Three White Soldiers Pattern

Gold closed at 1777.05 after placing a high of 1780.65 and a low of 1763.65. gold prices rose on Tuesday after the appeal for precious metals increased due to declining U.S. Treasury yields on the day. On Tuesday, the benchmark bond yield on a 10-year note fell to a 1.5570% level, while the U.S. Dollar Index was up by 0.2% before hitting its lowest level about seven weeks earlier in the session. The recent upward trend in gold has been driven by the fact that bonds were well bid and the U.S. dollar was under pressure.

Given the unprecedented stimulus by the central banks and the inflation associated with it, gold is considered a hedge against inflation. It tends to rise in case of the issuance of extensive stimulus measures. However, gold has been in a tussle with yields for the past six months since higher yields mean higher opportunity cost of holding non-yielding bullion.

As for the stimulus checks, most Americans received their first round of stimulus checks worth $1200 in Spring 2020, plus $500 for each child under 17 to help with the economic impact of the pandemic. As the second wave of virus emerged, the second round of stimulus checks worth $600 was issued in December 2020, the third round worth $1400 each plus $1400 per dependents of all ages started going out last month.

Since the American Rescue Plan was signed by Biden last month, more than 159 million payments worth a total of $376 billion have been delivered. Still, some found these payments not enough and reported falling short while trying to cover household expenses, as per the U.S. Census Bureau data in March 2021. After the issuance of these stimulus checks, gold should have risen and posted gains, but instead, it moved in a bearish trend and remained under pressure because of the rising treasury bond yields. Noe talks about the 4th stimulus check payments that have emerged, and it seems like they are supporting the gold prices. Congress is considering sending additional payments to those most in need once the current $1400 stimulus payments run out.

Meanwhile, Johnson & Johnson said that it would resume the rollout of its coronavirus vaccine in Europe on Tuesday. The comment came after the drug regulator of the European Union said that a warning should be added to the product, indicating a possible link to rare blood clots. Still, the benefits of the shot outweigh the risks.

The company had decided to delay distribution in Europe last week after regulators in the U.S. suspended using its vaccine in the country amid concerns about the potential side effects. The pause on using the J&J vaccine after the AstraZeneca vaccine raised doubts in the market over the economic recovery. It somehow helped safe-haven yellow metal to post gains on Tuesday.

According to Johns Hopkins University data, in the past seven days, the U.S. reported an average of more than 67,100 new coronavirus daily infections. This rate was 25% above its month-ago level, and it was alarming as the country was at the stage of vaccinating its population. These concerns also helped the safe-haven precious metal to post gains for the day.

Gold Intraday Technical Level

Support Resistance

1764.36 1781.46

1759.33 1793.53

1747.26 1798.56

Pivot Point: 1776.43

Gold - XAU/USD - Technical Outlook

Gold is trading bullish at 1,787 level, gaining immediate support at 1,775. On the 4- hour timeframe, the support is extended by 20 periods EMA (exponential moving average), and gold has formed the “Three White Soldiers” candlestick pattern that supports strong bullish sentiment among traders. Typically, such patterns trigger an upward movement in the market; therefore, the gold’s next resistance prevails at 1,789 level today. On bullish breakout of 1,789 resistance, gold’s bullish capacity increases until the next resistance level of 1,798. On the bearish side, the breakout of 1,776 support opens up room for a bearish trend until the next support area of 1,764. The MACD and RSI are supporting the bullish trend in gold today. All the best!

Upward Channel In Play

The EUR/USD closed at 1.2033 after placing a high of 1.2081 and a low of 1.2022. EUR/USD pair rose in the first half of the day and reached its highest since March 3, but it could not stay there for long and retreat from there ended up losing all of its daily gains. EUR/USD pair ended its day with losses as the U.S. dollar recovered its strength.

