Bullish Bat Pattern in Play!

During Friday's Asian trading hours, the EUR/USD currency pair failed to stop its overnight losing streak and remained sidelined below the 1.1950 level. The German bund yield's dropped from the 1-month high, with the most significant daily losses since early March. This eventually triggered the pair's pullback from a 7-week high to snapped a 3-day winning streak overnight. Besides this, the selling bias around the currency pair could also be attributed to the market risk-off sentiment that's underpinning the U.S. dollar and contributing to the currency pair gains.

The losses in the EUR/USD currency pair were further bolstered by the latest report suggesting that the U.S. Centers for Disease Control and Prevention (CDC) extended the ban on the use of Johnson & Johnson's covid vaccine. In response, the single currency Euro took a hit as this news may cause a slow down in Eurozone's economic recovery. The EUR/USD is trading at 1.1968 and consolidating in the range between 1.1950 - 1.1974.

The global equity market failed to extend its previous-day positive performance and turned bearish on the day as U.S. - Russia and Sino-American tussles getting worse day by day. The U.S. decided to inflict sanctions on Russia over election interference and hacking, which is recently gained significant market attention. However, U.S. President Joe Biden strongly supported the move while saying to Russian President Vladimir Putin, "The U.S. could slap further sanctions, but Biden chose not to do so." Thus, the news added to the market's risk-off sentiment and helped the U.S. dollar stay bid.

In the meantime, U.S. President Biden and Japanese Prime Minister Yoshihide Suga are set to meet in the White House at about 13:30 GMT on the day. Wherein they would talk about China, as per the report from the U.S. Administration official. After the U.S. attempt to gather global support while battling with China, the U.S. -China tension is expected to intensify further as Beijing recently warned America over Hong Kong and Taiwan's role. Hence, the fears of a full-fledged trade/political war between the U.S. and China have been pondering on the market trading sentiment and were seen as one of the leading factors that kept the EUR/USD currency pair lower. Looking forward, the market traders will keep their eyes on the final reading of March's Eurozone Consumer Price Index (CPI), which is expected to confirm 1.3% YoY figures. Apart from this, the U.S. data will also be essential to watch. In addition to this, updates over the vaccine will not lose their importance. Let's take a look at the technical side of the market.

EURUSD Intraday Technical Levels

Support Resistance

1.1898 1.1976

1.1849 1.2005

1.1820 1.2053

Pivot Point: 1.1927

EUR/USD - Technical Outlook

On Friday, the technical side of the EUR/USD hasn't changed a lot as the market continues 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 the 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. At the same time, the support continues to hold at 1.1915 and 1.1865. Today, the investor's focus will stay on Final CPI y/y, Final Core CPI y/y, and Trade Balance figures from the Eurozone economy. All the best!

Upward Trendline Support

During Friday's Asian session, the BTC/USD crypto pair hit the new all-time high at $64,892 before starting a downside correction. The BTC/USD pair corrected below the $64,000 and $63,500 support levels. The price is trading well above the $62,000 mark and the 100 hourly simple moving average.

Most of the Bitcoin movement was driven on the back of Coinbase IPO (Initial Public Offering) and its performance on the New York stock exchange. The listing is by far the largest yet of a cryptocurrency firm, with the San Francisco-based company stating last month that private market deals had evaluated the company at about $68 billion this year, compared to $5.8 billion in September.

The leading cryptocurrency, Bitcoin, drew back from an ATH (all-time high) as the U.S. crypto exchange dropped to settle down 14%. It began trading at $381 per share in its primary listing soon ere 1:30 p.m. in New York and soared as high as $429 in the initial 10 minutes of trading. It concluded at $328.28. Bitcoin plunged to its session low when Coinbase took a reversal ere paring losses. During the Asian session today, the BTC/USD was trading around $63,160 in Hong Kong.

However, the reason for the bearish BTC could be tied to the mixed U.S. dollar. The U.S. dollar extended its worst back-to-back weekly drop amid an extended decline in Treasury yields as the Federal Reserve demanded keeping an accommodative policy position for a while longer.

