Choppy Session in Play!

Gold prices closed at $1775.25 after placing a high of $1785.70 and a low of $1773.95. Gold dropped for the 4th consecutive session on Tuesday ahead of the Federal Reserve's interest rate decision. Market participants were also awaiting the post-meeting news conference of Fed chief Jerome Powel that is scheduled for Wednesday.

The U.S. Dollar Index (DXY) that measures the greenback's value against the basket of six major currencies, fell on Tuesday to 90.81. The U.S. Treasury yields on a 10-year note rose on Tuesday to above 1.62% level that decreased the demand for non-yielding bullion.

The April monetary policy meeting of the Federal Reserve has started on Tuesday and will conclude on Wednesday. The FOMC members discussed and evaluated their current monetary policy, and their decision will be published on Wednesday in a statement released by the FED. Chairman Jerome Powell's press conference will follow it.

The Fed members are expected to vote in favor of continuing their current interest rate policy and leave the Fed funds rate unchanged that is currently set between 0% and 0.25%. The Fed is also expected to continue to add monetary liquidity through QE, the asset purchase program of the Fed, which has been purchasing $120 billion worth of treasuries and mortgage-backed securities monthly throughout the pandemic.

The comments from Jerome Powell regarding raising interest rates, ending their asset purchases monthly, and focus on rising U.S. Treasury yields on 10-year notes. If the chairman's comments failed to increase yields on U.S. 10-year Treasury note, then gold prices could break above the key resistance level at $1800. Furthermore, any acknowledgment of inflation and the anticipation that more could help gold break above $1800. No major policy change is anticipated from the Fed meeting; however, investors will pay close attention to Chairman Jerome Powell's economic outlook.

Later this week, U.S. President Joe Biden is also expected to address Congress; this will be his first address to Congress since he was elected approximately 100 days ago. Investors will be looking forward to his comments to find a clue about the next move in gold prices this week.

On the data front, at 18:00 GMT, the Housing Price Index from the U.S. declined to 0.9% against the expected 1.0% and weighed on the U.S. dollar that capped further losses in gold prices on Tuesday. The S&P/CS Composite-20 HPI for the year remained flat at 11.8%. At 18:59 GMT, the Richmond Manufacturing Index dropped to 17 against the forecasted 22 and weighed on the U.S. dollar. At 19:00 GMT, the CB Consumer Confidence surged in April to 121.7 against the expected 113.1 and supported the U.S. dollar that ultimately added losses in yellow metal prices on Tuesday.

Gold Intraday Technical Level

Support Resistance

1770.90 1782.65

1766.55 1790.05

1759.15 1794.40

Pivot Point: 1778.30

Gold - XAU/USD - Technical Outlook

On Thursday, the precious metal gold is trading with a strong bearish bias at 1,771 level, disrupting the support level at 1,778. On the 4-hour timeframe, gold has violated the triangle pattern that was extending support at 1,778 level. This support level is violated and working as resistance now. On the lower side, gold has the potential to go after the next support area of 1,763. Gold is exhibiting bearish crossover on the 4-hour timeframe, not only on the 20 & 50 periods EMA but also on the RSI and MACD, suggesting a strong selling trend. The closing of candles below 1,778 is demonstrating the dominance of sellers in gold. Next, support holds around 1,763 and 1,759.

All the best!

Upward Channel Intact!

The EUR/USD pair closed at 1.2090 after placing a high of 1.2093 and a low of 1.2056. The currency pair moved higher on Tuesday but remained consolidated ahead of the Fed decision. The U.S. dollar was mostly flat on Tuesday due to mixed U.S. macroeconomic data releases and kept the pair EUR/USD under consolidation. On Tuesday, the U.S. Dollar Index (DXY) posted slight losses for the day and reached 90.81. The U.S. Treasury yields on a 10-year note remained on the positive note and reached above 1.62%. EUR/USD pair continued moving in the upward direction and remained green throughout Tuesday amid the weakness in the U.S. dollar driven by the cautious mood of investors ahead of Fed monetary policy decision.

