50 Periods EMA Extends Resistance

The USD/JPY was closed at 110.08 after placing a high of 110.36 and a low of 109.73. the currency pair USD/JPY found some support on Friday as it remained green for the day after dropping sharply for the previous two consecutive sessions. The U.S. Dollar Index covering the greenback value against the basket of six major currencies surged on Friday and extended its gains for the second successive session, and reached 92.76 level making the U.S. dollar stronger against its rival currencies.

The strength in the greenback could be attributed to the better-than-expected macroeconomic data of Retail Sales from June. As well as the safe-haven demand for the U.S. dollar was also behind its strength on the last day of the week amid a rising number of coronavirus cases around the globe.

On the data front, at 17:30 GMT, the Core Retail Sales for June increased to 1.3% against the estimated 0.4% and supported the U.S. dollar that pushed USD/JPY higher. In June, the Retail Sales also rose to 0.6% against the predicted -0.4% and supported the U.S. dollar, and added further gains in the USD/JPY pair.

At 19:00 GMT, the Prelim UoM Consumer Sentiment declined to 80.8 against the projected 86.5 and weighed on the U.S. dollar that kept the gains in USD/JPY limited. The Business Inventories fell to 0.5% against the anticipated 0.6% and supported the U.S. dollar, and pushed the currency pair USD/JPY higher. The Prelim UoM Inflation Expectations also remained unchanged at 4.8%.

Meanwhile, the currency pair USD/JPY was also high because of the weak Japanese Yen on the day amid the latest growth forecast from the Bank of Japan. The BOJ cut this year’s growth forecast and said that it expects the economy to expand 3.7% in the current fiscal year that will end in March 2022; this forecast was down from previously projected as 4.0% in April.

On Friday, the Bank of Japan released its fresh quarterly projections; however, it also maintained its view that the economy was moving towards a moderate recovery, signaling that monetary policy would remain unchanged for some time.

Furthermore, the Bank also released an outline of its new scheme that will boost the funding for activities combating climate change and offer banks long-term loans at 0 interest. However, the Bank revised its forecast up from 2.4% to 2.7% for the next year. The rise in expected growth for the next year was attributed to the accelerated vaccinations and increased consumption. The Japanese Yen came under pressure on Friday after the Bank of Japan cut its growth projections for this year and added further strength in the USD/JPY currency pair.

USD/JPY Intraday Technical Levels

Support Resistance

109.68 110.07

109.50 110.28

109.30 110.46

Pivot Point: 109.89

USD/JPY - Technical Outlook

The safe-haven currency pair USD/JPY is trading with a strong selling bias at 109.950 level, having bounced off the support level of 109.850 level. The technical side of the USD/JPY pair hasn’t changed a lot. On the 4 hour timeframe, the pair is closing candles right below the 50 EMA level that’s supporting selling trend in USD/JPY. Besides, the USD/JPY has also violated the upward channel on the 4-hour timeframe, driving a solid selling trend in the USD/JPY pair.

On the downside, the USD/JPY pair is exposed towards the next support level of 109.520 level, and the breakout of this level exposes it towards the support level of 108.940. All the best!

Upward Channel Supports

Gold prices closed at $1815.00 after placing a high of $1832.70 and a low of $1809.50. After rising for the previous three consecutive sessions, gold reversed its movement and declined at the ending day of the week. The reversal in yellow metal prices could be attributed to the rising prices of the U.S. dollar on the session. The Dollar Index (DXY) surged on Friday to 92.76 level that ultimately added pressure on the precious metal prices as both are inversely correlated.

Gold was drifted further away from its one-month high level that it hit during the previous session as the U.S. dollar continued its upward momentum and dulled the appeal for the safe-haven metal. On Thursday, the yellow metal reached the 1-month highest level amid the comments from Fed Chair Jerome Powell, who said that the Fed would continue providing its support to the economy in the form of stimulus measures which faded away from the hopes of quick tapering of asset purchases given the rising inflation numbers.

