Downward Channel In-Play

The EUR/USD was closed at $1.1864 after placing a high of$1.1875 and a low of $1.1806. After declining continuously for seven days, the EUR/USD pair broke its bullish streak and reversed its course later. The pair dropped to its lowest since April 06 on Friday during the first half of the day; however, after the release of U.S. macroeconomic data, the currency pair started moving in the opposite direction and ended its day with minor gains. On Friday, the U.S. Dollar Index (DXY) remained under pressure and broke its seven-day bullish streak after the fears of Delta variant rises, and the U.S. jobs report data came in not-as-expected. The DXY reached 92.74 in the first half of the day but reversed its movement and turned down to 92.24 level on Friday after the release of the U.S. jobs report. The U.S. Treasury Yields on a 10-year note also fell to 1.42% after continuously declining for five consecutive sessions.

On data fronts, at 11:45GMT, the French Government Budget Balance was released as -118.8B. At 12:00 GMT, the Spanish Unemployment Change came in as -166.9K against the forecasted -110.5K and supported the single currency Euro and further caped loss in EUR/USD. AT 14:00 GMT, the PPI for May surged to 1.3%against the projected 1.2% and supported single currency Euro and limited the downward momentum in EUR/USD. From the U.S. side, at 17:30 GMT, the Average Hourly Earnings for June remained flat with the projections of 0.3%. The Non-Farm Employment Change rose to 850K against the expected 725K and supported the U.S. dollar that added loss in EUR/USD. The Unemployment Rate from June surged to 5.9% against the estimated 5.6% and weighed on the U.S. dollar and limited the downward trend in EUR/USD. The Trade Balance from May remained unchanged at -71.2B. At 19:00 GMT, the Factory Orders in May also remained flat with the predictions of 1.7%.

Meanwhile, countries across Europe were scrambling to accelerate their vaccination coverage to outpace the spread of deadly and highly infectious Delta variants of the coronavirus. Europe had plans to open up its economy for tourists in the summer holidays. Still, the rising number of coronavirus cases across the EU nations prompted governments to speed up the process of coronavirus vaccination. The main concern of the EU was to prevent its hospitals from filling up again with patients fighting for their lives and to avoid it, and the European nations started to race against the Delta variant of the coronavirus.

According to the European Centre for Disease Control, the risk of infection from the delta variant was high to very high for partially or unvaccinated communities. It is also estimated that the variant will account for 90% of cases in the EU’s 27 nations by the end of August. The ECDC warned that it was crucial to progress with the vaccine rollout at a very high pace. These concerns also kept the single currency Euro under pressure, and hence, EUR/USD pair suffered on Friday.

EUR/USD Intraday Technical Levels

Support Resistance

1.1851 1.1867

1.1845 1.1877

1.1835 1.1882

Pivot Point: 1.1861

EUR/USD - Technical Outlook

On Monday, the EUR/USD is trading with a bullish bias at the 1.1849 level. On the hourly timeframe, the 50 periods EMA is supporting the pair at the 1.1849 level. Recently, the EUR/USD pair has formed a bullish engulfing candle that’s supporting buying trend. On the upper side, the EUR/USD’s next resistance stays at the 1.1879 level, and a bullish crossover of this level can expose the pair towards the 1.1910 level. The MACD is holding a buying zone and can drive more upward momentum in the market. Traders will be keeping an eye on the 1.1850 support level today as the bullish trend dominates over this level. All the best!

Symmetrical Triangle Pattern

The BTC/USD was closed at $34,758.0 after placing a high of $34,762.0 and a low of $33,561.6. Bitcoin surged on the weekend but with minor gains on hand and remained under consolidation as investors kept the coin moving in a tight range for the weekend. The U.S. Department of States’ undersecretary of state for political affairs, Victoria Nuland, has revealed through a press conference that the United States has urged El Salvador to be liable for the new law issued by the country. Nuland told the press that the U.S. was taking a tough look at bitcoin, and the Salvadoran president Nayib Bukele should also ensure that bitcoin was well regulated. Victoria Nuland said that she had a meeting with President Nayib Bukele over the crypto-asses bitcoin. She stressed to Bukele that the U.S. took another rugged look at bitcoin after the Colonial Pipeline ransomware case. She advised the president that regulations must be implied and that there should be transparency.