The FOMC April meeting has started on Tuesday, and the committee is expected to release a statement after this meeting ends on Wednesday. In its report, the latest decision about the policy taken by committee members will be disclosed, which will likely affect the prices of the U.S. dollar and drive EUR/USD pair accordingly. After the Federal Reserve monetary policy decision, the Fed, Jerome Powell, is also expected to review the U.S. economic outlook. Investors will closely watch these comments. Investors are cautious about placing any strong bid before this event, and that is why EUR/USD put minimal gains on Tuesday even it moved in a very narrow range throughout the day.

On the data front, there was no macroeconomic data released from the European side. However, at 18:00 GMT, the Housing Price Index from the U.S. dropped to 0.9% against the forecasted 1.0%. It weighed on the U.S. dollar that added further in gains of EUR/USD on Tuesday. The S&P/CS Composite-20 HPI for the year remained flat at 11.8%. At 18:59 GMT, the Richmond Manufacturing Index declined to 17 against the anticipated 22 and weighed on the U.S. dollar that added gains in EUR/USD pair. At 19:00 GMT, the C.B. Consumer Confidence rose in April to 121.7 against the forecasted 113.1 and supported the U.S. dollar that ultimately capped further gains in EUR/USD prices on Tuesday.

Another reason behind the positive movement in EUR/USD pair on Tuesday could be the news that Americans might be able to travel to the E.U. this summer if they are fully vaccinated against the coronavirus. The European Commission President Ursula von der Leyen said that return of American travelers should be possible as both sides have approved the same jabs. European nations have restricted non-essential travel from the U.S. for more than a year, and this latest news added strength in the market sentiment and supported gains in EUR/USD pair.

EURUSD Intraday Technical Levels

Support Resistance

1.2067 1.2104

1.2043 1.2117

1.2030 1.2140

Pivot point: 1.2080

EUR/USD - Technical Outlook

The EUR/USD is trading at 1.2074 level on Wednesday, consolidating in a narrow trading range of 1.2065 – 1.211. The previously violated double top resistance level is now working as a support at 1.2065. On the 4-hour timeframe, the EUR/USD pair maintains an upward channel extending support at 1.2065 level along with the 20 & 50 periods EMA. Above the 1.2065 level, the EUR/USD pair’s next resistance holds at 1.2141 and 1.2240, whereas the bearish breakout of the 1.2065 level exposes the pair until the support area of 1.1998. The RSI and MACD are in a neutral zone, suggesting indecision among investors. Traders will be keeping their eyes on the 1.2065 level today. All the best!

Tweezers Top Pattern!

The BTC/USD was closed at $55044 after placing a high of $55215 and a low of $53660. Bitcoin prices extended their gains on Tuesday and reached above $55,000 level amid increased adoption of Bitcoin among banks in the United States. The U.S. Bancorp, the fifth-largest bank in the country, has announced introducing a cryptocurrency custody product and an unnamed sub-custodian. The U.S. bank would also serve as the administrator for a potential bitcoin ETF to be offered by NYDIG, pending the regulatory approval of that offering.

The bank said that it was motivated by the growing calls from its customers for exposure to the crypto industry. The bank also said that institutional investors such as pension funds and insurance companies were looking forward to investing in cryptocurrencies. This helped bitcoin to extend its gains on Tuesday. Furthermore, a Las-Vegas-based payment app banq started the facility to invest in Bitcoin and Ethereum in various accounts. Users can generate as many sub-accounts as they want for a company or personal usage and further buy, hold, or sell crypto out of any or all of them.

Meanwhile, Mastercard collaborated with the digital asset exchange Geminin to introduce an innovative crypto rewards credit card. Dubbed Gemini Credit Card has already over 100,000 people on its waitlist, but it would start in summer. In simple words, Mastercard and Gemini introduced a credit card offering up to 3% cashback as rewards in Bitcoin. This news added further gains in BTC/USD on Tuesday.

