Three Black Crows Pattern Driving Sell!

Gold prices were closed at $1879.60 after placing a high of $1906.20 and a low of $1876.10. On Friday, gold prices edged above $1900 during early trading hours on the back of a pullback in dollar and lower bond yields after the U.S. inflation data suggested that the rise in inflation was inadequate to change the easy monetary policy of the Federal Reserve. However, the yellow metal could not enjoy its movement above the 1,900 level and started to drop after the U.S. economic data came upfront. Later, the U.S. dollar gathered strength against its rival currencies and moved higher. The DXY turned green on Friday after the U.S. Treasury yields on the benchmark 10-year note pulled back from the 3-months lowest level and turned green after six days of losses.

The U.S. Dollar Index that measures the greenback value against the basket of six major currencies rose and reached the $90.60 level. The strong comeback in the U.S. dollar came in after the U.S. Treasury yields on Friday broke their bearish streak of 6 days and gave strength to the dollar that ultimately dragged gold prices downward. On the data front, at 19:00 GMT, the Prelim UoM Consumer Sentiment in June rose to 86.4 against the projected 84.1 and supported the U.S. dollar that added further loss in the yellow metal; the Prelim UoM Inflation Expectations remained flat at 4.0%.

As the world's largest economy rebounds strongly from the coronavirus pandemic, U.S. inflation has jumped to its highest rate since 2008. In May, the CPI surged to 5% at an annual rate, up from the previous 4.2%, and recorded the highest level since2008. As per the U.S. Bureau of Labor and Statistics, U.S. inflation had steadily climbed since the start of this year when it was at 1.4%.

In recent weeks, the U.S. Dollar Index has fluctuated as traders were unsure if the inflationary pressure could force the FED's Open Market Committee into an earlier tapering of the stimulus as the economy reopened after the pandemic. However, the repeated comments from Fed officials insisted that inflation would be transitory and calmed the concerns. Whereas, the market was also anticipating that Fed might be close to giving hints on the timing for decreasing its asset-purchase program.

On the other hand, on Friday, at G7 Summit, Beijing's top diplomat condemned the small circle diplomacy of Washington. At the same time, the U.S. administration of Je Biden also maintained a firm line against China. Meanwhile, they were also hoping to rally allies to counter Beijing's trade, human rights, and technology.

In response to this, China's top diplomat hit back against the claims by the U.S. administration and urged the U.S. to resolve its human rights violations, and warned them not to utilize the human rights issue as a pretext to interfere in the internal affairs of other countries arbitrarily. The rising tensions between both countries kept the safe-haven demand from the U.S. dollar high that weighed on the precious metal as both share a negative correlation.

Gold Intraday Technical Level

Support Resistance

1873.95 1878.45

1872.35 1881..35

1869.45 1882.95

Pivot Point: 1876.85

Gold - XAU/USD - Technical Outlook

On Monday, the yellow metal gold is trading with a strong bearish bias at 1,864, disrupting the symmetrical triangle pattern. The triangle pattern supported gold around 1,876 levels, and now the same level is working as resistance for gold. Gold's next support holds around 1,855 level on the lower side, and break out of this level exposes gold towards 1,843 level. On the higher side, gold's resistance stays at 1,876 level today. The bearish bias remains dominant today. All the best!

Euro Enters Oversold Region!

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 an increase in 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.

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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 technical side of the EUR/USD pair shows a dramatic selling trend as its prices fell from 1.2144 level to the double bottom support level of 1.2103 level. On the lower side, violation of the 1.2110 level can extend the selling trend until the support area of 1.2060 level. The EUR/USD has violated the symmetrical triangle pattern on the lower side, demonstrating strong selling biases in the EUR/USD pair on the four hourly timeframes. The MACD is still suggesting selling bias, but it’s currently in the oversold zone. This means the pair needs to show a little bit of bullish correction before breaking below the 1.2089 support level. Thus, the EUR/USD’s resistance holds around 1.2110 and 1.2144 levels while the support stays at 1.2060 levels today. All the best!