Earlier in the day, the currency pair EUR/USD preserved its bullish momentum as the greenback struggled to find demand. Nevertheless, during the second half of the day, the safe-haven appeal raised that changed the market mood, supported the U.S. dollar, and lifted the U.S. Dollar Index on a positive note.

The U.S. Dollar Index DXY was up by 0.15% on Tuesday at 91.22 and supported the greenback that weighed on currency pair EUR/USD. During early trading hours, the declining U.S. treasury yields weighed on the U.S. dollar helped EUR/USD pair to post gains and reach its highest level since early March. However, in late American hours, the market mood changed and shifted to risk-off, which helped the safe-haven U.S. dollar to find some demand and dragged the currency pair EUR/USD on the lower side.

The sentiment of the market changed after Chinese President Xi Jinping called for global solidarity in the face of a thriving anti-China front headed by the United States. He also warned that an open world economy was essential to recovering from the pandemic. Stresses between China and the U.S. have been intensified recently after the U.S. and its allies imposed sanctions on Chinese officials last month over alleged repression of Uighur Muslims and other ethnic minorities in Xinjiang Province, which was condemned and denied by Beijing. The harshest sanctions that the Trump administration imposed on China’s most prominent tech company also remained in place, along with the trade tensions that continue during the Biden administration. The rising tensions between the U.S. and China over the Taiwan issue have also escalated the dispute.

Xi said that bossing around or meddling in others’ internal affairs would not get one any support. He and did not mention name of any country but said that big countries should behave in a manner benefitting their status and with a greater sense of responsibility.

Meanwhile, the tensions between Russia and U.S. also escalated as the U.S. expressed its deep concerns over Russia’s plan to block foreign naval ships. The U.S. and its European partners were worried regarding Russia’s military build-up in recent weeks and they fear Moscow might be planning to invade Ukraine. All these geopolitical tensions raised the risk-off market sentiment and helped U.S. dollar find demand that ultimately weighed on EUR/USD pair.

On data front, at 11;00 GMT, the German Purchasing Price Index in March raised to 0.9% against the expected 0.6% and supported single currency Euro and pushed EUR/USD pair in first half of the day. On Thursday, ECB is set to announce its policy decision that is expected to have a significant impact over the movements of EUR/USD pair.

EURUSD Intraday Technical Levels

Support Resistance

1.1967 1.2074

1.1901 1.2115

1.1860 1.2181

Pivot Point: 1.2008

EUR/USD - Technical Outlook

On the technical front, the EUR/USD is exhibiting a choppy session at the 1.2020 level. The pair is facing immediate resistance at 1.2043 and 1.2112 levels. On the 4-hour timeframe, the EUR/USD pair has formed an upward trendline that is supporting a bullish trend in the pair. However, the formation of Doji and Spinning top candles below the 1.2043 level hurt the market’s bullish sentiment. On the downside, the EUR/USD’s support stays at the 1.1983 level, and break out of this level extends price action towards the 1.1928 level. Considering the RSI and MACD, the overall trading bias remains bullish as their values are holding at 59 and 0.0021, respectively. Trader’s primary focus will remain on the 1.2008 level, as this will be a trendsetter for the day. All the best!

Choppy Session in Play

The BTC/USD was closed at 56,476 after placing a high of 56,950 and a low of 54,398. After falling for four consecutive sessions, Bitcoin raised on Tuesday and broke its bearish streak. The bearish trend in Bitcoin finally broke on Tuesday, thanks to PayPal. Venmo, the peer-to-peer payment service owned by PayPal Holdings Inc., said on Tuesday, has started allowing its users to buy, hold, and sell cryptocurrencies on its app.

This latest jump on the Bitcoin craze by famous digital wallet Venmo with 60 million active users raised the odds that this step could inspire more mainstream adoption of the digital asset class. The company said that the users would be able to buy Bitcoin, Ethereum, Litecoin, and Bitcoin Cash for as little as $1 and public transactions on the app’s feed.

