CB Consumer Confidence Ahead!

The GBP/USD was closed at $1.4155 after placing a high of $1.4173 and a low of $1.4110. GBP/USD remained lower for the day and extended the previous session's retracement slide, and continued bearish momentum for 2nd consecutive day. In the absence of any new fundamental developments, fears over the long-term impact of Brexit and the economic damage from the pandemic kept the British Pound under pressure. However, a combination of factors helped limit the losses in GBP/USD pair on Monday.

The easing of lockdown measures and the impressive pace of the coronavirus vaccinations in the United Kingdom kept the investors optimistic about the outlook of the U.K. economy. The official data suggested that more than 70% of adults in the country have received their first dose of the coronavirus vaccine. At the same time, some 22 million have also received their second dose of vaccine. The U.K.'s government plan to end restrictions entirely from June 21 combined with the proven effectiveness of vaccines against the Indian variant of coronavirus added strength in British Pound that kept the currency pair GBP/USD steady throughout the day.

Meanwhile, the ongoing decline in the U.S. treasury yields on a 10-year note kept the U.S. dollar bulls on the defensive and limited the losses in GBP/USD pair. In addition, the underlying bullish sentiment surrounding the equity markets also kept the U.S. dollar under pressure and capped further losses in GBP/USD pair. Furthermore, the Bank of England Governor Andrew Bailey said in testimony to lawmakers on Monday that the expected acceleration in prices this year will likely be temporary. The policymakers from the Bank of England pushed back against concerns that the rapid economic rebound from the pandemic will open roads for a damaging wave of inflation.

These comments were similar to Fed officials who believed that the rising inflationary pressure would be temporary and soon fade away as the economy continues its growth toward recovery. After these comments, the British Pound gathered some strength against the U.S. dollar and recovered most of its losses incurred during early trading hours.

On the other hand, the U.S. Dollar was also weak across the board as the U.S. Dollar Index that measures the value of the greenback against the basket of six major currencies, fell to 89.76 level amid the declining U.S. Treasury yields on a 10-year note that reached below 1.60% on Monday. The weak U.S. dollar also kept the GBP/USD pair losses limited in the absence of any major economic event from both sides.

GBP/USD Intraday Technical Levels

Support Resistance

1.4119 1.4182

1.4084 1.4208

1.4057 1.4244

Pivot Point: 1.4146

GBP/USD - Technical Outlook

The GBP/USD is trading at 1.4198 area, getting closer to test the triple top resistance level of 1.4218 level. The pair has closed three white soldiers above 1.4110 level, suggesting odds of bullish trend continuation in the GBP/USD pair. EMA's 20 and 50 periods support the Cable around 1.4142 and 1.4114 levels on the lower side. At the same time, a breakout or a bullish crossover above 1.4218 exposes the GBP/USD towards 1.4284 and 1.4325. On the flip side, violation of 1.4110 support exposes the pair towards 1.4020 Support. Traders will be focusing on the CB Consumer Confidence figures from the U.S. All the best!

Ethereum Completes 38.2% Fibonacci Retracement!

The ETH/USD was closed at $2648.50 after placing a high of $2648.50 and a low of 2097.31. After declining over the weekend for three consecutive days, ETH/USD recovered most of its losses and gathered some strength to remain green for the day.

On Sunday, the co-founder of Ethereum, Vitalik Buterin, published a post on various scalability solutions for blockchains and explained how Musk's increasing parameters were inadvisable. This post responded to Elon Musk's claims of speeding up the Dogecoin network by simply increasing protocol parameters. Buterin highlighted the importance of decentralisation in response to Musk's claims regarding Dogecoin's scalability. Musk has said that DOGE will become the leading chain if it pushes its block size by 900%.

Whereas, Buterin said that the attention of Musk was only on scalability, and for the matter, he was not even focusing on things that make the blockchain what it is. However, Musk could not stop himself from reacting to this post by Buterin and tweeted on Monday that Vitalik fears the Dogecoin. This came eventually as a response to Buterin for criticising his claims on blockchain scalability.

Meanwhile, an American multinational financial services company, Goldman Sachs Group Inc, has also shared its views on the controversy between Bitcoin and Ethereum. The bank was in support of the latter. According to a research report leaked by experts from Goldman Sachs, the bank analyzed and tackled the key arguments that back Ethereum to overtake Bitcoin as a primary store of value in the future.