BTC/USD Intraday Technical Levels

Support Resistance

61106.0 64724.0

58694.0 65930.0

57488.0 68342.0

Pivot Point: 62312.0

BTC/USD - Technical Outlook

The BTC/USD is trading at 62,580 level, holding above a strong support level of 61,621 level. On the 4-hour chart, the BTC/USD pair has formed an upward trendline that is supporting the pair at the 61,620 level. A bearish breakout of this support level opens up additional room for selling until the next support area of 59,400. The leading indicator RSI (Relative Strength Index) is crossing below 50 levels, suggesting selling trend continuation in Bitcoin. The lagging technical indicator such as the 20 & 50 EMA (Exponential Moving Average) indicates a bullish trend. However, we can also see on the 4-hour chart, Bitcoin is trying to cross below 20 EMA, and if it happens, the 61,250 and 59,400 could be more appealing support for the Bitcoin investors. All the best!

Symmetrical Triangle Pattern

During Thursday's Asian trading session, the 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, the upbeat market mood, backed by the combination of factors, also played its major role in undermining the safe-haven U.S. dollar, which lends some additional support to the gold prices to stay bid. 

Furthermore, the yellow metal prices' upticks were further bolstered by the concerns over the Johnson & Johnson's vaccine. In the meantime, the back-to-back warnings from Beijing over the Hong Kong issue probes the market's upbeat mood, which was seen as one of the key factors that help the gold prices to put bids. Elsewhere, the fresh U.S. sanctions on Russia and Saudi Arabian interference of Houthi missiles and drones also question the market mood. Alternatively, backed by hopes of economic recovery and the expectations of U.S. stimulus, the upbeat market sentiment was seen as one of the key factors that kept the lid on any additional gains in the safe-haven-metal. 

At the moment, the precious metal gold is currently trading at 1,740.47 and consolidating in the range between 1,734.42 - 1,740.60 as the European Union stopped the Johnson & Johnson vaccine rollout. The case was similar to that of the AstraZeneca vaccine that suggests not to use further due to blood clotting side effects. This news also supported the safe-haven yellow metal prices on Tuesday.

Looking ahead, the market traders will keep their eyes on the various data as Thursday is busy with U.S. data, including retail sales data for March and weekly jobless data, which are due at 1230GMT. Apart from this, the U.S. dollar price movement will continue to play a vital role in the gold direction.

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 XAU/USD is trading with a choppy at 1,742 level, holding in between a narrow trading range of 1,749 - 1,733. On the 4-hour chart, the yellow metal gold continues to hold a symmetrical triangle pattern extending resistance at 1,749 and support at 1,733. A bullish breakout of this pattern opens room until the next resistance area of 1,758. On Tuesday, the 1,739 is working as an intraday pivot point level, and it may offer vital support to gold prices. The series of 20 and 50 periods EMA are neutral, extending mixed bias for gold. Gold continues to face a hard time violating the 1,739 support level, but the next support will prevail around 1,723 level once it does. Bullish bias dominates over 1,739 levels today, along with resistance levels at 1,758 and 1,766 levels. All the best!

Fibonacci Retracement in Play! 

The XRP/USD was closed at 1.79630 after placing a high of 1.85170 and a low of 1.45521. Ripple prices surged sharply by more than 20% on Tuesday and reached above 1.8500 level. This surge was the largest one-day percentage gain since April 10. Ripple also followed the rise in Bitcoin on Tuesday, just like other cryptocurrencies, and reached its 3-year high level above $1.85. Bitcoin finally broke its previous ATH and reached above $63,000 on Tuesday, pushing the entire cryptocurrency market higher. 

Bitcoin has been gaining recently because of the increased adoption by big institutions and the upcoming listing of Coinbase exchange on NASDAQ on Wednesday. The positive news from MicroStrategy Inc. to pay its board of directors with Bitcoin and Times Magazine and Tesla Inc. to hold Bitcoin has pushed BTC/USD prices above its ATH.

On the Ripple front, it is no secret that the token is facing legal troubles due to an ongoing legal battle with SEC. But Ripple has managed to gain massive gains in value because of recent victories in the lawsuit. These positive developments in the Ripple case against US SEC have provided strength to XRP prices that have shifted the trend to positive. Over the previous seven days, XRP has seen a rise in its value with more than 87% gains. The trend is likely followed given the recent spike in the cryptocurrency market.