Downward Trendline Breakout

The BTC/USD was closed at $39,004.0 after placing a high of $39,021.1 and a low of $34,984.0. Bitcoin reached near $40,000 level on the weekend as the CEO of Tesla, Elon Musk, said that the company would resume its bitcoin transactions on one condition. The billionaire said that Tesla would restart allowing bitcoin transactions to confirm reasonable clean energy usage by miners and the positive trend. This reaction from Musk came in after the CEO of a South African asset manager Sygnia, said that the tweets of Musk on bitcoin prices were manipulating the market and should be investigated by the U.S. Securities and Exchange Commission.

The comments of Musk about cryptocurrencies on social media often send prices upside or downside, but they also appeared to have a bit immediate effect. On Sunday, bitcoin prices rose about 8% after Musk talked about resuming bitcoin transactions in his company on one condition of using clean, renewable energy. Furthermore, the latest dip in bitcoin prices has encouraged Canadian investors to take advantage of low prices, and hence, the demand for bitcoin has increased in Canada. Despite the steep market correction, the Canadian Bitcoin ETF added to its holdings and offered further evidence that market participants were capitalizing on heavily discounted prices.

According to Bybt data, the Purpose Bitcoin ETF has added about 285 BTC over the past seven days and nearly 2000 BTC since May 15. The Canadian Bitcoin ETF launched in February has accumulated 19,692 BTC, and the numbers are rising day by day. This news also supported the rising prices of BTC/USD.

On the other hand, the Investment Bank JPMorgan Chase has warned against a potential further decline in bitcoin prices. The bank said that it expects an oncoming bear market in the bitcoin. The analysts at the bank looked at the trend in bitcoin futures and warned that an unusual development reflected weak institutional demand for bitcoin at the moment. However, several people disagreed with the analysis, and BTC/USD kept rising for the day.

Meanwhile, the President of the European Central Bank, Christine Lagarde, shared her views about making bitcoin legal tender by El Salvadore. She assured that the policy of the central bank on bitcoin and other cryptocurrencies has not changed. She also stated that having a dual tender in a particular economy could raise difficult issues. Lagarde said that the move from El-Salvadore had not changed Central Bank’s approach towards crypto assets.

BTC/USD Intraday Technical Levels

Support Resistance

36318.1 40355.4

33632.6 41706.8

32281.1 44392.5

Pivot Point: 37669.7

BTC/USD - Technical Outlook

On Monday, the BTC/USD price continues trading with a bullish bias at 39,268 level after violating the downward trendline resistance level of 36,953 level. For the moment, Bitcoin is gaining support at 38,120 level along with a resistance of 40,486 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 40,486 and 41,706 levels today. All the best!

Prelim UoM Consumer Sentiment in Focus!

The precious metal edged higher and ended its day green after declining in the early trading hours. During European trading hours, the yellow metal remained under pressure and dropped below the $1872 level. However, gold retreated and gathered strength against the U.S. dollar on Thursday during late trading hours after the release of U.S. inflation data.

The U.S. inflation jumped to its highest level since 2008 in May as the world’s largest economy was rebounding strongly from the pandemic crisis. According to the U.S. Bureau of Labor Statistics, the CPI rose in May at an annual rate of 5%, up from April’s 4.2%. Since January, inflation has been steadily rising when it was at 1.4%.

Markets in the U.S. have seen a surge in the fears of rising prices with investors concerning that pent-up demand and the disruptions in the supply chain would create inflationary pressures. Hence they forced central bankers at the Federal Reserve to decrease their stimulus program. However, after the release of better-than-expected data, the U.S. stock rallied and weighed on the greenback. The traders projected that the inflationary push would be temporary; this will allow Fed to put off tapering a bond-buying policy that has been pumping up money to the global markets.

The U.S. Dollar Index that measures the greenback value against the basket of six major currencies fell on Thursday and continued its bearish momentum to reach 89.99 level. On the other hand, the benchmark Treasury yield on a 10-year note extended its slide for the 4th consecutive session and fell sharply on Thursday to reach 1.43%. At 17:30 GMT, the Consumer Price Index from May surged by 0.6% against the forecasted 0.4% and supported the U.S. dollar. The Core CPI from May also rose by 0.7% against the expected 0.5% and supported the U.S. dollar. The Jobless Claims from last week surged to 376K against the expected 370K and weighed on the U.S. dollar. At 23:00 GMT, the Federal Budget Balance dropped to -132.0B against the expected -245.0B and weighed on the U.S. dollar.

