US GDP Figures Ahead

During Thursday's Asian trading session, the yellow metal price managed to stop its overnight bearish moves and drew some modest bids around above the $1,730 level. After a sharp rise since the end of last week, U.S. Treasury bond yields witnessed a modest pullback on the day. The benchmark 10-year U.S. government bond yield dropped by 3.0 basis points (bps) to 1.51%. This, in turn, turned out to be one of the key factors that extended some support to the non-yielding yellow metal. Meanwhile, the U.S. Dollar Index (DXY) eased from a yearly high of around 94.30, snapping a four-day uptrend, which also helped gold prices remain bid, as gold prices are inversely related to the price of the U.S. dollar.

Apart from this, the escalating energy crisis in China reinforced the fears of a slowdown in the world's 2nd-largest economy, which also benefitted the safe-haven gold prices. Meanwhile, concerns over the U.S. debt ceiling remained supportive of the strong bid tone surrounding gold prices. In contrast, the upbeat market sentiment, represented by a solid recovery in the equity markets, was seen as one of the key factors that capped further gains in the yellow metal prices. As of writing, the precious metal price is trading at 1,732.37 and consolidating in the range between 1,726.25 and 1,733.03.

Despite China's 1st-factory activity contraction since February 2020 and a 2nd-coupon payment default by Evergrande, not to mention the intensifying energy crisis in China, the market's trading sentiment succeeded in extending its previous-day upward rally and remained well bid on the day. The S&P 500 Futures climbed by 0.30% intraday to keep Wednesday's rebound from a weekly low. However, the positive news of AstraZeneca's covid vaccine showing 74% efficacy in the large U.S. trial has underpinned the latest hopes of overcoming the Delta covid crisis, which was seen as one of the key factors that put some bullish impact on the market trading sentiment.

In the meantime, U.S. House Speaker Nancy Pelosi seems hopeful of a solution, and President Joe Biden also turned down his official travel plans to solve the critical issue. This kept investors hopeful ahead of the decision day and played a significant role in underpinning the marker's trading sentiment. Thus, the risk-on market mood, represented by a solid rebound in the equity markets, was seen as one of the key factors that kept the lid on any additional gains in gold prices.

Following a strong hike since the end of last week, U.S. Treasury bond yields faced a modest pullback on the day. The benchmark 10-year U.S. government bond yield dropped by 3.0 basis points (bps) to 1.51% as traders shifted their focus from the Fed's tapering concerns to the U.S. stimulus and debt ceiling headlines. This, in turn, was seen as one of the key factors that gave some support to the precious metal.

At the USD front, the broad-based U.S. dollar failed to extend its bullish overnight rally and dropped quietly on the day as the market risk-on mood tends to undermine the safe-haven U.S. dollar. Meanwhile, the declines were further bolstered as Treasury yields fell by 3.0 basis points (bps) to 1.51%. The U.S. dollar was consolidating near a one-year high against major peers on Thursday, following a two-day surge amid hopes for a tapering of Federal Reserve stimulus in November and a possible interest rate hike in late 2022.

The dollar index, which measures the currency against a bucket of six rivals, stood at 94.336, little changed from the previous day's when it hit 94.435 for the 1st-time since late September of last year. However, the decline in the U.S. dollar could be short-lived as the downbeat headlines concerning China and Evergrande support the greenback. This, along with expectations for an early Fed policy tightening, helps the dollar limit its losses. Consequently, the bearish sentiment surrounding the U.S. dollar was seen as a significant factor that kept the gold price higher as the price of gold is inversely related to the price of the U.S. dollar.

Alternatively, the mounting energy crisis in China bolstered the fears of a slowdown in the world's 2nd-largest economy, which helps the yellow-metal stay bid. Meanwhile, China's 1st-factory activity contraction since February 2020 and a second coupon payment default by Evergrande seem to challenge the market's upbeat mood and contribute to the gold gains. In addition to this, the jump in Aussie virus infections, as well as mixed sentiment over the U.S. stimulus and debt ceiling issues ahead of the October 01 budget expiry, will challenge the market mood.

Looking forward, global market traders will keep their eyes on China's official and Caixin PMI data to measure the nation's economic performance during challenging times. In the meantime, the headlines concerning the final reading of the Q2 US GDP and Weekly Jobless Claims will also be key to watch.