On the U.S. dollar front, the greenback remained weak across the board amid declining yields on benchmark Treasury notes of 10-year and 30-year on Tuesday. The U.S. dollar was also weak amid the rising concerns about inflation that should force Federal Reserve to increase interest rates. Still, Fed has said that it would not do so until improvement in the job sector is visible. The declining U.S. dollar prices also supported the rising prices of XRP and pushed it to its 3-year highest level on Tuesday.

XRP/USD Intraday Technical Levels

Support Resistance

1.55044 1.94693

1.30458 2.09756

1.15395 2.34342

Pivot Point: 1.70107

XRP/USD - Technical Outlook 

On Thursday, the XRP/USD pair is trading with a bearish bias at a 1.7154 level, heading lower towards the support area of 1.6277 that marks 38.2% Fibonacci retracement. The 38.2% Fibo level violation opens the bearish room until the next support area of 1.6277 (50% Fibo level) and 1.5541 level (61.8%). The MACD and RSI are held at 0.14 and 62, respectively, supporting bullish trends in the XRP/USD pair. On the 4-hour chart, the XRP/USD pair has also formed an upward trendline that's keeping the Ripple at 1.6277 level. Lastly, the Ripple is holding above 20 and 50 periods EMA supporting the upward trend in Ripple. Investors may keep an eye on series of U.S. economic events such as retail sales, core retail sales, and U.S. unemployment claims as these events typically drive sharp volatility in the market. All the best!

Upward Channel in Play! 

During Thursday's Asian trading hours, the EUR/USD currency pair failed to extend its previous three-day uptrend and dropped below the 1.1970 level mainly due to the circumspect sentiment before Germany's Harmonized Index of Consumer Prices (headline inflation figures) as well as the key U.S. data. Moreover, the concerns over the US-China tussle and the coronavirus (COVID-19) vaccine also playing its major role in undermining the EUR/USD currency pair. Meanwhile, the ever-increasing COVID-19 cases in Europe keep fueling the doubts over the European economic recovery, that turned out to be key factors that kept the EUR/USD currency pair down. The traders need strong proofs over the faster economic recovery, which in turn, they may look towards the economic calendar for the same. Conversely, the broad-based U.S. dollar weakness, triggered by the combination of factors, failed to provide any meaningful support to the EUR/USD pair. Currently, the EUR/USD currency pair is currently trading at 1.3556 and consolidating in the range between 1.1970 - 1.1990.

The global equity market extended its previous session bullish moves and remained positive on the day. The uptrend was entirely sponsored by the hopes of economic recovery and expectations of U.S. stimulus. The U.S. Federal Reserve Chairman Jerome Powell announced that the U.S. country is on track for quicker growth. He further appended that the central banks would keep supporting the U.S. economy until the economy recovers completely. Across the ocean, the eurozone economy is presenting mixed signals about its performance. The eurozone economy is entirely dependent on the "two crutches" of monetary and fiscal stimulus, which keep going on until the economy recovers completely, as per the European Central Bank President Christine Lagarde. Therefore, the upbeat market mood failed to provide any meaningful support to the EUR/USD currency pair.

Looking forward, the market traders will keep their eyes on the U.S. data, including retail sales data for March and weekly jobless data, which are due at 12:30 GMT. In addition to this, the updates about the U.S. stimulus package will be key to watch. Furthermore, the risk catalyst like geopolitics and the virus woes will not lose their importance.

EURUSD Intraday Technical Levels

Support Resistance

1.1898 1.1976

1.1849 1.2005

1.1820 1.2053

Pivot Point: 1.1927

EUR/USD - Technical Outlook 

The EUR/USD continues trading with a bullish bias at the 1.1982 level as the MACD and RSI values hold at 0.0006 and 62, signalling bullish bias among investors. On the 4-hour chart, the EUR/USD has completed 23.6% at 1.1968 and 38.2% retracement at 1.1950 level. On the higher side, the EUR/USD pair may find an immediate resistance at 1.1990, and in case of a bullish breakout, the next resistance will prevail around the 1.2025 level. On the hourly timeframe, the 20 & 50 periods EMA support the EUR/USD at 1.1969 and 1.1950, respectively. Today, the investor's focus will stay on the series of speeches from the U.S. Retail Sales m/m, Core Retail Sales m/m, Philly Fed Manufacturing Index and Unemployment Claims as these can drive volatility in the market. All the best!