The continued economic recovery from the post-pandemic boosted demand pushed the U.S. consumer prices in May to the highest level since 2008. Whereas, the weekly jobless claims also fell to their lowest level in nearly 15 months but came in high against the predicted figure and weighed on the U.S. dollar that pushed gold higher.

Gold Intraday Technical Level

Support Resistance

1889.30 1901.70

1883.10 1907.90

1876.90 1914.10

Pivot Point: 1895.50

Gold - XAU/USD - Technical Outlook

On Friday, the precious metal gold is trading with a bullish bias at 1,899, having crossover above the downward trendline. On the 4- hour timeframe, the downward trendline was extending solid resistance to gold at 1,897 level, and this same level is now working as a support for gold. Gold’s immediate resistance stays at the 1,903 level, and a bullish breakout of this level exposes gold’s prices towards the next resistance area of 1,910 and 1,916. The MACD is closing histograms over 0 levels that’s supporting buying trend in gold. The 50 periods EMA is also keeping an upward trend in gold. After CPI figures yesterday, the focus shifts to the UoM Consumer Sentiment as this typically drives excellent price action in the market. Good luck!

European Manufacturing Production Ahead!

The EUR/USD closed at $1.2169 after placing a high of $1.2195 and a low of $1.2142. EUR/USD currency pair remained lower for the day amid the unchanged monetary policy from the European Central Bank and higher than expected U.S. CPI data. ECB held its June policy meeting on Thursday and decided to leave the interest rates and ease unchanged. They said that they would continue providing their support to the economy through different programs. Whereas, the President of ECB, Christine Lagarde, offered mixed remarks and suggested that price pressures were subdued and that it would be too early to start discussing tapering.

On Thursday, the central bank provided no signal about when it might start declining its stimulus program. The bank also revealed its expectations that inflation might remain below its target in the foreseeable future. According to Christine Lagarde, inflation has been rising over the few months, mainly on the back of base effects, increase in energy prices, and transitory factors. Inflation is likely to rise further in the second half of the year until the temporary factors start fading out. This forced ECB to remain supportive of the economy as a retreat could accelerate a concerning rise in borrowing costs and affect the recovery.

On the data front, at 10:30 GMT, the French Final Private Payrolls for the quarter surged to 0.5% against the expected 0.3% and supported the single currency Euro. At 11:45 GMT, the French Industrial Production in April dropped to -0.1% against the expected 0.5% and weighed on the Euro and added loss in EUR/USD pair. At 13:00GMT, the Italian Industrial Production surged to 1.8% against the projected 0.3% and supported Euro that further caped upside in EUR/USD.

From the U.S. side, at 17:30 GMT, the Consumer Price Index from May rose to 0.6% against the anticipated 0.4% and supported the U.S. dollar and added further downward momentum in EUR/USD. The Core CPI from May also surged to 0.7% against the predicted 0.5%, supported the U.S. dollar, and pushed EUR/USD higher. The Unemployment Claims from last week soared to 376K against the estimated 370K and weighed on the U.S. dollar. At 23:00 GMT, the Federal Budget Balance declined to -132.0B against the estimated -245.0B and weighed on the U.S. dollar, limiting the further decline in EUR/USD.

The U.S. dollar also remained stressed on Thursday despite the better-than-expected U.S. inflation data. The U.S. Bureau of Labor and Statistics published that CPI climbed to 5% in May every year from April’s 4.2 and supported the U.S. dollar. However, the weekly jobless claims made by the Americans showed a hike during last week and weighed on the greenback. The U.S. dollar Index remained red for the day and dropped below 90 levels amid the sharp decline in U.S. benchmark Treasury yields, which fell to 1.47%. Despite the weak U.S. dollar for the day, the currency pair EUR/USD remained depressed throughout Thursday amid ECB policy results.