GOLD Intraday Technical Level

Support Resistance

1743.61 1759.76

1736.08 1768.38

1727.46 1775.91

Pivot Point: 1752.23

GOLD - Technical Outlook

Around the 1,733 level, gold is trading with a negative bias, with immediate resistance at 1,739. At 1731.98, an intraday pivot point level is offering direct support. The precious metal is consolidating above the pivot point level on the 4-hourly period as investors wait for the final GDP figures from the United States before taking any important positions.

Furthermore, the gold 50-day SMA (simple moving average) of 1,732 indicates a selling trend. Moreover, the closure of candles below the 1,732 level implies the continuation of the negative trend. The precious metal has established a descending channel on the 4 hours, indicating a selling trend in gold.

Gold's immediate support levels are 1,725 and 1,718 on the downside. At the same time, the next level of resistance is located between 1,742 and 1,756. Consider selling below 1,732 and buying above 1,732. Best of luck!

Eyes on U.S. Final GDP Data

The EUR/USD pair was closed at $1.1595 after placing a high of $1.1691 and a low of $1.1589. EUR/USD continued its bearish streak for the 4th consecutive session on Wednesday and reached its lowest since mid of July 2020 amid the strength of the U.S. dollar. The U.S. dollar was high on board during Wednesday's trading session and reached its one-year highest level at 94.43, which added a loss in the currency pair EUR/USD. The U.S. dollar was moving higher on expectations that Fed would soon start increasing interest rates and reducing asset purchases.

On the data front, at 11:00 GMT, German import prices rose to 1.4% in August versus the forecasted 0.8%, bolstering the single currency Euro, which capitulated further losses in the EUR/USD pair. At 12:00 GMT, the Spanish Flash CPI for the year advanced to 4.0% against an estimated 3.5% and supported the Euro, which reduced the pace of decline in EUR/USD. At 19:00 GMT, pending home sales in August increased to 8.1%, versus the expected 1.1%, supporting the U.S. dollar and adding to the EUR/USD loss.

The currency pair EUR/USD fell to its 14-month lowest on Wednesday as the prevailing risk-off mood supported the safe-haven greenback. Furthermore, the Euro was under pressure due to Europe's energy crisis and the European Central Bank's dovish stance.

The natural gas inventories at European storage facilities are at historically low levels at this time of the year. The flow of pipelines from Russia and Norway has also been limited.

Reduced output from wind turbines amid the calmer weather has also raised fears that the European energy crisis will toll the European economy when the cold weather comes, as then the energy demand will increase. In Europe, gas prices have already surged by almost 500% in the past year, and it is predicted that they will continue to rise in coming winters.

Furthermore, the continent's energy shortage has raised alarms for the rest of the world as governments have warned of blackouts and factories are being forced to shut down. These negative developments kept the single currency Euro under pressure and added to the loss of the EUR/USD pair on Wednesday.

EUR/USD Intraday Technical Levels

Support Resistance

1.1559 1.1661

1.1523 1.1727

1.1457 1.1763

Pivot Point: 1.1625

EUR/USD - Technical Outlook**

The EUR/USD currency pair is trading with a bearish bias at 1.1597 level as the Euro has violated a strong support level of 1.1665. A closing of candles below this level suggests a strong selling bias in the currency pair. On the lower side, the bears may find support at the 1.1589 level, whereas the violation of 1.1589 exposes towards 1.1560 and 1.1524 levels. On the bullish side, the immediate resistance stays at the 1.1625 level, and a breakout about this level can expose EUR/USD towards the 1.1661 level.

On the hourly timeframe, the EUR/UD pair has formed Doji candles above the 1.1589 level, which has driven a bullish bounce-off in the pair. On the bullish side, the EUR/USD’s immediate resistance stays at 1.1625 level, extended by a pivot point level. Alongside, the breakout of the 1.1625 level exposes the pair towards 1.1661 and 1.1690 levels. Later today, the investors will be waiting for U.S. GDP figures to determine further trends in the market. All the best!

**

Symmetrical Triangle Breakout

After reaching a high of $42,591.0 and a low of $40,811.0, the BTC/USD pair finished at $41,551.0. The BTC/USD pair rose on Wednesday after falling for two days in a row, owing to a wave of optimistic sentiment in the cryptocurrency market.

Affirm, an online lender, has announced that consumers with savings accounts will soon invest in cryptocurrency. Max Levchin, the company's CEO, has stated that his team is working on a feature that would allow customers to buy and trade cryptocurrencies straight from their bank accounts.