Pivot Point Supports At $1,739

The yellow metal gold prices were closed at 1746.95 after placing a high of 1749.50 and a low of 1723.35. After dropping for two consecutive days, gold advanced on Tuesday and recovered some of its previous losses amid the declining U.S. treasury yields and US CPI data release. The solid demand for a 30-year bond auction weighed on the U.S. treasury yields and flattened the yield curve. The Benchmark 10-year yields fell by 5.8 basis points and reached 1.618%, while the 30-year yield dropped by five basis points and reached 2.2977%. The declining U.S. Treasury yields added weight on the U.S. dollar that ultimately supported the rising prices of yellow metal on Tuesday.

The U.S. Dollar Index that gauges the greenback's value against the basket of six major currencies also fell to the three-week lowest level at 91.78 and supported the upward trend in gold prices. The greenback's weakness was also associated with the increasing concerns that the unprecedented levels of fiscal stimulus and pent-up demand will lead to higher inflation. This ultimately can force the Federal Reserve to tighten its monetary policies more quickly than earlier expected. Fed officials are committed to supporting the economic recovery until the job figures improve and deny that they see any bump in inflation as temporary. Still, a hefty CPI jump would raise the pressure, especially after a sharp rise in producer prices.

The price pressures are increasing with the rising import and commodity prices and the ISM manufacturing and services prices are both at the highest level since 2008. Furthermore, the U.S. consumer price figures also showed a surge in inflation by the highest in more than eight and half years in March that set off the expectations of the short-lived spell of higher inflation and raised the demand for bullion that is also used as an inflation hedge.

At 15:00 GMT, NFIB Small Business Index remained flat with the forecasted 98.2 that did not affect U.S. dollar prices. At 17:30 GMT, the Consumer Price Index (CPI) for March raised to 0.6% against the expected 0.5% and supported the U.S. dollar, and capped further upside in gold prices. In March, the Core CPI also surged to 0.3% against the estimated 0.2%, supported the U.S. dollar, and limited the rise in yellow metal prices.

Gold prices gained support on the latest news that the Johnson & Johnson vaccine got banned temporarily because of rare blood clotting. Several U.S. health officials suggested stopping or delay the use of the J&J coronavirus vaccine after reports of irregular blood clotting. The U.S., South Africa, and the European Union stopped the Johnson & Johnson vaccine rollout. The case was similar to that of the AstraZeneca vaccine that suggests not to use further due to blood clotting side effects. This news also supported the safe-haven yellow metal prices on Tuesday.

Gold Intraday Technical Level

Support Resistance

1730.36 1756.51

1713.78 1766.08

1704.21 1782.66

Pivot Point: 1739.93

Gold - XAU/USD - Technical Outlook 

On the technical side, the XAU/USD is trading with a bullish bias at 1,747, facing immediate resistance at 1,749 levels. On the 4-hour chart, gold has formed a symmetrical triangle pattern, and the violation of this candle is likely to extend the buying trend until the 1,758 resistance area. Today, the 1,739 is working as an intraday pivot point level, and it may offer vital support to gold prices. The series of 20 and 50 periods EMA also supports a buying trend as these are extending support precisely at the pivot point area of 1,739. Gold may find hard time violating the 1,739 support level, but the next support will prevail around 1,723 level once it does. Bullish bias dominates over 1,739 levels today, along with resistance levels at 1,758 and 1,766 levels. All the best!

Upward Channel in Play!

The EUR/USD was closed at 1.1946 after placing a high of 1.1956 and a low of 1.1878. EUR/USD pair extended its gains and reached its highest level since March 18, above 1.195 level on Tuesday, despite dismal European economic data. The rising EUR/USD prices could be attributed to the U.S. dollar's weakness across the board. The U.S. dollar was weak on Tuesday against the basket of six major currencies as it fell to 91.78 level amid the declining U.S. Treasury yields. The yields on 10-year Treasury note fell by 5.8 basis points to 1.618%, and the yields on 30-year Treasury note also fell by five basis points to 2.2977%. The benchmark Treasury yields fell on Tuesday amid the high demand for a 30-year bond auction and weighed on the greenback that ultimately pushed the currency pair EUR/USD higher.