On the data front, at 17:30 GMT, the Core Retail Sales for June surged to 1.3% against the expected 0.4% and supported the U.S. dollar that added further loss in gold prices. In June, the Retail Sales also surged to 0.6% against the projected -0.4% and supported the U.S. dollar, and dragged yellow metal further on the downside.

At 19:00 GMT, the Prelim UoM Consumer Sentiment dropped to 80.8 against the predicted 86.5 and weighed on the U.S. dollar and additional caped loss in gold prices. The Business Inventories declined to 0.5% against the predicted 0.6% and supported the U.S. dollar and weighed on the precious metal. The Prelim UoM Inflation Expectations also remained flat at 4.8%.

The U.S. dollar was strong across the board amid a positive macroeconomic data release on Friday. The Retail Sales and Core Retail Sales data showed a massive improvement in June against the previous expectations, and hence, the greenback gathered strength against the precious metal. Meanwhile, the loss in gold remained limited as the concerns of the fast spread of the Delta variant of coronavirus kept the safe-haven appeal alive in the market. The U.S. officials said on Friday that the Delta variant of COVID-19 was now the dominant variant worldwide, accompanied by a rise in the number of deaths almost entirely among unvaccinated people in the United States.

As per the U.S. Centers for Disease Control and Prevention, the coronavirus cases in the U.S. were up to 70%. The deaths were up to 26% over the previous week as the outbreaks were occurring in the country's regions with low vaccination rates. The virus woes kept the loss in yellow metal limited for the day, and precious metal remained bearish throughout the day over the strength of the U.S. dollar driven by positive macroeconomic data.

Gold Intraday Technical Level

Support Resistance

1821.40 1835.80

1813.80 1842.60

1807.00 1850.20

Pivot Point: 1828.20

Gold - XAU/USD - Technical Outlook

On Monday, the precious metal gold is trading with a neutral bais at 1,812 levels. Gold is holding above an immediate support level of 1,808 level. Since we are not expecting any high-impact economic event from the U.S. today, the gold price may exhibit choppy sessions. Gold's immediate support prevails at a 1,808 level that's extended by an upward channel on the 4-hour timeframe. At the same level, the 50 periods EMA is also supporting gold prices. However, the breakout of this level can expose gold prices towards 1,800 and 1,791 level.

All the best!

Bitcoin Rejected Below 50 EMA

The BTC/USD was closed at $31824.0 after placing a high of $32427.0 and a low of $31211.8. After remaining depressed and falling continuously for six consecutive days, BTC/USD surged and turned green on Sunday to recover a little part of its previous losses. Over the weekend, the leading cryptocurrency remained under pressure; however, on Sunday, it saw some reversal. The declining prices of BTC/USD could be attributed to some negative developments around the network consisting of the recent comments from the CEO of MicroStrategy, Michael Saylor.

Saylor believes that Bitcoin was more like a digital property rather than a digital currency. He also stated that in his view, Bitcoin was a threat to the United States dollar and other forms of property like gold and real estate. He further reiterated that the U.S. government was not threatened by real estate, companies, buildings, or gold.

He added that bitcoin was demonetizing other forms of property as people have started thinking of investing in bitcoin rather than investing in real estate, gold, stocks, or starting a business. These comments from Saylor added pressure on BTC/USD.

Meanwhile, a popular Youtube Superstar and famed rapper, KSI, also known as JJ, shared his experience in investing in bitcoin. KSI was ranked second by the Sunday Times in its list of the top 100 UK influencers in 2019. JJ is also a part of the British Youtube group named Sidemen. Recently, the British influencer became a vocal fan of cryptocurrency and shared his experience in investing in bitcoin. He said that he made millions of pounds investing in bitcoin and other cryptocurrencies but eventually lost it when the market crashed. He revealed that he invested 2 million pounds in bitcoin and made 7 million pounds, but now he has lost all of it.

On the other hand, the authorities in Malaysia reportedly announced to destroy over $1.2 million worth of BTC mining rigs after they were impounded for operating illegally. It was not clear why the authorities decided to destroy the miners instead of selling them for scrap.

