20 & 50 EMA Crossover!

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

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

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

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

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

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

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

Gold Intraday Technical Level

Support Resistance

1766.09 1794.69

1753.92 1811.12

1737.49 1823.29

Pivot Point: 1782.52    

Gold - XAU/USD - Technical Outlook 

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

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

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

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

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

EURUSD Intraday Technical Levels

Support Resistance

1.1989 1.2051

1.1963 1.2087

1.1928 1.2112

Pivot Point: 1.2025

EUR/USD - Technical Outlook 

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

Choppy Session in Play!

The BTC/USD was closed at $53,264 after placing a high of $57,147 and a low of $53,264. Bitcoin failed to surpass the $60K level and came back to test the resistance level that dragged its prices lower on Tuesday. Bitcoin also faced pressure on Tuesday as its rival Ethereum was reaching its new all-time high level above $3400 and was challenging the dominance of Bitcoin in the cryptocurrency market. The failure to break the resistance level also added further pressure on BTC/USD prices and dragged them lower on Tuesday. Furthermore, the latest comments from U.S. Treasury Secretary Janet Yellen about a potential rise in the U.S. interest rates dumped the global stock markets and Bitcoin. Yellen signalled that Joe Biden’s administration might be aiming to raise interest rates as a way to save the economy after the imbalance caused by measures to fight the coronavirus pandemic.

Another reason behind the falling prices of Bitcoin could be the strength in the U.S. dollar on Tuesday. The U.S. Dollar Index rose and reached a 91.39 level on the day amid the risk-off market sentiment despite the declining U.S. Treasury yields. The strength in greenback weighed on Bitcoin as they are negatively correlated and dragged BTC/USD on the downside.

On the flip side, the 23-year old Nigerian professional footballer Achara said that he collects half of his salary in Bitcoin through a third-party exchange service called Bitwage. He said that the major reason behind this move was the rising inflation in his home country. He pointed to the U.S. money printing practices and stated that this was further devaluing the Nigerian naira, so he preferred sending Bitcoin as a substitute for fiat currency to his family in Nigeria.

The CEO of Binance Changpeng Zhao said that cryptocurrencies like Bitcoin and Ether would co-exist for a while with more restrictive digital currencies like China’s digital yuan. He added that some of the key features of cryptocurrencies like Bitcoin’s freedom of use and limited supply would not be offered by central bank digital currencies. These were the core properties that users care about. These comments from Zhao supported cryptocurrencies but failed to reverse bearish momentum in BTC/USD.

BTC/USD Intraday Technical Levels

Support Resistance

51969.6 55852.6

50675.3 58441.3

48086.6 59735.6

Pivot Point: 54558.3

BTC/USD - Technical Outlook 

On Wednesday, the BTC/USD is trading at 54,287 level, maintaining a sideways trading range of 52,255 – 56,452. Currently, the BTC/USD pair is holding in above a support level of 52,255 level. The 20 and 50 periods EMA (Exponential Moving Averages) support a bearish trend; therefore, the bear power stays strong below 56,452 trading levels. On the 4 hour timeframe, the BTC/USD pair has also completed 38.2% Fibonacci correction at 56,450. Above this, the pair’s next resistance stays at 56,450. The leading indicators demonstrate a strong selling bias as the RSI remains at 39.50 and the MACD at -354 levels. The BTC/USD pair’s support stays at 53,335 levels. Below these levels, the BTC next support holds around 47,736. Conversely, the violation of 56,450 resistance exposes Bitcoin towards resistance areas of 59,966. All the best!

20 & 50 EMA Supports Bullish Trend!

Gold prices closed at $1792.25 after placing a high of $1798.30 and a low of $1766.75. Gold rose on Monday and reached its highest level since 25th February. More than 1% jump in precious metal on Monday was driven by the recent declining U.S. dollar and U.S. Treasury yields.

The U.S. Dollar Index that gauges the dollar value against the basket of six major currencies dropped on Monday to 90.87 level. The Benchmark U.S. Treasury yieldon10-year note fell for the third consecutive session and reached below 1.60% level at 1.578%.