The leaked report from Goldman Sachs suggested that Ethereum, the second-largest cryptocurrency with a market capitalization of $250 billion, has a good chance of overtaking bitcoin as the dominant store of value. The support to Ethereum was given due to its working as a host to a large number of DApps and smart contracts. The bank added that most Defi apps were being built on the Ethereum network. Most NFTs issued were being purchased using Ether, which increases Ether versus bitcoin transactions and reflects the dominance. Given this news, Ethereum prices took a U-turn and recovered almost 3/4th of their previous 3-days losses on Monday and reached a $2648 level. Meanwhile, the U.S. Dollar Index (DXY) that measures the greenback value against the basket of six major currencies also remained weak across the board and dropped to 89.76 level, supporting the rising prices of ETH/USD on Monday.

ETH/USD Intraday Technical Levels

Support Resistance

2281.04 2832.23

1913.58 3015.96

1729.85 3383.42

Pivot Point: 2464.77

ETH/USD - Technical Outlook 

The ETH/USD is trading at 2,658 level, bounced off over the double bottom area of 1,815. On the 4-hour chart, the ETH/USD pair is now facing resistance at 2,715 level that's being extended by a downward trendline. At the same time, the violation of the 2,715 level can grow the ETH/USD pair towards the 2,962 level. The 20 and 50 periods EMA are extending mixed sentiments as the ETH is holding above 20 EMA and below 50 EMA. Besides, the ETH/USD pair has completed 38.2% Fibonacci resistance, and now the ETH/USD is likely to face resistance at the same level of 2,715 level. All the best!

20 & 50 EMA Supports Bullish Trend!

Gold prices were closed at $1881.85 after placing a high of $1890.15 and a low of $1870.30. Gold extended its gains on Friday and reached its highest since the first week of January. Gold continued its bullish streak for the third consecutive week amid the weak U.S. dollar and recent crypto crash. The U.S. Dollar remained high against its major rivals on Friday, but it remained around its recent lows as the U.S. Treasury yields on benchmark 10-year note slipped for the day and reached 1.613%.

The U.S. Dollar Index reached 90.03 after declining to 89.65 during the day, which was the lowest since 25th February. It seems like investors were not worried about monetary tightening at the moment as the U.S. bond yields were declining a little, and the yellow metal was gaining from it. Gold has been on solid foot after the release of minutes from the Federal Reserve of its latest meeting that mentioned possible future discussion on reducing stimulus that prompted the speculation over a potential increase to interest rates.

Federal Reserve also acknowledged the rising pressure around prices as the disrupted U.S. supply chain struggled to cope with the increased demand after reopening the economy from months of pandemic –suppression. However, Fed also said that this inflationary pressure was temporary and it will fade away as the economy moves towards full recovery from the pandemic. Fed also noted that there was no need to raise interest rates at the moment. After this, gold started gaining due to its status as a hedge against inflation, and U.S. treasury yields starting declining, which added further upside pressure on the yellow metal and pushed it towards the $1900 level. This was the first attempt of gold after January to return to the $1900 level.

On the data front, at 18:45 GMT, the Flash manufacturing PMI for May increased to 61.5 against the forecasted 60.0 and supported the U.S. dollar that capped further gains in yellow metal prices. The Flash Services PMI also rose to 70.1 against the forecasted 64.3 and helped the U.S. dollar that limited the rising prices of gold. At 19:00 GMT, the Existing Home Sales in April declined to 5.85M against the projected 6.09M and weighed on the U.S. dollar, which added further gold prices.

According to President of San Francisco Federal Reserve, Mary Daly, the factors pushing U.S. inflation higher were likely to recede at the start of 2022. She added that a sequence of these factors will probably continue to appear throughout the end of the year and will start to roll off at the start of next year. Daly said that monetary policy was at a good place at the moment and urged policymakers to remain patient on the subject of 8 million unemployed people as the economy was making progress towards recovery. After these comments, the U.S. dollar saw some strength and added pressure on rising prices of gold on Friday.