The local authorities arranged a steamroller to crush at least 1069 bitcoin miners that were confiscated from the residents of Malaysia trying to illegally mine the crypto using stolen electricity between February and April. Whereas, in the United States, the government was looking into the possibility of tracking cryptocurrency transactions to combat ransomware attacks that demand crypto payments.

As per the Federal Reserve Chairman Jerome Powell, if the United States had its digital currency in play, it would have made bitcoin disappear ultimately as bitcoin would serve no purpose. On the flip side, the Bank of America approved a new service that would enable some of its clients to trade bitcoin futures. The Bank, a vocal bitcoin critic for many years, has now decided to permit its customers to do transactions with the digital asset.

In 2018, the Bank of America blocked financial advisers and clients from trading in bitcoin-related investments. Now, the bank has offered the service to do transactions with bitcoin futures to a few selected customers due to a large amount of margin required to trade.

BTC/USD Intraday Technical Levels

Support Resistance

31906.8 33427.8

30990.9 34032.9

30385.8 34948.8

Pivot Point: 32511.9

BTC/USD - Technical Outlook

On Monday, the bearish sentiment continues to dominate Bitcoin price as it's trading at the 31,828 level. The BTC/USD pair has bounced off the double bottom support level of 31,580 level to retest the resistance level of 32,225 extended by 50 periods EMA line. At the moment, Bitcoin's immediate support prevails at 31,170 level, and the breakout of this level exposes the BTC towards the next support level of 30,219 level. Alternatively, the violation of the 33,150 - 33,418 range exposes its prices towards the next resistance area of 34,450 level. Technically, the bearish bias dominates the market as the 50 EMA and MACD support a selling bias. All the best!

Upward Trendline Supports Ethereum at $1,860

The ETH/USD closed at $1908.68 after placing a high of $1963.96 and a low of $1897.50. ETH/USD dropped on Thursday following the decline in BTC/USD and the strength of the U.S. dollar. A documentary named Ethereum: The Infinite Garden is under process, which is based on Ethereum. The company behind the documentary was working to raise 750 ETH, about $1.5 million for the Mirror project. The fundraising initiative will run on Mirror until Friday, July 16; the company has managed to raise about 60.3 ETH from 65 contributors as of yet.

According to the filmmakers, crowdfunding for the project will provide the Ethereum community with a chance to get involved in the project. The Mirror is a crypto crowdsourcing site, and many key players involved in building the second leading cryptocurrency will feature in the documentary.

One of the prominent participants included in the documentary is Ethereum co-founder Vitalik Buterin. The documentary film will talk about the decentralised nature of Ethereum and its advantages, and it will also discuss the inner workings of the Ethereum network and the ongoing updates. Meanwhile, the recent cryptocurrency crackdown from China added pressure over ETH/USD prices. The leading cryptocurrency BTC was also under pressure on Thursday, making the whole crypto market environment depressed and caused a decline in ETH/USD prices.

Furthermore, the rising prices of the U.S. dollar also added further pressure on ETH/USD after the macroeconomic data for the day came in favor of the greenback. The U.S. Dollar Index moved upward towards 92.69 level and supported the U.S. dollar, which ultimately accelerated the downward momentum in ETH/USD as both have a negative correlation among them.

ETH/USD Intraday Technical Levels

Support Resistance

1854.07 2009.94

1790.62 2102.36

1698.20 2165.81

Pivot Point: 1946.49

ETH/USD - Technical Outlook 

The second most traded cryptocurrency, ETH/USD, is trading at a 1,925 level. It’s gaining immediate support at 1,860 level that’s being extended by an upward trendline. On the 4-hour timeframe, the precious metal gold’s resistance stays at 1,965 and 2,044 levels. The 50 periods EMA is extending strong resistance at 2,045 today; therefore, the ETH/USD will be exhibiting a selling trend until this level is violated.