A combination of declining U.S. Treasury yields along with the under-pressure U.S. dollar and the amount of fiscal and monetary stimulus in the market kept the precious metal higher. Gold also found support from the data showing U.S. manufacturing activity grew at a slower pace in April.

At 18:45 GMT, Final Manufacturing PMI from the U.S. remained flat with the expectations of 60.5. At 19:00 GMT, the ISM Manufacturing PMI in April declined to 60.7 against the projected 65.0 and weighed on the U.S. dollar, which added more gold prices. Construction Spending in March dropped to 0.2% against the forecasted 1.7% and weighed on the U.S. dollar and pushed gold higher. ISM Manufacturing Prices rose to 89.6 against the projected 86.0 and supported the U.S. dollar that capped further gains in the yellow metal.

On Monday, the New York Fed Bank President, John Williams, said that the U.S. economy was poised to grow at the fastest rate in decades this year as it rebounds from the crisis caused by the coronavirus pandemic. However, Williams continued that Federal Reserve would not consider pulling back its support from the economy as financial conditions had not yet reached those levels.

Fed officials kept the interest rates near zero and continued bond purchasing worth$120 billion a month and said that these would not change until substantial further progress is not seen. Williams was not concerned about inflation getting too high and said that financial support and vaccinations were helping the economy to recover, but it was unlikely that the boom will lead to higher inflation. These comments from Fed weighed on the U.S. dollar and supported gains in gold.

Furthermore, the Federal Reserve senior loan officer survey results showed that Bank eased household loans and commercial and industrial loans. The survey also suggested that demand for construction and land development loans was strong whereas, demand for commercial and industrial loans for large & medium-sized firms was weak. The survey also weighed on the U.S. dollar and pushed gold prices higher.

Gold Intraday Technical Level

Support Resistance

1773.24 1804.79

1754.22 1817.32

1741.69 1836.34

Pivot Point: 1785.77

Gold - XAU/USD - Technical Outlook 

The precious metal gold is trading with a bullish at 1,785 level, facing immediate resistance at 1,794 level. On the 4-hour timeframe, the precious metal gold has formed series of bearish candles, which in technical terms are known as three black crows and suggest bearish sentiment among gold traders. On the higher side, gold has the potential to go after the next resistance area of 1,797. On the 4-hour timeframe, gold continues to hold over 20 & 50 periods EMA, which extends solid support around 1,763. Besides, the RSI and MACD exhibit bullish bias as the RSI and MACD holds in a buy zone. Gold’s immediate resistance stays at 1,792 and 1,797, while support stays at 1,781 and 1,773. All the best!

Three Black Crows to Drive Sell!

The EUR/USD pair closed at 1.2060 after placing a high of 1.2076 and a low of 1.2014. The European currency regained the momentum and pushed EUR/USD pair back above the $1.2050 level at the beginning of the week. The single currency Euro managed to reverse the course of EUR/USD after two consecutive sessions of losses that had dropped the pair near 1.2000 level. The strength in European currency was driven by the renewed weakness in its rival greenback.

The U.S. Dollar Index was weak across the board at below 91 level on Monday due to declining U.S. treasury yields. The yields on the benchmark 10-year note fell below 1.60% to 1.57% and weighed heavily on the U.S. dollar, ultimately pushing EUR/USD pair higher. Meanwhile, the strength in Euro was also driven by the rising yields on key German 10-year bonds that climbed further to levels last seen in March 2020 around -0.16%.

On the data front, at 11:00 GMT, German Retail Sales in March surged to 7.7% against the projected 2.9% and supported single currency Euro that added further gains in EUR/USD pair. At 12:15 GMT, Spanish Manufacturing PMI dropped to 57.7 against the forecasted 59.1 and weighed on Euro that capped further gains in EUR/USD pair. At 12:45 GMT, the Italian Manufacturing PMI remained unchanged at 60.9. At 12:50GMT, French Final Manufacturing PMI also remained flat with the expectations of 59.2. At 12:55 GMT, German Final Manufacturing PMI remained unchanged as expected 66.4. At 13:00 GMT, the Final Manufacturing PMI from the whole bloc dropped to 62.9 against the predicted 63.3 and weighed on Euro that capped further upside in EUR/USD pair.