Venmo is one of the most accepted payment platforms in the US, particularly among younger customers who use it to pay friends and family. Last year, Venmo processed around $159 billion in payments. This positive news helped Bitcoin found its lost ground, and BTC/USD posted gains for the first time in five days over this news. Furthermore, the gains in Bitcoin were also associated with the latest statement made by the executive director of the Blockchain Association, Kristin Smith. He dismissed fears that the US Department of the Treasury was close to crackdown on Bitcoin and other cryptocurrencies.

Over the weekend, the rumors of the Treasury bringing money laundering charges against some financial institutions using cryptocurrencies began circulating on social media that took a toll on Bitcoin prices and over the whole crypto market. However, now these concerns were faded after Smith’s comments and helped Bitcoin find its demand back.

BTC/USD Intraday Technical Levels

Support Resistance

54581.6 57027.8

53524.1 58416.5

52135.4 59473.9

Pivot Point; 55970.3

BTC/USD - Technical Outlook

On Wednesday, the BTC/USD pair continues to trade with a bearish bias at 55,642 level. The pair is consolidating in a broad trading range of 57,657 level to 53,367 level, and lack of trading volume keeps the pair’s movement limited. On the 4 hour timeframe, the 20 & 50 periods EMA are extending resistance at 55,750 and 60,019 levels. The RSI and MACD values suggest bearish bias among investors; therefore, the pair is looking for a bearish breakout. On the down side, the breakout of the 53,350 support level opens up further room for selling until the next support area of 50,015, whereas resistance stays at 57,657. All the best!

20 EMA Supports Metal

Gold prices were closed at 1772.25 after placing a high of 1790.35 and a low of 1766.70. Gold prices tried to continue their previous day's bullish trend on Monday and continued rising during the first half of the day but reversed their course in the second half of the day and ended with a bearish trend. After rising for two consecutive sessions, gold dropped on Monday after reaching its highest level since 25th February at 1790. However, gold couldn't live there for long and retreated as the U.S. bond yields started to recover after three days of disappointing performance.

Gold was rising toward the 1,800 level amid the recent weakness in the U.S. dollar, but after reaching its more than 7-week highest level, the yellow metal reversed its momentum on the back of soaring U.S. Treasury yields that weighed on non-yielding bullion's appeal. The benchmark 10-year U.S. Treasury yield rose above 1.6% after hitting a multi-week lowest level last week.

On Monday, U.S. President Joe Biden held his second infrastructure meeting with Democratic and Republican members of Congress as GOP lawmakers were pushing to shrink the $2 trillion proposals by the president. Usually, such big-sized stimulus measures led to dollar debasement and inflation that could benefit gold due to its status as an inflation hedge. However, this logic has not supported gold prices; instead, gold has suffered due to rising yields.

On the other hand, China, the world's biggest gold consumer, has permitted domestic and international banks to import a large amount of gold into the country. This information was received from five similar sources with the matter and pushed gold prices higher on Monday. Furthermore, the losses in gold prices on Monday could also be attributed to the latest news from the U.S. that has reached another important milestone in the race to protect its population against the coronavirus.

On Monday, the U.S. reported that about 25.4% of its population had been fully vaccinated, which means more than a quarter of Americans are fully protected against coronavirus, with more than 84 million people receiving both vaccine shots. Centers for Disease Control and Prevention released this report on Sunday. This news added support to the weak U.S. dollar and added pressure on the rising prices of gold on Monday.

Gold Intraday Technical Level

Support Resistance

1762.51 1786.16

1752.78 1800.08

1738.86 1809.81

Pivot Point; 1776.43

Gold - XAU/USD - Technical Outlook 

On Tuesday, gold is trading bearish at 1,772 level, gaining immediate support at 1,769. On the 4- hour timeframe, the support is extended by 20 periods EMA (exponential moving average), and gold has closed series of Doji and Spinning top candles right above 1,769 level. Typically, such patterns trigger an upward movement in the market; therefore, the gold’s next resistance prevails at 1,789 level today.