Even though the release date for this item was not announced, the concept itself was enough to entice investors, causing the overall market mood to improve. As a result, the most popular cryptocurrency, bitcoin, soared and reported gains for the day.

Furthermore, Gavin Andresen, a former main developer for the bitcoin network, has made a bold forecast, predicting that Bitcoin will either grow to $6 million per coin or sink to zero. He admitted that his prognosis was a little science fiction but that it was highly likely. He went on to warn that transaction fees might reach $7500 by then, with most transactions taking place outside of the network.

Meanwhile, El Salvador's President, Nayib Bukele, has shared a video of what appears to be the world's first public Bitcoin mining plant, which uses electricity generated by volcanoes. He demonstrated the placement of numerous Bitcoin mining devices in a geothermal power station. The BTC/USD pair gained some strength due to this news, and its prices rose.

Furthermore, Bloomberg strategist Mike McGlone stated that there was a strong probability that the United States would follow Canada in adopting the future-based BTC ETF. Over 30 applications have now been submitted with the SEC, and the fact that money is migrating from the United States to Canada is pressuring US regulators to legalize Bitcoin futures. He also stated that he expects Bitcoin to reach $100,000 in October, bolstering the increasing BTC/USD values on Wednesday.

BTC/USD Intraday Technical Levels

Support Resistance

40711.0 42491.0

39871.0 43431.0

38931.0 44271.0

Pivot Point: 41651.0

BTC/USD - Technical Outlook

On Thursday, the BTC/USD pair is trading with a strong bullish bias at the 43,258 level, soaring from the 41,463 support level. Currently, the BTC/USD's immediate resistance stays at the 43,987 level, and bullish crossover above the 43,387 level exposes the pair towards the 45,021 resistance level.

On the support side, immediate support prevails at 43,258 level, and a breakout below 43,258 level exposes the pair towards 42,530 level. On the 4-hour timeframe, the BTC/USD has violated the symmetrical triangle pattern that supports the pair at 42,550 levels. Bullish bias dominates over 42,530 and vice versa. All the best!

Fed Chair Powell Speech in Highlights

During Wednesday's Asian trading session, the yellow metal price is trying to make a little recovery attempt from seven-week troughs of $1728, as bulls once again aim for a retest of the $1750 barrier. Gold extended its intraday declines through the Asian session and remained depressed near seven-week lows, below the $1,740 level in the last hour. Increases in U.S. Treasury bond yields, fuelled by expectations of an early Fed policy tightening, proved to be one of the primary factors pushing the non-yielding yellow metal down.

A US dollar near ten-month highs also put pressure on the safe-haven asset, with expectations of an earlier-than-expected interest rate hike. The U.S. dollar was the highest in 10 months while the market's priced in the hopes of the Federal Reserve reducing asset purchases in November and an interest rate hike. As a result, 10-year Treasury yields reached a three-month high, reaching a high of 1.5530% in recent trade. Apart from this, the long-lasting uncertainty surrounding the U.S. stimulus and debt ceiling extension seems to give some support to the gold price to limit its deeper losses.

Moreover, the emerging coupon payment of the Evergrande bonds and the U.S. push for China to cut oil imports from Iran put some burden on the market's trading sentiment, which acted as a tailwind for traditional safe-haven assets and helped limit any further losses for the XAU/USD, at least for now. As of writing, the precious metal price is trading at 1,739.40 and consolidating in the range between 1,733.43 and 1,741.40.

Despite the uncertainties over Evergrande coupon payment & mixed U.S. debt limit/stimulus talks, the market's trading sentiment succeeded in stopping its previous day's losses and drew some strong bids on the day. This was evidenced by new gains in Sample 500 futures. It is reported to have gained 0.45%, snapping a two-day decline, whereas U.S. 10-year Treasury yields are on the rise for the fifth consecutive day, trading near 1.55% at the time of writing. However, the market's trading sentiment was supported by the positive remarks from Australia's Treasurer, Josh Frydenberg, who ordered firmer vaccinations to stop emergency aid payments.

Since June, the federal government has spent about A$9 billion ($6.5 billion) to support around 2 million people but will phase out the payments as vaccination levels near targeted levels at 70%-80%. Apart from this, U.S. President Joe Biden cancelled a visit to Chicago to lead discussions over his congressional agenda. The Democratic Leader is set to negotiate a deal with Republicans after the GOP refused the bill to extend the debt ceiling and U.S. Treasury Secretary Janet Yellen warned of empty pockets by October 18.