Late Monday, news started circulating in the market that Elon Musk has sold some of his Bitcoin; however, the billionaire entrepreneur used Twitter to assure the crypto community that he has not sold any of his Bitcoin stashes, despite Tesla realizing profits from its recent Bitcoin buys. Tesla reported record profits due to sales of emissions credits and speculative gains on Bitcoin. This news also supported the rising prices of Bitcoin. On the flip side, the Nigerian Economic and Financial Crimes Commission (EFCC) has issued a warning against investing in Bitcoin due to its unregulated nature and the high potential for fraud. This news kept the gains in Bitcoin limited on Tuesday.

BTC/USD Intraday Technical Levels

Support Resistance

54064.4 55619.4

53084.7 56194.7

52509.4 57174.4

Pivot Point: 54639.7

**

BTC/USD - Technical Outlook**

The BTC/USD is trading at 54,560 level, having completed 50% Fibonacci retracement at 56,000 level. On the 4 hour timeframe, the leading crypto pair has closed a tweezer's top pattern that's suggesting odds of bearish correction in the Bitcoin. The leading indicators have started shifting in the selling zone on the hourly timeframe, such as RSI is crossing below 50 and BTC price is falling below 20 EMA. The BTC/USD pair may find support at 53,935 and 52,580 levels. Below these levels, the BTC next support holds around 51,800. Conversely, the violation of 55,850 resistance exposes Bitcoin towards resistance areas of 57,300 and 58650. All the best!

Choppy Session in Play!

Gold prices were closed at $1779.90 after placing a high of $1783.10 and a low of $1768.40. After declining for two consecutive days, gold prices rebounded and recovered little losses from the previous day on Monday. Soft U.S. dollar ahead of the Federal Reserve policy meeting this week pushed the yellow metal prices higher on Monday. The U.S. Dollar Index (DXY) that measures the greenback's value against the basket of six major currencies remained flat throughout Monday.

Investors were awaiting the outcome of the Federal Reserve's two-day monetary policy meeting that will end on Wednesday. They were also looking forward to President Joe Biden's speech to Congress and the economic data on first-quarter U.S. GDP that is scheduled to release this week. All these events will likely guide the next price move in gold, which kept the gold gains under consolidation on Monday.

At 17:30 GMT, Core Durable Goods Orders for March remained flat at 1.6% on the data front. Durable Goods Orders in March declined to 0.5% against the forecasted 2.5% and weighed on the U.S. dollar that added further gains in yellow metal prices. The emerging risk-off market sentiment also supported gold prices as the global tally for coronavirus infections reached above 147 million on Monday, with the death toll rising to 3.11 million. India, which was facing more new infections of COVID-19 than any other country globally, was sliding into a devastating crisis due to the second wave of coronavirus in the region.

Hospitals were unbearably full; oxygen supply was deficient. People were dying in line to see doctors and evidence that the actual death toll was far higher than officially reported in India. Each day, the government was reporting more than 300,000 new infections, which is a world record. This raised concerns over the economic recovery of the country. Fears of the spread of this virus also surged that increased safe-haven appeal in the market and supported precious metal gains on Monday.

Furthermore, the risk-off market sentiment was supported by the comments from Chinese Foreign Minister Wang Yi, who said that the differences between the U.S. and China were continuing as Washington was yet t find the right way to deal with Beijing while holding on to misunderstandings. He also warned that playing the Taiwan card was playing-with-fire, and the U.S. must not do it. This warning could escalate the ongoing tensions between both countries, and these fears added to the demand for safe-haven appeal that ultimately supported the yellow metal prices on Monday.

On Wednesday, President Joe Biden will speak before Congress, and investors are keenly waiting for it. After 99 days in office, Biden is expected to outline his ambitious plans designed to rebuild crumbling infrastructure, boost the economy, and offer more significant financial support to American families.

