Symmetrical Triangle Breakout!

The GBP/USD closed at $1.3972 after placing a high of $1.4007 and a low of $1.3886. GBP/USD pair recovered its previous day's losses and extended gains to reach its highest level since April 20 amid U.S. dollar weakness. The U.S. dollar edged lower on Friday and reached $90.1 9 levels as the selling pressure rose after dismal NFP data from April. The recent decline in jobs offered to Americans in April did not meet the expectations of near 1 million and came in very little as 266K and showed that despite the reopening of the U.S. economy, the employment goal set by Federal Reserve was far from achieving.

The U.S. President Joe Biden said on Friday that lower-than-expected April's job growth revealed that the U.S. economy was still striving to improve from the coronavirus pandemic. He also said that his massive infrastructure and family support bills were needed now more than ever to support the economy.

The rising prices of GBP/USD on Friday could also be attributed to Prime Minister Boris Johnson's Conservatives victory in the Northern seat after defeating Labour Party in its heartland. The pro-independence Scottish National Party was close to winning an absolute majority and paving the way for another clash with London over a new referendum.

Prime Minister Boris Johnson invited the leaders of the devolved nations to a summit on how Team U.K. could recover from the pandemic. This call was followed by the SNP's fourth Scottish Parliament elections win in arrow and Labour's win in the Welsh Parliament. The conservative win against the Labour party in parliament elections added strength to the British Pound and pushed GBP/USD higher. Ben Broadbent, the Bank of England Deputy Governor, said that he still expected Brexit to induce a burden on the economy's long-term supply capacity on Friday.

He added that the Bank now expects more people to move off the furlough scheme and back into employment when the scheme was coming to an end. The comments from Broadbent added weight on the British Pound and kept the GBP/USD gains limited for the day.

On the data front, at 13:30 GMT, the Construction PMI reduced to 61.6 from the forecasted 62.0 in the U.K. and weighed on British Pound that limited the upside momentum in GBP/USD. At 17:30 GMT, the Average Hourly Earnings improved to 0.7% against the projected 0.0% and supported the U.S. dollar.

In April, the most awaited Non-Farm Employment Change fell to 266K against the estimated 990K and weighed on the U.S. dollar, supporting the rising trend in GBP/USD. In April, the Unemployment Rate advanced to 6.1% that was previously projected as 5.8%, and weighed on the U.S. dollar that added gains in GBP/USD. At 19:00 GMT, the Final Wholesale Inventories decreased to 1.3% against the anticipated 1.4% and supported the U.S. dollar. The Mortgage Delinquencies came in as 6.38% in comparison to the previous 6.73%.

GBP/USD Intraday Technical Levels

Support Resistance

1.3995 1.4066

1.3949 1.4091

1.3925 1.4137

Pivot Point: 1.4020

GBP/USD - Technical Outlook

The GBP/USD is trading sharply bullish at 1.4059 level, having disrupted a symmetrical triangle pattern on the 4-hour chart. The Cable has closed three white soldiers' candlestick pattern that demonstrates a solid bullish bias among investors. The weaker dollar is pushing the pair higher, and it may expose the GBP/USD pair towards the 1.4084 resistance level. The 1.4084 resistance level is extended by 161.8% Fibonacci expansion. On the other hand, the previously violated resistance level of 1.3980 level is likely to offer support around 1.3980 level. Bullish bias dominates over 1.4020 level today. All the best!

Ascending Triangle Breakout!

During the Asian session, the second leading crypto currency pair ETH/USD managed to extend its early-day winning streak and hit the new all-time high above $4,100 marks. It is worth mentioning that the last swing low was formed near $3,722 before Ethereum price started a new increase. It broke the $3,900 resistance to create the new rally. It even rose above the $3,950 mark and a connecting bearish trend line on the hourly chart.

The ETH/USD crypto pair extended its previous rally, and it created a new all-time high above $4,100. The ETH/USD pair price is trading well above $4,100 and the 100 hourly simple moving average. Traders seem to have moved their focus to the smart contract token, as Bitcoin remains quiet. Furthermore, the recent performance of ETH/USD price might have also affected the retail.

