Triple Bottom Pattern Continue to Support

The BTC/USD was closed at $33708.0 after placing a high of $34196.0 and a low of $32553.0. Bitcoin extended its gains on Wednesday and reached near $35,000 level as U.S. Senator Cynthia Lummis said that she was excited about the low prices of bitcoin and was planning to buy the dip. She added that as soon as bitcoin prices drop more, she will proceed with more buying as she has believed that bitcoin was a great store of value. Lummis also affirmed that she wanted a regulation for bitcoin as it will provide her with a level playing field. She also said that the rules should be simple and easy to understand for digital assets and cryptocurrencies. She added that the regulations should not be overly restrictive because she wanted to see increased innovation in the cryptocurrency space. These comments added strength in BTC/USD and pushed it further upward.

Meanwhile, El Salvador was determined to push ahead with making bitcoin a legal tender. The country's President Nayib Bukele said that making bitcoin a legal tender is a process that will bring only small risks but will also prove a leap forward for humanity. He was excited that this move would boost jobs and economic development in the Central American country.

Despite the World Bank declining to offer technical support and the concerns raised by IMF, Bukele said that he was confident that the project would be a success. He also called the process bulletproof. These comments from Bukele also added gains in BTC/USD. Moreover, the CEO of Binance, Changpeng Zhao, reminded everyone not to panic sell their digital assets and cryptocurrency holdings as the prices were declining. He elaborated that 99% of the time market remains dip, yet some people complain about the lack of opportunity to join the crypto community. Some say that they were a little too late for grabbing the opportunity now.

Zhao further explained that investors should learn from past mistakes and suggested that everyone keep it in writing with himself that panic-sell was terrible, to remind himself to calm down during any market crash. He warned everyone to structure risks that will prevent another sell-off out of panic. These comments from Zhao gave relief and supported BTC/USD on Wednesday. Furthermore, the CEO of Galaxy Digital, Michael Novogratz, expressed another positive prediction for the future of the primary digital asset – Bitcoin. He said that he still looks at bitcoin as the better version of gold despite the recent market crash. The Billionaire and most prominent bitcoin bull disregarded the current collapse in the crypto market and said that bitcoin and altcoins represent the future of the financial world. These positive comments from the CEO of Galaxy Digital added strength in BTC/USD on Wednesday.

Meanwhile, the U.S. Dollar Index that measures the greenback value against the basket of six major currencies rose slightly on Wednesday and placed minor gains that kept BTC/USD under pressure and kept its upward momentum limited as both share a negative correlation. The DXY remained steady near the 91.80 level and determined the rising prices of BTC/USD.

BTC/USD Intraday Technical Levels

Support Resistance

32772.0 34415.0

31841.0 35127.0

31129.0 36058.0

Pivot Point: 33484.0

BTC/USD - Technical Outlook

On the technical front, Bitcoin is following the same technical levels as we discussed yesterday. The BTC/USD continues to trade at the 33,013 range, having formed series of spinning top and Doji candles over 29,562 level that demonstrates the weakness in the bearish trend. Therefore, the pair is taking a slight bullish correction for now. On the higher side, the BTC/USD pair's resistance stays at 36,665 level that's being extended by 23.6% Fibonacci retracement level. At the same time, a bullish crossover of this level exposes the pair towards the next resistance area of 40,913 level. The support level continues to stay at 32,000 and 29,562 levels today. All the best!

Eyes on U.S. Manufacturing and Services PMI

Gold was closed at $1777.80 after placing a high of $1790.15 and a low of $1772.25. Gold dropped on Tuesday as traders awaited testimony from the Federal Reserve chairman, Jerome Powell, for additional clarity on monetary policy following the central bank expressed a hawkish tone last week. Last week gold dropped by about 6% after the U.S. Federal Reserve signaled to raise its interest rate from 0.25% to 0.6% in 2023 and also gave hints about starting to taper the asset purchases. Traders were waiting to get acknowledgment from Powell. They were specifically looking to find something out of the ordinary from the prepared text during the question and answers session.