Elsewhere, China's rejection of Intellectual Property (I.P.) for covid vaccine also played a significant role in underpinning the market trading sentiment. However, the prevalent buying bias surrounding the market's trading sentiment was a critical factor that kept gold prices under pressure.

Despite the upbeat market sentiment, the broad-based U.S. dollar succeeded in extending its previous-day upward rally and remained trading near its highest levels of the year on Wednesday after driving higher with U.S. yields. U.S. Treasury yields have climbed recently, with benchmark 10-year rates up 25 basis points in five sessions to 1.5548% as Fed tapering looms before the year's end and as inflation starts to look stickier than first thought. Thus, the bullish sentiment surrounding the U.S. dollar was understood as a significant factor that helps the gold price limit its deeper losses as the price of gold is inversely related to the price of the U.S. dollar.

In the absence of Asian data or events, Fedspeak and second-tier US housing data will be critical to monitor. Meanwhile, the headlines concerning stimulus, debt limits, and China will also be the key to following a new direction.

GOLD Intraday Technical Level

Support Resistance

1743.61 1759.76

1736.08 1768.38

1727.46 1775.91

Pivot Point: 1752.23

GOLD - Technical Outlook

At the 1,738 level, gold is trading with a negative bias, with immediate resistance at 1,739. At 1739.23, an intraday pivot point level is offering immediate resistance. The precious metal is consolidating underneath the pivot point level on the 4-hourly period, as investors wait for Fed Chair Powell to speak.

In addition, the 50-day SMA (simple moving average) around 1,750 indicates a gold selling trend. Furthermore, the closure of candles underneath the 1,738 level implies the continuation of the negative trend. This barrier is also being extended by a descending triangle breakout.

Gold's immediate support levels are 1,723 and 1,712, respectively, on the downside. Simultaneously time, the following level of resistance is located between 1,739 and 1,749 pips. Consider selling below 1,739 and buying above 1,739 as an example.

Double Bottom Pattern in Play

The EUR/USD pair closed at $1.1681 after reaching a high of $1.1704 and a low of $1.1667. The pair dropped on Tuesday and continued its bearish streak for a third day amid the strength of the U.S. dollar. The currency pair EUR/USD fell to its lowest since 20th August as the U.S. dollar gathered strength on the prospects of a rate hike and higher than expected inflation. The U.S. Dollar Index reached its 11-month highest level on Tuesday at 93.81 and the U.S. Treasury yield reached its highest since mid-June at 1.567%, which added extra strength to the greenback that weighed heavily on the EUR/USD pair.

At 11:00 GMT, the German GfK Consumer Climate in September surged to 0.3 against the forecasted 1.6 and supported the single currency euro further, further capping the loss in the EUR/USD pair. From the U.S. side, at 17:30 GMT, the Goods Trade Balance in August remained flat with the anticipated -87.6B. The Prelim Wholesale Inventories declined by 1.2% in August, against the projected 0.8%, and weighed on the U.S. dollar, which limited the decline in the EUR/USD pair.

At 18:00 GMT, the Housing Price Index also fell to 1.4%, against an estimated 1.5%, and weighed on the U.S. dollar. The S&P/CS Composite-20 HPI was also reduced to 19.9% against the anticipated 20.1% and weighed on the U.S. dollar. That reduced the EUR/USD pair's loss. At 18:59 GMT, the Richmond Manufacturing Index fell to-3 against an estimated 12 and weighed the U.S. dollar. The CB Consumer Confidence Index for September fell to 109.3 from 115.2 expected, weighing on the US dollar and limiting the downward momentum in the EUR/USD pair.

Furthermore, the resurgence of the coronavirus pandemic in Europe and its effects were also weighing on the single currency euro, which kept the EUR/USD pair under pressure for the day. On Tuesday, the authorities of Russia reported 852 deaths in the last 24 hours, which was its highest single-day coronavirus death toll during a surge in infections fueled by the highly infectious Delta variant.

Meanwhile, Romania recorded a record high number of daily coronavirus cases on Tuesday, with 11,049 infections reported in 24 hours. According to the Romanian government, the rise in infections was due to the second-lowest vaccination rate in the European Union. These developments also kept the Euro Euro under pressure and weighed on the EUR/USD currency pair.