From the U.S. side, at 18:45 GMT, Final Manufacturing PMI from the U.S. remained flat with the projections of 60.5. At 19:00 GMT, the ISM Manufacturing PMI in April reduced to 60.7 against the anticipated 65.0 and weighed on the U.S. dollar that pushed EUR/USD pair further higher. Construction Spending in March declined to 0.2% against the predicted 1.7% and weighed on the U.S. dollar and added further upward momentum in EUR/USD pair. ISM Manufacturing Prices surged to 89.6 against the estimated 86.0 and supported the U.S. dollar.

Euro was also strong in the market amid the rising optimism as countries across Europe started to relax coronavirus restrictions. The declining rate of new cases of coronavirus in Europe raised the confidence of governments to start easing restrictive measures to support economic recovery.

Greece has announced that it will reopen outdoor service for restaurants and cafes on 3rd May. France has already started easing on Monday by lifting domestic travel restrictions and resuming high school classes. Denmark reopened bars, restaurants, cafes, libraries, and football stadiums last week. Belgium has plans to permit outside dining in restaurants and bars on 8th May. Many other European countries, including Italy, Netherlands, Poland, Portugal, and Spain, also followed the trend and started easing that helped Euro and pushed EUR/USD pair higher.

On the other hand, the U.S. dollar remained weak on Monday as the Fed official John William said that despite the economic recovery and better U.S. macroeconomic figures, the Bank would not stop its support to the economy. Williams was also not concerned about the inflation reaching higher levels and downplayed the concerns that dragged the U.S. dollar lower and added gains in the EUR//USD pair.

EURUSD Intraday Technical Levels

Support Resistance

1.2024 1.2086

1.1988 1.2112

1.1962 1.2148

Pivot Point: 1.2050

EUR/USD - Technical Outlook

The EUR/USD fell dramatically to trade at 1.2035, maintaining a new trading range of 1.2034 – 1.2050. The breakout of this range will open further room for buying or selling in the EUR/USD pair. In case of a bullish breakout, the EUR/USD’s next resistance prevails at 1.2057 and 1.2075 levels. Alternatively, the bearish breakout can expose the pair towards a 1.2000 support level. On Tuesday, we don’t have any high-impact economic events. However, the trader’s focus will remain on the Trade Balance and Factory Orders m/m economic data from the U.S. economy. Economists expect mixed numbers; since these are considered low-impact economic events, these may not drive any sharp price action in the EUR/USD pair. Yet it’s worth keeping an eye on them during the New York session. All the best!

Bearish Correction in Bitcoin!

The BTC/USD closed at $57,147 after placing a high of $58.686 and a low of $56,605. BTC/USD rose to its higher since 18th April on Monday but could not live there for long and started losing its daily gains. However, the cryptocurrency managed to close its day with little gains after 2-days of losses. Bitcoin rose on Monday after the executive chair and founder of one of the largest crypto mining firms in North America, Darin Feinstein, said that the firm has plans to make the U.S. a global leader in making blockchain technology mainstream.

The firm said that it has acquired an additional 8000 rigs and has begun mining other cryptocurrencies. On Monday, the mining firm said that it planned to have more than 50,000 mining rigs online by the end of 2022. Moreover, the CEO of Binance, Changpeng Zhao, has commented on the volatility of Bitcoin that also added in the value of BTC/USD. Zhao said that the largest crypto by market capitalization was probably less volatile than the stock prices of similarly sized companies by market cap such as Apple and Tesla. According to data from Woolbull, the 60-day volatility in Bitcoin has steadily declined since the start of 2021.

Furthermore, the Hollywood start Mila Kunis has revealed that she invested in Bitcoin eight years ago with her husband, Ashton Kutcher. She said that she was not confident in bitcoin at first, but now she was happy that she made the right choice. These comments from Mila added to the popularity of Bitcoin and supported BTC/USD on Monday.