The bullish bias in the ETH prices could be tied to the fresh reports suggesting that the Ethereum ETH has entered the top 20 largest assets by market cap. It should be noted that the ETH has a market capitalization bigger than giants like Mastercard, Walmart, Johnson & Johnson, Bank of America, NVIDIA, PayPal, and many more.

Apart from this, some experts expect further gains in the second-largest cryptocurrency. Especially after the comments from a billionaire investor and owner of the Dallas Mavericks, Mark Cuban. Lately he announced 3- well-known reasons why Ethereum could continue to be heading north and outperform bitcoin.

ETH/USD Intraday Technical Levels

Support Resistance

3850.60 3950.24

3878.70 3978.34

3900.42 4000.06

Pivot Point: 3928.52

ETH/USD - Technical Outlook

On the hourly timeframe, the ETH/USD pair has violated an ascending triangle pattern that’s driving sharp upward movement in Ethereum. The ETH's significant resistance is near the $4,150 mark. It represents the 1.618 Fib extension level of the downward move from the $3,985 high to $3,722 low. More upticks in ETH price could push the pair towards the $4,200 and $4,250 levels in the near term. The next major stop for the buyers could be $4,500 marks. Conversely, If ETH fails to continue higher towards $4,150, it could start a bearish correction. The initial support on the lowerr side holds around $3,950 mark. Around the same level, we can see a significant upward trend line forming with support near $3,920 on the hourly chart of the ETH/USD pair. If there is a downward break below the trend line, the ETH/USD pair will be exposed towards the $3,800 support zone. All the best!

U.S. Non-Farm Payroll in Highlights

Gold prices were closed at $1815.15 after placing a high of $1818.25 and a low of $1781.90. Gold prices extended their gains and rebounded strongly on Thursday to reach their highest level since February 16.

Gold rose about 1.8% on Thursday amid a weaker dollar and easing Treasury yields and reached above the $1800 level once again. The U.S. Dollar Index fell about 0.4% on Thursday and went below 91 levels to 90.87, and weighed on the greenback that pushed gold prices higher. The U.S. Treasury yields on a 10-year note continued their bearish momentum for the 6th consecutive session and settled at 1.557%, pushing the demand for non-yielding bullion higher.

Gold prices rose amid inflation fears as Federal Reserve policymakers have shown no interest in reducing their accommodative stance despite the economic optimism and the rising inflation fears were supporting yellow metal. The Federal Reserve has said that it will keep borrowing costs near 0% and maintain monthly asset purchases worth $120 billion until it sees substantial further progress towards full employment and its 2% flexible inflation target.

On the data front, at 16:30 GMT, the Challenger Job Cuts for the year came in as -96.6%. Last week, the Unemployment Claims were reduced to 498K against the expected 540K and supported the U.S. dollar that caped upside momentum in gold. The Prelim Nonfarm Productivity for the quarter rose to 5.4% against the forecasted 4.3% and weighed on the U.S. dollar and added strength in rising yellow metal prices. Prelim Unit Labor Cost for the quarter surged to -0.3% against the forecasted -1.1% and supported the U.S. dollar that limited the gains in gold.

On Thursday, the New York Fed Bank President John Williams said that the Federal Reserve's bond-buying did not appear to be creating imbalances in the financial sector. William noted that the positive impact of bond buying in lowering long-term borrowing costs could become more critical. Williams added that the U.S. gross domestic product is expected to increase by around 7% this year after adjusting for inflation that would bring in the fastest growth since the early 1980s. However, the boom might not be enough to achieve the dual mandate of the Federal Reserve for inflation and maximum employment. Meanwhile, the Atlanta Fed Bank President Raphael Bostic said on Thursday that a million or more jobs were likely created in April, but that would not be enough to push the Federal Reserve to begin discussing whether to pare its $120 billion in monthly asset purchases.

Furthermore, a new analysis from the University of Washington's Institute for Health Metrics and Evaluation (IHME) estimated that the coronavirus pandemic had caused nearly 6.9 million deaths worldwide, which is more than double the number officially recorded. The analysis estimated that the coronavirus had generated about 905,000 deaths in the United States, whereas; the official figures from the U.S. Centers for Disease Control and Prevention estimated 575,491 deaths by COVID-19. This report raised the appeal for safe-haven and pushed yellow metal prices on Thursday.

