Three White Soliders Pattern!

Gold prices were closed at $1843.85 after placing a high of $1845.50 and a low of $1819.45. Gold extended its gains on Friday and reached the $1845 level on the back of the weak U.S. dollar amid poor-than-expected U.S. economic data. Gold posted about 0.8% gain for the day on Friday and a 0.3% gain for the week. It was a second straight weekly gain posted by gold due to decreased strength in the U.S. dollar. The survey from the University of Michigan said that U.S. Consumer Confidence dropped in May as Americans started worrying about inflation and its impact on their incomes.

The Federal Reserve acknowledged that prices were rising due to disrupted supply chains that were struggling to cope with the demand in an economy after re-opening from pandemic-induced lockdowns. However, the central bank said that these inflationary pressures were temporary and will fade eventually with the recovery in the economy. Fed has also said that there was no need to raise interest rates yet.

On the data front, at 17:30 GMT, Retail Sales for April dropped to 0.0% against the expected 1.0% and weighed on the U.S. dollar that pushed gold prices higher. The Import Prices remained flat with the expectations. At 17:32 GMT, the Core Retail Sales also dropped to -0.8% against the forecasted 0.5% and weighed on the U.S. dollar that added further gains in gold prices. At 18:15 GMT, the Industrial Production for April also declined to 0.7% against the projected 0.9% and weighed on the U.S. dollar and pushed gold prices higher.

The Capacity Utilization Rate remained flat at an expected 75.0%. At 19:00 GMT, the Prelim UoM Consumer Sentiment for May reduced to 82.8 against the estimated 90.2 and weighed on the U.S. dollar and added further strength in rising prices of gold. Business Inventories remained flat at 0.3%. The Prelim UoM Inflation Expectations also remained the same as expected 4.6%.

The poor than expected macroeconomic data from the U.S. on Friday weighed heavily on the greenback as the U.S. Dollar Index that measures the value of the greenback against the basket of six major currencies fell to $90.27 on Friday. The U.S. Treasury yields on a 10-year note also declined on Friday and reached 1.625%. Furthermore, an Independent Panel for Pandemic Preparedness and Responses released a report on global handling of coronavirus pandemic that stated that global crisis could have been avoided if proper measures had been taken.

The panel concluded that WHO should have declared a public health emergency sooner, while countries took too long to implement measures to curb the spread of the virus. The panel also said that to avoid such a crisis in the future, the WHO should be granted more financing and more authority in publishing outbreak-related information. The panel also urged rich countries to donate at least one billion vaccine doses to COVAX by September and emphasized the importance of agreeing on voluntary licensing and transfer of vaccine technology to increase global supply. This report added weight to the already declining U.S. dollar and pushed gold higher. Meanwhile, the rising tensions between Palestine and Israel after airstrikes and missile attacks added to the fears of a new war that led to the risk-off market sentiment that ultimately supported safe-haven yellow metal prices.

Gold Intraday Technical Level

Support Resistance

1812.89 1833.19

1800.52 1841.12

1792.59 1853.49

Pivot Point: 1820.82

Gold - XAU/USD - Technical Outlook

Gold is trading strongly bullish at 1,853, having violated the double top resistance level of 1,844 on the daily timeframe. Above this, gold’s next immediate resistance stays at 1,854. A violation of this exposes gold towards 1,874 areas. At the same time, the support continues to be at 1,844 level. The RSI and MACD support a buying trend, along with the 20 and 50 EMA held at 1,807 level. Gold has closed three white soliders pattern that demonstrates srong bullish bias amoung investors on the daily timeframe. All the best!

Choppy Session in Play

The EUR/USD closed at 1.2140 after placing a high of 1.2150 and a low of 1.2070. EUR/USD pair rose on Friday after declining for two consecutive days and recovered most of its previous day’s losses amid the weakness in the U.S. dollar. On Friday, the European Central Bank released its latest minutes from the meeting held in March. The central bank noted that they succeeded in maintaining favorable financing conditions as the recent measures had been effective.