The MACD is holding at a -39.99 level, which suggests a strong selling trend in Ethereum. On the downside, the breakout of 1,860 levels exposes the ETH/USD pair towards the double bottom pattern. This double bottom pattern will be extending support at 1,724 level during the weekend. All the best!

Double Top Pattern Extends Resistance at $0.1882

The DOGE/USD crypto pair extended its downward overnight rally and declined further after it failed to stay above $0.187500 against the U.S. Dollar. Dogecoin price is dropped by 4.45% in the last twenty-four hours and holding the $0.180965 support.

After a failed attempt to settle above $0.187500, LTC extended its decline, like BTC, ETH & LTC. The Dogecoin price broke the $0.181500 support, and it dropped well below the 100 hourly simple moving average. The price could face further losses if Dogecoin fails to recover above $0.181500 and $0.187500.

At this time, Dogecoin is currently trading at the $0.182034 level on the day with a 24-hour trading volume of $1,061,750,843. However, Dogecoin's selling bias could be attributed to the reports suggesting that Dogecoin Co-Founder criticizes the crypto world and states it is managed by "powerful cartels" of wealthy figures.

Dogecoin co-founder Jordan Palmer is seemed upset over the road the cryptocurrency industry has taken. This is why Jordan Palmer stated that he would not return to the cryptocurrency world. Palmer threw harsh criticisms of the cryptocurrency industry, calling it "hyper capitalistic" and managed by "powerful cartels" of wealthy figures. This news has failed to leave any meaningful impact on Dogecoin so far. Although, this could be harmful to Dogecoin in the future.

On the positive side, the declines in Dogecoin could be limited as the one, and only Busta Rhymes(Rapper) joins the ever-growing community of hip-hop artists interested in cryptocurrencies. Even though his interest in experimental so far cannot be denied, it can shine over the crypto industry.

A person like Busta Rhymes has developed an audience over the last few years, and some of them may come on the crypto rabbit-hole. In addition to this, the broad-based U.S. dollar bearish bias, triggered by the risk-on market sentiment, helps the Dogecoin price to limit its deeper losses.

The broad-based U.S. dollar has been dropping at the USD front since the day started as the risk-on market mood tends to undermine the safe-haven assets, including the U.S. dollar.

Conversely, the decline in the U.S. dollar could be temporary as the investor worries about a quicker-than-expected U.S. interest rate hike tend to underpin U.S. currency. Thus, the downticks in the U.S. dollar were seen as significant factors that placed a lid on any further losses in the Doge price.

DOGE/USD Intraday Technical Levels

Support Resistance

0.1784 0.1986

0.1692 0.2097

0.1581 0.2189

Pivot Point: 0.1894

DOGE/USD - Technical Outlook 

The DOGE/USD pair is trading with a bearish bias at 0.1826 level, having rejected at the double top resistance level of 0.1882 level. Dogecoin has closed a Doji candle right below the resistance level of 0.1882 level that is keeping the pair bearish today.

On the downside, the DOGE/USD pair's support prevails at 0.1804 level that's being extended by a double bottom pattern. On the 4 hour timeframe, the 50 EMA is providing resistance at 0.1930 level, and closing the current market price below this level indicates a selling trend in the DOGE/USD pair. The MACD is also in support of a selling bias today. All the best!

Bitcoin Supported at $31,450

The BTC/USD was closed at $31857.0 after placing a high of $33194.0 and a low of $31170.0. BTC/USD dropped on Thursday and extended its decline after research by the Cambridge Centre for Alternative Finance showed that the mining power of China disappeared overnight as soon as the crackdown was started.

The article suggested that the share of bitcoin mining from China has been declining since 2019 as it has fallen from 75.5% in September 2019 to 46% in April of this year. The crackdown is still enacted, and the further moves from various Chinese provinces will reduce the figure a lot smaller. The research also revealed that the bitcoin mining in China was already reducing far before the recent heavy crackdown last month. In June, Chinese authorities ordered banks and financial institutions to cease any crypto-related services.