EURUSD Intraday Technical Levels

Support Resistance

1.2159 1.2208

1.2140 1.2238

1.2110 1.2256

Pivot Point: 1.2189

EUR/USD - Technical Outlook

The technical side of the EUR/USD pair remains primarily unchanged as the pair maintains a narrow trading range of 1.2215 – 1.2170 level. On the 4-hour timeframe, the EUR/USD pair has closed a symmetrical triangle pattern that’s suggesting indecision among traders. The EUR/USD pair crosses over 50 periods EMA, suggesting odds of a bullish trend continuation. The MACD indicator is tossing above and below zero, demonstrating neutral sentiment among the traders. The EUR/USD’s immediate resistance stays at 1.2215 and 1.2258 levels along with a support level of 1.2170 and 1.2140 level. All the best!

50 EMA Set to Underpin Bitcoin Price

The BTC/USD was closed at $36,649.2 after placing a high of $37,933.0 and a low of $36,559.0. Bitcoin came under pressure on Thursday and gave up a minor portion of its profits earned the previous day after the world’s most influential banking regulator, the Bank for International Settlements (BIS), came in front.

The Basel Committee from BIS proposed that banks with bitcoin exposure must set aside enough capital to cover losses on many bitcoin holdings in full. This step would prevent the widescale use of cryptocurrency by big lenders. The Basel Committee, comprised of members from the world’s leading financial centers, has proposed splitting crypto assets into two groups: those eligible for treatment under the existing framework and the others that are not eligible. According to the announcement, bitcoin and similar cryptocurrencies will fall into the second category as they pose additional and higher risks.

According to the proposal by Basel Committee, the risk weighting of 1250% for Bitcoin, Ethereum, and other cryptocurrencies. This risk would require banks to hold capital equivalent to the face value of the exposure. The Committee is accepting responses from stakeholders with a deadline for submission on September 10. Despite repeated warnings from central banks worldwide that investors in the cryptocurrency must be ready to lose all their money, El Salvador became the world’s first country to adopt bitcoin as legal tender. The major economies like the U.S. and China have adopted a stricter approach to developing their own central bank digital currencies. The Basel Committee stated that bank exposures to crypto-assets were limited. If capital requirements are not introduced, their continued growth could increase risks to global financial stability from cyber attacks, fraud, money laundering, and terrorist finance.

On the other hand, China expanded its bitcoin mining ban as two Chinese provinces named Qinghai and Xinjiang took steps towards limiting bitcoin mining. The miners in the provinces reported that they were ordered not to start any new mining projects as all existing mining projects have also stopped. This news also added weight to bitcoin prices and added in its losses on Thursday.

BTC/USD Intraday Technical Levels

Support Resistance

36161.2 37535.2

35673.1 38421.1

34787.2 38909.2

Pivot Point: 37047.1

BTC/USD - Technical Outlook

On Friday, the BTC/USD pair is trading with a slightly bullish bias at 37,115 level. Bitcoin tested the strong resistance level of 38,120 level extended by a downward trendline on the 4-hourly timeframe. Bitcoin is still likely to face resistance at the 38,120 level, and a bullish breakout exposes the pair’s price towards the next resistance area of 40,405 triple top level. Speaking about Bitcoin’s support, the 50 EMA level is underpinning the BTC around 35,906 level. Bearish crossover of this level exposes Bitcoin price towards next support level of 33,210 level. All the best!

U.S. Inflation Figures in Limelight!

Gold extended its loss for the second consecutive session and dropped below the $1900 level. However, gold remained in a tight range during the session as investors were looking ahead to the U.S. inflation data that could change the stance of the monetary policy set by the Federal Reserve. The U.S. Treasury Yield on the 10-year note fell sharply on Wednesday and reached 1.47%, its lowest level since May 07.

The U.S. Dollar Index that measures the greenback value against the basket of six major currencies, remained depressed throughout the day. It managed to recover all of its daily losses and even shifted its movement on the opposite side. The U.S. dollar dropped during the early trading hours on Wednesday but managed to recover and turned its movement upside with minor gains. Despite remained under consolidation, the U.S. dollar ended its day above the $90.15 level and added weight on precious metal prices.

The decline in U.S. Treasury yield for the second consecutive session came in after traders positioned themselves for inflation data scheduled to release on Thursday. The strong demand at a mid-day auction pushed the benchmark 10-year yield lower for the first time since May 07, below 1.49%. The declining demand for treasury yield could also be attributed to a breakdown in talks between U.S. President Joe Biden and a Republican Senator on infrastructure spending. Since there was no deal secured or negotiations were continued, and a later deal is a projector, then it means less future Treasury issuance, hence lower yields for the day.