Gold Intraday Technical Level

Support Resistance

1773.26 1776.41

1771.88 1778.18

1770.11 1779.56

Pivot Point: 1775.03

Gold - XAU/USD - Technical Outlook 

The technical side of the precious metal gold hasn't changed a lot as it continues trading with a slight bullish recovery at $1,780 level, having supported at 1,773 level. The precious metal violated the upward channel on the hourly timeframe on Friday, leading the gold price towards a 1,773 support level. Currently, gold is trading at 1,781 level and heading north to complete 50% Fibonacci retracement at 1,783 level. Next resistance stays at 61.8% Fibonacci retracement level of 1,786. It's interesting to know that the same level is also extended by 50 periods EMA and previously violated channel upward; thus, this level will be a substantial hurdle for gold bulls. All the best!

Double Bottom Support

The EUR/USD pair was closed at 1.2079 after placing a high of 1.2117 and a low of 1.2061. EUR/USD pair reached its highest level since March 26 on Monday during the first half of the day but reversed from there and ended its day with losses amid prevailing risk-off market sentiment. The U.S. Treasury yields on a 10-year note tried to reach near 1.60% level on Monday and placed a high of 1.59%. Simultaneously, the U.S. Dollar Index that measures the greenback's value against the basket of six major currencies remained flat throughout the day at 90.88 level.

The U.S. dollar was weak on Monday amid the upcoming decision of the Federal Reserve monetary policy meeting on Wednesday. The speech of U.S. President Joe Biden is also expected on Wednesday that will also provide signals for the next move in EUR/USD pair. The single currency Euro was also under pressure on Monday after the release of German IFO Business Climate data that failed to meet the market's expectations in April and dragged the EUR/USD pair even lower.

On the data front, at 13:00 GMT, the German Ifo Business Climate for April declined to 96.8 against the forecasted 97.8 and weighed on the single currency Euro that added in the losses of EUR/USD pair. At17:58 GMT, the Belgian NBB Business Climate for April surged to 4.4against the anticipated 1.7 and supported single currency Euro that capped further losses in EUR/USD pair.

At 17:30 GMT, Core Durable Goods Orders for March remained flat with the expectations of 1.6% from the U.S. side. Durable Goods Orders in March dropped to 0.5% against the estimated 2.5% and weighed on the U.S. dollar that limited the downward momentum in EUR/USD pair.

Being a risk-sensitive currency pair, EUR/USD dropped on Monday after risk-off market sentiment continued rising aid the surging number of coronavirus cases around the world. The global tally for the COVID-19 infections reached 147 million on Monday, with 3.11 million deaths caused by the virus. It raised the global economic recovery concerns and demand for haven, resulting in declining prices of riskier assets like EUR/USD pair for the day.

On the other hand, the European Union launched legal action against the coronavirus vaccine manufacturer AstraZeneca. The commission said that the reason behind suing the company was for not respecting its vaccine supply contract and for not having a reliable plan to ensure timely deliveries. Meanwhile, the European Commission also said that its coronavirus vaccine drive was now on the course to secure 70% inoculation of the E.U.'s adult population by mid-July. On Sunday, the chief of the E.U.'s vaccine task force said that the bloc would produce enough vaccines to achieve herd immunity of the region's adult population by mid-July. These comments from the E.U. commission kept the single currency stronger against the U.S. dollar and capped further EUR/USD pair losses.

EURUSD Intraday Technical Levels

Support Resistance

1.2086 1.2095

1.2083 1.2101

1.2076 1.2105

Pivot Point: 1.2092

EUR/USD - Technical Outlook

The technical side of the EUR/USD continues to trade bullish at 1.2109 level, having disrupted the double top pattern at 1.2077 level. On Friday, the EUR/USD pair managed to violate the narrow trading range of the pair of 1.2077 – 1.1998 level. A bullish breakout of 1.2077 has opened up additional room for buying until the next resistance level of 1.2141 and 1.2240. However, the RSI and MACD are in overbought territories, suggesting odds of bearish correction in the pair. On the lower side, the EUR/USD can find support at the 1.2077 level. The upward channel is supporting bullish bias in the EUR/USD pair. Traders will be keeping their eyes on the 1.2026 level today. All the best!