On the bearish side, the breakout of 1,769 support opens up room for a bearish trend until the next support area of 1,759 and 1,754. The MACD and RSI are supporting the bullish trend in gold today. The U.S. economy isn’t expected to release any significant economic events today; therefore, the price action in gold will heavily depend upon the technical levels. All the best!

Bullish Bat Pattern Continue to Play!

The EUR/USD closed at 1.2033 after placing a high of 1.2049 and a low of 1.1942. EUR/USD pair rose on Monday and reached its highest since 4th March amid U.S. dollar weakness. The demand for Euro continued to rise due to weakness in its rival currencies, including the British Pound and the U.S. dollar. On Monday, the U.S. Dollar Index dropped sharply near its 7-week lowest level at 91.03 level and weighed heavily on the U.S. dollar that helped its rival currencies, including Euro, as both share a negative correlation. It means the weakness in the U.S. dollar has driven the recent strength in Euro.

The greenback was suffering as the market unravel speculation that the Federal Reserve could tighten U.S. monetary policy anytime soon. This was added by the unsurprising U.S. inflation data that faded any hope for a surge in inflation. Investors are starting to sell the U.S. dollar in favour of other riskier currencies for getting higher yields. So, the evaporated speculations of more hawkish Federal Reserve continued weighing on the U.S. dollar and benefitting EUR/USD pair.

On the data front, there was no macroeconomic data to be released from the U.S. side, from the European side, 13;00 GMT, the Current Account Balance from the Eurozone dropped to 25.9B against the expected 31.2B and weighed on single currency Euro that capped further gains in EUR/USD pair.

However, the EUR/USD pair gains were limited throughout the day amid the rising U.S. treasury bond yields. The benchmark 10-year Treasury yield rose above 1.6% on Monday in the second half of the day and supported the U.S. dollar prices a little that eventually capped further gains in EUR/USD pair.

Meanwhile, on Sunday, the European Commissioner for Interior Market, Thierry Breton, said that Europe could decide not to renew its contract with the AstraZeneca pharmaceutical group due to delays in the delivery of vaccines since the start of the year.

On Tuesday, Germany will unveil the March Producer Price Index, and on Thursday, the European Central Bank is expected to hold its April policy decision. If the bank takes a more optimistic tone on the Eurozone economy, it could lead to stronger support for Euro and vice versa. On Thursday, French and Eurozone confidence data will also be revealed along with the U.S. jobless claims data.

EURUSD Intraday Technical Levels

Support Resistance

1.1967 1.2074

1.1901 1.2115

1.1860 1.2181

Pivot Point; 1.2008

EUR/USD - Technical Outlook 

The technical side of the EUR/USD is exhibiting a solid bullish bias amid a weaker dollar and stronger Euro. Most of the market movement in the EUR/USD continues to depend upon the technical outlook as both nations lack high-impact economic events. The single currency Euro is trading at 1.2060 level, having disrupted an immediate resistance level of 1.2040. Above this, the next resistance holds around 1.2112 level, and violation of this level can also extend EUR/USD pair towards the next double top resistance level of 1.2246. The bullish bat pattern on the daily timeframe is playing well for the EUR/USD pair as it has already achieved its expected targets at 1.1983 and 1.2112. The recent bullish crossovers on MACD and RSI are supporting a bullish trend in the pair. Overall, bullish bias dominates in EUR/USD pair, especially over the 1.2008 level today. All the best!

Descending Triangle Pattern

The BTC/USD was closed at 55639 after placing a high of 57359 and a low of 54912. Bitcoin continued its bearish momentum for the 4th consecutive session on Monday and dropped below 55,000 level. Bitcoin fell on Monday against the US dollar after dropping precipitously over the weekend in a flash crash. After reaching an all-time high near $65,000 last week, the cryptocurrency saw a steep decline and dropped more than 10K in value in just three days. It has dropped more than 20% over the weekend and is continuously declining and damaging the companies holding Bitcoin like Tesla, a key holder of the famed crypto, fell by 4%. The Coinbase that made its public appearance last week also dropped by 3%.