Powell said on Monday that the U.S. economy continued to show sustained improvement and established a fall in inflation from the current high levels. As a result, the U.S. Dollar Index that measures the greenback value against the basket of six major currencies extended its decline for the 3rd consecutive session and reached 91.64. The U.S. Treasury yields on a 10-year note also declined below 1.50% and remained depressed throughout Tuesday. Despite declining U.S. dollar and yields, gold failed to maintain its feet on the ground and continued falling because of the comments from Powell.

According to Fed Chair, the U.S. Central Bank had intentions to encourage a broad recovery of the job market while keeping interested lower and not raising them too quickly based only on the fear of inflation reaching higher levels. He reiterated that Fed would wait for the evidence of actual inflation rather than the inflation driven by increased demand after reopening the economy and disrupted the supply chain due to lockdowns. Any other imbalances and real inflation evidence will be used as a gauge for rising interest rates.

Powell continued that the recent high inflation readings did not represent a broadly tight economy that would need higher interest rates. He said the recent price hikes were instead due to rising demand for goods and services and bottlenecks in supplying them as the economy reopened from the pandemic. He repeated that these price pressures would ease on their own.

On the data front, at 18:59 GMT, the Richmond Manufacturing Index raised to 22 against the expected 18 and supported the U.S. dollar that dragged gold prices downwards. At 19:00 GMT, the Existing Home Sales surged to 5.80M against the forecasted 5.71M and helped the U.S. dollar that added further losses in the yellow metal.

Gold Intraday Technical Level

Support Resistance

1769.99 1787.89

1762.17 1797.97

1752.09 1805.79

Pivot Point: 1780.07

Gold - XAU/USD - Technical Outlook

The technical side of gold hasn't changed a lot as it continues to consolidate around 1,783 levels. It's been trading in between a narrow trading range of 1,796 – 1,765 level and still haven't been able to violate despite the FED Chair Powell Speech. On the 4-hour timeframe, gold has already completed 61.8% Fibonacci retracement level, and this level is still intact. On the daily timeframe, the Fibonacci tool is still offering an immediate resistance at 1,795 and 1,822 that's extended by 50% and 38.2% Fibonacci retracement levels. The leading indicator, such as MACD, is still holding below 0, supporting a selling bias in gold.

Furthermore, the 50 periods EMA is extending resistance at 1,821 level, and below this, the selling pressure remains strong. Later today, the focus will remain on Manufacturing and Services PMI, which can drive further movements in the market, especially during the U.S. session. All the best!

Series of Manufacturing & Services PMI in Focus!

The GBP/USD was closed at $1.3947 after placing a high of $1.3965 and a low of $1.3860. GBP/USD extended its gains on Tuesday and reached near the $1.40 level after the U.S. dollar came under pressure amid Powell's testimony and the strengthened GBP. The U.S. Dollar Index (DXY) extended its decline on Tuesday and reached the 91.64 level. It was further supported by the declining U.S. Treasury yields on benchmark 10-year note that also remained depressed throughout the day and went below 1.50%.

In his testimony before the House of Representatives Select Subcommittee, Fed Chair Jerome Powell said that Fed would not increase interest rates pre-emptively because of the fear of the possible onset of inflation. Instead, it would wait for evidence of actual inflation or other imbalances. Meanwhile, the New York Fed President, John Williams, said that Fed would closely monitor economic data to determine the appropriate point to begin adjusting monetary policy, which was quite far away in his point of view. The greenback came under pressure as the hopes for rising interest rates along with the tapering of asset purchases in the market faded away and added pressure on the prices of the U.S. dollar that was high last week. The declining price of the U.S. dollar pushed further the rising prices of the GBP/USD pair.

On the data front, at 11:00 GMT, the Public Sector Net Borrowing dropped to 23.6B against the forecasted 24.5B and supported the British Pound that added further gains in GBP/USD. At 15:00 GMT, the CBI Industrial Order Expectations also raised to 19 against the forecasted 16 and supported the British Pound that added further upside momentum in GBP/USD. From the U.S. side, at 18:59 GMT, the Richmond Manufacturing Index surged to 22 against the estimated 18 and supported the U.S. dollar that capped further gains in GBP/USD. Finally, at 19:00 GMT, the Existing Home Sales rose to 5.80M against the anticipated 5.71M and supported the U.S. dollar, limiting the upward momentum in the GBP/USD pair.