ECB also stated that the risks to activity had become more balanced as they were tilted to the upside. This hawkish comment came after so long as the risks had been on the downside due to slow vaccination campaigns in the EU. However, if the vaccination program goes well, there are more chances that ECB could deliver more clues on tightening. The Governing Council of the European Central bank did not discuss any tapering of the bond program. Furthermore, the minutes from the meeting also suggested that countries across Europe with more service-dependent were anticipated to improve at a slower pace despite re-opening. Euro became strong after the release of minutes from ECB and pushed EUR/USD pair higher on Friday.

On the other hand, the U.S. dollar remained weak for the day due to a weaker-than-expected macroeconomic data release. The U.S. Dollar Index fell to $90.27, and the U.S. Treasury yields on the 10-year note dropped to 1.625% on Friday that added further pressure on the U.S. dollar and pushed EUR/USD higher on board.

There was no data to be released from the Europe side on the data front, but from the U.S. side, at 17:30 GMT, Retail Sales for April declined to 0.0% against the estimated 1.0% and weighed on the U.S. dollar that pushed EUR/USD pair higher. The Import Prices remained flat with the projections of 0.7%. At 17:32 GMT, the Core Retail Sales declined to -0.8% against the anticipated 0.5% and weighed on the U.S. dollar that added further gains in EUR/USD. At 18:15 GMT, the Industrial Production for April also fell to 0.7% against the predicted 0.9% and weighed on the U.S. dollar that supported EUR/USD gains. The Capacity Utilization Rate remained flat as expected 75.0%.

At 19:00 GMT, the Prelim UoM Consumer Sentiment for May dropped to 82.8 against the anticipated 90.2 and weighed on the U.S. dollar that pushed EUR/USD higher. Business Inventories remained flat at 0.3% expected. The Prelim UoM Inflation Expectations also remained flat as projected 4.6%. The dismal economic data from the U.S. added pressure on the already declining U.S. dollar and supported the rising prices of the EU/USD currency pair on Friday.

EURUSD Intraday Technical Levels

Support Resistance

1.2050 1.2108

1.2021 1.2137

1.1992 1.2165

Pivot Point: 1.2079

EUR/USD - Technical Outlook

The EUR/USD is trading choppy from 1.2150 to 1.2120 level. Technical side of the EUR/USD pair has remain mostly unchanged as the direct currency pair is gaining immediate support at the 1.2067 level, and violation of this level exposes the EUR/USD level until the next support area of 1.1992 level. On the 4-hour chart, an upward trendline supports the EUR/USD pair at 1.2067, and below this, the EUR/USD will come under selling pressure. However, holding of EUR/USD over 1.2064 level is keeping the pair bullish. On the 4-hour chart, the EUR/USD pair has closed a bearish engulfing candle which is also adding selling pressure on the pair. The EUR/USD immediate resistance holds at 1.2150 and 1.2178 along with support around 1.2120 and 1.2064. All the best!

Bitcoin Takes a Nosedive!

The BTC/USD is currently trading at $44012.0 and is on the course for another bearish day. Bitcoin has been declining continuously since12th May. BTC/USD tried to recover its previous daily losses but failed and remained flat for the day. The latest decline in Bitcoin prices was due to a recent tweet from CEO of Tesla Elon Musk that implied that the electric vehicle maker has sold or may sell the rest of its bitcoin holdings. Musk has been a big-time supporter of cryptocurrencies and has also helped digital coins, including bitcoin, to surge many times in the past year.

In February, Tesla revealed that it bought $1.5 billion worth of bitcoin. The company later said that it registered a net gain of $101 million from sales of bitcoin during the quarter and boosted the company's net profit to a record high in the first quarter. Another reason behind the declining prices of Bitcoin was the latest statement from the CFO of Square, Amrita Ahuja, that the company has no plans to purchase more bitcoin. This statement came in after Elon Musk's announcement that Tesla would no longer accept BTC.