The rising demand after the economy has reopened from the pandemic-induced lockdowns might continue to push up inflation. However, many economists have predicted that the price surges could be temporary.

Markets were moving under the notion that the CPI report on Thursday will come in better than expected and push the Federal Reserve to step back from its ultra-loose monetary policy. These expectations were driving the prices of the U.S. dollar higher and gold lower. However, the Federal Reserve officials have repeatedly said that the price pressures were temporary and would fade away.

Gold is considered an inflation hedge, and it tends to surge in value after central banks and governments around the world introduce massive stimulus measures. Now that economies have started recovering from the losses incurred due to the pandemic crisis, the Fed's expectations might start tapering increased and weighed on the yellow metal prices.

Gold Intraday Technical Level

Support Resistance

1884.33 1905.64

1874.47 1916.87

1863.24 1926.84

Pivot point: 1895.67

Gold - XAU/USD - Technical Outlook

Gold traded sideways in between a narrow trading range of 1,896 – 1,881 level. Lately, the symmetrical triangle pattern supported the metal and kept its trading within a narrow trading range. However, the strong dollar is pushing gold prices lower. As we can see, the yellow metal gold has violated the symmetrical triangle pattern on the 4-hourly timeframe, and now it's heading lower towards the next support area of 1,881 level. Continuation of a bearish trend and break out of the immediate support level of 1,881 level extends the selling trend until the next support level of 1,869 and 1,855. Gold's resistance continues to hold around 1,896 and 1,903 levels today. Let's keep an eye on the U.S. CPI figures, as these can trigger a sharp movement in gold. All the best!

Choppy Session Continues!

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

2511.17 2660.39

2411.69 2710.13

2361.95 2809.61

Pivot Point: 2560.91

ETH/USD - Technical Outlook

The ETH/USD consolidates at a 2,529 mark, having bounced off over the double bottom area of 2,326. On the 4-hour chart, the ETH/USD pair is now facing resistance at 2,547 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 2,547 level can lead the ETH/USD pair towards the 2,662 level. The 50 periods EMA is extending, suggesting bearish bias and its extending resistance at 2,662 level. On the higher side, a bullish crossover of 2,662 level can extend buying trend until 2,844. All the best!

Bitcoin Retesting Upward Channel!

The BTC/USD was closed at $37,347 after placing a high of $37,490 and a low of $32,673. BTC/USD reversed its course and jumped higher on Wednesday as bitcoin adoption was gaining ground in various countries, especially in Latin America, despite China and other major economies were banning cryptocurrencies. The bill by President of El Salvador Nayib Bukele that will recognize Bitcoin as a legal tender in the country passed Congress's votes with a supermajority.

According to Bukele, the government would allow up to 90 days to place a correct infrastructure. He said that all other businesses would have to accept bitcoin just like the U.S. dollar as it would be legal tender. He explained that if merchants go to Mexico, they will have to take pesos, and in the case of El Salvador, merchants could use bitcoin just like the U.S. dollar. He also announced that the government would also release an official BTC wallet; however, it will not be mandatory. The government also stated that about $150 million worth of bitcoin would be kept under a trust fund within its development bank to assume the risk of dealing with merchants.

On the other hand, Billionaire Marc Lasry has said that he wishes to buy more bitcoin. He said that the probability that more and more people were using bitcoin was keeping the prices up. He added that the rising pressure came in quicker than he thought it would, and he now wished that he would have bought more bitcoins. Furthermore, Iran was also looking for ways to introduce a legal framework for cryptocurrencies as bitcoin mining remained under restriction. The President of Iran, Hassan Rouhani, stressed the need to legalize the activities related to cryptocurrency to preserve and protect national interests. This news came in after EL-Salvador legalizes bitcoin and many countries started thinking about it too.

Additionally, the Business Intelligence firm MicroStrategy has eyes for more bitcoin investment as the CEO of the company, Michael Saylor, revealed that the firm was planning to add $400 million from the sale of senior secured notes later be used to buy more bitcoin. MicroStrategy holds about 92,079 bitcoins that were acquired at an average prieof$24,450 per coin. This news also added strength in BTC/USD on Wednesday.