Moreover, the E.U. citizens living in the U.K. have been given a 28-day warning to apply to remain in the U.K. from the immigration enforcement officials. There is still a week to go until the application deadline; however, the Home Office will allow people to complete an application for settled status if they have a reasonable excuse for delay.

About 5.6 Million European Economic Area citizens and their dependents have applied for settled status with additional 400,000 cases outstanding while the government's helpline received thousands of calls a day. Poland and Romania are the countries whose nationals have made the highest number of applications. The settled status allows the citizens of the E.U. and EEA living in the U.K. to retain the same rights of residence, travel, employment, and access to healthcare and benefits.

Furthermore, the gains in British Pound were supported by the latest announcement from the U.K. government. Boris Johnson's government was prepared to allow fully vaccinated citizens of the U.K. to travel to more than 150 countries without the requirement to quarantine on their return to England later this summer. The new policy is expected to be signed off by the authorities in the coming days and will pave the way for the reopening of international travel. These positive developments kept the risk sentiment in the market supported and pushed risk-sensitive GBP/USD higher on Tuesday.

GBP/USD Intraday Technical Levels

Support Resistance

1.3883 1.3988

1.3819 1.4029

1.3779 1.4092

Pivot Point: 1.3924

GBP/USD - Technical Outlook

The GBP/USD is trading at the 1.3978 level, and it has violated the double top resistance level of 1.3960. Closing of candles above 1.3960 level is supporting a strong buying trend in Sterling today. On the higher side, the resistance stays at 1.4008, and a bullish crossover of this level can expose the Cable towards the 1.4053 resistance level. On the downside, the GBP/USD pair's support level holds around 1.3922 and 1.3875 today. Let's keep an eye on the series of fundamentals coming out from the U.K. ecnomy and the U.S. economy. Today, the focus will stay on the Manufacturing and Sercvies PMI figures as these can drive solid price action during the European and the U.S. session. All the best!

Triple Bottom Bounce-Off – What's Next?

The BTC/USD was closed at $32,553 after placing a high of $33,300 and a low of $29,927. Bitcoin prolonged its decline and dropped below $30,000 on Tuesday. However, it managed to recover a minor portion of its losses and reversed its track. Bitcoin fell to its lowest since the mid-January level on Tuesday but managed to remain green after declining consecutively for seven days amid various positive developments surrounding the cryptocurrency environment.

The CEO of the giant investment manager, VanEck, Jan van Eck, has reiterated that his firm's customers showed a growing demand for a Bitcoin ETF. He recently unveiled plans of his firm entering the cryptocurrency space through an ETF that tracks the performance of Bitcoin. The firm has already filed for a few ETFs, but the decision is still pending from the U.S. Securities and Exchange Commission. VanEck filed another draft prospectus for a BTC futures mutual fund earlier this week and has said that the demand for such a product was very high.

Meanwhile, the second-largest bank in Spain, BBVA, has recently joined the growing list of institutions that now offer one or other bitcoin products. In a recent press release, BBVA has disclosed that it has launched a crypto trading app for private customers in Switzerland. The official statement revealed that after a trial period of 6 months, the crypto trading service went live on June 21.

This launch by the bank has enabled its clients with direct exposure to Bitcoin. Furthermore, the users can also convert their bitcoin into fiat currencies like EUR or USD. On the other hand, Miami is trying to become the next hub of crypto mining as China has shown consistency with its efforts to crush Bitcoin mining and trading. The Mayor of the city, Francis Saurez, has disclosed that he was working to lower the cost of electricity to attract more BTC miners to the region. He added that he was ready to explore the region's cheap nuclear energy to ensure that the opportunity can be availed.