Square, alongside Tesla and MicroStrategy, is among the top tech companies who have been supporters of bitcoin holdings as a hedge against economic inflation. A negative statement from such a company related to Bitcoin added pressure on BTC/USD prices and dragged it below the $45,000 level. On Monday, Bitcoin prices dropped to a three-month lowest level as investors started selling crypto coins in the wake of the latest hinting from Elon Musk that he was considering or may have already sold some of its bitcoin holdings.

Furthermore, the declining pressure among cryptocurrencies, especially Bitcoin, was raised over the weekend after Financial journalist Edward Chancellor predicted that launching central bank digital currencies could be catastrophic for Bitcoin. Many central banks of numerous leading economies like China, Japan, and the U.S. are moving forward and researching the option of launching their digital currency. According to Edward, the projects of central bank digital currencies are hazardous and could lead to the destruction of bitcoin.

BTC/USD Intraday Technical Levels

Support Resistance

44795.2 48915.2

43007.6 51247.6

40675.2 53035.2

Pivot Point: 47127.6

BTC/USD - Technical Outlook

The BTC/USD pair is trading sharply bearish at 44,971 level, having dropped from 49,800 high to the low level of 42,029. On the 4-hour timeframe, Bitcoin has formed a bearish channel that's supporting strong selling bias among investors. However, the channel is extending support at 42,900 area. Closing of candles above this level makes it more robust support, and BTC is exhibiting a bullish correction above 42,900 support. The leading crypto pair's next resistance stays at 45,500 and 47,510 levels. At the same time, a bullish breakout of 47,510 level exposes the pair towards the 49,300 mark. Considering the leading indicators such as RSI and MACD, bearish bias dominates Bitcoin today. All the best!

U.S. Retail Sales Ahead!

Gold prices are trading slightly bullish at 1,834, having bounced off over the support area of 1,812 level. During the early European session, the precious metal gold remains under pressure amid the stronger U.S. dollar. The stronger greenback makes precious metals more costly for foreign investors, although a pullback in the U.S. Treasury yields restricted losses for the safe-haven metal.

The U.S. dollar and yields mounted on the back of stronger-than-expected inflation figures released on Wednesday. At the same time, the dollar gains more bullish momentum on the back of stronger than expected jobless claims data. During the week ending May 8, the advance numbers for seasonally adjusted jobless claims was 473K, a drop of 34k from the previous week's improved level. This released data was the lowest level for initial unemployment claims since March 14, 2020, as the figures were 256K.

The jobless claims figure for the previous week was improved by 9K from 498K to 507K. This week, the U.S. Department of Labor reported jobless claims of 473K vs. 487K forecast while the figure was 507K during the previous week. Improved economic data helped the U.S. dollar gain bullish momentum and pressured the precious metal gold. The safe-haven appeal triggered the fears of war between Israel and Gaza. Israel military and Palestinian militants in the Gaza strip exchanged fires and escalated the fears of full-scale war. Israel carried out hundreds of airstrikes on Gaza, destroyed three tower blocks, and killed senior Hamas officials. In response to this, Palestinian militants fired more than 1000 rockets into Israel. The UN feared that the rising tensions between countries might start a full-scale war, which raised the need for a safe-haven appeal and supported gold prices.

During the U.S. session, the Census Bureau will be releasing the Retail Sales data for the U.S. economy. Economists are expecting a sharp dip in retail sales from 9.8% to 1.0%, while core retail sales are expected to drop from 8.4% to 0.5%.

Gold Intraday Technical Level

Support Resistance

1821.99 1846.39

1807.82 1856.62

1797.59 1870.79

Pivot Point: 1832.22

Gold - XAU/USD - Technical Outlook

Gold is trading bullish at 1,833, having bounced off the support area of 1,814 level. Gold has reentered a trading range of 1,846 - 1,820. On the daily timeframe, gold is soaring towards the triple top resistance level of 1,844 level. The violation of this opens up additional room for buying until the next resistance area of 1,856 and 1,870. On the 4 hour timeframe, gold has crossed above 20 periods EMA at 1,829 level and 50 periods EMA at 1,814 level. Both of these EMA are support gold prices and are demonstrating odds of bullish trend continued until resistance area of 1,844. Later today, the focus will stay on the U.S. retail sales data as it can drive further price action in gold prices. All the best!