The world leaders have had issues with the new law signed by El Salvador. Even the World Bank rejected a request from El Salvador for assistance. The President of ECB, Christine Lagarde, also discussed the subject with disparagement as she reiterated that the ECB’s policy towards bitcoin has not changed. On the other hand, New York University professor Aswath Damodaran has stated in a recent interview that bitcoin has been neglected as a currency because it cannot be used to buy anything.

Furthermore, the news shocked the crypto market that fraudsters operating on the Darknet were now trading coronavirus vaccines and vaccination passports in exchange for digital assets. Some users on the notorious website Darkweb were reported to sell falsified vaccine certificates for coronavirus and stolen doses of vaccines in exchange for a variety of cryptocurrencies. The report suggested that one can buy ten shots of AstraZeneca product for $250 of equivalent cryptocurrency.

Conversely, the Global Investment Bank JP Morgan has anticipated that the recent price slump in bitcoin is expected to be over when the cryptocurrency’s dominance grows back over 50%. The analyst at JPMorgan explained that the declining trend in bitcoin would probably end when the cryptocurrency’s market share of all cryptocurrencies climbs back above 50%. He said it was near 60% at the beginning of April, and now the low market share was a negative signal that suggested a subdued interest in bitcoin.

As per the report by Tasnim News Agency, the Iranian Parliament has prepared a bill that will ban the use of cryptocurrencies such as bitcoin for payments. The new bill drafted by Iranian lawmakers will prohibit all non-national cryptocurrencies for payments within the country. The primary motive behind the new bill was that the country was mulling over issuing its digital currency.

BTC/USD Intraday Technical Levels

Support Resistance

35124.6 35617.6

34960.3 35946.3

34631.6 36110.6

Pivot Point: 35453.3

**

BTC/USD - Technical Outlook**

On Monday, the BTC/USD pair is trading with a slight bearish at 34,2886, gaining support at 32,445. The technical side of Bitcoin remains primarily unchanged as it continues trading choppy in between a symmetrical triangle pattern. The support level is extended by an upward trendline on the 4- hour timeframe at 32,445 level. The Bitcoin is trying to cross below 50 periods EMA that’s extending immediate support at 34,250. The bearish crossover of the 32,245 support level can expose Bitcoin price towards the next support area, 30,565 and 29.244 support areas. At the same time, the breakout of 36,650 resistance can expose BTC toward 38,555 areas. All the best!

Big Day – Eyes on NFP Figures!

Gold was closed at $1776.05 after placing a high of $1783.30 and a low of $1766.00. Gold extended its gains for a second consecutive session on Thursday as a more than 7% slide in June pushed traders to buy yellow metal amid concerns over the Delta variant of the coronavirus. However, these moves were also capped by the caution over the U.S. payroll data and a strong U.S. dollar.

The U.S. Dollar Index rose on Thursday as it continued its bullish streak for the 7th consecutive session and reached 92.60 level, its highest since April 06. The greenback remained strong across the board despite poor than expected ISM Manufacturing PMI data that helped yellow metal remain green for the day. However, the fears that the delta variant of the coronavirus was spreading fast across the globe raised concerns over economic recovery, and the safe-haven appeal emerged in the market that also supported the gains in yellow metal on Thursday.

On the data front, at 16:30 GMT, the Challenger Job Cuts for the year dropped to -88.0% compared to the previous -993.8%. At 17:30 GMT, the Unemployment Claims from last week declined to 364K against the expected 388K and supported the U.S. dollar, and capped further gains in gold. At 18:45 GMT, the Final Manufacturing PMI declined to 62.1 against the forecasted 62.6, weighed on the U.S. dollar, and pushed yellow metal higher. At 19:00 GMT, the ISM Manufacturing PMI also reduced to 60.6 against the projected 61.0 and weighed on the U.S. dollar and added further gains in gold. Construction Spending fell to -0.3% against the forecasted 0.4% and weighed on the U.S. dollar, and pushed gold prices higher. ISM Manufacturing Prices raised to 92.1 against the predicted 86.0 and supported the U.S. dollar. Wards Total Vehicle Sales also dropped to 15.4M against the projected 16.9M and weighed on the U.S. dollar and added further upside momentum in gold.