Meanwhile, the U.S. dollar was also weak across the board amid the rising concerns that the recent increase in prices was not temporary. It would force the Federal Reserve to change its decision about monetary policy. The U.S. Fed has said that it would continue its support to economic recovery until job figures improve, but the recent jump in CPI suggests otherwise. These concerns kept the U.S. dollar under pressure on Tuesday, and hence, the EUR/USD pair reached above 1.19500 level.

On the data front, at 11:00 GMT, the German WPI for March raised to 1.7% against the expected 0.6% and supported single currency Euro that added further gains in EUR/USD pair. At 13:00 GMT, the Italian Industrial Production dropped to 0.2% against the forecasted 0.7% and weighed on single currency Euro that capped further gains in EUR/USD pair. At 14:00 GMT, the ZEW Economic Sentiment for April dropped to 66.3 against the forecasted 77.2 and weighed on single currency Euro and limited the currency pair EUR/USD's rising prices. For April, the German ZEW Economic Sentiment also declined to 70.7 against the expected 79.1 and weighed on the single currency Euro.

At 15:00 GMT, NFIB Small Business Index remained flat with the anticipated 98.2 that did not affect U.S. dollar prices. At 17:30 GMT, the Consumer Price Index (CPI) for March surged to 0.6% against the projected 0.5% and supported the U.S. dollar that capped further upside in EUR/USD. In March, the Core CPI also rose to 0.3% against the projected 0.2%, supported the U.S. dollar, and limited the rising prices of EUR/USD.

Furthermore, the use of the vaccine by Johnson & Johnson was also stopped after reports of rare blood clotting. US FDA approved this vaccine in February, and now U.S. health officers have suggested stopping its rollout because of rare blood clotting reports. This vaccine followed the same case of AstraZeneca and now, along with the U.S., South Africa, and European Union, also stopped its usage. This also raised concerns about the USA's economic recovery and weighed on the U.S. dollar that ultimately added further upward momentum in EUR/USD pair.

EURUSD Intraday Technical Levels

Support Resistance

1.1898 1.1976

1.1849 1.2005

1.1820 1.2053

Pivot Point: 1.1927 

EUR/USD - Technical Outlook 

On Wednesday, the EUR/USD continues trading with a bullish bias at 1.1962 level amid a stronger Euro and weakness in the U.S. dollar. The MACD and the RSI values hold at 0.002 and 69, suggesting a definite upward trend in the pair. On the 4-hour chart, the EUR/USD has also closed the "Three White Soldiers" candlestick pattern that depicts bullish bias among investors. Speaking about the leading and lagging indicators, the 20 and 50 periods EMA are supporting bullish trends in the EUR/USD pair. Technically, the indicators support a bullish bias in the EUR/USD pair; as you can see on the 4-hour chart, the pair has formed an upward channel that is likely to extend support around the 1.1909 level. The upward channel provides resistance at 1.1976 and 1.20050 levels today. Lastly, the investor's focus will stay on the series of speeches from the ECB President Lagarde and Fed Chair Powell as these can drive volatility in the market. All the best!

BTC Violates Symmetrical Triangle Pattern

The BTC/USD was closed at 63518 after placing a high of 63518 and a low of 59900. Bitcoin broke its previous all-time high (ATH) level and reached above $63,500 level on Tuesday ahead of the listing of Coinbase shares in the U.S. The listing of the largest U.S. cryptocurrency exchange on the Nasdaq on Wednesday was considered a landmark victory for cryptomarket advocates. Bitcoin is the largest cryptocurrency globally, and its acceptance as an investment and means of payment is growing rapidly. On Tuesday, Bitcoin prices rose about 5% and reached an ATH of $63,000.

The listing of Coinbase on Nasdaq will mark a turning point for the cryptocurrency industry, and this optimism has led to a recent hike in BTC prices on Tuesday. This month, the overall market capitalization reached above $2 trillion, which was also an ATH peak. The increased popularity of Bitcoin is driving its prices higher, and the whole cryptocurrency market is getting benefits from it.

