German Trade Balance Ahead!

The EUR/USD closed at $1.2171 after placing a high of $1.2196 and a low of $1.2163. EUR/USD pair reversed its course on Tuesday and posted minor losses for the day amid the comeback in the U.S. dollar and dismal European macroeconomic data release. The U.S. dollar was onboard solid after the investors were waiting cautiously to release the U.S. CPI report scheduled for Thursday. Investors believed that it could trigger a tapering of monetary stimulus by the Federal Reserve that could be beneficial for the dollar; hence greenback gathered strength over prospects of tapering and added further losses in the EUR/USD pair.

The U.S. Dollar Index that measures the dollar's value against its rival major six currencies rose about 0.2% on Tuesday. At the same time, the U.S. Treasury yields on the 10-year note fell to their lowest level of the month at 1.51%.

On the data front, at 10:55 GMT, the German Industrial Production from April declined to -1.0% against the expected 0.3% and weighed on single currency Euro and added loss in EUR/USD pair. At 11:45 GMT, the French Trade Balance also dropped to -6.2B against the projected -5.3 and weighed on the single currency Euro and further dragged the currency pair lower. At 13:00 GMT, the Italian Retail Sales from April also dropped to -0.4% against the expected 0.2% and weighed on Euro.

At 14:00 GMT, the ZEW Economic Sentiment fell to 81.3 against the projected 85.8 and weighed on Euro and added further downward momentum in EUR/USD pair. The German ZEW Economic Sentiment also remained depressed at 79.8 against the predicted 86.0 and weighed on Euro and added loss in EUR/USD pair. The Final Employment Change for the quarter remained flat at -0.3%. The Revised GDP for the quarter rose to -0.3% from the forecasted -0.6% and supported Euro and caped further loss in EUR/USD pair.

From the U.S. side, 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 EUR/USD pair. At 15:00 GMT, the NFIB Small Business Index declined to 99.6 against the projected 101.2 and weighed on the U.S. dollar and limited the decline in EUR/USD 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, which added further decline in the EUR/USD pair. The ZEW Economic Sentiment fell short of the expectations in June from both Germany as well as the whole of Europe. It indicated weak economic health that made the single currency Euro vulnerable against the U.S. dollar, adding further loss in the EUR/USD currency pair on Tuesday.

EURUSD Intraday Technical Levels

Support Resistance

1.2158 1.2191

1.2145 1.2209

1.2126 1.2223

Pivot point: 1.2177

EUR/USD - Technical Outlook

The EUR/USD is trading sideways between a narrow trading range of 1.2198 – 1.2163 level at the 1.2174 level. The EUR/USD pair holds below 50 EMA resistance area of 1.2184 level on the four hourly timeframes. The closing of candles below this level is supporting a selling bias in the EUR/USD pair. The EUR/USD's next support holds around the 1.2160 and 1.2149 mark on the lower side. Conversely, the pair's resistance holds around 1.2201 and 1.2225 levels. On the news front, eyes will remain on the German Trade Balance due to be released during the European session. Economists expect a negative figure, which may weigh on the EUR/USD pair today. All the best!

Symmetrical Triangle Pattern

The ETH/USD was closed at $2507.15 after placing a high of $2591.92 and a low of $2484.32. ETH/USD extended its decline for 2nd consecutive session o Tuesday despite the news that it was on track to surpass Bitcoin's market cap. According to Bloomberg, Ethereum's race to outperform Bitcoin was tied to several of its use cases. Ethereum is used as a platform where the DeFi industry works; NFTs also run on the Ethereum blockchain. Furthermore, the native token, Ether, plays an essential role in the ecosystem of the crypto market. The report suggested that Ethereum's market share has reached half of the market share of Bitcoin as it has been steadily eating the share of bitcoin.