The Middle East is a crucial sector for finance, fintech, and cryptocurrencies. The largest crypto exchange in the region, named Burency, aims to make cryptocurrencies more appealing and accessible by focusing on many different aspects. The rising interest of investors and competition from more firms entering the space encouraged Burency to expand the business. Burency has thus announced that soon the Middle East will have its crypto-whales. This news also supported Bitcoin prices as it indicated growth in the cryptocurrency industry.

BTC/USD Intraday Technical Levels

Support Resistance

56272.6 58353.6

55398.3 59560.3

54191.6 60434.6

Pivot Point: 57479.3

BTC/USD - Technical Outlook 

The leading cryptocurrency BTC/USD pair has violated the sideways trading range of 52,255 – 56,452 to place a high around 58,668 level but soon fell back to trade the same trading range. Currently, the BTC/USD pair is holding in above a support level of 55,050 level. The 20 and 50 periods EMA (Exponential Moving Averages) support a buying trend; therefore, the bull power stays strong over these trading levels. On the 4 hour timeframe, the BTC/USD pair has also completed 38.2% Fibonacci correction at 56,450. Above this, the pair’s next resistance stays at 56,450. The leading indicators are mixed as the RSI suggests a selling trend, while the MACD is still holding above 0, supporting a bullish bias. So we can conclude there’s a neutral bias in the market, and Bitcoin will be trading as per the support and resistance levels. The BTC/USD pair’s support stays at 53,335 levels. Below these levels, the BTC next support holds around 47,736. Conversely, the violation of 56,450 resistance exposes Bitcoin towards resistance areas of 59,966. All the best!

20 & 50 EMA Supports Bullish Trend!

Gold prices were closed at $1768.60 after placing a high of $1772.85 and a low of $1763.40. Gold extended its losses on Friday and dropped for 2nd consecutive session. However, it managed to post gains for the month. Gold closed April with about 3% gains after declining for the previous three straight months. This was the first monthly gain recorded by precious metal for 2021. At the same time, gold dropped and posted losses for the week that closed on 30th April and extended its losses. The yellow metal was down on Friday amid the strong come back in greenback driven by the 10-year U.S. Treasury yield. On Friday, the U.S. Dollar Index that measures the greenback's value against the basket of six major currencies rose sharply and reached the $91.32 level, its highest in 5-days.

The U.S. Treasury yield and U.S. Dollar Index gained on the back of robust economic data and dented the appeal for safe-haven metal on Friday. At 17:30 GMT, the Core PCE Price Index surged to 0.4% against the expected 0.3%, supported the U.S. dollar, and weighed on gold. The Employment Cost Index for the quarter rose to 0.9% against the estimated 0.7% and supported the U.S. dollar that added pressure on gold prices. Personal Income also increased to 21.1% compared to the forecasted 20.1% and helped the U.S. dollar and added losses in gold prices.

Personal Spending in March declined to 4.2% against the estimated 4.3% and weighed on the U.S. dollar that capped further downside in gold. At 18:45 GMT, Chicago PMI surged to 72.1 in April against the forecasted 65.4 and supported the U.S. dollar that added additional pressure on gold. At 19:00 GMT, the Revised UoM Consumer Sentiment in April improved to 88.3 from the predicted 87.3 and supported the U.S. dollar that kept gold under pressure. The Revised UoM Inflation Expectations in April declined to 3.4% compared to the previous month's 3.7%.

Apart from solid macroeconomic data, the U.S. dollar was also rising because of the renewed hopes that the country might start recovering soon at a faster pace on the back of an announcement from the White House that about one-third of the U.S. population were fully vaccinated.

According to the Johns Hopkins University, the global cases count reached above $150 million, and the death toll reached 3.15 million. Whereas, the rate of cases in the United States continued to fall as the seven-day average of new coronavirus deaths in the U.S. declined. The analysts suggested that this average rate of recent deaths in the U.S. was the lowest since last July. The country's worsening infection and death rate could be attributed to the successful vaccine campaigns and supported the U.S. dollar that added pressure on gold prices.

On the other hand, the losses in gold remained limited due to the rising risk-off market sentiment. The Former U.S. Secretary of State Henry Kissinger warned that the competition between the U.S. and China poses the biggest problem for the world. He added that if both countries failed to improve their conflicts between them, this could push the situation towards Cold War between the world's two largest economies. These comments from a former U.S. official raised calls for risk-off market sentiment and kept the losses in precious metal limited.