Gold Intraday Technical Level

Support Resistance

1791.95 1828.30

1768.75 1841.45

1755.60 1864.65

Pivot Point: 1805.10

Gold - XAU/USD - Technical Outlook

The precious metal gold trading with a solid bullish bias at 1,818 level faces immediate resistance at 1,830. On the 4-hour timeframe, gold has violated the ascending triangle pattern that's driving a sharp bullish trend in gold. On the downside, gold's support stays at 1,809 and 1,797 levels, along with resistance at 1,830 and 1,841 levels. The 20 & 50 periods EMA are suggesting an upward trend in the market. Technical indicators like the RSI and MACD exhibit bullish bias as their values hold in a buy zone. Later today, the investor's focus will stay on the U.S. NFP figures. Typically, this economic data from the U.S. drive dramatic price action in the U.S. dollar and gold. Economists are expecting Non-Farm Employment Change to soar to 990K vs. 916K beforehand. While the Unemployment rate is forecasted to drop from 6% to 5.8%, such results support the U.S. dollar and drive a bearish trend in gold. All the best!

Double Top Pattern in Play!

The EUR/USD was closed at 1.2064 after placing a high of 1.2072 and a low of 1.1992. After falling for two consecutive sessions, EUR/USD managed t return to the positive territory. The renewed bullish momentum in the pair came exclusively in response to the increased selling pressure surrounding the dollar, particularly after somewhat disappointing data from the ADP report and dovish comments from FOMC. The members of the Federal Reserve talked down the chances of tapering and reiterated the idea that the rise in inflation was temporary. On the data front, At 11:00 GMT, the German Factory Orders in March surged to 3.0% against the forecasted 1.5% and pushed Euro higher that added in the gains of EUR/USD pair. At 14:00 GMT, the Retail Sales figures increased to 2.7% against the forecasted 1.5% and supported Euro that pushed EUR/USD higher.

From the U.S. side, at 16:30 GMT, the Challenger Job Cuts for the year came in as -96.6%. Last week, the Unemployment Claims fell to 498K against the estimated 540K and supported the U.S. dollar that caped upside momentum in EUR/USD. The Prelim Nonfarm Productivity for the quarter surged to 5.4% against the forecasted 4.3% and weighed on the U.S. dollar that added strength in rising EUR/USD prices. Prelim Unit Labor Cost for the quarter rose to -0.3% against the projected -1.1% and supported the U.S. dollar that limited EUR/USD pair gains.

On Thursday, European Central Bank President Christine Lagarde said a need to develop a green capital market union in Europe to generate cash for sustainable investment and remain the location of choice for investors issuing green debt. Europe is aiming for a leading role in the shift to sustainable growth, and the European Union was planning to issue 225 billion Euros of green bonds as part of a recovery project. However, the bloc’s capital markets remain relatively underdeveloped.

The currency pair EUR/USD advanced above 1.2071 after several FOMC members dismissed chances of a Federal Reserve move to taper. Dallas Federal Reserve Bank President Robert Kaplan said that he would like to start talking about tapering sooner than later, but he was not a voting member. On Thursday, Chicago Federal Reserve Bank President Charles Evans showed his worries about reaching the Fed’s 2% inflation goal despite being much more optimistic about the U.S. economic growth and unemployment than just a few months ago. He said that he expects the monetary policy to remain super easy for some time. These comments weighed on the U.S. dollar and pushed EUR/USD pair higher on the day.

EURUSD Intraday Technical Levels

Support Resistance

1.2014 1.2094

1.1963 1.2123

1.1933 1.2174

Pivot Point: 1.2043

EUR/USD - Technical Outlook

The EUR/USD’s made an excellent bullish movement to test the double top resistance level of 1.2067. Recently, the pair has closed a Doji candle below 1.2067 resistance level, and typically such a pattern drives bearish correction in the pair. That said, the EUR/USD’s support stays at 1.2030 and 1.2005 levels. Conversely, a bullish breakout of 1.2067 opens up additional room for buying until 1.2084 and even higher until 1.2125 regions. The primary focus will stay on the U.S. NFP figures as it has the potential to drive dramatic price action in the EUR/USD pair. Economists are expecting Non-Farm Employment Change to soar to 990K vs. 916K beforehand. While the Unemployment rate is forecasted to drop from 6% to 5.8%, such results support the U.S. dollar and drive a bearish trend in EUR/USD. All the best!