Meanwhile, the CEO of Tesla and the big influencer, Elon Musk, agree with the co-founder of Ethereum, Vitalik Buterin, about a collaboration between Ethereum and Dogecoin. Buterin said that it would be amazing if we could have a secure bridge between Ethereum and Dogecoin. Ethereum co-founder talked about a potential collaboration between both coins, and Elon Musk, also known as Dogefather, appreciated the idea and agreed to Buterin.

Nevertheless, Dominic Williams, the founder of Dfinity and its Internet Computer, bashed the scaling solutions put forward by Ethereum and Polkadot for offering a disjoint user experience. He criticized the upcoming Ethereums ecosystem of layer-two solutions as it could expose users to counterparty security risks.

Ethereum decline on Tuesday could also be attributed to the rising prices of the U.S. dollar for the day as they both are negatively correlated. The U.S. Dollar Index (DXY) that measures the greenback value against the basket of six major currencies rose by 0.2% and reached the 90.18 level that added extra pressure on the prices of ETH/USD. The dollar was strong across the board, mainly because the investors were awaiting the release of the CPI report scheduled for Thursday. Investors believe that the CPI report will force Federal Reserve to start tapering the monetary measures, and hence, the dollar retreated.

ETH/USD Intraday Technical Levels

Support Resistance

2656.22 2740.51

2600.03 2768.61

2571.93 2824.80

Pivot Point: 2684.32

ETH/USD - Technical Outlook

The ETH/USD is trading at a 2,529 level, 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!

ZEW Economic Sentiment under Spotlight!

The EUR/USD extended its upward momentum for the second consecutive session and reached above the $1.2200 level. On Monday, the currency pair EUR/USD remained well supported from the weakness of the U.S. dollar and the strength in the single currency Euro. The Euro moved higher and remained firm against the U.S. dollar for the second day in a row. Europe was preparing to welcome tourists after the coronavirus lockdowns and travel restrictions. On Monday, Spain opened its borders to all vaccinated travelers that added a ray of hope to the market sentiment and pushed the riskier asset EUR/USD higher.

The lockdowns introduced around the world and European nations affected the economy of the world and all countries. The livelihood of many people was threatened after governments around the world started putting curfews, lockdown restrictions, restaurants, and tourism shutdown. This also frustrated many would-be travelers who were waiting for the lockdown to come to an end. Finally, the countries with GDP comprising a higher portion of the tourism industry, especially European nations, have unveiled plans to open up their borders for vaccinated people in summer.

This raised hopes that the European economy would return on track sooner than expected as Europe started its recovery and strengthened the single currency Euro. The rising strength of the Euro against the U.S. dollar gave further push to the already surging prices of the currency pair EUR/USD on Monday. The U.S. Dollar was weak across the board as the greenback came under pressure on inflation and interest rates concerns ahead of the release of U.S. Consumer Index data, scheduled to release on Thursday. Investors were awaiting the inflation report due later this week to know whether Federal Reserve was considering tapering the economic support measures or not. This also kept the U.S. Treasury yields lower for the day, around 1.5%and pushed EUR/USD pair higher.

On the data front, there was no data to be released from the U.S. while from the European side, at 10:58 GMT, the German Factory Orders from April dropped to -0.2% against the expected 0.4% and weighed on the single currency Euro that further caped gain in EUR/USD pair. At 13:30 GMT, the Sentix Investors Confidence for June rose to 28.1 against the expected 25.5 and supported the single currency Euro and added further strength in the EUR/USD pair.

EURUSD Intraday Technical Levels

Support Resistance

1.2162 1.2170

1.2158 1.2174

1.2154 1.2178

Pivot Point: 1.2166

**

EUR/USD - Technical Outlook**

The EUR/USD is taking a bearish correction at the 1.2184 level after testing the double top resistance level of 1.2205 level. The closing of candles below this area suggests chances of a bearish correction in the EUR/USD pair. On the lower side, the EUR/USD’s next support holds around 1.2180 and 1.2149 mark. On the way to the downside, the EUR/USD will gain support above the 50 periods EMA that can be seen on the hourly timeframe. This EMA line can support the pair around the 1.2171 level.