Gold Intraday Technical Level

Support Resistance

1755.19 1790.19

1737.52 1807.52

1720.19 1825.19

Pivot Point: 1772.52

Gold - XAU/USD - Technical Outlook

The precious metal gold is trading with a bullish at 1,775 level, facing immediate resistance at 1,777 level. On the 4-hour timeframe, the precious metal gold has formed series of bullish candles, suggesting a bullish sentiment among gold traders. On the higher side, gold has the potential to go after the next resistance area of 1,7903. On the 4-hour timeframe, gold is holding above the 20 & 50 periods EMA, which extends solid support around 1,763. Besides, the RSI and MACD exhibit bullish bias as the RSI and MACD holds in a buy zone. On Monday, Gold’s immediate resistance stays at 1,782 and 1,789, while support stays at 1,777 and 1,763. All the best!

Series of Manufacturing PMI in Focus!

The EUR/USD closed at 1.2020 after placing a high of 1.2127 and a low of 1.2017.EUR/USD pair extended its losses on Friday and reached its lowest level since 22nd April. The major reason behind the sharp dip in EUR/USD prices at the end of the week was the strong come-back in the U.S. dollar. The EUR/USD pair ended this week with losses after rising for three consecutive weeks, and the month the currency pair posted gains for the first time since the year 2021 started. Apart from the strength in the U.S. dollar, the exchange rate EUR/USD was also under pressure because of the rising risk-off market sentiment and month-end flows.

The U.S. Dollar Index rose sharply on Friday and reached a 91.32 level that added strength to the greenback and weighed on EUR/USD pair. The strong come-back in the U.S. dollar was driven by better-than-expected economic data from the United States on Friday. The macroeconomic data from the European side remained dismal and failed to provide any strength to the single currency Euro against the U.S. dollar. At 10:30 GMT, the French Consumer Spending in March declined to -1.1% against the expected 0.5% ad weighed on the single currency Euro and added losses in EUR/USD.

The French Flash GDP for the quarter rose to 0.4% from the expected 0.0% and supported Euro and capped further downfall in EUR/USD. At 11:45 GMT, the French Prelim CPI remained flat with the expectations of 0.2%. At 12:00 GMT, the Spanish Flash GDP for the quarter also came in line with the projections of -0.5%. Italian Monthly Unemployment Rate surged to 10.1% compared to the predicted 10.3% and supported Euro and limited losses in EUR/USD. At 13:00 GMT, the German Prelim GDP for the quarter reduced to -1.7% from the predicted-1.5% and weighed on the Euro and added further downside pressure on EUR/USD pair.

Italian Prelim GDP for the quarter surpassed the expectations of -0.5% and came in as -0.4% and supported Euro that limited losses in EUR/USD pair. At 14:00 GMT, the CPI Flash Estimates for the year from the whole bloc remained unchanged as expected 1.6%. The Core CPI Flash Estimate also came in line with the projections of 0.8%. Italian Prelim CPI also rose to 0.4% from the predicted 0.3%and supported Euro. The Prelim Flash GDP for the quarter from the whole bloc supported Euro when ditched the forecasts of -0.8% and came in as -0.6%. In March, the Unemployment Rate from the European Union was reported as 8.1% that was less than the forecasted 8.3% and supported Euro, and capped further losses in EUR/USD pair.

From the U.S. side, at 17:30 GMT, the Core PCE Price Index increased to 0.4% against the forecasted 0.3% and supported the U.S. dollar that added further losses in EUR/USD pair. The Employment Cost Index for the quarter improved to 0.9% against the expected 0.7% and supported the U.S. dollar, and dragged EUR/USD further on the downside. Personal Income also rose to 21.1% compared to the anticipated 20.1% and supported the U.S. dollar and added losses in EUR/USD.