Choppy Session in Play!

The BTC/USD was closed at $56,451 after placing a high of $57,843 and a low of $55,897. Bitcoin came under pressure after JP Morgan CEO Jamie Dimon found himself in an awkward situation when he had to admit that his clients were calling for bitcoin access. At the same time, he said that he was not a bitcoin supporter. On Thursday, a report suggested that Goldman Sachs Group Inc allowed Wall Street investors to trade with a derivative tied to bitcoin prices. The fifth-largest U.S. bank has opened up trading with non-deliverable forwards that eventually payout in cash. According to the report, the bank will protect itself from the cryptocurrency’s volatility by buying and selling bitcoin futures in block trades on CME Group using Cumberland DRW as its trading partner. However, Goldman has refused to comment on the report.

Furthermore, a new cryptocurrency called Chia has promised that it was greener than Bitcoin. The year 2021 has been a big year for cryptocurrencies as Bitcoin is now worth six times what it was 12 months ago. All this was accelerated after a boom in Non-Fungible Tokens that transformed the art market. As the growth in the crypto market picked up the pace, the critics started pushing bitcoin in particular as a uncertain bubble that utilizes a vast amount of electricity and produces no real value. Bitcoin and most other cryptocurrencies use a system in which currency is created or mined using computers to solve mathematical puzzles. This job takes a lot of strength and specialised hardware. However, Chia runs on a system that uses less energy called proof-of-space and time. This system requires users to show a reserved space in a specific amount of hard drive at a precise time. It means Chia will not use huge amounts of electricity and will not require miners to buy up every graphics card insight. The rising popularity of Chia also added to the downward momentum in BTC/USD.

On the flip side, a publicly traded Argentina-based e-commerce giant MercadoLibre has disclosed that it purchased $7.8 million worth of bitcoin earlier this year with plans to hold the asset on its balance sheet indefinitely. The company invested as part of its treasury strategy. MercadoLibre is publicly traded and has a market capitalisation of more than $76.3 billion. Meanwhile, a digital insurer with headquarter in San-Francisco, Metromile Inc., unveiled its plans to make massive bitcoin purchases. The company made Bitcoin a core part of its business operations, offering further evidence of the growing mainstream adoption of digital assets. On Thursday, the company declared that it would soon give policyholders the option to pay for insurance and receive payments on eligible insurance claims in Bitcoin or dollars. This made Metromile the first insurance company to both accept premiums and play insurance claims in cryptocurrency.

BTC/USD Intraday Technical Levels

Support Resistance

55617.6 57563.6

54784.3 58676.3

53671.6 59509.6

Pivot Point: 56730.3

BTC/USD - Technical Outlook

The BTC/USD is trading at 56,887 level, having violated the sideways trading range of 52,255 – 56,452. Currently, the BTC/USD pair is holding above a support level of 56,220 level. The 20 and 50 periods EMA (Exponential Moving Averages) support an upward trend, and these can underpin the Bitcoin price around 56,220 and 55,850 level. On the 4 hour timeframe, the BTC/USD pair has closed a symmetrical triangle pattern that’s suggesting indecision among investors. Typically such patterns drive sharp breakouts in the market. Above resistance level of 57,620, the pair’s next resistance stays at 59,000. The leading indicators demonstrate a solid bullish bias as the RSI and MACD has crossed over into the buying zone. The BTC/USD pair’s support stays at 56,335 levels. Below these levels, the BTC next support holds around 53,736. Conversely, the violation of 57,650 resistance exposes Bitcoin towards resistance areas of 59,966. All the best!

Triple Top Resistance Ahead!