Another important factor involved in the rising prices of Bitcoin on Tuesday was the reversal in the U.S. dollar. The U.S. Dollar Index (DXY) that measures the greenback value against the basket of six major currencies, fell to 91.6 level and pushed BTC/USD higher. The greenback was weak across the board amid the declining U.S. Treasury Yield that also fell below 1.50% and added further gains in BTC/USD, and both the U.S. dollar and BTC share a negative correlation.

BTC/USD Intraday Technical Levels

Support Resistance

34248.6 36489.6

32866.3 37348.3

32007.6 38730.6

Pivot Point: 35107.3

BTC/USD - Technical Outlook

The BTC/USD fell to test the previously mentioned support area of 29,562 level, and now it's trading at 33,913 level. On the daily timeframe, the BTC/USD pair has closed a Doji candle over 29,562 level that demonstrates the weakness in the bearish power, and bulls seem to take over the market. However, we can see that the upward channel is still intact as the BTC/USD pair has bounced off to trade over 32K levels. With this, the BTC/USD price can face resistance around 36,665 level today or in upcoming days. At the same time, the violation of the 36,665 level exposes Bitcoin price towards 40,913 level. Elsewhere, the support level continues to stay at 32,000 and 29,562 levels today. All the best!

U.S. Fed Chair Powell Testimony in Highlights!

Gold was closed at $1783.65 after placing a high of $1787.45 and a low of $1766.35. After falling for six consecutive sessions, gold reversed its course and recovered a minor portion of its massive decline encountered last week. A minor recovery from its biggest weekly percentage drop since March 2020 came in after a pause in the rally of the U.S. dollar that helped yellow metal recover a small portion of its previous losses. Another reason behind the comeback in precious metal could be its price correction as investors booked profits from their selling positions.

On Monday, the U.S. Dollar Index that measures the greenback value against the basket of six major currencies fell and reached 91.83 handles. The dollar index retreated from its two and half month high level that prompted investors to buy gold instead of declining for six consecutive days. The U.S. 10-year Treasury yields also rose on Monday from a four-month lowest level and raised the opportunity cost of non-yielding bullion.

The rally in the U.S. dollar saw a pause after two senior Fed officials suggested that the central bank could wait with a rate hike until 2023, but it will not stay with the tapering of the stimulus measures. According to the St. Louis Fed President James Bullard, the Fed will need to be ready to make changes to tapering. He referred to the shift needed to the monthly purchase of $80 billion in Treasury bonds and $40 billion in mortgage-backed securities by the central bank. He warned that waiting too long to taper could imbalance the situation and prompt the need for taking extra steps.

The Dallas Fed President Robert Kaplan also said that he anticipated the inflation of 2021 to be at3.4%, which is above the current level of 2.4% predicted by the bank for all of the year. Thus, one of the most hotly disputed issues in the U.S. has become the need for stimulus tapering and when such an exercise might start as inflation has risen above the expectations of the Federal Reserve amid the rapid economic recovery from the pandemic. During its June policy meeting, the Federal Reserve has said that it was looking for an appropriate exit for its stimulus program.

In 2020, the U.S. economy contracted by 3.5% due to the lockdowns imposed by the coronavirus pandemic. Nevertheless, since the inception of the new year, the expectations about the recovery have grown with an expansion of 6.4% in the first quarter. For all of 2022, the fed officials have set the expected growth at 6.5%, and some officials have even set the forecast at 7%.

The recent issue faced by the Fed is the rising pace of inflation that has soared the prices of almost everything from the lows of the pandemic. The Fed has acknowledged price pressures raised by the disturbances in the U.S. supply chains. However, Jerome Powell's top official said that the current inflation level was transitory and will eventually fade as the economy moves toward full recovery from the pandemic. According to some analysts, gold will ultimately return to be treated as an inflation hedge and a safe-haven asset; however, it solely trades as a risky asset.