Conversely, the pair’s resistance holds around 1.2201 and 1.2225 levels. On the news front, eyes will remain on the series of economic events, especially the German ZEW Economic Sentiment and ZEW Economic Sentiment due to be released during the European session. Economists expect a positive figure, which may help support the EUR/USD pair today. All the best!

EMA Crossover Supports Buying!

Gold prices extended their gains for the second consecutive session and reached above the $1900 level. On Monday, the U.S. Dollar came under pressure as investors awaited the data about U.S. inflation scheduled to release later this week. The investors wanted to take a clue about Fed’s decision about tapering the economic support measures. The U.S. Dollar Index fell on Monday and extended its losses for the 3rd consecutive session to reach $89.96. Meanwhile, the U.S. Treasury Yields on 10-year note also remained flat throughout the day at 1.56%. On Sunday, U.S. Treasury Secretary Janet Yellen said that President Joe Biden’s 4 trillion spending proposal would prove beneficial and positive for the country even though it could raise the interest rates. The former Federal Reserve Chair added that the proposed plan from the U.S. President would total about 400 billion every year. However, she argued that this level of spending might not be enough to create an inflation over-run.

Yellen added that if, after the pandemic, the economy ended up with an environment with slightly higher interest rates, it would be a plus for society and the Federal Reserve. Yellen continued that the U.S. economy has been fighting with too-low inflation as well as too low interest rates for about a decade. She proposed that if getting back to a typical interest rate environment requires a little bit of extreme inflation and interest rates, then it would not be a bad thing rather a good thing.

The comments from Yellen added further pressure on the U.S. dollar that was already declining. Hence, the yellow metal rose for the second consecutive session on the board even without any macro-economic data release from the economic docket.

On the other hand, according to the Johns Hopkins University, the global coronavirus case count has surged above 173.1 million, with the death toll peaked above 3.72 million. The safe-haven yellow metal continued its upward momentum on the back of another variant of the virus in Vietnam. The Health Minister of Vietnam, Nguyen Thanh Long, said that the scientist had examined a new hybrid of variants first found in India and the U.K. He added that the lab tests have suggested that the new hybrid variant might spread faster and easier than the other versions of the coronavirus.

As the virus reproduces, it develops small genetic changes and results in a new virus variant. The coronavirus has been creating new variants since it was first detected in China in late 2019. The World Health Organization has recorded four variants of the coronavirus as “variants of concern,” including the first found in the U.K. and India, plus the others that were detected in South Africa and Brazil. The news that a potential new hybrid variant of the coronavirus that appeared in Vietnam also added fears and raised the safe-haven appeal in the market that ultimately supported the rising prices of the precious metal on Monday.

Gold Intraday Technical Level

Support Resistance

1890.51 1893.61

1889.33 1895.53

1887.41 1896.71

Pivot Point: 1892.43

Gold - XAU/USD - Technical Outlook

The yellow metal gold is trading at a 1,898 level, crossing above the 20 and 50 exponential moving averages at a 1,889 level. At the moment, these exponential moving averages are extending support at 1,884 area, and closing of gold's price above this EMA is still adding buying pressure on gold. Other technical tools like RSI and MACD support buying trends in gold, and bullish sentiment dominates among investors. An upward trendline supports gold at the 1,895 level on the hourly timeframe, and break out of this level opens selling bias until 1,891 and 1,882. At the same time, resistance holds at 1,903 and 1,912 levels. All the best!

Symmetrical Triangle Breakout

The BTC/USD remained flat throughout the day; however, it posted small losses as it came under pressure. A combination of negative reports from around the globe weighed on the leading cryptocurrency and kept its movement almost flat on Monday. Bitcoin came under inspection in the United Kingdom as the most significant police force in the country called for a new authority to freeze cryptocurrency assets. This report came in just days after the financial watchdog said that many crypto businesses were not meeting anti-money-laundering standards. On Monday, the Times of London reported that the detectives with the London Metropolitan Police demanded the power to freeze criminal's crypto assets in the same way they can stop them from transferring funds. The report also suggested that the police service was also called the government to make legislative changes that would make it difficult for criminals to transfer crypto-assets.