BTC/USD Intraday Technical Levels

Support Resistance

32060.2 34257.4

30705.3 35099.7

29863.1 36454.6

Pivot Point: 32902.5

BTC/USD - Technical Outlook

On Thursday, the leading cryptocurrency pair BTC/USD is trading with a bullish bias at 37,115 level on the technical front. The leading crypto pair has closed three white solider’s candlestick patterns suggesting odds of bullish trend continuation. In addition to this, the BTC/USD has also crossed over the 50 periods EMA at 36,150 level, and now this level is working as a support. The leading indicators such as MACD are about to exhibit a bullish crossover, and this typically happens when the market trend shifts from bearish to bullish. For now, Bitcoin’s immediate support holds at 35,600, and below this, the next support stays at 34,745. At the same time, the resistance holds around 37,680 and 39,387 levels. All the best!

Choppy Session in Play!

Gold was closed at $1895.75 after placing a high of $1906.15 and a low of $1886.15. Gold reversed its course once again and ended its day with a loss on Tuesday after rising for the previous two sessions. Gold fell as the strong U.S. dollar countered a slip in the U.S. Treasury yields on the back of investors' behavior that was silent ahead of the U.S. inflation figures that could influence the Federal Reserve's timeline to taper monetary support.

The U.S. Dollar Index that measures the greenback value against the basket of six major currencies, rose 0.2% to reach 90.18 and lowered the appeal for bullion for holders of other currencies. However, the benchmark U.S. Treasuries on the 10-year note fell to a one-month lowest level at 1.51%. Analysts believed that the report related to the U.S. consumer price index scheduled to release on Thursday could raise concerns that the Federal Reserve will start moving back towards its wide-open monetary policy. Hence, gold prices dropped on Tuesday. Supporting this viewpoint, U.S. Treasury Secretary Janet Yellen said that a slightly higher interest rate environment could benefit society and the Federal Reserve.

On the data front, at 0:00 GMT, the Consumer Credit from April declined to 18.6B against the expected 19.5B and weighed on the U.S. dollar and caped further losses in gold. At 15:00 GMT, the NFIB Small Business Index also declined to 99.6 against the projected 101.2 and weighed on the U.S. dollar and limited the decline in yellow metal prices. At 17:30 GMT, the Trade Balance from April remained flat with projections of -68.9B. At 19:00 GMT, the JOLTS Job Openings rose in April to 9.29M from the predicted 9.18M and supported the U.S. dollar that added further loss in gold prices.

Meanwhile, there could be another reason behind the rising appeal for gold as an inflation hedge: the recent decline in cryptocurrencies as the crypto market crash feared investors and brought them back to safe-haven metal. On the other hand, the Johns Hopkins University, the overall caseload of coronavirus infections throughout the globe surpassed 173.5 million. The death toll triggered by the deadly virus also topped above 3.73M throughout the world. Among the worst-hit countries by the coronavirus, the United States remained at the top with the highest number of cases above 33.3M and deaths more than 597K. The other countries with more than 3 million cases included Brazil, France, Turkey, Russia, the U.K., Italy, Germany, etc. While in terms of deaths, Brazil comes second after the U.S., and India comes third, followed by Mexico, the U.K., Italy, Russia, and France.

Gold Intraday Technical Level

Support Resistance

1855.90 1901.50

1838.50 1929.70

1810.30 1947.10

Pivot Point: 1884.10

Gold - XAU/USD - Technical Outlook

The technical side of precious metal gold mostly remains unchanged due to the lack of high-impact macroeconomic events. The yellow metal gold is trading at 1,892 level, crossing below 50 periods exponential moving averages at 1,894 level. At the moment, this 50 periods exponential moving average is extending resistance at 1,894 area, and closing of gold's price below this EMA is adding selling pressure on gold. While the MACD is crossing over 0 points, suggesting odds of bullish trend continuation. Well, as we know, the market is choppy amid a lack of market-moving events, so investors are waiting for a solid reason to drive a breakout. Currently, gold's immediate resistance stays at a 1,903 level along with a support level of 1,883. All the best!