Gold Intraday Technical Level

Support Resistance

1764.80 1772.05

1760.25 1774.75

1757.55 1779.30

Pivot Point: 1767.50

Gold - XAU/USD - Technical Outlook

On Tuesday, the precious metal gold consolidates at 1,783 level, having consolidated in between a narrow trading range of 1,796 – 1,765 level. On the 4-hour timeframe, gold has already completed 61.8% Fibonacci retracement level, and this level is still intact. On the daily timeframe, the Fibonacci tool is still offering an immediate resistance at 1,795 and 1,822 that's extended by 50% and 38.2% Fibonacci retracement levels. The leading indicator, such as MACD, is still holding below 0, supporting a selling bias in gold. Furthermore, the 50 periods EMA is extending resistance at 1,825 level, and below this, the selling pressure remains strong. Later today, the U.S. Fed Chair Powell Testimony will remain in highlights for further price action in the market. All the best!

Fed Chair Powell Testifies Ahead!

The EUR/USD was closed at $1.1912 after placing a high of $1.1921 and a low of $1.1848. EUR/USD recovered some of its previous losses on Monday as buying interest in the currency pair remained well and sound. The EUR/USD currency pair extended its rebound from the multi-week lowest level near the mid-1.1800 level recorded earlier on Monday. Some suggested that it was a price correction, and some said it came in after the broad-based improvement in the market's risk sentiment.

Another reason behind the upward momentum in the single currency Euro was the rising key German 10-year yields that gathered extra strength and reached the -0.17% zone. There was nothing from the macroeconomic docket from both sides; however, the declining prices of the U.S. pushed EUR/USD pair higher on the board. The European single currency remained high against the U.S. dollar after the President of the European Central bank said that the Eurozone and the United States were in a different situation regarding the inflation outlook and played down any impact across the Atlantic.

Federal Reserve has started discussing ending their bond purchases program with the U.S. economy reopening and the fast rebounding prices. Last week, the central bank officials brought forward their expectations for the first-rate hike since the start of the pandemic, which triggered the market speculation about rising inflation and a tightening of monetary policy across the globe. However, Lagarde rejected comparisons between both economies and said that the U.S. recovery was farther ahead of the recovery of the eurozone economy. The United States and Europe were clearly in a different situation as it was tempting to compare but not very reasonable given the many differences between the two economies.

On the other hand, the U.S. dollar remained weak across the board on Monday as the U.S. Dollar Index that measures the greenback value against the basket of six major currencies, fell and reached 91.83 level and pushed EUR/USD currency pair higher. Furthermore, the U.S. dollar came under pressure ahead of the testimony of the U.S. Federal Reserve Chief Jerome Powell on the Fed's emergency lending programs and current policies before the House Select Subcommittee on the coronavirus crisis.

Furthermore, the experts at Goldman Sachs have laid down their expectations for an expected recovery in the eurozone region and highlighted when they believe the European Central bank will lift its unprecedented stimulus measures while suggesting that the austerity measures might no longer be relied upon. According to the chief European economist at Goldman Sachs, the latest position from the Fed should make the ECB Governing Council more confident that it can start to reduce the PEPP purchases later this year. These comments added strength to the single currency Euro and supported the rising prices of the EUR/USD pair.

**

EURUSD Intraday Technical Levels**

Support Resistance

1.1858 1.1881

1.1844 1.1890

1.1835 1.1904

Pivot Point: 1.1867

EUR/USD - Technical Outlook

The EUR/USD consolidates at the 1.1898 level, facing immediate resistance at the 1.1916 level that's extended by 23.6% Fibonacci retracement level. The direct currency pair is gaining support at the previously placed low level of 1.1848 level. On the 4-hour timeframe, the EUR/USD pair has closed a Doji pattern below the 1.1916 resistance level, suggesting the possibility of bearish pressure on the EUR/USD pair. The MACD indicator supports a strong selling bias. However, the EMA is still far away from the current market price level of 1.1888. This demonstrates the oversold situation of the EUR/USD pair. A bullish breakout of 1.1889 level can expose the pair towards 1.1975 and 1.2010 levels. All the best!