One of the cited reasons behind the decline of Bitcoin is the noise made by countries like Turkey that banned Bitcoin and other cryptocurrency payments and the talks of further scrutiny by the US Treasury. The competition around the crypto market is also expanding, with countries like China creating a digital Yuan. China is playing with the idea of rolling out the currency at the 2022 Beijing Winter Olympics. Furthermore, the Bank of England has recently announced the creation of a Central Bank Digital Currency and a task force to explore its uses. Some analysts believe that the competition of Bitcoin is rising with the tech companies working on their versions of cryptocurrencies, and this has been weighing on the prices of Bitcoin.

Meanwhile, the Deputy Governor of the People’s Bank of China, Li Bo, said that bitcoin and stable coins were encrypted assets and not currency itself. He noted that crypto assets should play a significant role in the future either as an investment tool or as an investment alternative. News like this should swipe off some of the bearish tones from Bitcoin.

On Sunday, the Chief Investment Officer of Arca, Jeff Dorman, gave three reasons for the recent decline in Bitcoin prices. First, there was much confusion about the drop in BTC Hash Rate. Second, various people claimed that high-level Coinbase executives had sold most of their Coinbase shares shortly after its IPO on April 14. Third, the news about the US Treasury charging several financial institutions for money laundering using cryptocurrencies.

BTC/USD Intraday Technical Levels

Support Resistance

54581.6 57027.8

53524.1 58416.5

52135.4 594739.9

Pivot Point; 55970.3 

BTC/USD - Technical Outlook 

The BTC/USD pair trades with a bearish bias at 54,834 level, having from 57,657 level. Previously, the leading cryptocurrency BTC/USD fell dramatically from 61,300 to 46,639 level amid violation of upward trendline and profit-taking by investors. Bitcoin has formed a descending triangle pattern on the hourly timeframe, supporting the leading cryptocurrency pair at 53,300 level and resistance at 55,425. The 20 & 50 periods EMA are pressing Bitcoin prices lower, extending strong resistance at 55,450 area. Simultaneously, the lagging indicators such as MACD and RSI also suggest a strong bearish trend as their values are holding at -405 and 42, respectively. A bearish breakout of 53,350 support level opens up additional room for selling until the next support area of 50,015. All the best!

Ascending Triangle Breakout

Gold prices were closed at 1776.90 after placing a high of 1779.50 and a low of 1770.10. Gold extended its gains and reached its highest level since February 25th on Friday amid the weak U.S. dollar and rising geopolitical tensions. The declining U.S. Dollar Index boosted the strength in gold prices on Friday; DXY fell to 91.56 on the ending day of the week. Gold also got support from its safe-haven status after the heightened tensions between world powers America and Russia. On Thursday, the U.S. announced sanctions against Russia in response to cyber-attacks and other hostile actions. According to the White House, the measure targeted dozens of Russian officials amid their harmful foreign activities. The statement issued by the White House suggested that the Russian Intelligence was behind the massive last year’s SolarWinds hack as well as Moscow also interfered in the U.S. 2020 Elections.

The sanctions were detailed in an executive order signed by President Joe Biden. This order included a ban on U.S. financial institutions from participating in the primary market for the ruble and non-ruble denominated bonds from June. The sanctions also targeted 32 entities and officials accused of trying to influence the 2020 U.S. Presidential Election. Last month, the U.S. targeted 7 Russian officials and more than a dozen government entities over the poisoning of Kremlin critic Alexei Navalny that Russia denied. This week another executive order citing sanctions on Russian officials by the U.S. added further to the tensions between world powers and called for safe-haven appeal that drove gold prices higher on Friday.