Bullish Correction in Play!

The BTC/USD crypto pair managed to stop its early-day crash moves and took a new position around above the $50,000 level. The BTC/USD pair dropped almost 13% of its value over the last 24 hours after the tweet from Elon Musk highlighting Tesla's suspension of bitcoin payment acceptance due to sky-high energy needs.

Elon Musk's crypto-supporting comments have been seen as one of crypto's biggest advocates over the last few months, which in turn, Bitcoin (BTC) has performed "very well" over the previous few months. Although, the gains were short-lived as Musk's latest comments sent bitcoin prices into a tailspin, quickly sparking a steep selloff. Conversely, the upbeat market mood and bearish U.S. dollar were considered one of the key factors that help the BTC/USD pair limit its deeper losses. The BTC/USD crypto pair is trading at 50,334.8 and consolidating in the range between 48,874.0 - 50,811.2.

The BTC/USD pair has been bearing intense pressure from sellers this week as multiple news triggers collectively impacted and pressed to make it bearish. A recent decline in the global stocks or the recent downbeat Musk's comments, everything weighs on the BTC value. As per the keyword, Elon Musk said that Tesla would suspend customer purchases of cars with bitcoin (BTC), pinning the decision on the network's power consumption as the catalyst.

Another reason behind the declining prices of Bitcoin could be the latest statement from the Chairman of the investment firm Bain Capital. Steve Pagliuca, the Chairman of Bain Capital, said that Bitcoin was hard to be seen as a viable currency yet. He added that the stability of the primary cryptocurrency was not satisfactory, and it has a long way to go to be trusted in lots of places. These negative comments from the Chairman of an investment firm weighed on the Bitcoin prices and dragged them lower for the day.

BTC/USD Intraday Technical Levels

Support Resistance

49068.6 50448.3

48443.7 51203.2

47688.8 51828.1

Pivot Point: 49823.4

BTC/USD - Technical Outlook

On Friday, the BTC/USD pair continues to feel the bearish pressure as it consolidates below the psychological resistance level of 50,000. A day before, the BTC/USD plunged dramatically, falling from 52,635 level to 44,900 level. However, the pair has recovered most of its losses already. At the moment, Bitcoin's support holds at 48,850 and 46,980 levels. While the resistance continues to hold around 52,630 level and bullish breakout, this can expose the leading crypto pair towards 53,462 levels. On the 4 hour timeframe, the 20 & 50 periods EMA are extending resistances at 53,465 areas. Considering the technical indicators, the bullish correction has started in BTC/USD pair. All the best!

U.S. Jobless Claims In Focus!

Gold dropped more than 1% on Wednesday and extended its losses amid the comeback in the U.S. dollar and the U.S. Treasury yields after the release of inflation data. The rising prices of the dollar and U.S Treasury yields reduced the appetite for non-yielding bullion and dragged it on the downside. The U.S. Dollar Index (DXY) that measures the greenback's value against the basket of six major currencies, rebounded on Wednesday and jumped to $90.79. The U.S. Treasury yield on benchmark 10-year note extended its bullish momentum and rose for the 5th consecutive session to reach 1.695%.

Both the U.S. dollar and yields rose on the back of stronger-than-expected highly awaited inflation data released on Wednesday. Logically, gold should have rallied after the higher inflation data due to its status as a store of value and hedge against inflation. But market participants were highly anticipating it already, and the rising bond yields made it difficult for gold to attract investment due to its non-yielding status. At 17:30 GMT, the Consumer Price Index in April rose to 0.8% from the expectations of 0.2% and supported the U.S. dollar. In April, the Core CPI also surged to 0.9% from the forecasted 0.3% and supported the U.S. dollar.

The rising numbers of inflation raised hopes that the Federal Reserve will be now forced to hike interest rates earlier than expected in 2023. These hopes pushed U.S. Treasury yields higher on board and supported the greenback that ultimately weighed on yellow metal prices.