EUR/USD Intraday Technical Levels

Support Resistance

1.1676 1.1720

1.1659 1.1745

1.1633 1.1763

Pivot Point: 1.1702

EUR/USD - Technical Outlook

On Wednesay, the EUR/USD currency pair is trading with a bearish bias at 1.1687 level as the Euro has violated a strong support level of 1.1700. A closing of candles below this level suggests a strong selling bias in the currency pair. On the lower side, the bears may find support at the 1.1685 level, whereas the violation of 1.1685 exposes towards 1.1659 and 1.1633 levels. On the bullish side, the immediate resistance stays at the 1.1720 level, and a breakout about this level can expose EUR/USD towards the 1.1763 level.

On the hourly timeframe, the pair has formed a descending triangle pattern which supports the pair at 1.1648 level. Thus, the chances of a bullish bounce off above 1.1685 remain high. However, the breaker below 1.1685 has the potential to dominate selling bias in EUR/USD. On the daily timeframe, the double bottom pattern is likely to offer major support at 1.1665. Bullish bias dominates above this level and vice versa. All the best!

on the All the best!

Choppy Sessions in Play

The BTC/USD was closed at $41,064.0 after reaching a high of $42,777.0 and a low of $40,928.0. For the second consecutive session on Tuesday, BTC/USD extended its decline towards the $40,000 level on Tuesday and dropped for the second consecutive session. Chinese e-commerce giant Alibaba has said that it will delist bitcoin mining equipment offers on its platform and will prohibit their future sale after the People’s Bank of China issued a renewed and reinforced ban on bitcoin and cryptocurrency.

The country has issued a strict warning and prohibited the sale of virtual currency miners in addition to the prohibition against selling virtual currencies such as Bitcoin. The renewed China ban of bitcoin and cryptocurrencies has been weighing on the whole crypto market since the 24th of September when the ban was issued. However, the ban's consequences in the form of shutdown or halted services from major companies like Alibaba and Sparkpool have added downward pressure on leading cryptocurrencies.

On Tuesday, the Tesla CEO, Elon Musk, said at a Code Conference in Beverly Hills, California, that the U.S. government should avoid regulating crypto. He noted that it was not possible to destroy crypto, but governments could slow down its advancement. This news had an almost null impact on the BTC/USD price on Tuesday.

Furthermore, the rising strength of the U.S. dollar added further loss in the BTC/USD as both have a negative correlation. The U.S. Dollar Index was at its 11-month highest level on Tuesday at 93.81, which added further support to the greenback and weighed on the bitcoin. The U.S. dollar was gaining on the back of increased expectations of a rate hike and higher than expected inflation as acknowledged by the Federal Reserve.

On the flip side, a filing from the United States Securities and Exchange Commission showed that BlackRock Financial Management had increased the number of its bitcoin futures contracts since Q1 2021. On Tuesday, the filing with the SEC suggested that the BlackRock Global Allocation Fund had included about 54 bitcoin futures contracts, and the gains from these contracts were recorded at $369K. The company holds about $9.5 trillion in total assets under management.

BTC/USD Intraday Technical Levels

Support Resistance

40402.4 42251.4

39740.7 43438.7

38553.4 44100.4

Pivot Point: 41589.7

BTC/USD - Technical Outlook

The technical side of the BTC/USD pair is mostly unchanged as it’s trading with a bearish bias at 42,040, with immediate resistance around 43,129. Bitcoin is currently encountering significant resistance on the 4-hourly timeframes at the 42,600 level, which is being extended by a current high level. Closing a bearish engulfing candle right below this level supports the odds of a bearish correction in Bitcoin.

A bearish breakout of the 42,005 level exposes the Bitcoin price towards the support levels of 41,411and 40,995, respectively. An additional breakout at the 40,995 level exposes the pair towards the 40,535 level. At the same time, the resistance continues to stay at the 43,150 level, which is being extended by a pivot point. A bullish breakout above this level exposes the BTC/USD towards 43,765 and 44,289 levels. Bitcoin’s selling bias dominates below 42,650 level and vice versa. All the best!

Symmetrical Triangle in Focus

During Tuesday's Asian trading hours, the yellow-metal price managed to stop its early-day downticks and drew some mild bids around above the $1,750 level. However, the buying trend around the yellow-metal prices was mainly sponsored by the worries over China's Evergrande debt crisis and infrastructures spending bill, which probes the market's optimism and contributes to the safe-haven metal gains. However, the gains in the yellow metal could be short-lived amid a stronger U.S. dollar.