In June, gold posted its biggest monthly loss since November 2016, which is driven by the surprise hawkish tone from the U.S. Federal Reserve. Rising interest rates increase the opportunity cost of holding non-yielding bullion that added pressure on the yellow metal.

This week, the focus of investors has remained on Friday’s non-farm payrolls report as it will provide clues on the timeline of the U.S. monetary policy shift. Federal Reserve officials have suggested that the central bank keep an eye on economic data to determine the tapering in asset purchases this year. The Reuters poll has predicted that this month there will be an addition of over 690,000 jobs, and if the expectations came true, then the dollar might see more strength.

Gold Intraday Technical Level

Support Resistance

1766.94 1784.24

1757.82 1792.42

1749.64 1801.54

Pivot Point: 1775.13

Gold - XAU/USD - Technical Outlook

On Friday, gold is trading sideways in between a tight trading range of 1,796 – 1,770 levels. It’s going to be a big day for gold as the U.S. economy is due to release its unemployment rate and non-farm payroll data. These two figures are the most-awaited and high-impact economic events as these typically drive massive price action in the market. The same we can expect today. On the 4 hour timeframe, gold is facing resistance at the 1,778 level that’s being extended by a downward trendline.

In contrast, the support level continues to hold around 1,770 levels. The bearish breakout of 1,770 exposes the metal towards the next support level of 1,753 level. The MACD is about to show a bullish crossover, and if this happens, the gold price will be exposed towards the next resistance are of 1,796. All the best!

ECB President Lagarde Speaks!

The EUR/USD closed at $1.1848 after placing a high of $1.1885 and a low of $1.1837. EUR/USD currency pair extended its losses and continued its bearish streak for the 4th consecutive session amid the strength in the U.S. dollar. The riskier asset EUR/USD dropped to its lowest level since April 06 as market sentiment turned to risk-off behavior. The U.S. dollar was onboard solid during Thursday’s trading session amid the rising fears of Delta coronavirus and ahead of the release of U.S. NFP data. The U.S. dollar index reached its highest level in 12 weeks at 92.60 and weighed heavily on EUR/USD.

On the data front, at 11:00 GMT, the German Retail Sales in May declined to 4.2% against the expectations of 4.5% and weighed on the single currency Euro. At 12:15 GMT, the Spanish Manufacturing PMI rose to 60.4 against the expected 59.6 and supported Euro. At 12:45 GMT, the Italian Manufacturing PMI remained flat with the expectations of 62.2. At 12:50 GMT, the French Final Manufacturing PMI rose to 59.0 against the projected 58.6 and supported Euro. At 12:55 GMT, the German Final Manufacturing PMI remained unchanged with a projection of 64.9. At 13:00 GMT, the Final Manufacturing PMI from the whole bloc also remained flat with the forecasts of 63.4. The Italian Monthly Unemployment Rate dropped to 10.5% against the forecasted 10.7% and supported the single currency Euro. At 14:00 GMT, the Unemployment Rate from the whole bloc also declined to 7.9% against the projected 8.0% and supported Euro.

From the U.S. side, at 16:30 GMT, the Challenger Job Cuts for the year declined to -88.0% compared to the previous -993.8%. At 17:30 GMT, the Unemployment Claims from last week reduced to 364K against the estimated 388K and supported the U.S. dollar that added further loss in EUR/USD. At 18:45 GMT, the Final Manufacturing PMI dropped to 62.1 against the predicted 62.6 and weighed on the U.S. dollar that capped further loss in EUR/USD. At 19:00 GMT, the ISM Manufacturing PMI also declined to 60.6 against the predicted 61.0 and weighed on the U.S. dollar that capped further loss in EUR/USD. Construction Spending dropped to -0.3% against the anticipated 0.4% and weighed on the U.S. dollar that limited the declining prices of EUR/USD. The ISM Manufacturing Prices surged to 92.1 against the estimated 86.0 and supported the U.S. dollar that added further loss in EUR/USD.