These hopes for an interest rate hike sooner than expected were downplayed by the Federal Reserve, Richard Clarida, on Wednesday. Clarida affirmed the comments made by Jerome Powell that higher U.S. inflationary signals were temporary and did not require a rate hike.

He said that it was not yet the time to pull back on support for the economy, though he also added that the Fed would not hesitate to use tools if the risk of persistent upward drift in inflation emerged.

Furthermore, according to the Atlanta Federal Reserve Bank President Raphael Bostic, the U.S. economy was in a transitional period. It has reopened from the pandemic, and the inflation was likely to remain volatile, and workers were closely considering their options. Bostic said that both demand and supply of workers, goods, and services were unsettled now, and hence, a lot of volatility in prices and pricing will be seen in the coming months.

The comments from Fed officials added further strength to the U.S. dollar and weighed heavily on the prices of yellow metal on Wednesday.

Meanwhile, the risk-off market sentiment emerged late Wednesday after the fears of war escalated between Israel and Gaza. Israel military and Palestinian militants in the Gaza strip exchanged fires and escalated the fears of full-scale war. Israel carried out hundreds of airstrikes on Gaza, destroyed three tower blocks, and killed senior Hamas officials. In response to this, Palestinian militants fired more than 1000 rockets into Israel. The UN feared that the rising tensions between countries might start a full-scale war, which raised the need for a safe-haven appeal that capped further losses in gold prices on Wednesday.

Gold Intraday Technical Level

Support Resistance

1821.99 1846.39

1807.82 1856.62

1797.59 1870.79

Pivot Point: 1832.22

Gold - XAU/USD - Technical Outlook

Gold is trading bearish at 1,819, having violated a narrow trading range of 250 pips. Gold has broken the trading range of 1,846 - 1,820. On the daily timeframe, gold is heading lower to complete 38.2% Fibonacci retracement at 1,814 level, and violation of this opens up additional room for retracement until 61.8% level of 1,799. On the 4 hour timeframe, gold has crossed below 20 periods EMA which demonstrates bearish bias in gold. The leading indicators such as RSI and MACD are neutral, such as the RSI value has dropped below 50, and the MACD is still above 0. This indicates indecision among traders. Later today, the focus will stay on the U.S. Jobless Claims data as it has the potential to drive volatility in the gold market. All the best!

Eurozone Enjoys Ascension Day Holiday

The EUR/USD fell on Wednesday amid the rising prices of the U.S. Dollar and the U.S. Treasury yields after the release of U.S. inflation data on the day. In April, the strong inflation report added strength in the U.S. treasury yields on rising hopes that Fed will raise interest rates given increased prices.

The U.S. Dollar Index (DXY) that measures the greenback's value against the basket of six major currencies jumped on Wednesday and reached $90.79. At the same time, the U.S. Treasury yield on benchmark 10-year note rose for the 5th consecutive session and reached 1.695%. The rising yields and dollar prices kept the currency pair EUR/USD under pressure for the day. The EUR/USD pair remained under pressure as the data from the European Union also remained against the single currency Euro on Wednesday after CPI from France and Industrial production from the whole bloc came in short of expectations.

On the data front, at 11:00 GMT, the German Final CPI remained flat at 0.7%. At 11:45 GMT, French Final CPI for April declined to 0.1% against the forecasted 0.2% and weighed on the single currency Euro and added further EUR/USD pair losses. At 14:00 GMT, the Industrial Production in March reduced to 0.1% from the expected 0.8% and weighed on Euro and dragged EUR/USD pair further lower. From the U.S. side, at 17:30 GMT, the Consumer Price Index in April surged to 0.8% from the projections of 0.2% and supported the U.S. dollar and added further losses in EUR/USD pair. In April, the Core CPI also rose to 0.9% from the estimated 0.3%, supported the U.S. dollar, and dragged EUR/USD pair even lower.