The U.S. dollar traded strongly near 92.50 as hopes over the interest rate hikes following hawkish Fed's officials tend to underpin the U.S. currency. The gains in the U.S. dollar were further bolstered by the rising U.S. Treasury yields, which capped the yellow metal's gains. On the other hand, the market's upbeat mood, backed by multiple factors, was seen as one of the key factors that kept the lid on any additional gains in the yellow metal prices. As of writing, the precious metal price is trading at 1,749.99 and consolidating in the range between 1,749.38 - 1,752.35.

The reason could be tied to the mixed concerns over U.S. stimulus and debt-limit talks. Earlier in the morning, U.S. Treasury Secretary Janet Yellen pushed for a swift address to the debt limit issue. This came after the Senate failed to advance a measure to suspend the federal debt ceiling and avoid a partial government shutdown.

As per U.S. Senate Democratic Leader Chuck Schumer, Democrats will take further action this week to avoid a government shutdown and debt default. Moreover, House Speaker Nancy Pelosi showed readiness to stop the deadlock of the U.S. infrastructure stimulus bill the previous day but hinted at a lesser figure than President Joe Biden's $3.5 trillion push. However, the prevalent selling bias surrounding the market's trading sentiment was a key factor that helped the gold prices stay bid.

Despite the mixed market sentiment, the broad-based U.S. dollar succeeded in extending its early-day bullish bias and hitting an intra-day high of around 93.433. The U.S. dollar was being supported by hopes of interest rate hikes following hawkish Fed officials. Meanwhile, the benchmark 10-year U.S. yield upticks point to some additional positive impact on the U.S. dollar. The benchmark 10-year U.S. yield rose 1.5% on Monday, a level not seen since June 2021, and the two-year yield climbed to its highest since March 2020.

However, the gains in U.S. yields were mainly attributable to the U.S. Federal Reserve's more hawkish stance in its latest monetary policy, which was handed down during the previous week. Thus, the bullish sentiment surrounding the U.S. dollar was seen as a significant factor that kept the gold price gains under check, as the price of gold is inversely related to the price of the U.S. dollar.

Moving on, market traders will keep their eyes on the actual testimony by Fed Chair Powell. In the meantime, the speech from the European Central Bank (ECB) President Christine Lagarde and developments concerning the issues above will also be essential to watch.

GOLD Intraday Technical Level

Support Resistance

1743.61 1759.76

1736.08 1768.38

1727.46 1775.91

Pivot Point: 1752.23

GOLD - Technical Outlook

Gold is trading with a bearish bias at the 1,747 level, trying to break and close below an intraday pivot point level of 1,751. The closing of candles below this level supports a selling trend in gold. However, gold's immediate support prevails at 1,744, and breakout below this level exposes the precious metal towards the 1,735 and 1,726 levels.

On the 4-hour timeframe, gold has formed a symmetrical triangle pattern supporting indecision among investors amid the lack of high-impact economic events. The resistance levels continue to hold around 1,751 and 1,758 levels. Upon a bullish breakout above the 1,758 level, the gold price will be exposed towards 1,767 and 1,775 levels. On Wednesday, the bearish bias dominates below 1,751. All the best!

Descending Triangle Pattern in Play

The EUR/USD was closed at $1.1694 after placing a high of $1.1728 and a low of $1.1684. EUR/USD currency pair continued its bearish streak for the third consecutive session amid the strong U.S. dollar. On Monday, the greenback was strong across the board, reaching 93.49, and U.S. Treasury Yields backed it up, reaching a three-month high of 1.51%. The strong U.S. dollar added pressure on the riskier asset, the EUR/USD pair, and dragged its prices to the downside.

The U.S. dollar rose as Federal Reserve policymakers backed up comments made by Fed Chair Jerome Powell last week. The officials from the Federal Reserve were of the view that the standard for tapering set by the Fed for employment and inflation was close to being met. One official said that tapering asset purchases might begin soon, and the Fed might raise interest rates by 2023.

At 13:00 GMT, the M3 money supply for the year remained flat, with expectations of 7.9%. The year's private loan growth fell to 4.2%, compared to the forecasted 4.3%, weighing on the single currency euro, adding to the currency pair EUR/USD's losses. From the U.S. side, at 17:30 GMT, the Core Durable Goods Orders in August dropped to 0.2% against the anticipated 0.5% and weighed on the U.S. dollar, which caused a further loss in EUR/USD. Durable Goods Orders increased by 1.8% in August, versus the predicted 0.7%, bolstering the U.S. dollar and adding to the EUR/USD loss.