Bitcoin Supported Over Triple Bottom $31K

The BTC/USD was closed at $31761.0 after placing a high of $35631.0 and a low of $31475.0. Bitcoin fell below the $32,000 level on Monday and continued its bearish streak for the 6th consecutive session amid China's intensified crypto mining crackdown. As a result, BTC/USD fell below the $32,000 level for the first time since June 8. Bitcoin sank to its 2-week lowest level on Monday after reports from China suggested that the country's government has intensified its crackdown on the mining of cryptocurrencies. According to a report from a newspaper backed by the Communist Party, Global Times, the authorities in the southwestern Chinese province had ordered to halt crypto mining that shut down many bitcoin mines in the Sichuan region.

Following this order, the third-largest bank in China, the Agricultural Bank of China (ABC), banned its customers from interacting with bitcoin and other cryptocurrencies, leading to a massive price drop in BTC/USD. According to a report printed by ABC on Monday, the ban will prohibit its customers from doing any transaction or business related to cryptocurrencies. Furthermore, it means the client's account will be immediately terminated if the bank will discover any activity or interaction with bitcoin or other digital assets.

The crackdown from China appeared to have to lead a significant decline in the hash rate of bitcoin. The prices of bitcoin, along with the hash rate, have fallen sharply in the last month. China has been engaged in doing an estimated 65% on the global bitcoin mining. Reports have suggested that about 90% of the bitcoin mining in China has been stopped due to China's recent ban on crypto mining. The hash rate of bitcoin has been dropped to its lowest in 8-months amid the halted mining operations in China.

Furthermore, the host of CNBC's Mad Money, Jim Cramer, said that he has sold almost all of his bitcoin holdings and highlighted the reason behind this move as the renewed regulatory crackdown in China and the role of bitcoin in ransomware attacks.

A former hedge fund manager, Cramer, argued that the BTC's drop in hash rate should have resulted in gains for the asset's price. He said that instead of going up because of limited mining, bitcoin was going down as people were redeeming. When the coin is outlawed or is made more challenging to be mined, it should go up unless there is a worldwide redemption.

On the flip side, MicroStrategy, the U.S.-based publicly traded business intelligence, continued to hoard the leading currency despite the crypto markets were erasing more than $300 billion in market cap. MicroStrategy reported on Monday that it had made an additional purchase of 13,005 BTC for about $489 Million in cash. This news gave some support to the declining prices of BTC/USD on Monday.

BTC/USD Intraday Technical Levels

Support Resistance

34248.6 36489.6

32866.3 37348.3

32007.6 38730.6

Pivot Point: 35107.3

BTC/USD - Technical Outlook

The technical side of Bitcoin hasn't changed a lot as its price continues to consolidate at 32,600 zones. However, considering the daily timeframe, the BTC/USD is supported by an upward channel extending support at the 31,110 level. The Bitcoin is also gaining support over the triple bottom support level of 31,110 mark, but the violation of this level exposes bitcoin price towards next support level of 29,562 level.

The leading technical tool MACD is supporting a selling bias in Bitcoin. Likewise, the 50 periods EMA is also supporting a selling trend. Thus, bearish bias still continues to dominate the market on Tuesday. All the best!

Gold Completes 61.8% Fibonacci Retracement!

Gold closed at $1769.00 after placing a high of $1797.90 and a low of $1761.20. Gold extended its loss and continued its bearish streak for the 6th consecutive session and dropped to its lowest level since 28th April. The worst week suffered by gold since the coronavirus outbreak of 2020. The prices dropped almost 6% amid the accelerated timetable from the Federal Reserve for hiking interest rates and tapering stimulus measures.

On Wednesday, the Federal Reserve signaled at its monthly policy meeting that it would raise interest rates at least twice by the end of 2023 to 0.6% from the current level of 0.25%. The central bank also said that it was monitoring data to determine when to start tapering its monthly asset purchase of $120 billion. Since the coronavirus outbreak last year, the Federal Reserve has purchased at least $80 billion in Treasury bonds and $40 billion in mortgage bonds to support the economy and the credit markets.

The rate hike expectations and declining commodities prices added strength to the U.S. dollar and pushed it towards high monthly levels. On Friday, the U.S. Dollar Index jumped and reached $92.40, its highest since 9th April after rising for six consecutive sessions. At the same time, the U.S. Treasury Yields on 10-year Note fell to 1.43%.