Talking about the increased popularity of Bitcoin, the Grayscale Fund manager has announced a partnership with New York TIME Magazine. This partnership is expected to produce an educational crypto video series. Another interesting fact about this partnership was that the company would be paid in Bitcoin, and it will be the first media industry to receive payments in Bitcoin.

On Monday, MicroStrategy’s CEO and founder, Michael Saylor have announced that after making a big purchase of 100,000 bitcoins in several months, the Nasdaq listed business intelligence giant will start paying its non-employee directors in Bitcoin instead of cash. Given this news, the host of CNBC, Jim Cramer, has also said that he wanted to be paid in bitcoin. This report also resulted in rising prices of Bitcoin on Tuesday.

Furthermore, on the U.S. dollar front, the greenback remained weak across the board due to declining U.S. treasury yields on the day. The 10-year U.S. Treasury yield fell to 1.618% and dragged the U.S. dollar with itself that added further gains in the rising prices of BTC/USD.

BTC/USD Intraday Technical Levels

Support Resistance

61106.0 64724.0

58694.0 65930.0

57488.0 68342.0

Pivot Point: 62312.0

BTC/USD - Technical Outlook

The BTC/USD has traded in line with April 14 analysis as it successfully violated the symmetrical triangle pattern on the 2-hour timeframes. Currently, the BTC/USD pair is trading at 64,300 level, and it’s likely to face immediate resistance at the 64,829 level. A bullish breakout of 64,829 levels can drive move upward movement until 65,948. However, the RSI and MACD values suggest the pair has entered the overbought zone, and it may require investors to kick in profit-taking. Considering this, the odds of bearish correction also stays strong below 64,829 level today. On the downside, the BTC/USD pair is likely to gain support at the intraday pivot point support level of 62,312. All the best!

Descending Triangle Breakout, Bearish Bias Dominates!

Gold prices were closed at 1732.05 after placing a high of 1745.30 and a low of 1727.15. Gold continued its bearish trend for the third consecutive session and posted losses on Monday amid the rising U.S. Treasury yields that decreased the bullion's appeal. Meanwhile, investors were waiting for the essential U.S. inflation and retail sales data to measure the economy's health.

Gold prices remained stuck under the key $1750 level despite the sluggish U.S. dollar. The U.S. 10-year Treasury note's benchmark yield reached 1.685% on Monday and added weight on the metal prices as they do not produce any yield or dividend. The Treasury yields were rising due to an excellent three-year and 10-year note auction and the awaited key data about the retail sales and inflation. CPI is scheduled to release on Tuesday and Retail Sales on Thursday, and the markets were under consolidation ahead of these data releases.

Higher yields threaten the appeal for gold as an inflation hedge due to the increased opportunity cost of holding gold which pays no interest. On Sunday, the Chairman of Federal Reserve, Jerome Powell, said that he was optimistic about the U.S. economy bouncing back due to successful coronavirus vaccine campaigns; however, he was also worried about the possibility of another surge in the infection cases. Powell was worried that a hasty reopening of economies could trigger a spike in coronavirus cases.

Powell said that the U.S. economy was at a turning point because of the successful government support and speedy vaccine campaigns. He forecasted that the U.S. economic growth would be robust in the second half of this year. Powell said that the U.S. economy was at an inflection point where the growth and job creation were poised to accelerate. These comments from Powell gave strength to the U.S. dollar that ended up having a negative impression on gold prices.

On the data front, at 23:00 GMT, the Federal Budget Balance showed a deficit of -659.6B against the expected -665.5B and weighed on the U.S. dollar that capped further losses in gold prices. The U.S. Dollar Index that measures the greenback's value against the six major currencies' basket reached 92.33 level and weighed on the yellow metal prices on Monday. Meanwhile, over the weekend, the South China Sea's military activity spiked as a Chinese aircraft carrier entered the region and a U.S. Navy expeditionary strike group wrapped up exercises.