Gold prices were closed at $1785.15 after placing a high of $1788.10 and a low of $1769.55. Gold reversed its course and recovered about half of its previous day's losses on the back of declining U.S. dollar and the U.S. Treasury yields. The U.S. 10-year bond yield continued falling for the 4th consecutive session on Wednesday and reached 1.56%. Whereas the U.S. Dollar Index that measures the greenback's value against the basket of six major currencies also remained depressive and reached $91.17.

The U.S. Treasury Secretary Janet Yellen initially said on Tuesday that a rate surge might be needed to halt the economy overheating as U.S. President Joe Biden's spending plans boost growth. However, later she downplayed the remarks and said that she saw no inflation problem brewing. The U-turn by Yellen weighed on the benchmark 10-year yield backed off from earlier highs, while the dollar index also eased off a two-week high driven by lower yields and helped lifting bullion's appeal. The gold market discounted the comments of Janet Yellen from yesterday and the fact that Fed was probably not in a position to raise interest rates at the moment.

On the data front, at 17:15 GMT, the ADP Non-Farm Employment Change in April dropped to 742K against the projected 872K and weighed on the U.S dollar that added further gains in the yellow metal.

At 18:45 GMT, the Final Services PMI in April surged to 64.7 against the expected 63.1 and showed an expansion in the service industry that pushed the dollar higher and capped gains in gold. At 19:00 GMT, the ISM Services PMI declined to 62.7 against the forecasted 64.2 and weighed on the U.S. dollar that ultimately added strength in the yellow metal. The two highly awaited data from the U.S., ADP Non-Farm Employment Change and ISM Services PMI both came in negative and weighed on the U.S. dollar on Wednesday that proved beneficial for yellow metal prices as both are inversely correlated.

Meanwhile, Barrick Gold Corporation, one of the world's largest gold producers, reported an increased gain in the 1st quarter of 2021 versus its previous year's performance amid rising gold prices that boosted the revenue. The company also said that it was on track to reach its annual forecasts. The company's revenue came in at nearly $2.96 billion for the first quarter of 2021 which was about 8.8% higher than the $2.72 billion revenue in 2020. The company also reported increased revenues from its copper mines that were raised by 31% this year due to higher copper prices. This news from one of the world's largest gold producers also added strength to the yellow metal prices on Wednesday. On the other hand, the risk-off market sentiment also played an important role in pushing gold prices higher. The global cases of COVID-19 reached 154 million as the cases from India reached above 20.6 million. The rising tensions supported the risk-off market sentiment and added strength to safe-haven gold prices.

Gold Intraday Technical Level

Support Resistance

1766.09 1794.69

1753.92 1811.12

1737.49 1823.29

Pivot Point: 1782.52​

Gold - XAU/USD - Technical Outlook

The yellow metal is trading with a bullish bias at 1,794 level, facing immediate resistance at 1,797. On the 4-hour timeframe, the upward trendline is supporting bullish bias in gold. On the higher side, the triple top pattern will be extending resistance at 1,797 level. A bullish breakout of 1,797 level opens up additional room for buying until 1,804 level. The 20 & 50 periods EMA are suggesting an upward trend in the market. Technical indicators like the RSI and MACD exhibit bullish bias as their values hold in a buy zone. Gold's immediate resistance stays at 1,797 and 1,804, while support stays at 1,788 and 1,781. All the best!

Bullish Bias Dominates, Downward Channel Breakout!

The EUR/USD closed at 1.2007 after placing a high of 1.2025 and a low of 1.1986. EUR/USD extended its losses and reached its lowest since April 19 on the back of poor-than-expected data from Europe. The currency pair EUR/USD fell by 0.1% on Wednesday as the demand for the safe haven continued rising due to fluctuating risk-sentiment in the market. The U.S. dollar also benefited from an improving outlook for the U.S. economy, which is the largest economy in the world. The rising risk-off market sentiment in the market also weighed on the currency pair EUR/USD on Wednesday. The World Health Organization (WHO) stated that India accounted for about half of the coronavirus cases reported worldwide last week. WHO said that India accounted for about 46% of global cases and 25% of global deaths.