50% Fibonacci Retracement In Play!

The BTC/USD closed at $54020.5 after placing a high of $54320.9 and a low of $48815.9. Bitcoin prices reversed their course on Monday after dropping for five consecutive days. Last day, Bitcoin fell to its lowest since March 5 at $47098 level. Bitcoin reversed its direction and recovered most of its losses from the previous four sessions, and posted a massive recovery amid increased optimism surrounding the cryptocurrency market on the back of various positive news.

On Monday, a report issued at CoinDesk, JP Morgan Chase & Co. will offer an actively managed bitcoin fund to its clients later this year. This move was a significant change for a bank whose CEO once called bitcoin a dangerous fraud. This fund will be for clients in JP Morgan's private wealth division and could roll out this summer.

If such funds become available, JP Morgan would be joining a growing number of legacy financial firms that want to offer bitcoin exposure to its clients. In March, Goldman Sachs announced a similar move, while Morgan Stanley announced one earlier this month. Bitcoin prices that were already recovering from a sharp sell-off last week added to their gains on the back of this report.

Furthermore, the National Football League (NFL) tight end Sean Culkin stated that he would be converting his entire 2021 salary into bitcoin on Monday. Culkin plays for the Kansas City Chiefs, and this decision by him would make him the first player in NFL history to convert his entire annual salary to bitcoin. This news also supported the positive tone surrounding Bitcoin on Monday and added in its gains.

Meanwhile, the President and CEO of PayPal, Dan Schulman, has said that the demand for cryptocurrency assets has surpassed the company's expectations. In his latest interview with TIME magazine, Schulman forecasted a sharp decline in the use f cash and said that Bitcoin and other cryptocurrencies could take advantage of that.

PayPal allowed cryptocurrency payments in 2020, and the company has seen a significant surge in crypto-related transactions in the last few months. The company does its business in more than 200 countries and deals in more than 100 currencies. Last year, PayPal processed 15.4 billion payments, with $936 billion. Bitcoin gains were further increased after these comments from the CEO of PayPal.

BTC/USD Intraday Technical Levels

Support Resistance

51220 52839

48010.9 55954

47683.0 58307

Pivot Point: 53355.1

BTC/USD - Technical Outlook 

The BTC/USD trades sharply bullish at 53,955 level, covering most of its losses. The cryptocurrency has completed 38.2% Fibonacci retracement at 53,934 level. The BTC/USD pair has violated 51,234 resistance on the four-hourly timeframe, and now it's heading further north to complete 50% Fibonacci retracement at 55,950 level. The leading technical indicator RSI exhibits a bullish crossover as its value is crossing over 50, suggesting a strong bullish reversal in Bitcoin. Whereas the MACD is still holding the sell zone, the immediate histograms are becoming smaller and smaller, suggestings sellers are getting exhausted, and bulls are taking control. On the higher side, bitcoin may find resistance at 55,954 and 58,370 levels today. All the best!

Upward Channel Breakout

The precious metal gold closed at $1,777.00 after placing a high of $1,794.50 and a low of $1,772.00. Gold prices extended their losses on Friday amid a strong U.S. dollar due to a better-than-expected U.S. macro-economic data release. The stronger than expected U.S. home sales prompted a surge in U.S. Treasury yields that reduced the investment appeal in precious metal. In the past week, gold has shown a series of impressive gains as both the U.S. 10-year Treasury yield and the dollar index retreated.

On the data front, at 18:45 GMT, the Flash manufacturing PMI for April remained flat with the expectations of 60.6. The Flash Services PMI rose in April to 63.1 against the forecasted 61.6 and supported the U.S. dollar that weighed on gold prices. At 19:00 GMT, the New Home Sales in March rose to 1021K against the projected 885K and supported the U.S. dollar, and added further pressure over the precious metal. The U.S. Home Sales rose at the fastest pace in March since 2006 and gave strength to the greenback that added further losses in the yellow metal prices. Furthermore, the U.S. dollar was also strong on Friday as health officials of the country announced that after more than a year of trauma and heartbreak, states were returning to normalcy. According to state officials, they were close to the finish line as the country moved forward with the rollout of COVID-vaccinations.