Gold Intraday Technical Level

Support Resistance

1864.24 1884.49

1854.12 1894.62

1843.99 1904.74

Pivot Point: 1874.37

Gold - XAU/USD - Technical Outlook

The precious metal gold is trading with a bullish at 1,882 level, facing immediate resistance at 1,889. On the 4-hour timeframe, the precious metal gold has formed series of neutral candles, which in technical terms are known as doji and spinning top. These candles suggest indecision among gold traders. On the higher side, gold has the potential to go after the next resistance area of 1,889. On the 4-hour timeframe, gold continues to hold over 20 & 50 periods EMA, which extends solid support around 1,876. Besides, the RSI and MACD exhibit bullish bias as the RSI and MACD stays in a buy zone. Gold’s immediate resistance stays at 1,889 and 1,897, while support stays at 1,874 and 1,863. All the best!

Ascending Triangle Pattern

The EUR/USD pair was closed at 1.2179 after placing a high of 1.2241 and a low of 1.2161. EUR/USD fell on Friday and reached below 1.2200 level amid renewed strength in the U.S. dollar driven by better-than-expected macroeconomic data from the U.S.A. On Friday, the U.S. Dollar Index that measures the greenback value against the basket of six major currencies rose above the $90 level. It supported the greenback that ultimately added pressure on the EUR/USD pair.

Meanwhile, during the Eurogroup meeting, the Eurogroup President Paschal Donohoe said that the economic recovery of the EU was still some way to go due to uncertainty associated with the coronavirus pandemic and its variants that require agile policies. He added that the Recovery and Resilience Facility (RRF) funds and the reopening of economies accelerated economic recovery momentum.

Euro remained under pressure on Friday because of the dismal data report about the German Flash Manufacturing PMI that fell short of expectations in May and weighed heavily on single currency despite other positive data and dragged the pair EUR/USD further on the downside.

On the data front, at 12:15 GMT, the French Flash Manufacturing PMI for May increased to 59.2 against the expected 58.6 and supported Euro, and limited the losses of EUR/USD pair. The French Flash Services PMI also surged to 56.6 against the projected 53.0 and supported single currency Euro. At 12:30 GMT, German Flash Manufacturing PMI declined to 64.0 against the forecasted 66.0 and weighed heavily on the single currency Euro and added further pressure on EUR/USD.

On the other hand, German Flash Services rose to 52.8 from the predicted 52.0 and supported the single currency Euro. At 13:00 GMT, the Flash Manufacturing PMI from the whole bloc remained flat at 62.8. The Flash Services PMI from the Euro area advanced to 55.1 against the anticipated 52.5 and supported Euro. At 18:32 GMT, the Consumer Confidence from Europe in May reached -5 from the predicted -7 and supported single currency Euro and caped further EUR/USD pair losses.

From the U.S. side, at 18:45 GMT, the Flash Manufacturing PMI for May advanced to 61.5 against the projected 60.0 and supported the U.S. dollar and added further losses in EUR/USD pair. The Flash Services PMI also increased to 70.1 against the predicted 64.3 and helped the U.S. dollar that kept EUR/USD under pressure. At 19:00 GMT, the Existing Home Sales in April dropped to 5.85M against the estimated 6.09M and weighed the U.S. dollar those further capped losses in EUR/USD pair.

Furthermore, the European Central bank President Christine Lagarde played down the possibility of a significant change away from the current stimulus settings on Friday. While talking about tapering the emergency bond-buying program, she said that it was too early and unnecessary to debate longer-term issues. She said that ECB’s commitment to the euro area was to maintain favourable financing conditions throughout the whole pandemic period, and it will remain the same. This added further pressure on Euro and dragged EUR/USD pair further lower on Friday.

EURUSD Intraday Technical Levels

Support Resistance

1.2186 1.2247

1.2146 1.2270

1.2124 1.2309

Pivot Point: 1.2208

EUR/USD - Technical Outlook

The EUR/USD is trading with a bullish bias at 1.2195, maintaining a new ascending triangle pattern on the 4-hourly timeframe. The EUR/USD pair has formed a bullish engulfing pattern and an inside bar-up pattern over the 1.2165 level support area. Above this, the pair is bouncing off, perhaps, to trade towards the resistance area of 1.2240 level. This level is being extended by a triple top pattern on a 4-hour chart. The EUR/USD’s support holds around 1.2129 levels, and these expose the pair towards the 1.2129 level. All the best!