Personal Spending in March reduced to 4.2% against the predicted 4.3% and weighed on the U.S. dollar that limited the losses in EUR/USD pair. At 18:45 GMT, Chicago PMI rose to 72.1 in April against the projected 65.4 and supported the U.S. dollar. At 19:00 GMT, the Revised UoM Consumer Sentiment in April rose to 88.3 from the forecasted 87.3 and supported the U.S. dollar that dragged EUR/USD pair lower. The Revised UoM Inflation Expectations in April reduced to 3.4% compared to the 3.7% in March.

The U.S. dollar was also strong because of the successful vaccination campaigns that lifted hopes for quick economic recovery. On Friday, the White House announced that nearly one-third population of the United States had been fully vaccinated against the novel coronavirus. This news added further to the prevailing optimism about economic recovery and pushed the greenback higher that weighed on EUR/USD pair. Furthermore, the single currency Euro also remained under pressure on Friday after the official data from the whole bloc revealed that the eurozone economy contracted by 0.6% in the first quarter of this year. Despite providing relief funds, Europe ended up in a so-called double-dip recession in the first 3-months of the year. Europe’s less promising outlook compared to the outlook of the United States added pressure on the currency for 19 nations and dragged EUR/USD pair lower.

EURUSD Intraday Technical Levels

Support Resistance

1.2102 1.2149

1.2078 1.2174

1.2054 1.2197

Pivot Point: 1.2126

EUR/USD - Technical Outlook

The EUR/USD fell dramatically to trade at 1.2035, maintaining a new trading range of 1.2034 – 1.2050. The breakout of this range will open further room for buying or selling in the EUR/USD pair. In case of a bullish breakout, the EUR/USD’s next resistance prevails at 1.2057 and 1.2075 levels. Alternatively, the bearish breakout can expose the pair towards a 1.2000 support level. Traders will focus on the European Manufacturing PMI figures due to European economies like Germany, Italy, and Spain. Economists expect better results than previous months; therefore, the expectations keep the sentiment bullish for the single currency Euro. All the best!

Sideways Range Breakout!

The BTC/USD was closed at $57,637 after placing a high of $57,637 and a low of $53,339. Bitcoin rose on Friday and reversed its course after the U.S. started creating Bitcoin regulations to fight ransomware attacks. The United States's government and the private sector were creating new Bitcoin regulations that have plans to combat cryptocurrency as payment for ransomware attacks. The new bitcoin regulation will also collude with the FBI, Secret Service, and tech and security companies.

This group of organizations will help others form effective regulations against the abuse of bitcoin in cyberwar attacks. Another news that pushed bitcoin prices higher was from the cryptocurrency exchange, ShapeShift. The cryptocurrency exchange announced that it had enabled cross-chain swaps via THORchain and Ethereum based DEX trading. These new functions have made ShapeShift the first cryptocurrency exchange to allow BTC and ETH trades on hardware wallets.

A publicly registered company that produces business analytics and one of the most prominent institutional investors into Bitcoin, MicroStrategy has recently announced that its holdings of bitcoin have reached 91,000 BTC worth $5 billion. According to the financial reports released by the firm for the 1st quarter of 2021, the CEO of the company, Michael J. Saylor, noted that the firm has around 91,579 Bitcoins, and the firm has raised over $1 billion, that was invested by increasing its bitcoin holdings.

The number of companies and businesses receiving bitcoin and other crypto-assets as a payment method has been developing faster. The food sector has also not been left behind as Muscle Maker Grill and numerous chain restaurants operated by one parent company, Landry's, have also announced Bitcoin payments.

The Chairman and CEO of the food chain Landry's Inc., Tilman Fertitta, announced that most of the restaurant chain's brands would accept bitcoin payments soon, which means Americans who hold bitcoin will be able to purchase food from different US-based food chain restaurants.

Furthermore, China might be making plans towards increasing regulations in crypto mining as worries about the results of bitcoin mining on the carbon footprint raised.

It is reported that crypto miners from China may be looking towards strict supervision when mining in the future. This came in after the government was allegedly concerned over the high amounts of energy consumed during bitcoin mining. All the above-market updates favored bitcoin prices and pushed them higher above $57,000 on Friday.