Meanwhile, the U.K.'s FCA launched a $15 million digital marketing campaign to warn traders of the risks associated with the cryptocurrency. As part of its efforts to educate millennials, the country's financial watchdog, the Financial Conduct Authority (FCA), planned a marketing campaign to warn young investors about the risks associated with the crypto investment. The targeted age for the campaign is set as 18 to 30 years.

According to the FCA Chief executive, Nikhil Rathi, the move came in after previous warnings from governments that stated that cryptocurrency investment was associated with high risk and investors should be prepared to lose their money while investing. These comments and the campaign's launch added weighed on the Bitcoin that dragged BTC/USD downwards.

On the flip side, MicroStrategy's Michael Saylor has said that Bitcoin was a big tech without the company. He compared the leading cryptocurrency with Apple, Google, and Facebook. He said that bitcoin has similar dominance to these big tech giants, but it lacked a company. Furthermore, the former U.S. Treasury Secretary, Steve Mnuchin, said that the decision to invest or store value in bitcoin was a personal choice of anyone; however, the asset must be governed by a regulatory body to prevent its use for illegal activities.

He further said that he would not want to add bitcoin to his portfolio, but if people wanted to buy bitcoin as a substitute for gold or some other asset, it was fine. He reiterated that bitcoin should be regulated and put under BSA compliance.

Moreover, the comeback of the U.S. dollar also played an essential role in driving down the prices of BTC/USD. The U.S. Dollar Index measures the greenback value against the basket of six major currencies, moved up to 92.69 level, and supported the U.S. dollar that ultimately weighed on BTC/USD as both have a negative correlation between them.

BTC/USD Intraday Technical Levels

Support Resistance

30953.4 32977.4

30049.7 34097.7

28929.4 35001.4

Pivot Point: 32073.7

BTC/USD - Technical Outlook 

On Friday, the leading cryptocurrency is trading with a slightly bullish bias at 31,937 level, bounced off above the support level of 31,470. On the 4 hour timeframe, the BTC/USD has closed a hammer pattern at 31,470 level, suggesting odds of a bullish reversal in Bitcoin. However, the breakout of 31,470 support levels exposes the Bitcoin price towards 30,219 and 29,185. The 32,850 will be the to extend hurdle to the BTC/USD pair on the resistance side. Besides this, the downward trendline and 50 periods EMA will be extending resistance at 33,418 levels today. A leading indicator like MACD is staying below 0, demonstrating a selling trend in Bitcoin. However, a slight bullish correction seems imminent above the 31,450 level today. All the best!

Unemployment Claims Ahead!

Gold prices were closed at $1827.30 after placing a high of $1831.00 and a low of $1804.85. Gold prices jumped on Wednesday and marked the highest settlement since mid-June on the back of the declining U.S. dollar for the day. The U.S. Dollar Index (DXY) that measures the greenback value against the basket of six major currencies was on the back foot on Wednesday and fell to 92.35 level amid the fresh remarks from the President of the U.S. Federal Reserve, Jerome Powell.

In his testimony before Congress, Powell reassured investors that the central bank of the United States would extend its accommodative monetary policy despite a hike in inflation last month. He added that the U.S. economic recovery has not yet progressed enough to start easing the central bank's massive monthly asset purchases. He further added that inflation was likely to stay high in the coming months.

For the job market, Powell reiterated that it "was still a ways off" from the progress that Fed would like to see before it starts reducing its support from the economy. About the recent PPI data that was released on Wednesday, Powell said that the strong surge in PPI cemented the belief that the central bank will remain on course to be pretty accommodative despite hotter inflation data.

The U.S. Producer Price Index rose more than projections and posted its most significant annual increase in more than ten and a half years. At the same time, Powell said that Fed was firmly believed that current increased prices were associated with the economic reopening and were temporary. He maintained the dovish tone and pushed back against the Fed's concerns would start tapering sooner than expected. This slow path to tapering asset purchases added weight on the U.S. dollar and helped the precious metal to post gains for the day.