Meanwhile, the world's biggest holiday group, TUI Group, said on Wednesday that Europe's summer holiday season could be saved. TUI group expects a strong 2021 summer season as the last-minute bookings increased due to the rising level of vaccinations. The company will operate 75% of pre-pandemic capacity after getting hit hard during the last six months. The world's biggest holiday group reported a 1.3 billion euro loss for the six months ended in March and said that the worst had left behind as European resorts have started to open. This news kept the losses in EUR/USD pair limited for the day as it supported the single currency Euro.

Furthermore, the currency pair EUR/USD was also declining on Wednesday as the risk-off market sentiment emerged in the market after the fears of war between Israel and Palestine escalated. The United Nations feared a full-scale war after Israel militants and the military of Palestine at Gaza strip had a deadly exchange of fires on Wednesday. Israel carried out hundreds of airstrikes on Gaza, destroyed three tower blocks, and killed senior Hamas officials. In retaliation to this, more than 1000 rockets were fired by Palestinian militants into Israel. The UN was alarmed that the rising tensions between both countries might start a full-scale war which raised the risk-off market sentiment and dragged the riskier assets like EUR/USD.

EURUSD Intraday Technical Levels

Support Resistance

1.2118 1.2178

1.2091 1.2209

1.2059 1.2237

Pivot Point: 1.2150

EUR/USD - Technical Outlook

The EUR/USD fell dramatically from 1.2126 to 1.2073 level. Currently, the pair is gaining immediate support at the 1.2067 level, and violation of this level exposes the EUR/USD level until the next support area of 1.1992 level. On the 4-hour chart, an upward trendline supports the EUR/USD pair at 1.2067, and below this, the EUR/USD will come under selling pressure. However, holding of EUR/USD over 1.2064 level is keeping the pair bullish. On the 4-hour chart, the EUR/USD pair has closed a bearish engulfing candle which is also adding selling pressure on the pair. The EUR/USD immediate resistance holds at 1.2130 and 1.2175 along with support around 1.2064 and 1.1992. All the best!

Dramatic Dip in Bitcoin!

Bitcoin crashed and fell below the $54,000 level on Wednesday after the United States Securities and Exchange Commission announced a warning to investors regarding the risk associated with the first-ever cryptocurrency – Bitcoin. The traditional payment methods paused during the pandemic as the world stood still and helped the digital assets, including cryptocurrencies, to move at the forefront of finance. The digital asset was pushed forward like never before after the physical coin was shorted. The rising demand for digital coins led to a shortage of cryptocurrencies on exchanges like Coinbase Pro and elsewhere.

The real reason behind the shortage of cryptocurrencies at exchanges was the investors’ behavior to hold the asset even the prices were declining. After the sudden bitcoin fall below $50,000, investors are still reluctant to sell their positions, hoping that they will reach $100,000 or more this year. However, they could be wrong, and this was one of the major factors that the U.S. SEC warned investors to consider risk as Bitcoin was highly speculative carefully.

Meanwhile, an Australian computer scientist, Craig Wright, who alleges that he created bitcoin, launched a London High Court lawsuit against 16 software developers to secure 4 billion pounds worth of bitcoin that he claimed to be stolen from him.

The court has approved the attempt to legally sue a dozen developers working on Bitcoin, Bitcoin Cash, Bitcoin Cash ABC, and Bitcoin SV networks. The self-proclaimed Satoshi Nakamoto will go after the developers to make them recover over $4 billion of BTC supposedly stolen from his computer last year. This news added pressure on Bitcoin prices that remained below $54,000 on Wednesday.

Another reason behind the declining prices of Bitcoin could be the latest statement from the Chairman of the investment firm Bain Capital. Steve Pagliuca, the Chairman of Bain Capital, said that Bitcoin was hard to be seen as a viable currency yet. He added that the stability of the primary cryptocurrency was not satisfactory, and it has a long way to go to be trusted in lots of places.

These negative comments from the Chairman of an investment firm weighed on the Bitcoin prices and dragged them lower for the day.