The stresses between the U.S. and Russia escalated on Friday after Russia sanctioned eight senior U.S. administration officials, including FBI director Christopher Wary and Director of National Intelligence Avril Haines. These sanctions came in response to the U.S. sanctions announced on Thursday. The rising cycle of tensions between the countries added fuel to the upward momentum in yellow metal prices on Friday. Meanwhile, the tensions between the U.S. and China over Taiwan Strait also escalated amid rising fears that Beijing might invade the island much sooner than expected. The rising geopolitical tensions around the world helped yellow metal reach the 1,800 level.

Furthermore, the U.S. dollar remained weak across the board on Friday amid the dovish comments from the Fed Chair, Jerome Powell. He reaffirmed the central bank’s commitment to keeping the loose monetary policy in place that weighed on the greenback. The interest rates will not see a surge as inflation was not that high. Millions of Americans were still out of jobs and need assistance as the nation was rebuilding from the destruction provoked by the coronavirus pandemic. The weakness in the U.S. dollar also added to the gains of precious metal on Friday.

On the data front, at 17;30 GMT, Building Permits in March remained flat with the expectations of 1.75M. In March, the Housing Starts raised to 1.74M against the forecasted 1.60M and supported the U.S. dollar, and capped further gains in gold. At 19;00 GMT, the Prelim UoM Consumer Sentiment in April dropped to 86.5 against the forecasted 88.9 and weighed on the U.S. dollar that added further gains in the yellow metal. The Prelim UoM Inflation Expectations raised in April to 3.7% against the previous 3.1%. The Treasury Department of the United States published its first foreign exchange report of President Joe Biden’s administration on Friday. The country did not designate China as a currency manipulator. The report followed the statement from Treasury Secretary Janet Yellen, who said at her confirmation hearing in January that she would oppose any attempts by foreign countries to artificially manipulate currency values to gain an unfair advantage in trade.

Gold Intraday Technical Level

Support Resistance

1719.90 1775.50

1730.00 1785.60

1719.90 1803.30

Pivot Point: 1757.80

Gold - XAU/USD - Technical Outlook

On Monday, the precious metal gold is trading sideways between a narrow trading range of 1,783 – 1,769 level. On the 4-hour timeframe, gold has formed an upward channel suggesting a bullish trend in gold and supporting it at 1,769 level. The resistance holds at 1,783 today. Gold’s next resistance holds around 1,803 level, but before this, the gold will be facing a strong hurdle at 1,783 level, the upper boundary of the trading range. The RSI (relative strength index) and the MACD (moving average convergence divergence) support a bullish trend in gold. The lagging indicators 20 and 50 EMA support the precious metal at 1,778 and 1,760 levels. Investors will be keeping an eye on the 1,783 – 1,769 trading range to trade the breakout. All the best!

Bullish Bat Pattern Continue to Play!

The EUR/USD closed at 1.1983 after placing a high of 1.1996 and a low of 1.1950. EUR/USD pair posted gains on Friday amid weakness in U.S. dollar after the speculations for the hawkish Fed faded out of the market. The EUR/USD exchange rate capitalized on the weakness of the U.S. dollar on Friday whereas, the single currency Euro also found support from the improving Eurozone recovery hopes. Despite being at the biggest risk due to slow vaccine rollout, the Eurozone currency managed to gain a little support in recent weeks, primarily due to weakness in its biggest rival, the U.S. dollar. The two currencies share a negative correlation that means the Euro often climbs in times of declining U.S. dollar.

Even though the Eurozone economy has started recovering from the pandemic, the recovery rate was much weaker due to the slower vaccine rollout that poses the biggest threat to the economy. In contrast, Britain and the U.S. have successfully inoculated large portions of their populations. The eurozone that was already facing slow delivery of vaccines, has recently faced more troubles due to rising infection rates across the region. These negative developments in the bloc affected the macroeconomic releases from the area. They kept the single currency Euro under pressure that limited the rising prices of the EUR/USD pair on Friday.