Gold Intraday Technical Level

1724.36 1742.51

1716.68 1752.98

1706.21 1760.66

Pivot Point: 1734.83

Gold - XAU/USD - Technical Outlook

On the technical side, the precious metal gold is trading with a bearish bias at 1,727 level, facing immediate resistance at 1,731 level. On the 2-hour chart, the XAU/USD has closed a bearish engulfing candle that's supporting solid bearish bias in gold. On Tuesday, the trader's focus is likely to stay on the U.S. CPI and Core CPI figures that are scheduled to come out during the New York session today. On the lower side, the precious metal gold is likely to find support around 1,721 level, and the violation of this level can extend gold price towards 1,706 level. The leading and lagging indicators are staying in a bearish zone. Stochastic has entered the oversold area, and typically such scenarios drive a bullish correction. Gold may face resistance around 1,731 and 1,745 areas today. Further price action can be seen on the release of the U.S. inflation figures. All the best!

Upward Channel Breakout

The EUR/USD pair was closed at 1.1909 after placing a high of 1.1920 and a low of 1.1870. EUR/USD pair rose on Monday and posted gains despite the rising U.S. treasury yields. The U.S. dollar weakened across the board on Monday as the U.S. Dollar Index fell for the day and provided strength to the rising EUR/USD pair.

At the beginning of this week, the single currency Euro faded the initially offered bias and regained composure that lifted the EUR/USD pair back above the 1.1900 marks. The currency pair reversed Friday's downtick and retook the position near the 1.1900 neighborhood on the back of renewed selling pressure surrounding the U.S. dollar.

The U.S. Dollar Index that gauges the value of the greenback against the basket of six major currencies fell to 92.01 level on Monday and weighed on the greenback that ultimately pushed the currency pair EUR/USD higher. However, the declining U.S. dollar prices were little supported by the rising U.S. treasury yields amid a good 3-year and 10-year bond auction. The benchmark U.S. Treasury yield on a 10-year note reached 1.685% level and supported greenback that faded some of its losses for the day and found support near 1.92 level.

On the data front, at 14:00 GMT, the Retail Sales data from the whole bloc raised in February to 3.0% against the forecasted 1.3% and supported Euro that added further gains in EUR/USD pair. From the U.S. side, at 23:00 GMT, the Federal Budget Balance showed a deficit of -659.6B against the estimated-665.5B and weighed on the U.S. dollar and pushed further the prices of EUR/USD pair in the upward direction. On Monday, the Federal Reserve Chairman, Jerome Powell, said that he was optimistic about the U.S. economy bouncing back amid effective coronavirus vaccine campaigns. However, he was also concerned about the possibility of another rush in the infection cases. Powell was anxious that a speedy reopening of economies could cause a spike in coronavirus cases.

Powell also said that the successful government support and speedy vaccine campaigns had brought the U.S. economy to a turning point. He predicted robust U.S. economic growth in the second half of this year. Powell also said that the U.S. economy was at an inflection point and that the growth and job creation were poised to accelerate. The comments from Powell were not that surprising and failed to support the U.S. dollar that was weak throughout the day, and hence, the EUR/USD pair kept on moving in the upward momentum.

On the other hand, Europe surpassed the grim milestone of 1-million coronavirus deaths on Monday as the WHO warned that infections were rising exponentially despite widespread efforts to control the virus. Despite this news, the sing currency remained strong against the weak U.S. dollar, and the currency pair EUR/USD continued rising at the starting day of the week.

EURUSD Intraday Technical Levels

Support Resistance

1.1880 1.1930

1.1850 1.1950

1.1830 1.1970

Pivot Point: 1.1900

EUR/USD - Technical Outlook

The EUR/USD is trading slightly bullish at 1.1903 level, facing immediate resistance at 1.1916 level. Recalling our April 12 EUR/USD analysis report, the EUR/USD was trading within an upward channel extending support around the 1.1903 level; well, that channel has now been violated. The closing of candles outside this channel is supporting a bearish trend in the EUR/USD pair. On the downside, the EUR/USD pair is likely to find support at 1.1874, and the breakout of this level can open up the further bearish room until the 1.1830 level. On the flip side, the EUR/USD may find resistance at 1.1916 and 1.1946 levels. On Tuesday, the EUR/USD's most of the price action will highly depend upon the release of series of high-impact news events such as the U.S. Inflation figures and the European German ZEW Economic Sentiment. Typically such events drive sharp movement and trading opportunities to the investors, so let's keep an eye on these events today. All the best!