From the European side, the President of the European Central Bank, Christine Lagarde, said that inflation in the eurozone could exceed the European Central Bank's already raised projections. However, there were few signs of this already happening. She believed that inflation would ease back below 2% next year, but she was also concerned about the increasing prices. She acknowledged that Eurozone inflation reached 3% in August and was largely fueled by energy costs.

The ECB forecasts that the scaling back of its pandemic emergency asset purchases will end in March 2022 and that price growth will be 2.2% this year, 1.7% next year, and 1.5% in 2023. The ECB President's comments were insufficient to support the single currency euro, and the currency pair EUR/USD fell.

EUR/USD Intraday Technical Levels

Support Resistance

1.1676 1.1720

1.1659 1.1745

1.1633 1.1763

Pivot Point: 1.1702

EUR/USD - Technical Outlook

On Tuesday, the currency pair is trading with a bearish bias at 1.1687 level as the Euro has violated a strong support level of 1.1700. A closing of candles below this level suggests a strong selling bias in the currency pair. On the lower side, the bears may find support at the 1.1685 level, whereas the violation of 1.1685 exposes towards 1.1659 and 1.1633 levels. On the bullish side, the immediate resistance stays at the 1.1720 level, and a breakout about this level can expose EUR/USD towards the 1.1763 level.

On the hourly timeframe, the pair has formed a descending triangle pattern which supports the pair at 1.1648 level. Thus, the chances of a bullish bounce off above 1.1685 remain high. However, the breaker below 1.1685 has the potential to dominate selling bias in EUR/USD. All the best!

Pivot Point Breakout at 43,150

The BTC/USD was closed at $42,191.0 after placing a high of $44,354.0 and a low of $42,144.0. BTC/USD dropped on Monday and reversed its course amid the negative developments surrounding the cryptocurrency market. Once again, China came forward with another blow to Bitcoin and cryptocurrencies, which ultimately weighed on the market sentiment. However, this time on a lighter note, as there was nothing new for investors.

The country has previously sought to remove all miners, and now it has come up with further restrictions by outright banning crypto on a broad scale. The latest announcement from the People’s Bank of China stated that the virtual currency derivative transactions were all illegal financial activities and were strictly prohibited.

It looks like China was trying to eliminate all potential competition for its digital yuan. According to the government of China, the currency can be tracked by them, which means it can be used to spy on people, which will enable regulators to know what the people are spending on. China argues that cryptocurrencies can potentially hide illicit financial activities due to their anonymity from the agencies trying to keep the public safe.

Furthermore, the CEO of JPMorgan Chase, Jamie Dimon, also added to the downward momentum of Bitcoin on Monday by saying that he would not buy the leading digital asset even though he believed that it could increase 10X in a matter of five years. In 2017, Dimon called Bitcoin fraud due to the capability of criminals to escape capture by authorities by operating their financial transactions in BTC rather than in U.S. dollars. These comments from the CEO of one of the biggest banks in the U.S. added to the loss in the already declining BTC/USD prices.

Additionally, the analysts at JPMorgan said that many institutional investors were dumping bitcoin for Ethereum, and this news added to the further decline in BTC/USD prices. According to analysts at JPMorgan, a big flow of money has been flowing into the second largest cryptocurrency in recent months amid the success of decentralized finance. The recent data showed that big institutional investors have started exiting bitcoin futures to invest in Ethereum futures. The restrictions on the purchase of actual cryptocurrencies have left investors with the option of trading crypto futures.

BTC/USD Intraday Technical Levels

Support Resistance

41438.6 43648.6

40686.3 45106.3

39228.6 45858.6

Pivot Point: 42896.3

BTC/USD - Technical Outlook

The BTC/USD pair is currently trading with a bearish bias at 42,224, with immediate resistance around 43,129. Bitcoin is currently encountering significant resistance on the 4-hourly timeframes at the 42,600 level, which is being extended by a current high level. Closing a bearish engulfing candle right below this level supports the odds of a bearish correction in Bitcoin.

A bearish breakout of the 42,005 level exposes the Bitcoin price towards the support levels of 41,411and 40,995, respectively. An additional breakout at the 40,995 level exposes the pair towards the 40,535 level. At the same time, the resistance continues to stay at the 43,150 level, which is being extended by a pivot point. A bullish breakout above this level exposes the BTC/USD towards 43,765 and 44,289 levels. Bitcoin’s selling bias dominates below 42,650 level and vice versa. All the best!