On the data front, at 13:05 GMT, the Italian Trade Balance in February dropped to 4.75B against the expected 4.95B and weighed on the single currency Euro and capped further gains in EUR/USD pair. At 14:00 GMT, the Final CPI for the year from the whole bloc remained flat at 1.3%. The Final Core CPI for the year also remained unchanged at 0.9%. The Trade Balance from the bloc dropped to 18.4B against the forecasted 21.9B and weighed on single currency Euro and capped further upside momentum in EUR/USD pair. At 17;30 GMT, Building Permits in March remained flat with the anticipated of 1.75M. In March, the Housing Starts surged to 1.74M against the predicted 1.60M and supported the U.S. dollar that limited the rising prices of the EUR/USD pair. At 19;00 GMT, the Prelim UoM Consumer Sentiment in April declined to 86.5 against the expected 88.9 and weighed on the U.S. dollar that added further gains in the EU/USD pair. The Prelim UoM Inflation Expectations rose in April to 3.7% against the previous 3.1%.

On the other hand, the recent rally in the greenback was largely due to the thought that revival from the coronavirus pandemic would drive inflation higher that will pressure the Federal Reserve to tighten monetary policy. However, these speculations ended after the dovish comments from Fed Chair Jerome Powell, along with the largely unsurprising U.S. inflation data over the past week. After the speculations for the Fed tightening faded away, the U.S. dollar saw a decline in its demand that eventually helped EUR/USD pair to post gains.

The U.S. Dollar Index on Friday also declined and reached 91.5 level that also added further gains in EUR/USD pair. However, the gains in EUR/USD on Friday remained consolidated because of the rising geopolitical tensions between U.S. and China and U.S. and Russia. These tensions raised the safe-haven demand in the market that supported the greenback and kept the gains in currency pair EUR/USD under pressure for the day.

EURUSD Intraday Technical Levels

Support Resistance

1.1949 1.1989

1.1933 1.2011

1.1910 1.2028

Pivot Point: 1.1972

EUR/USD - Technical Outlook

On Monday, the technical side of the EUR/USD continues to trade sideways due to lack high-impact economic events from both of the Nations, the U.S., and the Eurozone. The single currency Euro is consolidating below an immediate resistance level of 1.1938 level. This resistance level is extended by a triple top pattern that we can see on the daily timeframe. On this daily timeframe, the EUR/USD closed a bullish bat pattern that typically drives a bullish trend in the market, and it did push the single currency Euro higher towards 1.1983 resistance. On the higher side, a breakout of triple top resistance 1.1983 can open room for a further bullish trend. The EUR/USD's next resistance stays at 1.2043, 1.2112, and 1.2246 areas. All the best!

Nose Dive in Bitcoin

The BTC/USD closed at 56,163 after placing a high of 60,223 and a low of 54,416. BTC/USD continued its bearish trend for the third consecutive session and fell to its lowest level since 26th March. The recent decline in the cryptocurrency market was triggered after the Central Bank of the Republic of Turkey instituted a ban on cryptocurrency payments. This ban came in as Turkey's fiat currency, and Lira was failing. This ban is said to commence at the end of April.

According to CBRT, the lack of a mechanism for supervision and central authority regulations for cryptocurrencies was the major reason behind the recent ban. The CBRT also cited that the cryptocurrency market was highly volatile, and many cryptocurrency transactions were irrevocable.

The reasons given by CBRT were similar to that given by the Nigerian central bank last month, when it issued a reminder of a ban on financial services for cryptocurrency exchange operations in the country. On Friday, the CBRT issued several restrictions on cryptocurrency transactions that will restrict the payment service providers from incorporating digital assets into their services directly or indirectly. This ban will take full effect as from 30th April. After releasing this ban, Bitcoin prices started to fall and have been falling since then to reach their lowest level since 26th March, at around 54,000.