Meanwhile, European Central Bank President Christine Lagarde said that the euro-zone economy might avoid the most pessimistic scenario predicted at the start of the COVID-19 pandemic. However, it still faces risks from variants mutations. ECB has started debating whether to cut back on its massive bond-buying program as the economy was recovering from its coronavirus-induced slump. Lagarde said that the improved economic outlook on rapid progress in vaccination campaigns had reduced the probability of severe scenarios. However, the emerging recovery still faces uncertainty due to the spread of virus mutations.

EUR/USD Intraday Technical Levels

Support Resistance

1.1829 1.1877

1.1809 1.1905

1.1781 1.1925

Pivot Point: 1.1857

EUR/USD - Technical Outlook

The EUR/USD is trading with a bearish bias at the 1.1838 level as the major currency pair has violated the support level of 1.1850. On the downside, the breakout of 1.1845 exposes the direct currency pair towards the next support area of 1.1803 level. It’s going to be a big day for direct currency pairs like EUR/USD as the U.S. economy is due to release its unemployment rate and non-farm payroll data. These two figures are the most-awaited and high-impact economic events as these typically drive massive price action in the market. Let’s keep an eye on an immediate support level of 1.1830 level as above this, the bullish bias remains dominant, and below this, the bearish bias remains dominant. All the best!

Symmetrical Triangle Pattern

The BTC/USD was closed at $33554.4 after placing a high of $35043.5 and a low of $32821.0. Bitcoin extended its loss and dropped for a second consecutive session on Thursday despite improving market sentiment. After China's crackdown on the whole crypto market, Kazakhstan has become increasingly popular for cryptocurrency mining. The country's president has signed a new law that will introduce an extra tax for crypto miners.

Kassym Jomart Tokayev, the President of the Republic of Kazakhstan, recently signed a new law that imposes an additional tax fee on energy utilized by crypto miners operating in the country. The new fees will take impact from the inception of the new year in January 2022. On the other hand, Mike Novogratz, the billionaire CEO of Galaxy Digital, believed that Ethereum could become the world's largest cryptocurrency. He stated that there was no doubt that bitcoin has come to stay, and so, the community still needs to work hard to educate financial regulators on the working of the flagship crypto.

As bitcoin has been adopted as the official legal currency in El Salvador, many other sovereign states have shown willingness to go on with the same move. However, Novogratz believed that the biggest threat to bitcoin's mainstream adoption journey was the lack of agreeable crypto regulations. Novogratz also said that the latest crackdown on bitcoin mining from China was a positive development for the global crypto space. China has been involved in a conflict against bitcoin and other cryptocurrencies since 2017; it has banned crypto mining operations this year and forced Chinese miners to move abroad to do such activities.

Similarly, the report also revealed that the members have said that 67.6% of the total energy used to mine bitcoin came from sustainable sources, which ensured a much lower environmental influence than that of the industry in other countries, especially China. The miners in China mainly concentrated on the Bitcoin hash rate, and a large portion of the energy used to mine bitcoin was generated by coal-fired plants there.

Furthermore, a report on CNBC enlisted the five biggest risks faced by Bitcoin, including regulations, high volatility, environmental concerns, stable coin scrutiny, and meme coins and scam. According to the article, the biggest issue faced by bitcoin was regulations, as China has clamped down on its cryptocurrency industry, and UK regulators also banned leading digital currency exchange Binance from undertaking regulated activities. The United States has also not figured out how to properly regulate the industry.

On the other hand, the extreme swings in bitcoin and other cryptocurrencies have also been holding the leading currency to reach its peak as investors fear the high volatility attached to it. Thirdly, bitcoin mining equipment requires much electricity to run, and energy consumption has risen considerably over the years. High energy consumption has a significant impact on the environment, which is also holding bitcoin back. Similarly, stable coin scrutiny and popularity of meme coins and the rising number of scams in the crypto industry have also been a challenge to bitcoin lately.

BTC/USD Intraday Technical Levels

Support Resistance

32569.1 34791.6

31583.8 36028.8

30346.5 37014.1

Pivot point: 33806.3

BTC/USD - Technical Outlook

The BTC/USD pair is trading with a slight bearish at 32,796, gaining support at 32,445. The support level is extended by an upward trendline on the 4- hour timeframe. The Bitcoin has crossed below 50 periods EMA extending resistance at 33,650 and demonstrating selling bias. The bearish crossover of the 32,445 support level can expose Bitcoin price towards the next support area, 30,565 and 29.244 support areas. At the same time, the breakout of 33,650 resistance can expose BTC toward 35,555 and 36,665 areas. All the best!