Intraday Pivot Point to Underpin Gold at $1,749

Today in the Asian trading session, the safe-haven-metal price managed to extend its early-day upward rally and drew some additional bids around the $1,760 level as the latest declines in the U.S. dollar tend to underpin gold prices amid their inverse relationship with the price of gold.

In the meantime, the demand for physical gold in China, a top consumer, grew during the previous week as investors perceived safety in the safe-haven yellow metal as they monitored the ongoing situation at China Evergrande. Thus, it's seen as one of the factors that lent some support to the yellow metal prices.

Furthermore, the concerns over China Evergrande Group's (HK:3333) debt situation and its potential economic impact kept challenging the market's upbeat mood and boosted further the yellow-metal safe-have appeal. Furthermore, the bullish bias around the yellow-metal prices was also sponsored by the ongoing cautious sentiment ahead of the U.S. Durable Goods Orders, China's Evergrande, and U.S. stimulus headlines.

Alternatively, the market's upbeat mood, backed by multiple factors, put some burden on the safe-haven U.S. dollar. Thus, the weaker U.S. dollar tends to underpin gold prices, as the price of gold is negatively related to the price of the U.S. dollar. As of writing, the precious metal price is trading at 1,758.39 and consolidating in the range between 1,748.32 and 1,760.87.

The market's trading sentiment succeeded in extending its previous four-day upward performance and drew some further bids while refreshing the one-week high on the day. The S&P 500 Futures rose for the fourth day in a row to reclaim a one-week high, up 0.36% at around 4,461 at writing. However, the marker trading sentiment was buoyed by expectations of U.S. stimulus and positive coronavirus news from Australia and Japan. Furthermore, the chatter surrounding the release of Huawei's CFO and economic optimism and the fewer highlights over China's Evergrande also played a major role in supporting the market's trading sentiment.

The U.S. House Speaker Nancy Pelosi backed off from her first hints of a Monday vote on the U.S. infrastructure spending bill. However, her choice for Thursday and optimism over the passage tend to underpin the market's risk-on mood. Moreover, the expectations that the U.S. Democrats will use diplomatic power to reject Republicans if they stick to their demands over the debt limit as it expires on October 01 positively impacting the market's trading sentiment.

In addition to this, the Japanese media's decision to remove all the virus-led emergencies this week and the recent easing of COVID counts from Australia add further to the market's optimism. Meanwhile, China and Canada did a prisoner swap on the weekend, resulting in the release of Meng Wanzhou, daughter of Huawei's founder and the CFO of the company, eased the tension between the U.S. and China. These headlines also favour risk sentiment. Consequently, the buying bias surrounding the market's trading sentiment was a key factor that kept the U.S. dollar lower.

At the USD front, the greenback failed to stop its early-day declining streak and dropped further on the day as the market risk-on mood tends to undermine the safe-haven U.S. dollar. Meanwhile, the declines were further bolstered as U.S. 10-year Treasury yields eased from their highest since June, snapping a five-week uptrend. The U.S. Dollar Index tracks the U.S. dollar against a bucket of other currencies dropped by 0.12% to 93.222.

Looking forward, the global markets' traders will keep their eyes on the U.S. Durable Goods Orders, which are due for release later in the day. Meanwhile, China's Evergrande and U.S. stimulus headlines will also be key to watch.

GOLD Intraday Technical Level

Support Resistance

1741.16 1758.22

1732.28 1766.40

1724.10 1775.87

Pivot Point: 1749.37

GOLD - Technical Outlook

Gold is trading with a bullish bias at the 1,758 level, trying to break and close above a strong resistance level at the 1,757 level. On the resistance side, the metal’s immediate resistance will stay at 1,766 level, especially upon a breakout of 1,758 level. Further, on the higher side, a breakout of the 1,766 level exposes the pair towards the 1,775 level, which is being extended by a previous high level placed on September 23.

On the support side, the major support prevails around the 1,749 pivot point level and a breakout below this exposes a bearish bias until the 1,741 level. The RSI and stochastic are in an overbought zone now, thus gold has the potential to trigger a bearish correction until Monday at the 1,749 level. A breakout of the 1,761 level exposes gold towards 1,766 and 1,775. All the best!