On the other hand, in a report from the Australian Competition & Consumer Commission (ACCC), about $851 million worth of losses was lost against scammers in 2020. The commission reported about 1,985 reports of bitcoin scams resulting in $26.6 M in losses. According to the Deputy Chair of ACCC, Delia Rickard, the scammers were availing the coronavirus situation and exploited the victims. Rickard said that during the pandemic and lockdowns, everyone was going through emotional and financial vulnerabilities and scammers took advantage of the situation through various methods. The scam that rose in popularity was the bitcoin-related scam. This revelation added further pressure on the BTC/USD prices as the news negatively affected bitcoin's reputation.

Furthermore, China continued its harsh strikes on bitcoin and crypto-assets as the country recently blocked the social media accounts of several crypto influencers. The Chinese government attempted a fresh attack on crypto-related activities and banned social media accounts of famous cryptocurrency enthusiasts over the weekend.

The reports of proponents on the popular Chinese social media platform, Weibo, were blocked by the Chinese government to ensure that all crypto transactions were illegal and any promotion of such unlawful activities will not be permitted. China's continuous attack on the entire crypto industry added further weight to the BTC/USD prices on Monday. Meanwhile, according to Trump, Bitcoin seemed like a scam, and he did not like bitcoin as it was another currency competing against the dollar. He said that he wanted the dollar to be the world's currency and as bitcoin was competing with it, he did not like it. After his comments, the investors assumed that Trump feared the leading crypto as it could make the dollar lose its status as a world reserve currency. This assumption added strength to bitcoin prices; however, BTC/USD remained flat throughout the day.

BTC/USD Intraday Technical Levels

Support Resistance

32439.4 36181.4

31096.7 36580.7

30934.6 36923.4

Pivot Point: 34838.7

**

BTC/USD - Technical Outlook**

The BTC/USD shows a dramatic selling trend, as the leading crypto pair has dropped from 36,500 level to 33,850 level on Tuesday. Most of the strong selling trend triggered upon the breakout of a symmetrical triangle pattern that we can see on the daily timeframe. The pair supported the Bitcoin around 35,587 level, but the breakout of this level is capturing sellers' attention. On the lower side, the BTC/USD pair's next support holds around 30,900 levels. At the same time, the resistance continues to be found at around 34,123 levels. On the 4-hour timeframe, Bitcoin is trading in an oversold zone, and there's a chance of bullish correction until 34,170 and 35,492 levels today. However, bearish bias still dominates. All the best!

Bearish Engulfing to Drive Sell!

Gold was closed at $1892.00 after placing a high of $1899.00 and a low of $1855.60. Gold reversed its course at the ending day of the week and recovered most of its losses from the previous day. The precious metal was under heavy pressure on Thursday amid the strong comeback of the U.S. dollar after a better-than-expected U.S. macroeconomic data release. However, on Friday, after extended its decline to near the $1865 level, gold reversed its movement and recovered most of the previous day's losses.

The U.S. dollar was weak on Friday as the U.S. Dollar Index reached the $90.03 level from its previous day's 90.5 level. The U.S. Treasury yields on benchmark 10-year note also fell to its 7-days lowest level at 1.55% from Thursday's 1.63% and weighed heavily on the greenback. The weakness in the U.S. dollar could be attributed to the mixed U.S. economic data for the day. The U.S. Labor Department revealed that only 559K jobs were created last month, adding weight to the greenback. This was the highly anticipated report, and when it came in short of expectations, the currency came under pressure that pushed gold higher.