Eyes on ISM Manufacturing PMI!

Gold was closed at $1708.75 after placing a high of $1774.65 and a low of $1753.20. Gold experienced its worst monthly loss in almost 5-years over the speculations of stimulus tapering and interest rate hikes by the Federal Reserve. However, neither of the two options was close to happening anytime soon. Gold has been under pressure since January that began last year when in August gold reached its record highs above $2000 and rushed for a few months before entering into a series of bearish candles from November when the first breakthrough in coronavirus vaccine efficiency was announced.

Gold attempted to break the downward pressure and rose in May back to $1905; however, a new round of short-selling prompted and took gold back to $1800 levels. This week the prices went further down amid the talks of tightening by the Federal Reserve, and gold reached its 2-months lowest level around $1750. This month, Fed has indicated that it expects two interest rate hikes before 2023, pushing the rates to 0.6% from the current level near zero at 0.25%. For tapering the $120 billion asset purchases, the Fed has not yet provided any timetable. Still, it has shown that it will be looking at macroeconomic data closely to determine the perfect timing for a complete freeze of asset & bond purchases. Meanwhile, bankers and FOMC members, and other officials also started talking about interest rate hikes and tapering that dragged gold prices further on the downside.

On the data front, at 17:15 GMT, the ADP Non-Farm Employment Change for June increased to 692K against the predicted 555K and supported the U.S. dollar and further capped gains in gold. At 18:45 GMT, the Chicago PMI for June declined to 66.1 against the anticipated 70.2 and weighed on the U.S. dollar and added further gains in gold. At 19:00 GMT, the Pending Home Sales rose to 8.0% against the estimated -1.1% and supported on the U.S. dollar and limited the rising prices of gold. The U.S. Dollar Index (DXY) that measures the greenback value against the basket of six major currencies, surged for the third consecutive session on Wednesday and reached 92.45 level. The U.S. dollar was strong on the day as the most awaited job report from the Labour Department suggested a rising number of jobs created in June. However, despite the strength in the U.S. dollar, the yellow metal remained green for the day amid the risk-off market sentiment.

The highly contagious Delta variant of the coronavirus has prompted renewed concerns of a new wave of coronavirus. Following these concerns, many countries have recently recommended mask-wearing even for vaccinated people. Log Angeles, America’s most populous county, has asked its people to protect unvaccinated people from the most transmissible delta variant spreading fast in the region. To do so, the officials have recommended wearing masks just two weeks after the state relaxed the COVID-restrictions. These concerns prompted the safe-haven demand in the market that pushed yellow metal prices.

Gold Intraday Technical Level

Support Resistance

1756.41 1777.86

1744.08 1786.98

1734.96 1799.31

Pivot Point: 1765.53

Gold - XAU/USD - Technical Outlook

On Thursday, the precious metal gold continues trading with a slight bullish bais at 1,776 exhibiting a strong price action. The metal has already violated the resistance level of 1,765. Now it’s trading at 1,761 level, having bounced off over the support level of 1,756 level. Continuation of a buying trend can expose gold price towards the next resistance level of 1,782 and 1,796. The MACD is closing histograms below 0 points, supporting the selling trend, while the 50 periods moving average is also holding around 1,776 level. Gold’s next support stays at 1,765 and 1,752 levels. Good luck!

German Final Manufacturing PMI Ahead!

The EUR/USD was closed at $1.1855 after placing a high of $1.1910 and a low of $1.1845. EUR/USD currency pair continued its bearish streak for the 6th consecutive session on Wednesday amid the rebounded strength in the U.S. dollar, and the prompted risk-off market sentiment.

The U.S. dollar was strong across the board on Wednesday as the DXY reached above 92.4 level and helped the greenback gain traction against its rival single currency Euro. The reason behind the strength in the greenback could be better-than-expected jobs report from the U.S. Labour Department on Wednesday that showed a higher than expected job creation in June.