As to the Centers for Disease Control and Prevention, about 138.6 million people in the U.S. have undergone at least one coronavirus vaccine shot, and about 1.3 million more were getting the first dose every day. More than 80% of people above 65 ages have had one dose and will likewise complete vaccination. The fact that the U.S. was achieving its goals of inoculating vaccine shots earlier than its schedule also supported the rising trend in the U.S. dollar and weighed on yellow metal prices.

The U.S. Treasury, on a 10-year note, rose to 1.5820% on Friday that helped the U.S. dollar, and supported bearish pressure over the yellow metal. Despite a sudden decline in U.S. Dollar Index on Friday to its lowest level since March 3 at 90.81, yellow metal posted losses on the ending day of the week.

Gold Intraday Technical Level

Support Resistance

1775.74 1790.44

1770.27 1799.67

1761.04 1805.14

Pivot Point: 1784.97

Gold - XAU/USD - Technical Outlook 

Gold is trading with a slight bullish recovery at $1,780 level, having supported at 1,773 level. The precious metal violated the upward channel on the hourly timeframe on Friday, leading the gold price towards a 1,773 support level. Currently, gold is trading at 1,781 level and heading north to complete 50% Fibonacci retracement at 1,783 level. Next resistance stays at 61.8% Fibonacci retracement level of 1,786. It's interesting to know that the same level is also extended by 50 periods EMA and previously violated upward channel; thus, this level will be a substantial hurdle for gold bulls. All the best and have a fantastic week ahead!

Double Bottom Support

The EUR/USD closed at 1.2100 after placing a high of 1.2100 and a low of 1.2012. After posting losses for three days, the EUR/USD pair rebounded strongly and reached its highest since March 3 at a 1.2100 level. The EUR/USD exchange rate spiked higher on Friday amid the weakness in the US dollar. In early European trading hours, the US dollar remained weak across the board as investors turn their attention onto next week’s Federal Reserve meeting. Furthermore, the single currency Euro was also strong in Friday’s European session due to better than expected macro-economic data from the Europe side.

The US Dollar Index that traces the greenback versus a basket of six other currencies fell on Friday to its lowest since March 3 at 90.81 and weighed heavily on the US dollar, ultimately pushing EUR/USD pair higher. Nevertheless, the US dollar picked up some strength after analysing American macro-economic data during the second half of the day.

At 12:15 GMT, the French Flash Services PMI in April surged to 50.4 against the forecasted 46.6 and supported single currency Euro that added further strength in EUR/USD pair. The French Flash Manufacturing PMI remained flat with the projected 59.2. At 12:30 GMT, German Flash Manufacturing PMI increased to 66.4 against the forecasted 65.8 and supported Euro that added further gains in EUR/USD pair. German Flash Services PMI dropped in April to 50.1 against the predicted 51.1 and weighed on Euro that capped further EUR/USD pair gains. At 13:00 GMT, the Flash manufacturing PMI from the whole bloc surged to 63.3 against the anticipated 62.0 and supported Euro and pushed EUR/USD pair higher. The Flash Services PMI surpassed the expectations of 49.1 and came in as 50.3 giving strength to Euro that added further upward momentum in EUR/USD exchange rate.

From the US side, at 18:45 GMT, the Flash manufacturing PMI for April remained flat with the forecasts of 60.6. The Flash Services PMI surged in April to 63.1 against the projected 61.6, supported the US dollar, and capped further EUR/USD pair gains. At 19:00 GMT, the New Home Sales in March surged to 1021K against the expected 885K and supported the US dollar, and limited the upward trend in EUR/USD pair. The EU member countries started to administer Johnson & Johnson’s coronavirus vaccine after Europe’s drug regulator backed the single-dose shot. The European Medicines Agency announced a possible link to rare blood clotting disorder and stressed that the benefit of shot outweighed the risks. This will assist speed up the vaccination process in the EU and support economic recovery. These optimistic hopes raised optimism and supported the single currency Euro that added further EUR/USD pair gains.