At 17:30 GMT, the Average Hourly Earnings rose to 0.5% against the expected 0.2% and supported the U.S. dollar and further capped gains in gold. The Non-Farm Employment Change also dropped to 559K against the expected 645K and weighed on the U.S. dollar, and added further gains in the yellow metal. The Unemployment Rate from May was reported as 5.8% against the projected 5.9% and supported the U.S. dollar and limited the rising prices of the yellow metal. At 19:00 GMT, the Factory Orders from April dropped to -0.6% against the projected -0.3% and weighed on the U.S. dollar and pushed gold higher.

Meanwhile, on Friday, the Chairman of the U.S. Federal Reserve, Jerome Powell, said that the central bank has no objective to set the U.S. climate change policy as the issue currently has no influence over the monetary policy. He added that climate change was not something that the central bank considers while setting the monetary policy. He said that central banks could play a crucial role in building analysis to quantify the risks, but they were not climate policymakers or had no intentions.

However, these remarks were the opposite of central banks from Europe and China, who have joined the approach to influence climate policy by adding green bonds to their holdings of assets. Fed has also joined the network for greening the financial system, but it has also been under criticism from Republicans. Powell emphasized that the Fed's mandate was to ensure maximum employment and stable prices, and the issues related to climate change were beyond its authorization. The comments from Powell added further weight to the U.S. dollar and supported the prices of precious metal.

The U.S. dollar also came under pressure after a report from the White House released on Friday suggested that President Joe Biden has rejected the latest counterproposal for an infrastructure deal from Republicans. However, the negotiations will continue next week between Joe Biden and the Republican's lead negotiator Senator Shelly Moore Capito. The new plan included an extra $50 billion in spending across the number of infrastructure programs. However, the U.S. President appreciated her efforts and goodwill, indicating that the offer did not comply with his goals and objectives related to economic growth, new job creations, and climate change.

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

Gold is trading with a bearish bias at 1,885 levels, and it's facing immediate resistance at 1,895 areas. On the 4 hour timeframe, the yellow metal has violated the upward channel, and the closing of candles below this channel is boosting bearish sentiments among the investors. On the 4 hour timeframe, the closing of Doji and bearish Engulfing pattern indicates odds of bearish trend continuation in gold. Therefore, the selling trend dominates in gold today, and its next support prevails at the 1,873 level. Gold's resistance area stays at 1,895 and 1,904 levels today. Bearish bias dominates amid bearish technical indicators. All the best!

German Factory Orders in Focus!

The EUR/USD closed at 1.2165 after placing a high of 1.2186 and a low of 1.2104. The EUR/USD pair found some support and reversed its course upside after falling for three consecutive days. The latest surge in EUR/USD currency pair could be attributed to the weakness in the U.S. dollar that came under pressure at the ending day of the week amid dismal U.S. jobs data. Though the unemployment rate came better than expected, the data about job creation during last month fell short of expectations and weighed over the greenback. The U.S. Dollar Index fell to 90.03 level, and the U.S. Treasury yields also declined to 1.5% that added additional weight on the U.S. dollar and pushed EUR/USD pair higher.

On the data front, at 14:00 GMT, the Retail Sales from Europe in April dropped to -3.1% against the expected -1.4% and added heavyweight on the single currency Euro. From the U.S. side, at 17:30 GMT, the Average Hourly Earnings surged to 0.5% against the predicted 0.2% and supported the U.S. dollar and further capped gains in EUR/USD. The Non-Farm Employment Change also declined to 559K against the estimated 645K and weighed on the U.S. dollar that added further gains in currency pair EUR/USD. The Unemployment Rate from May reduced to 5.8% against the predicted 5.9% and supported the U.S. dollar that put a lid on the gains of the EUR/USD pair. At 19:00 GMT, the Factory Orders from April fell to -0.6% against the expected -0.3% and weighed on the U.S. dollar that added gains in EUR/USD.