Bitcoin Comes Under Massive Selling Pressure

The BTC/USD was closed at $33092.8 after placing a high of $38248.7 and a low of $31192.4. Bitcoin extended its gains over the weekend and fell below the $32,000 level. The crypto king trading at $64,000 a month ago had dropped more than 50% to below the $32,000 level this week following the news that Elon Musk has ended all bitcoin payments through Tesla considering the environmental effect. Even news came out that he was taking into account ending all his BTC holdings.

After this news, the whole crypto market saw a massive crash in prices, and the world’s largest cryptocurrency by market cap dropped more than 50% within a month. Furthermore, the declining trend accelerated after JP Morgan issued a report suggesting that many institutional players with a serious interest in bitcoin and other digital assets were now abandoning cryptos to favour gold-related investments. Since then, the yellow metal has skyrocketed and rose to a price of approximately $1900 per ounce.

Another reason behind the recent bitcoin crash could be the latest notice from China to limit the power consumption in industrial areas where many bitcoin mining facilities operate. On Friday, the State Council of China issued a statement aimed explicitly at all operations located in the government-sanctioned industrial zones to limit power consumption. This notice worked as a negative pressure over cryptocurrency space because it will affect the BTC mining and trading and dragged the BTC/USD prices further.

Moreover, Greenpeace, the ecological NGO, reported having stopped accepting bitcoin donations amid the massive impact the digital asset network has on the environment. Greenpeace was one of the first NGOs to add bitcoin to its donations fund, and the recent U-turn to withdraw Bitcoin from its fund due to increased energy consumption added pressure on BTC/USD prices.

The cryptocurrency market was under pressure from back-to-back negative news this week and dragged Bitcoin prices lower, changing the whole market mood to bearish. BTC/USD also remained weak due to rising prices of the U.S. dollar on Friday; the DXY rose and posted gains for the day and reached above 90 level that added further pressure on declining bitcoin.

BTC/USD Intraday Technical Levels

Support Resistance

36269.4 38781.4

34953.7 39977.7

33757.4 41293.4

Pivot point: 37465.7

BTC/USD - Technical Outlook

The leading cryptocurrency BTC/USD continues trading sharply bearish amid a series of fundamentals playing against crypto pairs. The BTC/USD pair is gaining support at 33,600 area, and it has closed a solid bullish candle above this level. This suggests sellers are getting exhausted, and buyers are bracing to enter the market. The Fibonacci indicator suggests resistance around 38.2% Fibo level of 36,700 and 61.8% retracement level 38,580. The pair’s support holds at 33,500 and 31,850. The 20 and 50 periods EMA (Exponential Moving Averages) support a selling trend; therefore, the selling power stays strong over these trading levels. All the best!

European PMI Figures Ahead!

Gold prices were closed at $1874.35 after placing a high of $1884.50 and a low of $1864.25. The yellow metal remained steady on Thursday due to weakness in the U.S. dollar driven by fears of rising inflation. This also offset the pressure for bullion from tapering talks from the U.S. Federal Reserve and helped gold to rise.

The U.S. Dollar Index (DXY) that measures the greenback value against the basket of six major currencies, fell on Thursday, lost almost all of its previous day’s gains, and reached 89.75. The U.S. Treasury yield on a 10-year note also declined on Thursday to 1.625% and weighed on the U.S. dollar.

On the data front, at 17:30 GMT, the Philly Fed Manufacturing Index dropped to 31.5 against the forecasted 40.8 and weighed on the U.S. dollar that helped yellow metal posted gains for the day. However, the Unemployment Claims from the past week slipped to 444K against the expected 453K and supported the U.S. dollar that capped further gold prices. At 19:00 GMT, the CB Leading Index rose to 1.6% against the expected 1.3% and helped the U.S. dollar that limited the gains in gold prices.

Gold steadied after the unemployment claims made by Americans during last week dropped below the expected figure and depicted a strong employment condition of the economy which means the employment goals set by the Fed were also getting closer. This raised expectations of tapering by Fed sooner than expected and supported the U.S. dollar that kept gold prices steady.

On Thursday, the CEO of Barrick Gold, Mark Bristow, dismissed the idea that cryptocurrencies were a better store of value than traditional gold. According to bitcoin supporters, the limited supply of the digital coin and its extraordinary growth makes it a better hedge against inflation than gold. At the same time, Bristow pushed back on these features and criticised the speculative assets for being too volatile to be considered a safe investment. These comments from Bristow added strength to gold prices on Thursday.

