pair. At 13:00 GMT, the Italian Quarterly Unemployment Rate declined to 10.4% against the projected 10.5% and supported Euro, limiting the downward momentum in EUR/USD pair.

On the U.S. front, at 19:00 GMT, the Prelim UoM Consumer Sentiment in June surged to 86.4 against the predicted 84.1 and supported the U.S. dollar that added further loss in EUR/USD currency pair. On the other hand, the Prelim UoM Inflation Expectations remained unchanged at 4.0%.

On the other hand, Euro remained under pressure as the cases of the Delta variant of the coronavirus first detected in India continued to surge in Europe. The rising number of infections urged Boris Johnson to postpone lifting all restrictions on June 21. This also weighed on the single currency Euro and added further downside pressure on EUR/USD pair. On June 16, the Federal Reserve will announce its monetary policy decision where the central bank is highly anticipated to maintain its current policy despite a sharp surge in the prices. Fed officials have repeatedly said that rising inflation would be temporary as it came in because of the prompted demand and supply chain lags. It means the chances that talks about tapering will be discussed during this meeting are very low.

EURUSD Intraday Technical Levels

Support Resistance

1.2104 1.2114

1.2099 1.2119

1.2094 1.2124

Pivot Point: 1.2109

EUR/USD - Technical Outlook

The EUR/USD pair is trading with a bullish bias at the 1.2139 level, facing immediate resistance at the 50% Fibonacci correction level of 1.2145. Bullish crossover of 1.2142 level exposes the EUR/USD price towards 61.8% Fibonacci retracement level of 1.2154. On the downside, the pair’s support stays at 1.2131 and 1.2116 levels. The 50 periods EMA suggests an upward trend in the EUR/USD pair and supports it at the 1.2124 level. The MACD has crossed over 0 levels, supporting a bullish trend in the EUR/USD pair. The pair’s support holds at 1.2131 and 1.2116 while the resistance stays at 1.2142 and 1.2154 levels. All the best!

Symmetrical Triangle Breakout

The BTC/USD was closed at $40,500 after placing a high of $40,732 and a low of $38,812. Bitcoin extended its gains for the second consecutive session and reached above $40,000 level. The U.S. billionaire hedge fund manager and a prominent legacy investor Paul Tudor Jones III believed that bitcoin was as sure as math. He wanted to have at least 5% of his portfolio in it. He doubled down his bitcoin support by insisting that it was reliable, secure, honest, and 100% certain. He has been vocally praising the leading cryptocurrency ever since the coronavirus pandemic broke out last year. He argued that buying bitcoin would ultimately protect him from the growing threat of inflation in the U.S. as the Fed has initiated radical measures to fight the financial consequences of the pandemic by printing excessive amounts of dollars. Bitcoin saw a price surge after these comments from Jones.

Meanwhile, the software firm MicroStrategy said it had completed its $500 million offerings of secure notes. The funds after accounting for discounts, expenses, and commissions will be used to purchase more Bitcoin. The secured notes are due in 2028, and they bear interest rates at an annual rate of 6.125%. This news also added strength to bitcoin prices. In addition, a Central American country, El Salvador, became the first country to adopt bitcoin as a legal tender last week. President Nayib Bukele praised the potential of the cryptocurrency and made it a remittance currency for Salvadorans overseas.

According to Reuters, the small transfers of bitcoin to El-Salvador jumped over four-fold in May from a year ago; however, they still represent a small amount compared to remittances sent in dollars. According to World Bank, El Salvador is heavily reliant on remittances as about$6 billion were transferred using traditional money in 2019, which accounted for about 5th of its GDP, the highest proportions in the world.

However, the Central American Bank of Economic Integration (CABEI) has said that it will work with El Salvador to implement BTC as its second legal tender. It will be done by creating a team in collaboration with El Salvador’s Ministry of Finance, the Central Reserve Bank of El Salvador, and its central bank. This news also added strength to the prices of bitcoin and pushed them on the upside.

BTC/USD Intraday Technical Levels

Support Resistance

39297.4 41217.4

38094.7 41934.7

37377.4 43137.4

Pivot Point: 40014.7

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BTC/USD - Technical Outlook**

On Tuesday, the BTC/USD price continues trading with a bullish bias at the 40,268 level after violating the downward trendline and symmetrical triangle resistance level of 40,403 level. For the moment, Bitcoin is gaining support at 39,120 level along with a resistance of 42,058 level. 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 pair and the Three White Soldiers candlestick pattern. Bitcoin’s resistance stays at 42,058 and 45,706 levels today. All the best!