Meanwhile, the European Central Bank (ECB) chief, Christine Lagarde, said that the bank would support the euro-zone well into its recovery from a double-dip recession caused by the pandemic. She said that the ECB was committed to preserving favorable financing conditions throughout the pandemic. Furthermore, the ECB will hold monetary policy this week on Thursday, and it has to decide on the pace of the bond purchases as hinted by policymakers. The officers have shown very little support to the easing, although the bloc was moving firmly towards the rebound.

Besides, the EUR/USD pair is a riskier asset also gained traction on Friday after the market's risk sentiment improved amid the latest developments in the coronavirus crisis. The global crisis was near an end in the G7countries as they were ahead of other countries to inoculate vaccine shots. New Delhi also announced to reopen the economy and ease further restrictions from Monday. Italy was moving faster to administer vaccinations with 600,000 vaccine injections in a single day on Friday. Belgium unveiled its plans to start vaccination of people between the ages of 16 and 17 years old. All these developments added strength to the market mood as vaccination campaigns were picking up the pace worldwide. This raised the hopes that the world will get rid of the virus sooner than expected and resulted in a surge in riskier assets like EUR/USD.

**

EURUSD Intraday Technical Levels**

Support Resistance

1.2162 1.2170

1.2158 1.2174

1.2154 1.2178

Pivot Point: 1.2166

EUR/USD - Technical Outlook

On Monday, the EUR/USD consolidates in a narrow trading range of 1.2178 – 1.2155 level as investors await a solid fundamental to trigger a breakout. The pair has recently bounced off over the support area of 1.2131, and the recent closing of candlesticks over this level is making it strong support for the EUR/USD pair now. As we can see on the four hourly timeframes, the EUR/USD violated trendline support upward at 1.2178 level on June 03, and now the same level is extending strong resistance to the pair. The 50 periods EMA is also supporting the selling trend in the EUR/USD pair. Let's keep an eye on German Factory orders today as these may drive some price action in the EUR/USD pair. All the best!

Symmetrical Triangle Pattern

The ETH/USD was closed at $2712.42 after placing a high of $2712.42 and a low of $2628.13. ETH/USD managed to recover all of its Saturday losses and turned green on Sunday. The cryptocurrency posted minor gains after declining for two consecutive sessions. One of the best-known antivirus software makers, Norton 360, has announced recently that it is adding cryptocurrency mining to its products. According to the company, the customers will have access to a feature of Ethereum mining in the coming weeks. The business model and charge fee by Norton 360 were not provided that left details unclear about the planning of the company.

Ethereum prices surged after this news as it was interesting how Norton decided to offer a mining option to its customers considering the number of arguments against it. Many environmentalists have claimed that bitcoin and crypto mining was causing irreversible damage to the planet by utilizing more energy than smaller or under-developed countries. Some have also said that the carbon footprint of biotin extraction was equivalent to that of Las Vegas, Nevada.

According to Norton, they were proud to be the first cyber-safety company to offer Ethereum miners the chance of safety by easily turning the idle time on their computers into an opportunity to earn digital currency. The company added that their customers would mine for cryptocurrencies with just a few clicks that would avoid many barriers to entry into the cryptocurrency ecosystem. Despite gains for the day, Ethereum was still well below its May highs; however, a highly anticipated update is expected to release in coming weeks that could raise its chances against the bitcoin as a destination for institutional dollars seeking a hedge against inflation.

The latest update named Ethereum Improvement Proposal 1559 or the London fork is expected to release in July. The said update will change the way of making transactions on Ethereum, and the developers believe that it should prove positive for the price of ETH. The update will divide the Ethereum transaction fees into base fees and tips that will burn the ETH in supple hence, keeping the inflation in check. The deflation feature of EIP 1559 will also be a solution for the high fees on Ethereum. It means ETH/USD might see a surge in its value after the update will be launched in July and could reach its highest level touched in May.

Moreover, the declining prices of the U.S. dollar added further strength to the rising prices of ETH/USD on Sunday. The U.S. dollar fell to 90.03 level after the U.S. Treasury yields reach the 1.5% level over the weekend and added extra gains in ETH/USD as the dollar and Ether shares a negative correlation.