BTC/USD Intraday Technical Levels

Support Resistance

57267 58273

56760 58772

56261 59279

Pivot Point: 57766

BTC/USD - Technical Outlook

Technically, the BTC/USD pair has violated the sideways trading range of 52,255 – 56,452. Violation of this level is exposing Bitcoin prices towards the next resistance area of 59,960 level. The 20 and 50 periods EMA (Exponential Moving Averages) support a buying trend; therefore, the bull power stays strong. On the 4 hour timeframe, the BTC/USD pair has also completed 38.2% Fibonacci correction at 56,450. Above this, the pair’s next resistance stays at 59,996. The leading indicators are holding in the bullish zone, suggesting buying trend in Bitcoin. The BTC/USD pair’s support stay at 56,450 and 53,335 levels. Below these levels, the BTC next support holds around 47,736. Conversely, the violation of 59,966 resistance exposes Bitcoin towards resistance areas of 62,800. All the best!

20 & 50 EMA Extends Resistance!

Gold prices were closed at $1772.85 after placing a high of $1789.85 and a low of 1754.85. Gold prices edged down on Thursday as higher U.S. Treasury yields supported the U.S. dollar and weighed on the metal’s appeal. The benchmark U.S. Treasury yield on a 10-year note rose on Thursday to 1.68%, its two-week highest level, and supported the U.S. Dollar Index to reach 90.79. The rising U.S. treasury yield increased the opportunity cost of holding non-yielding bullion and dragged the precious metal on the downside.

The U.S. President Joe Biden unveiled an additional $1.8 trillion federal investment in education, child care, and paid family leave during his first address to Congress on Wednesday. This massive American Families Plan came in a month after he lay out a roughly $2 trillion infrastructure plan aimed at helping the nation recover from the coronavirus pandemic. The American Families Plan and Biden’s Infrastructure Plan are jointly known as the American Jobs Plan, aiming to improve the nation’s roads, bridges, broadband, railways, and schools. The corporate hiking taxes would pay this. These plans gave strength to the U.S. dollar and added pressure on yellow metal prices. Meanwhile, on Thursday, the World Gold Council (WGC) said that China’s gold demand in 2021 would see annual growth and revert to pre-pandemic levels if there are no dramatic changes to the global economic geopolitical situation.

On the data front, at 17:30 GMT, the Advance GDP for the quarter dropped to 6.4% against the forecasted 6.8% and weighed on the U.S. dollar that capped further losses in Gold. The Advance GDP Price Index for the quarter exceeded the expectations of 2.6% and came in as 4.1% that supported the U.S. dollar, and added further pressure on gold prices. The Unemployment Claims from last week also surged to 553K compared to the forecasted 545K and weighed on the U.S. dollar that kept the losses in Gold checked. At 19:00 GMT, the Pending Home sales in March declined to 1.9% against the projected 4.2% and weighed on the U.S. dollar and limited the losses in Gold.

On the coronavirus front, global cases of COVID-19 reached near 150 million on Thursday as the global tally was recorded as 149.6 million, with the death toll climbed above 3.15 million. The outbreak was hurting the Indian economy more than any other country as the death toll from COOVID-19 in India surpassed 200,000 due to the rising number of infections from the second wave. These negative developments related to coronavirus and its impact on the economy kept the losses in precious metal limited for the day.

Gold Intraday Technical Level

Support Resistance

1755.19 1790.19

1737.52 1807.52

1720.19 1825.19

Pivot Point: 1772.52

Gold - XAU/USD - Technical Outlook

Gold is trading slightly bullish at 1,770 level, facing immediate resistance at 1,777 level. On the 4-hour timeframe, the precious metal gold has formed series of neutral candles, suggesting a mixed bias among gold traders. On the downside, Gold has the potential to go after the next support area of 1,763. On the 4-hour timeframe, Gold is holding below the 20 & 50 periods EMA which extend solid resistance around 1,777 level today. Besides, the RSI and MACD exhibit mixed bias as the RSI value stays in a selling zone, and MACD holds in a buy zone. On Friday, Gold’s immediate resistance stays at 1,782 and 1,789, while support stays at 1,777 and 1,763. All the best!