On the flip side, a licensed crypto-to-cash exchange, Moneygram International Inc. and Coinme, announced on Wednesday the launch of a new partnership to enable the cash funding and payout of digital currency purchase and sale. It means Moneygram will start letting its customers buy and sell bitcoin at 12,000 locations in partnership with Coinme. It will expand the international market for the crypto king in the second half of 2021.

BTC/USD Intraday Technical Levels

Support Resistance

55617.6 57563.6

54784.3 58676.3

53671.6 59509.6

Pivot Point: 56730.3

BTC/USD - Technical Outlook

By the time of covering this update, the BTC/USD has plunged dramatically, falling from 52,635 level to 44,900 level. But soon after testing the 44,900 support level, the Bitcoin reversed to trade at 50,600 level. Right now, Bitcoin’s immediate resistance holds at 52,685 level, while the pair can gain support at 46,600 and 43,577 levels. Bitcoin has crossover below 20 and 50 periods EMA levels that demonstrate solid selling bias among investors on the daily timeframe. On Thursday, the investor’s focus will remain on the 56,750 area as below this, the bearish bias dominates. All the best!

Symmetrical Triangle Pattern in Play!

The XRP/USD crypto pair failed to stop its previous long bearish bias. The XRP/USD pair remained depressed around 1.4500 marks amid a combination of factors. The XRP/USD crypto pair failed to stop its previous losing streak and dropped 10% and consolidating in a range of $1.3549 to $1.7600. The XRP/USD had hit the $1.35795 level. That's the biggest one-day percentage loss since May 10. However, these bearish moves pushed XRP's market cap down to $51.07460B, or 2.14% of the total cryptocurrency market cap. At its peak, XRP's market cap was $83.44071B.

The XRP/USD has seen a decline in value, as it lost 6.94% over the past seven days. The volume of XRP traded in the 24-hours to time of writing was $8.52439B or 3.60% of the total volume of all cryptocurrencies. As of now, the XRP/USD crypto pair is still down 58.72% from its all-time high of $3.29 set on January 4, 2018. Despite the multiple positive updates, the market trading sentiment failed to stop its previous-session bearish moves and remained sour on the day. However, the selling bias was entirely sponsored by the ongoing cautious sentiment ahead of the U.S. Federal Reserve's final decision about the monetary policy. Apart from this, the strained relations between China and Australia further acted as a headwind for the market trading sentiment. Elsewhere, the beating of the technology shares due to the Citibank downgrade put some additional pressure on the market trading sentiment.

As a result, the broad-based U.S. dollar is still flashing green as investors remain in favor of the safe-haven assets in the wake of risk-off market sentiment. However, the gains in the U.S. dollar could be short-lived or temporary as the U.S. Federal Reserve keeps favoring its dovish monetary policy stance. The dovish policy will continue until they see higher inflation and strong employment rates. Moving on, the traders seem cautious to place any strong position ahead of the U.S. inflation data for April, including the core consumer price index (CPI), which is due to release later in the week. Therefore, the upticks in the U.S. dollar were seen as one of the key factors that kept the XRP/USD pair lower.

Behind these bearish moves, the U.S. dollar strength could be considered as one of the key factors. Apart from this, the recent declines in global stocks also played its major role in undermining cryptocurrencies. Dow DJIA, -0.10% dropped 34.94 points, or 0.1%, to close at 34,742.82, after reaching an intraday high at 35,091.56. The S&P 500 SPX, -1.04% fell 44.17 points, or 1%, ending at 4,188.43. The Nasdaq Composite COMP, -2.55% dropped 350.38 points, or 2.6%, to finish at 13,401.86.

XRP/USD Intraday Technical Levels

Support Resistance

1.3633 1.5500

1.2050 1.6799

1.0285 1.8996

Pivot Point: 1.4052

XRP/USD - Technical Outlook

The XRP/USD is trading sideways in between a narrow trading range of 1.2008 – 1.6239 level. On the daily timeframe, the XRP/USD pair has formed a symmetrical triangle pattern that keeps the crypto pair in check. The 20 & 50 periods are keeping the pair supported on the 4-hour and daily timeframe. However, the RSI and MACD exhibit a mixed bias, as the RSI value holds above 50 and MACD is below 0. The symmetrical triangle pattern is also an indication of indecision among traders. Ripple's immediate resistance stays at 1.6799 and 1.8396 level while the support holds around 1.3633, and below this, the pair will be exposed towards 1.0285 level. All the best!