Furthermore, the risk-off market sentiment that the Israel-Palestine military conflict has fuelled cooled away on late Thursday after the Israeli government agreed to a mutual ceasefire with Palestine Islamic Jihad and Hamas, proposed by Egypt. The end to 11 days of exchange of rocket strikes and airstrikes between Israel and Palestine lifted the risk-off market sentiment and capped further gains in gold prices.

Gold Intraday Technical Level

Support Resistance

1864.24 1884.49

1854.12 1894.62

1834.99 1904.74

Pivot Point: 1874.37

Gold - XAU/USD - Technical Outlook

On Friday, the precious metal gold continues to follow the same technical levels as discussed in Thursday’s report. Gold continues trading sideways, maintaining a choppy range of 1,878 – 1,870 on the daily timeframe. On the 4-hour chart, the pair is gaining support at 1,869 level now and resistance at 1,889. Currently, gold has entered the buy zone, underpinned by 20 & 50 periods EMA around 1,869. The RSI is holding at 55.23 and the MACD at 1.512, supporting an upward trend in gold. The primary focus of investors will remain on the 1,869 pivot point level as above this bullish bias prevails. Later today, the U.S. economy isn’t expected to release any significant event, and all of the focus will remain on the European PMI figures. All the best!

Buckle Up for PMI Figures!

The EUR/USD pair was closed at 1.2226 after placing a high of 1.2230 and a low of 1.2169. EUR/USD edged higher on Thursday and posted gains for the day amid weakness in the U.S. dollar and improved risk sentiment of the market. The dollar edged lower in early European trade and lost its previous gains that were seen following the minutes from the U.S. Federal Reserve’s latest policy meeting revealed talks about bond tapering. The U.S. Dollar Index was down to 89.75, and the U.S. Treasury yields also went down to 1.625%. Market participants might rethink the perceived hawkishness coming from the minutes and pushed the U.S. dollar back down that boosted EUR/USD pair on Thursday.

On the data front, at 11:00 GMT, the German PPI remained flat with the expectations of 0.8%. At 13:00 GMT, the Current Account surplus dropped to 17.8B against the expected 24.3B and weighed on the single currency Euro that limited the rising prices of EUR/USD pair. From the U.S. side, at 17:30 GMT, the Philly Fed Manufacturing Index declined to 31.5 against the anticipated 40.8 and weighed on the U.S. dollar that helped EUR/USD to post gains. However, the Unemployment Claims from last week declined to 444K against the projected 453K and supported the U.S. dollar that capped further gains in EUR/USD. At 19:00 GMT, the CB Leading Index surged to 1.6% against the estimated 1.3% and supported the U.S. dollar, limiting the gains in EUR/USD prices.

He extended selling pressure surrounding the U.S. dollar lifted EUR/USD pair on Thursday despite better-than-expected data from the U.S. labor department about the unemployment claims made last week by Americans. The declined number of jobless claims showed that the economy was moving towards the goals set by Fed, and soon Fed will start thinking about tapering.

The European Central bank President Christine Lagarde said that the ECB remains committed to shielding the eurozone economy as the path of the coronavirus pandemic remains uncertain, and authorities should not withdraw support too soon. She repeated that it was essential that monetary and fiscal support were not withdrawn as ECB will stand by its commitment to protecting the EU’s economy. These comments from Lagarde added strength to the single currency Euro and supported rising prices of the EUR/USD pair.

EURUSD Intraday Technical Levels

Support Resistance

1.2186 1.2247

1.2146 1.2270

1.2124 1.2309

Pivot Point: 1.2208

EUR/USD - Technical Outlook

The EUR/USD is trading at 1.2226 area, having tested the triple top resistance level of 1.2240 level. The pair has closed Doji candles below 1.2240 level, suggesting odds of bearish correction in the EUR/USD pair. On the lower side, the 20 and 50 periods EMA support the direct currency pair around 1.2225 and 1.2197 level. At the same time, breakout or a bearish crossover below these EMA can expose the EUR/USD towards 1.2197 and 1.2165. On the flip side, violation of 1.2240 resistance exposes the pair towards 1.2270 and 1.2309 resistacne. Traders will be focusing in the manufacturing and services PMI figures today. All the best!