On the data front, at 12:00 GMT, the Spanish Unemployment Change dropped to -39.0K against the forecasted -70.0K and weighed on Euro and added further losses in EUR/USD pair. At 12:15 GMT, the Spanish Services PMI surged to 54.6 against the projected 50.0 and supported Euro and capped downside in EUR/USD. At 12:45 GMT, the Italian Services PMI dropped to 47.3 against the forecasted 50.0 and weighed on Euro and added losses in EUR/USD pair. At 12:50 GMT. The French Final Services PMI remained flat with the expectations of 50.4. At 12:55 GMT, the German Final Services PMI also came in line with the expectations of 50.1. At 13:00 GMT, the Final Services PMI from the whole bloc also remained flat at 50.5. At 14:00 GMT, the Purchasing Price Index came in line with the forecasts to 1.1%.

From the U.S. side, at 17:15 GMT, the ADP Non-Farm Employment Change in April fell to 742K against the predicted 872K and weighed on the U.S dollar that capped further losses in EUR/USD. At 18:45 GMT, the Final Services PMI in April rose to 64.7 against the estimated 63.1 and showed an expansion in the service industry that pushed the dollar higher and added losses in EUR/USD pair. At 19:00 GMT, the ISM Services PMI dropped to 62.7 against the projected 64.2 and weighed on the U.S. dollar that limited the losses in EUR/USD pair.

The British Prime Minister Boris Johnson and the U.S. Secretary of State Antony Blinken agreed on the need for a global rollout of coronavirus vaccines to end the pandemic. They both agreed that the global rollout of vaccines will be a key to defeating the coronavirus pandemic.

EURUSD Intraday Technical Levels

Support Resistance

1.1987 1.2026

1.1967 1.2045

1.1948 1.2065

Pivot Point: 1.2006

EUR/USD - Technical Outlook 

The EUR/USD’s bearish bias seems to get weaker as the pair has bounced off over the double bottom support area of 1.2005 level. On the 4 hour timeframe, the EUR/USD pair has violated the downward channel that was extending resistance at the 1.2020 level. On the higher side, the pair faces immediate resistance at 1.2025 level and breaks out of this level exposes the pair until 1.2067 resistance level. The 50 periods EMA is staying at 1.2065 area, and typically it works as a significant hurdle for bulls. Traders will be keeping an eye on the 1.2005 level today as it’s extending solid support to the EUR/USD currency pair, especially ahead of NFP data on Friday. All the best!

Choppy Session in Play!

THE BTC/USD was closed at $57,477 after placing a high of $57,477 and a low of $52,960. Bitcoin reversed its course on Wednesday and recovered all of its previous day’s losses. The latest Bitcoin rally came in after a crypto custody firm NYDIG said that customers of some U.S. banks would soon be able to buy, hold and sell bitcoin through their existing accounts. The company, a subsidiary of $10 billion New York-based manager Stone Ridge, partnered with fintech giant Fidelity National Information Services to enable U.S. banks to offer bitcoin in the coming months.

According to the head of solutions at NYDIG, hundreds of banks were already enrolled in the program. While the firm is in discussions with some of the biggest U.S. banks, many lenders who have agreed to participate were small institutions. The news that U.S. banks will allow their customers to buy Bitcoin with their existing accounts depicted a significant success for cryptocurrency that ultimately pushed Bitcoin prices higher above $57,000.

Meanwhile, Bitcoin gains were further supported by the rising popularity in Argentina due to the economic crisis. According to the head of Binance in Latin America, the number of active crypto trading accounts has surged by 1000% since last year in Argentina. Residents of the country were seeking ways to offset massive inflation that led them to Bitcoin and other cryptocurrencies.

Rising double-digit inflation levels have badly hit Argentina for the past three years. The nation’s currency, Peso, has been on a downward spiral as its economy has been in recession since 2018 while its GDP dropped by roughly 10% last year. The jump on Bitcoin as a store of value has raised the popularity of bitcoin in Argentina to massive levels that added strength in BTC/USD.

The CEO of JP Morgan, Jamie Dimon, has reaffirmed his stance on bitcoin while acknowledging that his bank’s clients were interested in cryptocurrency. He said that he was not a bitcoin supporter and did not care about the coin and had no interest in it, but he acknowledged that his clients were very interested.