On the data front, at 11:45 GMT, the French Consumer Spending for May surged to 10.4% against the forecasted 7.4% and supported the single currency Euro and further caped loss in EUR/USD pair. The French Prelim CPI for June remained flat with projections of 0.2%. At 12:55 GMT, the German Unemployment Change dropped to -38K against the forecasted -20K and supported the single currency Euro with limited EUR/USD pair losses. At 14:00 GMT, the CPI Flash Estimate for the year also remained flat, with projections of 1.9%. The Core CPI Flash Estimate for the year also remained unchanged from the expected 0.9%. Italian Prelim CPI dropped to 0.1% against the forecasted 0.2% and weighed on the single currency Euro that added further loss in EUR/USD.

From the U.S. side, at 17:15 GMT, the ADP Non-Farm Employment Change for June rose to 692K against the forecasted 555K and supported the U.S. dollar that added extra loss in EUR/USD. At 18:45 GMT, the Chicago PMI for June dropped to 66.1 against the forecasted 70.2 and weighed on the U.S. dollar and limited the downward momentum in EUR/USD. At 19:00 GMT, the Pending Home Sales surged to 8.0% against the expected -1.1% and supported the U.S. dollar that dragged EUR/USD pair further on the downside.

The U.S. dollar gained traction even after declining U.S. treasury yields and a rebound in Wall Street stock indices. The yield on the benchmark 10-year note dropped to its lowest since June 21 at 1.45% whereas, the Dow Jones rose by 0.45%. However, the U.S. Dollar Index rose and reached 92.45 level and continued its bullish streak for 4th consecutive session. The strength in the greenback added pressure on the currency pair EUR/USD and increased its losses for the day.

Furthermore, the rising number of cases around the globe due to the highly transmissible Delta variant of the coronavirus raised fears in the market as countries have re-imposed restrictions to stop the spread. The economic recovery concerns prompted the safe-haven appeal that added further strength to the already rising prices of the safe-haven greenback. Hence, the riskier currency pair EUR/USD faced pressure.

EUR/USD Intraday Technical Levels

Support Resistance

1.1830 1.1895

1.1805 1.1935

1.1765 1.1961

Pivot Point 1.1870

EUR/USD - Technical Outlook

The EUR/USD is trading with a bearish bias at the 1.1845 level as the major currency pair has violated the support level of 1.1875. The direct currency pair may face resistance at the 1.1916 level that's being extended 50 periods EMA. The EUR/USD is closing a bearish engulfing candle on the 4-hour timeframe that typically demonstrates strong bearish sentiment among investors. The 50 periods EMA will be there to extend resistance at the 1.1918 mark. Conversely, the 1.1848 support level breakout can expose the EUR/USD pair towards 1.1811 and 1.1774 levels today. All the best!

Three Black Cross Weights on Bitcoin Price

The BTC/USD was closed at $35043.5 after placing a high of $35981.0 and a low of $34754.0. Bitcoin came under pressure on Wednesday and lost almost half of its previous daily loss amid the strength in the greenback along with the adverse developments around the corner. Aswath Damodaran, a Professor of Finance at New York University Stern School of Business, has criticized bitcoin and stated that the flagship cryptocurrency had failed miserably to function as a currency. Professor, popularly known as the "Dean of Valuation," asked people why they do not use bitcoin as a mean of payment or use it in transactions. He added that business enthusiasts place this notion that bitcoin was a great currency because they have gained a bunch of money from it; however, it was not a measure of good currency. Damodaran said that a good currency was the one that used to buy coffee, house, and car, and on this count, bitcoin has failed miserably.

Whereas, on Wednesday, a report published by Forbes noted that the New York Digital Investment Group (NYDIG) has partnered with an enterprise payment staple based in Atlanta named NCR to make it easier for banks in the United States to offer Bitcoin trading services. The financial institutions in the United and across the globe have begun to deal in cryptocurrencies despite the longstanding anti-crypto sentiments.

After this deal, the 650 financial institutions will offer buying, selling, and trading bitcoin to more than 24 million account holders. The collaboration details suggested that the trading of bitcoin offered by the NCR's banking and credit union clients will be provided with custody from NYDIG. In simple words, the community banks and credit banks from all parts of the USA will provide crypto trading via mobile apps for their clients.