After a few weeks of headlines, Turkey saw a surge in Google searches for Bitcoin. The renewed interest in Bitcoin in the country came after President Recep Tayyip Erdogan sacked the governor of CBRT, Naci Agbal. According to some experts, Turkey will only see a new wave of interest for Bitcoin and other cryptocurrencies after this ban as the country were struggling with high inflation.

Another reason behind the recent decline in the cryptocurrency market could be attributed to the rumours that started to spread over the weekend. The US Treasury was planning to charge several financial institutions for money laundering through digital assets. The news is yet to confirm by the agency, but it has caused a disruption in the cryptocurrency market and a massive scale that drove Bitcoin below 52,000. Almost the top 100 cryptocurrencies experienced a –10% to –20% decline.

BTC/USD Intraday Technical Levels

Support Resistance

51032.8 62831.1

53654.7 61520.2

54965.6 58898.3

Pivot Point: 57587.4

BTC/USD - Technical Outlook

The leading cryptocurrency BTC/USD fell dramatically from 61,300 to 46,639 level amid violation of upward trendline and profit-taking by investors. Currently, the BTC/USD pair has covered most of the losses and completed 50% Fibonacci retracement at 55,565 level. Bitcoin is trading at 56,750 level heading towards a 61.8% Fibonacci retracement level at 57,870. The 61.8% Fibo level extends solid resistance level to Bitcoin bulls; closings of Doji or Spinning top candle typically drive prices lower. On the downside, the support levels continue to hold at 53,685 and 50,918 levels. All the best!

Ascending Triangle Breakout

On Thursday, Gold prices soared to 7-week highs to trade just beneath $1,770 per ounce afternoon in London following new economic figures that reported a record jump in the U.S. retail sales coincided with the previous month's $1,400 Covid stimulus checks delivered to most U.S. adults. The precious metal safe-haven-metal succeeded in extending its overnight winning streak and drew some further bids around above the $1,740 level as the U.S. dollar remains bearish around a one-month low. The U.S. dollar was being pressured by the Federal Reserve's discussions that interest rates can stay low, making U.S. bond yields weaker and contributes to the gold gains. Meanwhile, backed by the combination of factors, the upbeat market mood also played a significant role in undermining the safe-haven U.S. dollar, which lends some additional support to the gold prices to stay bid.

Apart from this, the intensified concerns over the coronavirus (COVID-19) vaccine shortages fuel the fears over slower economic recovery. As per the latest report, the US Centers for Disease Control and Prevention (CDC) is expected to extend the ban on the use of Johnson & Johnson's covid vaccine. This, in turn, exerted downside pressure on the market risk tone and contributed to U.S. dollar gains.

On the USD front, the broad-based U.S. dollar succeeded in stopping its overnight declines and edged higher during the Asian session on the day amid risk-off market sentiment. However, the U.S. dollar bullish bias was relatively unaffected by the Federal Reserve's demand of keeping an accommodative policy stance for a while longer. Hence, the gains in the U.S. dollar were seen as one of the key factors that kept the XAU/USD currency pair under pressure.

Although the precious metal gold managed to gain solid support despite the release of robust inflation data from the U.S. economy, the increase of the covid cases in the bloc also supported a bullish trend in the XAU/USD pair.

Gold Intraday Technical Level

Support Resistance

1730.36 1756.51

1713.78 1766.08

1704.21 1782.66

Pivot Point: 1739.18

Gold - XAU/USD - Technical Outlook

The precious metal gold is trading sharply bullish at 1,766 level, having violated an ascending triangle pattern on the 4-hour chart. The ascending triangle pattern extended resistance at 1,759 level, and since it's been violated now, the exact resistance level of 1,759 can work as support now. Gold is exhibiting bearish correction after placing a high of around 1,769 level, and so far, it has plunged until 1,759 support level. On the 1-hour chart, gold has closed candles above 1,759, triggering bounce off in gold until gold's resistance level of 1,769. A bullish breakout of 1,759 resistance opens up gold's buying trend next resistance level of 1,782. All the best!