On the data front, at 17:30 GMT, the Producer Price Index for June surged to 1.0% against the expected 0.6% and supported the U.S. dollar that further capped gains in precious metal. The Core PPI from June also rose to 1.0% against the projected 0.5% and kept the U.S. dollar that limited the surge in the yellow metal. Meanwhile, the safe-haven yellow metal was also supported by the prevailing risk-off market sentiment driven by the statement from Japan. In its annual defense white paper, Japan reiterated that the growing military tension around Taiwan and the economic and technological rivalry between China and the United States increases the prospects of crisis in the zone as the power balance transfers in favor of China.

Gold Intraday Technical Level

Support Resistance

1811.10 1837.25

1794.90 1847.20

1784.95 1863.40

Pivot point: 1821.05

Gold - XAU/USD - Technical Outlook

The precious metal gold has traded sharply bullish at a 1,827 level amid weakness in the U.S. dollar. On the technical side, gold's immediate resistance prevails at 1,829 levels, and the closing of Doji candles demonstrates indecision among investors. It can be due to the high impact events due to come out during the U.S. sessions like the U.S. Jobless Claims and Fed Chair Powell Testimony. A bullish breakout of 1,829 levels can lead the gold price towards the next resistance area of 1,843 levels. In contrast, the support stays around 1,818 levels today. The 50 periods EMA supports gold at 1,804 level, and the MACD is also closing histograms in the buying zone. Bullish bias dominates in gold today; however, the significant events will remain in focus. All the best!

Three Black Crows, Selling Bias Dominates

The USD/JPY was closed at 109.99 after placing a high of 110.71 and a low of 109.93. After rising for three consecutive sessions, USD/JPY declined on Wednesday amid the recent decline in the U.S. dollar. The U.S. dollar was weak during Wednesday's trading session as the DXY reached 92.35 level after the Federal Reserve Chairman dismissed the concerns about starting tapering of asset purchases sooner than expected. In his testimony before Congress, Powell stated that the Fed would continue to provide its monetary support to the economy despite higher inflation readings last month.

Powell added that the spike in inflation was transitory as the rising consumer prices were due to increased demand from the reopening of the economy. He said that inflation would likely continue to grow in the coming months. The central bank will continue providing support as the economy has not reached the targeted levels set by the central bank for tapering asset purchases.

On the data front, at 09:30 GMT, the Revised Industrial Production for May declined by -6.5% against the expected -5.9% and weighed on the Japanese Yen that further caped loss in USD/JPY pair. From the U.S. side, at 17:30 GMT, the Producer Price Index for June rose to 1.0% against the estimated 0.6% and supported the U.S. dollar that further caped loss in USD/JPY. The Core PPI from June also surged to 1.0% against the predicted 0.5% and helped the U.S. dollar limit the downward momentum in USD/JPY.

Despite better than expected macroeconomic readings from the U.S. side, the U.S. dollar remained under pressure. It kept the USD/JPY pair depressed throughout the day as the dovish comments from Jerome Powell weighed on the greenback. Fed's concerns might start tapering soon were dismissed, and the greenback fell against its rival currencies.

Meanwhile, in its annual defense white paper, Japan said that growing military tensions around Taiwan and the economic and technological rivalry between China and the United States were threatening the peace and stability in East Asia as the regional power balance was shifting in favor of Beijing.

The paper revealed that it was necessary to pay close attention to the situation with a sense of crisis. The report said about the US-China tussle that the competition in technological fields was likely to become more intense in particular. The defense review was approved by the government of Prime Minister Yoshihide Suga on Tuesday and pointed to China as a primary national security concern of Japan. This added in the risk-off market sentiment that added further loss in the USD/JPY pair.

USD/JPY Intraday Technical Levels

Support Resistance

109.71 110.49

109.43 110.99

108.94 111.27

Pivot Point: 110.21

USD/JPY - Technical Outlook

The safe-haven currency pair USD/JPY is trading with a strong selling bias at 109.750 level, disrupting the support area of 110.023 level. On the 4 hour timeframe, the pair has closed three black crows pattern that demonstrates strong selling bias among investors. Besides, the USD/JPY has also violated the upward channel on the 4-hour timeframe, driving a solid selling trend in the USD/JPY pair. On the downside, the USD/JPY pair is exposed towards the next support level of 109.520 level, and the breakout of this level exposes it towards the support level of 108.940. Traders will be closely monitoring the U.S. Jobless claims and Fed Chair Powell Testimony as both of these events have the potential to drive price action. All the best!