ETH/USD Intraday Technical Levels

Support Resistance

2656.22 2740.51

2600.03 2768.61

2571.93 2824.80

Pivot Point: 2684.32

ETH/USD - Technical Outlook

The ETH/USD is trading at a 2,758 level, bounced off over the double bottom area of 2,541. On the 4-hour chart, the ETH/USD pair is now facing resistance at 2,870 level that's being extended by a downward trendline. At the same time, the violation of the 2,870 level can grow the ETH/USD pair towards the 2,962 level. The 20 and 50 periods EMA are extending mixed sentiments as the ETH is holding above 20 EMA and below 50 EMA. Besides, the ETH/USD pair has completed 38.2% Fibonacci resistance, and now the ETH/USD is likely to face resistance at the same level of 2,715 level. All the best!

Upward Channel Breakout

Gold dropped massively on Thursday to its lowest level in 12 days below $1900 after remaining under consolidation for more than a week. Gold fell more than 1% amid the latest comeback in the U.S. dollar on the back of stronger-than-expected macroeconomic data for the day. The U.S. Dollar Index that measures the greenback value against the basket of six major currencies jumped on Thursday and reached its highest since 14th May at 90.55 after remaining under consolidation for the previous five consecutive sessions. The U.S. Treasury yield on a 10-year note also surged on Thursday after falling continuously for the last four days and reached 1.628%.

The U.S. dollar and U.S. Treasury yields recovered their previous losses and jumped on Thursday after the stronger than expected U.S. macroeconomic data release. The global equities also stepped back from record highs after investors studied a record uptick in job growth that provided clues about the better-than-expected economic recovery.

On Thursday, data reported that the number of Americans filed for jobless claim benefits reduced beneath 400K for the first time since the pandemic started more than a year ago. This report from the U.S. Labor Department pointed towards the labor market's strength and added the greenback value that ultimately weighed on the yellow metal. At 16:30 GMT, the Challenger Job Cuts for the year dropped in May to-93.8% compared to the previous -96.6% and had a null effect on the U.S. dollar.

At 17:15 GMT, the ADP Non-Farm Employment Change reported that about 978K jobs were added during May against the forecasted 645K and supported the U.S. dollar that dragged gold prices lower. At 17:30 GMT, the Unemployment Claims dropped during last week to 385K against the predicted 400K and supported the U.S. dollar, which added further gold pressure.

The Revised Non-farm Productivity for the quarter remained flat with the expectations of 5.5%. The renewed Unit Labor Costs for the quarter rose to 1.7% against the projected -0.4% and supported the U.S. dollar that added further losses in the metal. At 18:45 GMT, the Final Services PMI remained flat to the expected 70.4. At 19:00 GMT, the ISM Services PMI surged to 64.0 against the anticipated 63.0 and supported the U.S. dollar that added more downward pressure on the precious metal.

The long-awaited and closely watched ISM Services PMI also reported expansion in the sector that offered further clarity on the faster-than-expected pace of economic recovery. On the other hand, concerns about inflation were raised as the need for massive monetary policy came under question once again. However, gold prices extended downward momentum on Thursday and fell more than 1% as the strengthening labor market pushed the dollar on the upside.

Meanwhile, another reason behind the declining prices of yellow metal could be the reduced demand for safe-haven as a new report about global coronavirus vaccine inoculations came in front. According to an AFP database, about 2 billion coronavirus vaccines have been inoculated throughout the globe. This target was achieved after the first vaccination campaign against coronavirus starter six months ago. The report suggested that more than 2 billion vaccine shots have been administered in 215 countries.

