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!

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!