BTC/USD Intraday Technical Levels

Support Resistance

54465.6 58982.6

51454.3 60488.3

49948.6 63499.6

Pivot Point: 55971.3

BTC/USD - Technical Outlook 

The BTC/USD is trading at 56,887 level, having violated the sideways trading range of 52,255 – 56,452. Currently, the BTC/USD pair is holding above a support level of 56,220 level. The 20 and 50 periods EMA (Exponential Moving Averages) support an upward trend, and these can underpin the Bitcoin price around 56,220 and 55,850 level. On the 4 hour timeframe, the BTC/USD pair has closed a symmetrical triangle pattern that’s suggesting indecision among investors. Typically such patterns drive sharp breakouts in the market. Above resistance level of 57,620, the pair’s next resistance stays at 59,000. The leading indicators demonstrate a solid bullish bias as the RSI and MACD has crossed over into the buying zone. The BTC/USD pair’s support stays at 56,335 levels. Below these levels, the BTC next support holds around 53,736. Conversely, the violation of 57,650 resistance exposes Bitcoin towards resistance areas of 59,966. All the best!

20 & 50 EMA Crossover!

Gold closed at $1778.25 after placing a high of$17798.95 and a low of $1770.35. Gold prices finished lower on Tuesday amid the hawkish comments from U.S. Secretary-Treasurer Janet Yellen.

In a webinar hosted by The Atlantic, Janet Yellen warned that interest rates might have to rise to stop the U.S. economy from overheating even though the additional spending was relatively small relative to the size of the economy. These comments from Yellen came in as more U.S. President Joe Biden’s economic investment programs came in line. These comments triggered a sell-off in tech stocks and pushed long Treasury yields higher, which weighed on precious metal prices. However, in late trading hours on Tuesday, Janet Yellen walked back from her comments made earlier in the day that rates might need to rise. In late trading hours, Yellen said that she was neither predicting nor recommending that the Federal Reserve raise interest rates due to President Biden’s spending plans.

She added that she does not think that there will be an inflationary problem, but if there is, the Fed can be counted on to address it. These remarks and U-turn in Yellen’s statement came in after lawmakers debated the merits of the administration’s spending proposals, which many Republicans think are too costly and risk stoking inflation. Yellen said that she expected any near-term increase in inflation will be temporary and echoed remarks from Fed Chair Jerome Powell that the central bank was not worried about a persistent rise in inflation. He expected that rising prices over the coming months would subside.

Yellen downplayed the concerns that President Biden’s two new economic plans, one focused on infrastructure spending and the other on families, would cause uncontrolled inflation. Whereas, she believed that the proposed spending plans of Mr. Biden, like worker training, free community college, and research & development, would help make the U.S. economy competitive and more productive.

The remarks from Yellen were unusual because White House officials typically refrain from commenting on monetary policy. Such a norm was started in the Clinton administration until President Trump began urging Powell to cut rates before the pandemic.

However, in late trading hours, Yellen said that it was entirely up to the central bank to manage monetary policy. It was not something she was going to give opinions about. After these comments, the risk sentiment picked up the pace and weighed on yellow metal prices.

On the data front, at 17:30 GMT, the Trade Balance from the United States for March remained flat with the expectations of -74.4B. At 18:52 GMT, the IBD/TIPP Economic Optimism dropped to 54.4 against the expected 56.1 and weighed on the U.S. dollar. At 19:00 GMT, Factory orders in March also declined to 1.1% against the predicted 1.3% and weighed on the U.S. dollar. Furthermore, on Tuesday, the San Francisco Federal Reserve Bank President Mary Daly said that the U.S. economy was a long way from the Fed’s goals of full employment and 2% inflation, and it was not the time yet to start talking about reducing the recovery support. She said that when Fed will reach closer to achieving its goals, tapering off a 120 billion dollar bond-buying program might start. She added that it was a long way to go, and Fed was not out of the woods yet, and she said that the U.S. only had a couple of months of really good data but was far from reaching its goals. These comments from Daly also added pressure on gold prices on Tuesday.