Gold Intraday Technical Level

Support Resistance

1855.90 1901.50

1838.50 1929.70

1810.30 1947.10

Pivot Point: 1,884.03

Gold - XAU/USD - Technical Outlook

The precious metal gold has traded sharply bearish at 1,869 level, having violated an upward channel at 1,897 level. Gold has now entered the oversold region, as we can see on the MACD indicator. With this, the odds of bullish correction remain high, and gold’s next resistance holds at the 1,873 level. The 50 periods EMA suggests a strong bearish bias among investors as EMA value holds at the 1,897 level. Gold’s fresh support holds at 1,852 and 1,844 levels today. The primary focus of traders will remain on the U.S. Nonfarm Payroll figures as this typically drives dramatic movement in the U.S dollar-related pairs. All the best and have a lovely weekend!

U.S. NFP Figures in Highlights!

The EUR/USD extended its bearish trend for the 3rd consecutive session on Thursday and dropped more than 1% on the day to reach its lowest level since 14th May. The rebound drove the sudden decline in the currency pair in the greenback after the U.S. Treasury yields rose above 1.62% amid stronger-than-expected U.S. jobs & PMI figures. On Thursday, at 12:15 GMT, the Spanish Services PMI surged to 59.4 against the anticipated 57.8 and supported the single currency Euro that further capped losses in EUR/USD. At 12:45 GMT, the Italian Services PMI also rose to 53.1 against the projected 52.4 and supported Euro, limiting the declining prices of the EUR/USD pair. At 12:50 GMT, the French Final Services PMI remained flat with the expected 56.6. At 12:55 GMT, the German Final Services PMI also remained unchanged at 52.8. At 13:00 GMT, the Final Services PMI from the whole bloc also came in line with the predicted 55.2.

From the U.S. side, at 16:30 GMT, the Challenger Job Cuts for the year declined in May to-93.8% compared to the previous -96.6%. At 17:15 GMT, the ADP Non-Farm Employment Change rose to 978K during May against the projected 645K and supported the U.S. dollar that added further losses in EUR/USD. At 17:30 GMT, the Unemployment Claims declined during last week to 385K against the anticipated 400K and supported the U.S. dollar and dragged EUR/USD further on the downside.

The Revised Non-farm Productivity for the quarter remained flat with the projections of 5.5%. The renewed Unit Labor Costs for the quarter surged to 1.7% against the predicted -0.4% and supported the U.S. dollar. At 18:45 GMT, the Final Services PMI remained flat to the estimated 70.4. At 19:00 GMT, the ISM Services PMI rose to 64.0 against the projected 63.0, supported the U.S. dollar, and dragged EUR/USD downward. The U.S. dollar was firm on Thursday against its rival currencies and rose above 90.5, which added downward pressure on the currency pair. The stronger-than-expected jobs figures, along with an expansion reported in Services PMI combined with the rising U.S. Treasury yields, added massive support to the greenback that weighed heavily on the EUR/USD pair.

Besides, the European Central Bank warned on Wednesday that if countries do not introduce digital versions of their currencies, they could face threats to their financial systems and monetary independence. The report added that consumers and businesses, including foreign tech giants without their digital currencies, would likely end up being reliant on a small number of leading payment service providers. This could affect the ability of the central bank to fulfill its mandate and act as a lender of last resort. After these comments from ECB, the single currency came under further pressure and declined more against the U.S. dollar on Thursday.

EURUSD Intraday Technical Levels

Support Resistance

1.2089 1.2188

1.2054 1.2252

1.1991 1.2287

Pivot Point: 1.2153

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EUR/USD - Technical Outlook**

The EUR/USD pair has begun trading with a solid bearish trend amid a stronger U.S dollar at the 1.2108 level. The pair has violated the upward trendline support area of 1.2167 level. Below this, the EUR/USD pair has formed a bearish engulfing pattern that’s exposing the pair towards the next support area of 1.2095 level. The direct currency pair’s resistance hold’s at 1.2132 and 1.2188 levels while the support holds around 1.2095 and 1.2054 levels. The primary focus of traders will remain on the U.S. Nonfarm Payroll figures as this typically drives dramatic movement in the U.S dollar-related pairs. All the best and have a lovely weekend!