38.2% Fibonacci Extending Resistance!

The BTC/USD was closed at $40578.0 after placing a high of $41827.0 and a low of $35198.4. After declining for eight consecutive sessions, Bitcoin held some ground at $35,000 and pulled back on Thursday. Bitcoin started its upward momentum after continuously falling for more than a week on the back of much favorable news in circulation. Retail traders have turned their attention to the cryptocurrency space due to the latest developments in the market. According to Google trends data, the number of cryptocurrency searches has skyrocketed t new all-time high levels.

The queries varied from environmental issues related to cryptos to investors should sell cryptos. On Thursday, Google trends highlighted the massive surge in online searches for cryptocurrency and demonstrated through a graph that the search "should I sell my crypto" in the U.S. alone surged by 400% on the last day. The rising interest of retail investors in cryptocurrency added in the leading currency – Bitcoin, and lifted its prices on Thursday.

Furthermore, the American Investor and Hedge fund manager Bill Miller also backed up the leading cryptocurrency after its recent price collapse and said that Bitcoin was safe. He was confident that bitcoin would go back to its previous position as the decline was normal. It also added strength to the rising prices of Bitcoin.

The Nobel-prize-winning economist Paul Krugman who was previously known for being a crypto-skeptic is now appeared to have altered his 2008 views and admitted that flaws and all, Bitcoin was here to stay.

Meanwhile, the CEO and founder of Tron, Justin Sun, was reported to add to his bitcoin stash in an attempt to take a chance to buy the dip in the hope that prices will rise again soon. Sun announced that he had bought 4145 Bitcoin worth more than $150 million on Thursday at an average price f $36,800.

The University of Pennsylvania announced that the school had received a new anonymous donation of $5 million in bitcoin. It was the largest cryptocurrency gift the University has ever received. On the flip side, the Bank of Canada said that price volatility kept crypto assets from being widely accepted as means of payment. The Bank said that it has been monitoring crypto-asset markets as they surged in popularity last year due to easier access through ETFs, listed companies, and other investment vehicles. However, despite broadening interest, cryptocurrencies remain highly risky due to their intrinsic value was hard to establish, and people are hesitant to accept them as means of payment.

Furthermore, the U.S. Treasury said that the cryptocurrencies pose a significant tax-evasion risk and have outlined its plan to raise $700 billion over the next decade to help fund President Biden's ambitious American Families Plan through new tax enforcement measures. This plan will require that any crypto transfer over $10K be reported to the IRS; after this report, bitcoin lost some of its daily gains.

BTC/USD Intraday Technical Levels

Support Resistance

36575.2 43203.8

32572.5 45829.7

29946.6 49832.4

Pivot point: 39201.1

BTC/USD - Technical Outlook

The BTC/USD has recovered from a low level of 28,212 on Thursday. The leading crypto pair BTC/USD has already completed 38.2% Fibonacci retracement at 40,215 level, and now it's closing Doji candles below the same level. Bitcoin's immediate resistance stays at 40,215 level that marks 38.2% Fibo levels, and above this next resistances stays at 43,999 and 47,740 levels. At the same time, support holds around 36,480 and 32,350 levels today. Bitcoin remains below 20 and 50 periods EMA levels that place a bearish pressure on BTC/USD pair. Bearish bias seems stronger in 43,150 zones. All the best!

Unemployment Claims in Focus!

Gold prices were closed at $1866.20 after placing a high of $1891.25 and a low of $1852.50. Gold edged to its 4-months high level during early trading hours on Wednesday as the U.S. Treasury yields and dollar rose after minutes from the Federal Reserve meeting indicated the central bank might be crawling closer to taper talks. The U.S. Dollar Index (DXY) that measures the greenback's value against the basket of six major currencies rose after three days of losses and reached a $90.29 level. The U.S. Treasury yields also rose on Wednesday and came 1.692%, strengthening the greenback and weighed on the yellow metal prices.

On Wednesday, the U.S. Federal Reserve released its minutes from April's meeting and said that a solid pickup in economic activity would justify discussions about contracting monetary policy. According to the summary of the meeting, many Fed officials suggested that if the economy continued making rapid progress toward goals set by the committee, then it might be appropriate at some time in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases.