U.S. CPI & Core CPI in Highlights!

The yellow metal prices rose as the U.S. dollar traded near a multi-month lower level. Investors were awaiting U.S. consumer price data to gauge inflation expected to release on Wednesday. The investors' interests remained high in bullion due to increased fear of high inflation and weak U.S. jobs data. The rising prices of gold could also be attributed to investors' started seeing gold as a hedge against inflation.

The U.S. Dollar Index that gauges the greenback's value against the basket of six major currencies also fell on Tuesday to its lowest level since February 25, below $90 level at $89.98, and supported the yellow metal prices during the first half of the day. However, gold could not sustain its bullish momentum, pulled back its gains, and turned them into losses during the second half of the day. The U.S. dollar recovered its strength after the JOLTS Jobs Opening data release and also because of favorable comments from various Fed officials.

At 15:00 GMT, the NFIB Small Business Index came in line with the expectations of 99.8. At 19:00 GMT, the JOLTS Job Openings surged to 8.12M against the forecasted 7.50M and supported the U.S. dollar that weighed on gold prices on Tuesday. On Tuesday, the New York Federal Reserve Bank President John Williams said that the Libor benchmark was unreliable. The market volatility at the start of the pandemic was evidence that funding markets based on rates could crumble under stress.

Meanwhile, the Fed Governor Lael Brainard also said on Tuesday that the weak jobs report from the United States in April showed the value of the Federal Reserve's willingness to wait before decreasing its support for the economy to ensure that the recovery was fully on track. Brainard said that supply chain disruptions and other reopening frictions were temporary and will be resolved over time, and they were unlikely to generate persistently higher inflation on their own. She attributed the prevailing higher prices to the increased demand generated after getting back to normal activities.

She added a need to remain patient through the transitory rise in prices associated with the reopening of economies. It will help ensure that a premature tightening of financial conditions did not limit the underlying economic momentum required to achieve the Fed's goals.

These comments from various Fed officials added strength to the U.S. dollar and kept the gold prices under pressure for the day. Furthermore, the worldwide coronavirus cases crossed 159.03 million, and the death toll reached 3,444,309 on Tuesday. The previous day, World Health Organisation announced that B.1.617, the coronavirus variant identified in India, was of global concern.

Scientists were suggesting that this variant could be more transmissible and there was also evidence but not confirmed that this variant was immune to coronavirus vaccines. WHO raised a warning and called the India variant a global concern along with other variants of coronavirus, including Britain, South Africa, and Brazil. These fears and negative developments surrounding the pandemic situation added strength to the U.S. dollar due to its safe-haven status and pressed on the yellow metal prices.

Gold Intraday Technical Level

Support Resistance

1829.59 1845.14

1822.32 1853.42

1814.04 1860.69

Pivot point: 1837.87

Gold - XAU/USD - Technical Outlook

Gold is trading sideways at 1,830, maintaining a narrow trading range of 250 pips. This trading range has an upper boundary of 1,846 and a lower boundary of 1,820. On the daily timeframe, gold is facing a hard time crossing over 1,846 levels as investors seem to wait for a solid reason to trigger buying. On the 4-hour timeframe, gold has completed 38.2% Fibonacci retracement at 1,818 level, and the same level is working as immediate support. A bearish breakout of this level opens up additional room for selling until 1,809 and 1,799 levels.

Conversely, the precious metal's resistance holds at 1,837 and 1,846. On Wednesday, the trader's focus will stay on the U.S. Inflation figures as these figures can drive strong price action in the market. Economists expect CPI to drop from 0.6% to 0.2%, while the Core CPI data is expected to be neutral. All the best!