Meanwhile, the recent filing from SEC suggested that Morgan Stanley has purchased about 28,289 shares of Grayscale Bitcoin Trust for its Europe Opportunity Fund. The mutual fund holds various Europe-based companies and invests at least 80% of its assets in equity securities by European companies. The fund has about $291.61 million assets under management. Morgan Stanley has increased its interest in crypto and has become more active lately due to increased demand from clients.

Recently, the investment bank approved for several funds to begin seeking indirect exposure to bitcoin. One of these funds was the Europe Opportunity Fund, among four other funds named Institutional Fund, Institutional Fund Trust, Insight Fund, and Variable Insurance Fund. According to the filing, each fund might invest up to 25% of its total assets in bitcoin.

Despite various positive developments surrounding the bitcoin space, the strength of the U.S. dollar for the day added a loss in BTC/USD. The U.S. Dollar Index (DXY) that measures the value of the U.S. dollar against the basket of six major currencies, rose for the 4th consecutive session on Wednesday and reached 92.45. The dollar's rising value was driven by better-than-expected U.S. jobs reports and the risk-off market sentiment caused by the increasing fears of the Delta variant of the coronavirus. The strength in the greenback dragged the BTC/USD downwards on Wednesday because they both share a negative correlation.

BTC/USD Intraday Technical Levels

Support Resistance

34538.0 35765.0

34032.5 36486.5

33311.0 36992.0

Pivot Point: 35259.5

BTC/USD - Technical Outlook

The BTC/USD pair is trading with a bearish bias at 33,358 level, dropping after testing the strong resistance area of 36,665. The technical side of BTC/USD hasn't changed a lot as it's dropping after completing 23.6% Fibonacci retracement on the daily timeframe. Closing of bearish engulfing and three black crows pattern below 36,665 area is weighting on Bitcoin prices. The 50 periods EMA extends resistance at 33,550 level while the MACD is now holding above 0 levels, demonstrating slight bullish bias among investors. On the higher side, the breakout of 36,665 level can expose Bitcoin price towards 37,650 and 40,930 (38.2% Fibonacci Retracement) level. All the best!

ADP Non-Farm Employment Change In Focus!

Gold prices were closed at $1761.65 after placing a high of $1778.95 and a low of $1750.20. Gold extended its loss on Tuesday and dropped to its lowest level since April 15 amid the strength in the U.S. dollar. The greenback was strong across the board ahead of the release of this week’s U.S. jobs report, which is expected to come in positive and could support the recent hawkish stance by the Federal Reserve. The anticipations of better-than-expected jobs data added to the strength of the U.S. dollar.

In its June policy meeting, the Federal Reserve signalled that it would likely opt for two hikes in interest rates before the end of 2023. The rates are expected to be increased to 0.6% from the current level of 0.25%. This will be the first interest rate hike since the outbreak of the coronavirus pandemic in March 2020. Another significant change that Fed mentioned in its June policy meeting was the potential pull back on the $120 billion of monthly asset purchases by the central bank to support the economy. Although Fed officials had mixed signals about the tapering of asset purchases, the fact alone that it was being discussed in the policy meeting was enough to support the greenback prices, which ultimately weighed on the yellow metal.

On the data front, at 18:00 GMT, the Housing Price Index for April rose to 1.8% against the projected 1.5% and supported the U.S. dollar that added further loss in gold prices. The S&P/CS Composite-20 HPI for the year remained flat with expectations of 14.9%.

Meanwhile, the investors were awaiting the U.S. Labour Department’s Non-Farm Payrolls data scheduled for Friday. The data is expected to show a hike of 690,000 jobs this month compared to the previous 559,000. The data will follow the comments from Richmond Fed President Thomas Barkin, who believes that the central bank had made substantial further progress in its inflation goal to start tapering asset purchases.

According to officials, the United States has lost more than 21 million jobs at the peak of business lockdowns induced to curb the effects of the coronavirus between March and April 2020. Although a significant part of job loss has been recovered, about 8 million are left to recover.

Meanwhile, the U.S. dollar was also strong across the board because of the safe-haven buying prompted by the fears of the new outbreak of the highly contagious Delta variant as it could disrupt the ongoing economic recovery. As in result, the global equity edged lower on Tuesday and helped the U.S. dollar gather strength that ultimately weighed on the yellow metal.