Furthermore, the gold prices were also declining due to the latest comments from St. Louis President James Bullard. He said on Friday that the central bank might have to consider increasing interest rates by next year instead of 2023 as inflation could run ahead of its predictions. These comments from Bullard added pressure on yellow metal prices and dragged them downward.

Meanwhile, according to Johns Hopkins University, the overall global coronavirus caseload has topped 177.7 Million, and the deaths have risen to more than 3.84 Million. The U.S. continued to be the worst-hit country with the world’s highest number of cases and deaths. India followed the U.S. and topped on the second rank in terms of infections. The other worst-hit countries include Brazil, France, Turkey, Russia, U.K., Italy, and Argentina. Despite the vaccination rollout, the rising number of cases across the globe gave some support to the declining prices of yellow metal and capped further loss on Friday.

Gold Intraday Technical Level

Support Resistance

1764.80 1772.05

1760.25 1774.75

1757.55 1779.30

Pivot Point: 1767.50

Gold - XAU/USD - Technical Outlook

On Monday, the precious metal gold is trading at a 1,777 level, having bounced off over 1,765 support levels. We can see precious metal has completed 61.8% Fibonacci retracement at 1,765 levels, and closing the daily candle suggests that bullish correction is coming ahead. On the daily timeframe, the Fibonacci indicator is offering resistance levels of 1,795 and 1,822 that marks 23.6% and 38.2% Fibonacci retracement levels. The MACD is showing a bearish crossover, indicating the overall trend is still looking bearish. The 50 periods EMA is holding at 1,822 level, indicating a bearish trend. Since the current market price of gold is far away from EMA, the odds of bullish correction remain high. Gold's support level stays at 1,769 and 1,750 levels. All the best!

ECB President Lagarde Speech Ahead!

The EUR/USD closed at $1.1860 after placing a high of $1.1926 and a low of $1.1846. EUR/USD dropped to its lowest level since April 6 after continuously declining for three consecutive days. The strength in the U.S. dollar caused the steep fall in EUR/USD currency pair amid the latest hawkish comments from the Federal Reserve. The U.S. dollar edged higher in early European trade Friday. It continued to benefit from the surprise move by the Federal Reserve as it brought forward the timetable for raising interest rates. The U.S. Dollar Index, which tracks the greenback against the basket of six major currencies, traded at 91.93 after hitting a more than 2-month high level above 92. The rising greenback prices added to pressure on the currency pair EUR/USD and dragged it downwards.

On the data front, there was no macroeconomic data to be released from the U.S. side. Still, from the European side, the German PPI for April rose to 1.5% against the forecasted 0.7% and supported a single currency Euro that capped further loss in the EUR/USD pair. Furthermore, at 13:00 GMT, the Current Account Balance rose to 22.8B against the predicted 20.3B and supported the single currency Euro that limited the decline in EUR/USD pair.

The U.S. dollar was onboard solid after the Federal Reserve showed a willingness to raise interest rates by the end of 2023 at least two times from the current level of 0.25% to 0.6%. Some officials from the Fed also expressed plans to start tapering stimulus measures, and for that purpose, they said that the Fed would keep a close eye on the economic data. The Fed Chairman Jerome Powell also noted that FOMC members were discussing reducing the $120 billion a month in asset purchases amid the progress due to immunization campaigns. However, he also said that the economy's path would continue to depend on the pandemic developments and warned that economic projections should be taken with a big grain of salt.

On the other hand, last week, the European Central bank noted that the GOverning COuncil decided to confirm its very accommodative monetary policy stance despite rising inflation and improving economic conditions. On Friday, ECB member Jens Weidmann said that the central bank's PEPP program should end soon as he was foreseeing the monetary policy to come back to normal in 2022.

The U.S. dollar was gaining strength amid the imbalance between central banks and the faster immunization campaigns and subsequent reopening of the economy. However, the EU has also started reopening and moving towards speeding up its economic growth. On Friday, the European Union officially lifted travel restrictions for the residents of the United States.