Bitcoin Rejected Below 50 EMA

The BTC/USD was closed at $32822.6 after placing a high of $33117.0 and a low of $31596.0. After declining for two consecutive sessions, BTC/USD ended its trading session on Wednesday with minor gains. During the first half of the day, BTC/USD remained depressed and extended its loss; however, in the second half of the session, bitcoin managed to recover its daily loss and ended its day with a little to no gain.

The flat movement of bitcoin during Wednesday could be attributed to the speculations indicating that bitcoin was on its way to face intensified government conspired opposition. After the conspiracy theories on possible attacks on cryptocurrencies, especially on Bitcoin, emerged in the market.

At CoinShares, Meltem Demirors, a Chief Strategy Officer, said that the bitcoin and crypto market would possibly see a crackdown during the coming months from elites and institutions as they were preparing for hyperinflation. She added that they would crush the middle class for this purpose and acquire all of their productive assets. She also called it 21st-century feudalism. Bitcoin and other unregulated, decentralized digital money revolutionized the financial markets and posed a threat to governments.

Thus, central banks have become sceptical and are looking for ways to control the flow of capital and profit from the blockchain. The increasing global coordinated regulatory actions against the crypto market give a view for a possible alarming situation where the efforts by governments might intensify in the coming months. These concerns and speculations kept BTC/USD lower for the day during early trading hours on Wednesday.

Meanwhile, the Anhui province in China also announced that Bitcoin mining in the area would be shut down as the crackdown on crypto miners continues. The Chinese government has plans to rot out all bitcoin miners and related projects from the nation within the next three years. This also kept BTC/USD under pressure on Wednesday.

However, Bitcoin managed to gain traction in the market and recover its loss for the day after the Brazilian Securities Commission announced that it had approved the first exchange-traded fund after tracking the performance of Ethereum in Latin America.

Furthermore, the global payment giant Visa was moving forward with its commitment to digital currency adoption and approved the development and issuance of a new BTC debit card. According to CryptoSpend, a Sydney-based crypto spending app, on July 14, Visa has approved the issuance of a physical debit card which will enable Australians to spend their bitcoin at local merchant shops. This news added a spark to the crypto market's dark environment and pushed BTC/USD higher.

Moreover, the declining value of the U.S. dollar on Wednesday also played an important factor in driving the BTC/USD higher on board. The U.S. dollar was sluggish across the board following the Fed chair, Jerome Powell, who said that Fed would continue to support its economy with stimulus measures until further progress growth. He said that the target level set by the Fed for a threshold of tapering was far from reaching, and the higher prices were just an effect of economic reopening and were temporary. These dovish comments weighed on the U.S. dollar negatively correlated with BTC/USD; hence it pushed the crypto higher.

BTC/USD Intraday Technical Levels

Support Resistance

31906.8 33427.8

30990.9 34032.9

30385.8 34948.8

Pivot Point: 32511.9

BTC/USD - Technical Outlook

On Thursday, the bearish sentiment continues to dominate Bitcoin price as it's trading at the 32,528 level. The BTC/USD pair has bounced off the support level of 31,580 level to retest the resistance level of 33,155 extended by 50 periods EMA line. At the moment, Bitcoin's immediate support prevails at 31,580 level, and the breakout of this level exposes the BTC towards the next support level of 30,219 level. Alternatively, the violation of the 33,150 - 33,418 range exposes its prices towards the next resistance area of 34,450 level. Technically, the bearish bias dominates the market as the 50 EMA and MACD support a selling bias. All the best!