Gold Intraday Technical Level

Support Resistance

1748.25 1777.0

1734.85 1792.35

1719.50 1805.75

Pivot Point: 1763.60

Gold - XAU/USD - Technical Outlook

The precious metal gold has finally exhibited a strong price action, disrupting the support level of 1,765. Now it’s trading at 1,761 level, having bounced off over the support level of 1,751 level. Continuation of a selling trend can expose gold price towards the next support level of 1,748. The MACD is closing histograms below 0 points, supporting the selling trend, while the 50 periods moving average is also holding below 1,761 level. Gold\s next support stays at 1,749 and 1,734 levels. On Wednesday, the investor’s focus will remain on the U.S. ADP Non-Farm Employment Change as this has the potential to drive sharp price action in the market. Good luck!

ADP Non-Farm Employment Change

The EUR/USD was closed at $1.1901 after placing a high of $1.1930 and a low of $1.1878. EUR/USD pair continued its bearish stance and dropped for 4th consecutive session on Tuesday amid the strength in the U.S. dollar. The single currency Euro weakened against the U.S. dollar on Tuesday as the range of economic data came in negative on the day.

At the same time, the U.S. dollar was supported by the risk-off mood sentiment of the market due to its demand as a haven currency. The risk-off market sentiment emerged after the latest Delta variant of the coronavirus pushed another wave of coronavirus, specifically in the Asia-Pacific region of the world. Countries across the region started imposing fresh lockdown restrictions as coronavirus cases were on the surge continuously. The fears that economic recovery could disrupt because of the new lockdowns raised the demand for safe-haven that added strength to the U.S. dollar and added extra weight on riskier assets like EUR/USD pair.

On the data front, at 11:00 GMT, the German Prelim CPI remained flat with the expectations of 0.4%. At 12:00 GMT, the Spanish Flash CPI for the year dropped to 2.6% against the expectations of 2.7% and weighed on single currency Euro that added loss in EUR/USD pair. From the U.S. front, at 18:00 GMT, the Housing Price Index for April surged to 1.8% against the predicted 1.5% and supported the U.S. dollar that added further loss in EUR/USD. The S&P/CS Composite-20 HPI for the year remained flat with projections of 14.9%. Meanwhile, the single currency Euro was under pressure despite the reopening of the economy that has boosted the Eurozone economy in the second quarter of this year. The rising consumption and investments after reopening translate to a better picture of the economy; however, the disruption in the supply side seems to be holding back the strong recovery. As a result, Euro remains on the back foot against the U.S. dollar and keeps EUR/USD pair lower.

Conversely, the U.S. dollar strengthened due to the more hawkish tone by the Federal Reserve in its latest policy meeting this month. Two weeks ago, the central bank of the United States signalled to increase interest rates for the first time after the pandemic by the end of 2023 to 0.65 from the current 0.25%. Additionally, the Fed said that it would keep a close eye on economic data to decide the time of starting decreasing its monthly asset purchases of $120 billion. These comments from Fed added strength to the U.S. dollar. It was further accelerated on Tuesday as investors were now awaiting the release of the U.S. Non-Farm Employment figures from the Labour Department that could lay down support for the hawkish tone portrayed by the Fed. The U.S. Dollar Index reached above 92 levels on Tuesday and dragged EUR/USD pair downwards.

EUR/USD Intraday Technical Levels

Support Resistance

1.1876 1.1928

1.1851 1.1955

1.1824 1.1980

Pivot Point: 1.1903

EUR/USD - Technical Outlook

The EUR/USD is trading choppy but with a slight bearish bias at the 1.1894 level. The direct currency pair may face resistance at the 1.1916 level that's being extended by a 23.6% Fibonacci retracement level. On the higher side, a breakout of 1.1916 level extends pair towards next resistance at 1.1960 level (the 38.2% Fibonacci level). However, the 50 periods EMA will be there to extend resistance at the 1.1958 mark. Conversely, the 1.1879 support level breakout can expose the EUR/USD pair towards 1.1848 and 1.1824 levels today. Let's keep an eye on ADP Non-Farm Employment Change as this may drive further trends in the EUR/USD pair today. All the best!