EURUSD Intraday Technical Levels

Support Resistance

1.1858 1.1881

1.1844 1.1890

1.1835 1.1904

Pivot Point: 1.1867

**

EUR/USD - Technical Outlook**

The EUR/USD pair fell dramatically from 1.2091 level to trade at 1.1848 level. On the 4 hour timeframe, the EUR/USD pair is stuck in between a narrow trading range of 1.1889 – 1.1848 level. On the 4 hour timeframe, the EUR/USD is staying far away from 50 periods EMA that's extending resistance at 1.2070 level. The MACD indicator supports a strong selling bias. However, the EMA is far away from the current market price level of 1.1875. This demonstrates the oversold situation of the EUR/USD pair. A bullish breakout of 1.1889 level can expose the pair towards 1.1975 and 1.2010 levels. All the best!

Double Bottom Breakout, Upward Channel Support

The BTC/USD was closed at $35631.0 after placing a high of $35966.0 and a low of $33725.0. Bitcoin continued its decline for the 6th consecutive session and reached below the $34000 level on Sunday amid various negative developments around the market. A professor of economics from Cornell University and former head of the IMF’s China division, Eswar Prasad, entails three significant flaws in bitcoin. According to Prasad, these flaws drive people in search of better alternatives. The first flaw he mentioned was the high energy consumption in bitcoin mining which is harmful to the environment. He said that Ethereum was working on a project that will enable it to use less energy.

The second flaw noted by Prasad was that bitcoin was not so anonymous, and other cryptocurrencies like Monero and zcash offered more anonymity than bitcoin. Finally, the third flaw he explained was that bitcoin could not work well as a currency as its transactions were slow and cumbersome for payment use. Finally, he added that bitcoin had become a speculative asset due to its highly volatile nature. These comments from Prasad added pressure on BTC/USD.

In addition, the NCB announced that it had arrested a suspect who allegedly exchanged bitcoin for LSD and was later identified as Crypto King. Furthermore, a 63-year old retired British teacher, Teresa Jackson, has said that she has lost her life savings worth 120 K pounds to the bitcoin scam in a fake Bitcoin investment scheme. She said that the lost funds were the collective amount of her life savings and pension funds. She explained that the scam appeared in an ad on Instagram and said that a stranger contacted her as a financial investor soon after she found the ad on Instagram.

The crypto scammer convinced her to stake 120,000 pounds, and she transferred the cash directly to him after feeling confident by the knowledge and trustworthy nature of the scammer. After transferring the amount, she tried to contact the person but got no answer and lost all of her life savings. This scam also added to the negative side of bitcoin that dragged BTC/USD further on the downside. On the flip side, Goldman Sachs has debuted a Bitcoin futures trading product in collaboration with crypto investment giant Galaxy Digital to offer to its clients.

One of the wealthiest Russians, Oleg Deripaska, blamed the Bank of Russia for its strict regulations imposed on digital assets. He said that the central bank prohibits the citizens from investing in cryptocurrencies like Bitcoin and asked the country to add the primary cryptocurrency as a payment method. He also gave an example with the Latin country of El Salvador that has already laid the foundations for making bitcoin legal tender.

BTC/USD Intraday Technical Levels

Support Resistance

34248.6 36489.6

32866.3 37348.3

32007.6 38730.6

Pivot Point: 35107.3

BTC/USD - Technical Outlook

On Monday, the BTC/USD pair plunged dramatically from 35,246 level to trade at 33,122 level. On the 4-hour timeframe, bitcoin has disrupted the support level of 35,246, which is now working as a resistance level. Furthermore, Bitcoin is supported by an upward channel on the 4-hour timeframe. The pair is gaining support at the triple bottom support level of 31,170 level, whereas the violation of 31,170 level can expose the pair towards the next support level of 29,562 level. The leading technical tool MACD is supporting a selling bias in Bitcoin. Likewise, the 50 periods EMA is also supporting a selling trend. Bearish bias continues to dominate the market. All the best!