On Friday, the European Central Bank President Christine Lagarde said that the European monetary authority has plans to keep interest rates and coronavirus stimulus constant. She added that the bloc’s economy was still on crutches and in need of support from both central bank and government spending as the Eurozone was undergoing extended lockdowns.

EURUSD Intraday Technical Levels

Support Resistance

1.1982 1.2059

1.1949 1.2103

1.1904 1.2136

Pivot Point: 1.2026

EUR/USD - Technical Outlook 

The EUR/USD continues to trade bullish at 1.2109 level, having disrupted the double top pattern at 1.2077 level. On Friday, the EUR/USD pair managed to violate the narrow trading range of the pair of 1.2077 – 1.1998 level. A bullish breakout of 1.2077 has opened up additional room for buying until the next resistance level of 1.2141 and 1.2240. However, the RSI and MACD are in overbought territories, suggesting odds of bearish correction in the pair. On the lower side, the EUR/USD can find support at the 1.2077 level. The upward channel is supporting bullish bias in the EUR/USD pair. Traders will be keeping their eyes on the 1.2026 level today. All the best!

Deep Dive in Bitcoin

During the Asian session, the BTC/USD made a solid comeback to trade at 5,2346 level. The BTC/USD dropped for the 9th session in the last ten days, and Bitcoin extended its bearish streak for the 5th consecutive session on Sunday. During Friday’s trading session, Bitcoin prices dropped to their lowest since March 6, near $47,000.

The world’s largest cryptocurrency by market cap, Bitcoin, was already under pressure from last week. On Friday, it faced fresh pressure after Ripple’s co-founder Chris Larsen, gave his opinion over Bitcoin. Larsen unequivocally stated that Bitcoin and other crypto assets needed to abandon the proof-of-work consensus mechanism due to its effects on the environment.

The executive claimed that there were tons of mechanisms better and more energy-efficient than PoW like Proof-of-Stake. He added that PoS has been more efficient and consumes only a tiny fraction of energy. Bitcoin prices faced further pressure after these comments from Larsen and extended their losses to reach below the $50,000 level. Furthermore, the recent decline on Friday in the cryptocurrency market could also be attributed to the latest data from Bybt. The date suggested over $4 billion worth of positions liquidated in the cryptocurrency market on April 23 in 24 hours. As per data, billions worth of long-position were liquidated in the past few days and left many short positions open in the market.

The release of U.S. President Biden’s plans to raise taxes on wealthy individuals also added further pressure on Bitcoin prices. The fears of higher capital gains taxes for wealthy Americans caused further losses in Bitcoin prices as it would hike the tax rate to about 43.4%.

On the flip side, the government of the U.S. state of Louisiana released a resolution in which it noted some of Bitcoin’s accomplishments. The Louisiana House of Representatives released a resolution to commend Bitcoin for its success in becoming the first decentralized trillion-dollar asset and encouraging the state and local governments to examine measures that could help them benefit from the extended usage of this new technology.

BTC/USD Intraday Technical Levels

Support Resistance

49446.4 51013.4

48725.7 51859.7

47879.4 52580.4

Pivot Point: 50,292.7

BTC/USD - Technical Outlook 

On Monday, the BTC/USD trades sharply bullish at 52,475 level, covering most of its losses. The oversold cryptocurrency has completed 23.6% Fibonacci retracement at 51,234 level. The BTC/USD pair has violated 51,234 resistance on the four-hourly timeframe, and now it’s heading further north to complete 38.2% Fibonacci retracement at 53,934 level. The leading technical indicator RSI (relative strength index) exhibits a bullish crossover as its value is crossing over 50, suggesting a strong bullish reversal in Bitcoin. Whereas the MACD is still holding the sell zone, however, the immediate histograms are becoming smaller and smaller, suggesting sellers are getting exhausted, and bulls are taking control. On the higher side, bitcoin may find resistance at 53,934 and 55,890 levels today. All the best!