Gold Intraday Technical Level

Support Resistance

1766.09 1794.69

1753.92 1811.12

1737.49 1823.29

Pivot Point: 1782.52    

Gold - XAU/USD - Technical Outlook 

On Wednesday, the precious metal gold is trading with a neutral bias at 1,785 level, facing immediate resistance at 1,794 level. On the 4-hour timeframe, the precious metal gold has formed series of bearish candles, which in technical terms are known as three black crows and suggest bearish sentiment among gold traders. On the higher side, gold has the potential to go after the next resistance area of 1,797. On the 4-hour timeframe, gold continues to hold over 20 & 50 periods EMA, which extends solid support around 1,763. Besides, the RSI and MACD exhibit bullish bias as the RSI and MACD holds in a buy zone. Gold’s immediate resistance stays at 1,792 and 1,797, while support stays at 1,771 and 1,764. All the best!

U.S. Advance Non-Farm Payroll in Limelight!

The EUR/USD pair was closed at 1.2015 after placing a high of 1.2061 and a low of 1.1999. The currency pair EUR/USD dropped on Tuesday amid the strength in the U.S. dollar along with the risk-off market sentiment for the day. A lack of macroeconomic data from the Europe side also played an essential role in keeping the currency pair EUR/USD on the red line. From the European side, at 11:45 GMT, the French Gov. Budget Balance remained flat with the expectations of -60.1B. On the other hand, from the U.S. side, at 17:30 GMT, the Trade Balance from the United States for March remained flat with the forecasts of -74.4B. At 18:52 GMT, the IBD/TIPP Economic Optimism declined to 54.4 against the predicted 56.1 and weighed on the U.S. dollar that capped further losses in EUR/USD. At 19:00 GMT, Factory orders in March also fell to 1.1% against the anticipated 1.3% and weighed on the U.S. dollar, limiting the downfall in EUR/USD pair.

The mixed signals from the U.S. Treasury Secretary Janet Yellen and Fed’s Kashkari also kept the EUR/USD currency pair under pressure on Tuesday. Yellen took a U-turn from her early comments supporting rate-hike that added weight on the U.S. dollar. Whereas the President of the Federal Reserve Bank of Minneapolis, Neel Kashkari, highlighted inflation as the crucial figure to back the Fed’s futures moves. The risk-aversion market sentiment was supported by the initial comments from Yellen in favor of rate hike joined with the coronavirus woes in Asia as well as the downbeat economic data from the U.S. the rising risk-off market sentiment weighed on the risk-sensitive EUR/USD pair and dragged its prices downward. The same also put pressure on the U.S. Treasury yields; the 10-year note fell on Tuesday to 1.562% whereas, the U.S. Dollar Index reached 91.39 level.

The strength in the U.S. dollar kept the currency pair on the red line as the U.S. stocks were lower on Tuesday. The Dow Jones Industrial Average was down by 0.7%, and NASDAQ was down by 0.4%, with S&P 500 Futures down by 0.1%. Greenback also got support from the latest comments made by the San Francisco Federal Reserve Bank President Mary Daly on Tuesday. Daly said that the U.S. economy was a long way from achieving the goals set by the Fed of full employment and 2% inflation, and the time has not yet come to start talking about reducing recovery support. The rising strength in the U.S. dollar added further losses in EUR/USD pair.

EURUSD Intraday Technical Levels

Support Resistance

1.1989 1.2051

1.1963 1.2087

1.1928 1.2112

Pivot Point: 1.2025

EUR/USD - Technical Outlook 

Technically, the EUR/USD is trading with a bearish bias at 1.2005 level, having dropped from 1.2065 20 & 50 EMA crossover level. The pair is still maintaining a trading range of 1.2034 – 1.2005, and a breakout of this range will open additional room for buying or selling in the EUR/USD pair. In case of a bullish breakout, the EUR/USD’s next resistance prevails at 1.2057 and 1.2075 levels. Alternatively, the bearish breakout can expose the pair towards a 1.1940 support level. On Wednesday, the trader’s focus will stay on the ADP Non-Farm Employment Change and ISM Services PMI figures from the U.S. economy. Typically these economic events have a substantial impact on the market. Economists expect strongly positive numbers from the U.S. and can underpin the greenback’s demand, keeping the pair bearish. Therefore, it’s worth monitoring these economic events today. All the best!