Fed Chair Powell Testifies

The safe-haven-metal price succeeded in extending its previous-day winning streak and picked up some further bids around above $1,810 level on the day as the downbeat market sentiment, triggered by the resurgence of the coronavirus (COVID-19), tends to underpin the safe-haven gold. The fears of the covid resurgence are getting more vital daily amid the variants' ability to spread faster, which adds further burden to market sentiment. Moreover, the pressure surrounding the market trading sentiment was further bolstered by the higher-than-expected inflation in the U.S.

This triggered bets that the U.S. Federal Reserve will tighten its monetary policy faster than expected, raising reflation fears and contributing to the downticks in the market trading sentiment. Besides this, the broad-based U.S. dollar bearish bias has also played a significant role in underpinning the dollar-dominated commodities (gold).

On the different page, the previously released upbeat U.S. data keeps challenging the market's risk-off mood. Meanwhile, the latest announcement from the Aussie PM Scott Morrison to increase emergency disaster payments to individuals and jointly funded payments to businesses also helps the market sentiment limit its deeper losses. It was seen as one of the key factors that kept the lid on any additional gains in the safe-haven gold. Gold is currently trading at 1,812.72 and consolidating in the range between 1,804.62 - 1,813.97.

Despite the previously released upbeat U.S. data, the market trading sentiment extended its previous-day poor performance and remained depressed on the day amid multiple reasons. Be it the increasing coronavirus (COVID-19) woes in the West or reflation fears; markets have all the reasons to put the trading mood under pressure. As per the latest report, the United Kingdom recorded the most covid-led deaths since April while the total infections ease in Australia from 120, the highest in 10 months to 100. Elsewhere, the death toll in New South Wales (NSW) and Queensland is increasing day by day, which keeps policymakers concerned and rushes for more jabbing in the Oz nation. Meanwhile, the U.S. authorities discuss the need for the 3rd-covid vaccine shot. Other than the covid fears, the higher-than-expected inflation in the U.S. triggered bets that the U.S. Federal Reserve will tighten its monetary policy faster than expected, raising reflation fears.

The monthly data issued by the U.S. Bureau of Labor Statistics showed that the Consumer Price Index (CPI) climbed to 5.4% yearly in June from 5% in May. This print surpassed the market expectation of 4.9% by a broad margin, which provided a temporary boost to the USD. At the USD front, the U.S. dollar dropped on the day but remained trading near a three-month high against the euro and a one-week high against the yen. The upticks in the U.S. dollar were short-lived as the investors await Fed Chairman Jerome Powell's testimony before Congress on Wednesday and Thursday. Although Powell has frequently asked that higher inflationary pressures be temporary, his testimony will be examined for any clues on when Fed will begin asset tapering and hike interest rates.

Conversely, the downbeat market sentiment could help the safe-haven U.S. dollar to limit its deeper losses. However, the continuous declines in the dollar could be associated with the cautious sentiment ahead of Fed Chairman Jerome Powell's testimony. Therefore, the weaker U.S. dollar tends to benefit dollar-denominated commodities, including gold. Aussie PM Scott Morrison announced an extension in emergency disaster payments to individuals and jointly funded payments to businesses to battle the covid-led losses, which keeps challenging the market's risk-off mood.

Gold Intraday Technical Level

Support Resistance

1795.70 1815.10

1783.90 1822.70

1776.30 1834.50

Pivot Point: 1803.30

Gold - XAU/USD - Technical Outlook

Gold is trading with a solid bullish bias at a 1,813 level, violating the resistance level of 1,811 level. On the 4 hour timeframe, gold has formed a bullish engulfing candle supporting a solid buying trend in the yellow metal. On the upside, the metal's next resistance prevails at 1,817 level, and break out of this level can expose its price towards the resistance area of 1,822 and 1,834 resistance levels. On the flip side, the breakout of 1,811 levels exposes gold prices towards the support level of 1,805 level. The leading and lagging indicators such as MACD and 50 EMA are in favor of a bullish trend. Therefore, the buying trend dominates today, especially over the support level of 1,811 level today. All the best!