Markets participants have been watching closely for clues about when the central bank might start tapering its bond purchases currently at $120 billion a month. Fed officials have been committed to not changing policy until their economic goals have been hit, particularly regarding employment and inflation.

This was the first time when discussions in the minutes exposed that central bankers have pointed out that a reduction in purchases could happen ahead; however, no timetable was provided. After the release of minutes, the U.S. dollar and government bond yields remained higher on the session that weighed on the yellow metal prices. On Wednesday, the Federal Reserve Bank of Atlanta President Raphael Bostic said that he was looking closely at what he anticipates to be volatile economic data in coming months for signs the economy has made substantial progress toward the Fed's goals of full employment and low inflation.

Gold Intraday Technical Level

Support Resistance

1848.71 1887.46

1831.23 1908.73

1809.96 1926.21

Pivot Point: 1869.98

Gold - XAU/USD - Technical Outlook

On Thursday, the precious metal gold continues trading strongly bullish at 1,876, having violated the intraday resistance level of 1,871 on the daily timeframe. On the 4-hour chart, the pair is gaining support at 1,869 level now and resistance at 1,889. Currently, gold has entered the buy zone, underpinned by 20 & 50 periods EMA around 1,869. The RSI is holding at 55.23 and the MACD at 1.512, supporting an upward trend in gold. The primary focus of investors will remain on the 1,869 pivot point level as above this bullish bias prevails. Later today, the U.S. Jobless Claims will remain in highlights to drive further price action in the market. All the best!

U.S. Fundamentals to Play!

The EUR/USD closed at 1.2172 after placing a high of 1.2246 and a low of 1.2160. After rising for four consecutive sessions, the EUR/USD pair dropped on Wednesday and reversed its course amid a come-back in the U.S. dollar. On Wednesday, the currency pair EUR/USD rose in early trading hours and peaked since January 2021. However, it failed to remain there for long and started declining in the second half of the day amid increased strength of the greenback driven by the latest minutes from the Fed.

On Wednesday, the FOMC released the minutes from April’s long-awaited meeting and revealed that many fed officials were suggesting that if the economy continued growing at a fast pace and reach goals set by the committee, the Fed might soon start tapering its asset purchases. This was the first time that a discussion about tapering bond purchases has been done in the meeting. Fed’s current bond purchases lie at $120 billion per month. It might come to an end or be reduced in the coming months if the economy keeps moving towards reaching the goals set by Federal Reserve, particularly about full employment and high inflation.

After the minutes, the U.S. Dollar Index (DXY) reached 90.29 level, that was t 89.69 level on Tuesday, and the U.S. Treasury yields also rose and reached 1.692%. The rising strength in the U.S. dollar added weight on the EUR/USD pair and reversed its course to a bearish trend.

At 14:00 GMT, the Final CPI for the year remained flat as expected, 1.6% on the data front. The Final Core CPI for the year from the whole Bloc dropped to 0.7% against the expected 0.8% and weighed on single currency Euro and added further losses in EUR/USD pair on Wednesday.

Meanwhile, on Tuesday, the European Union launched bonds that could complete the bulk of funding for its SURE unemployment scheme. The EU started the sale of new 8 and 25 year social bonds on Tuesday. The Bloc has plans to raise 13-15 billion Euros out of 19 billion Euros remaining for the SURE unemployment scheme during the second quarter. Eurozone bond markets were calm with Germany’s 10-year bond yield, the benchmark for the region.

EURUSD Intraday Technical Levels

Support Resistance

1.2138 1.2224

1.2106 1.2278

1.2052 1.2310

Pivot Point: 1.2192

EUR/USD - Technical Outlook 

The EUR/USD traded sharply bearish to trade at 1.2167 level but soon recovered. On the 4-hour timeframe, the EUR/USD pair is forming a bullish engulfing pattern that supports bullish bias among investors. The EUR/USD’s immediate support stays at the 1.2167 level, and the breakout of this exposes the pair towards the 1.2144 level. At the same time, the resistance stays at 1.2190 and 1.2235 levels. The RSI is heading north, and soon it’s likely to crossover 50 to support a bullish trend, but in case of failure to do so, the EUR/USD’s selling trend will dominate. Later today, investor’s focus will stay on the U.S. Jobless Claims data along with Philly Fed Manufacturing Index. All the best!