Bullish Channel Underpins Gold

On Thursday, the precious metal gold closed at 1784.25 after placing a high of 1798.00 and a low of 1777.25. Gold posted losses on Thursday after reaching near the $1800 level but faced resistance at $1798. However, in the first half of the day, yellow metal remained near its 8-week highest level amid the weaker U.S. Treasury yields and declining U.S. dollar. But in the second half of the day during American trading hours, the yellow metal started to face bearish pressure amid better than expected U.S. macroeconomic data release and reversed its course.

After primarily upbeat U.S. economic data, gold prices slumped that reduced the safe-haven appeal, and weighed on the precious metal that dragged it from reaching the $1800 level on Thursday. On the data front, at 17:30 GMT, the Unemployment Claims from the last week declined to 547K against the expected 607K and supported the U.S. dollar, and weighed on the yellow metal. At 19:00 GMT, the C.B. Leading Index raised to1.3% against the expected 1.0% and supported the U.S. dollar, and added further losses in gold prices. The Existing Home Sales declined in March to 6.01M against the forecasted6.18M and weighed on the U.S. dollar and capped further decline in precious metal prices.

As per the Director of the National Institutes of Health, Dr. Francis Collins, tens of millions of Americans haven't started their vaccination yet. He added that many of these people were still unsure whether they wanted to participate in the vaccination process. Collins insisted that getting the message out there could be a significant challenge as people were still undecided over getting the vaccine because they did not see the need to do so. The comments from Collins were followed by a report published last week indicating that the country is probable to reach a tipping point in the coming 2-4 weeks when vaccine supply would outstrip demand.

On the other hand, the U.S. Dollar Index that measures the value of the greenback against the basket of six major currencies, rose on Thursday and reached a 91.42 level that pushed the U.S. dollar higher and weighed on yellow metal prices. Simultaneously, the U.S. bond yield on a 10-year note declined on Thursday and continued its fall for the third consecutive session to reach a 1.5327 level. The declining U.S. treasury yields helped yellow metal to keep its losses limited on Thursday.

Meanwhile, on Wednesday, a bipartisan U.S. congressional attempt to counteract China got the market's attention when a Senate committee backed a bill pressing Beijing on human rights and economic competition. This could raise the tensions between the U.S. & China, and these fears gave a little support to the fading risk-off market and capped the losses in gold prices.

According to a poll, this year, the United States' economy will grow at its fastest annual pace in decades and will outperform most of its peers. However, the biggest risk to the economy over the next three months was underlined as another surge of the coronavirus pandemic. This poll helped find the outlook of the U.S. economy and supported the U.S. dollar that ultimately weighed on the yellow metal prices.

Gold Intraday Technical Level

Support Resistance

1781.96 1798.36

1771.63 1804.43

1765.56 1814.76

Pivot Point: 1788.03

Gold - XAU/USD - Technical Outlook

On Friday, gold is trading with a strong bearish bias at $1,787. Previously, the precious metal has violated the sideways trading $1,798 - $1,787 levels, and now it's gaining support at the $1,777 level. On the 4-hour timeframe, the precious metal is forming an upward channel that supports the buying trend in gold. The XAU/USD pair's resistance stands at $1,789 and $1,798 level on the higher side. The series of 20 & 50 periods EMA is supporting a bullish trend in gold. Simultaneously, the RSI and MACD are holding at 55 and 5.42, respectively, demonstrating that the bullish trend dominates in the market. Later today, the investor's focus will remain on the Flash Manufacturing PMI figures, which are expected to surge from 59.1 to 60.9. Positive data typically drives selling trends in gold prices and vice versa. All the best and have a fantastic weekend!