38.2% Fibonacci Correction!

The BTC/USD was closed at $36720.5 after placing a high of $43516.6 and a low of $30261.7. Bitcoin dropped for the 5th consecutive session on Wednesday and reached below the $31,000 level, its lowest since January 2021. The sudden decline in bitcoin prices came after China imposed fresh curbs on cryptocurrencies. Beijing banned banks and payment firms from providing services related to crypto-currency transactions and warned investors against speculative crypto trading on Tuesday.

The news came in after the bitcoin had already fallen about 10% during last week amid a series of negative tweets from Tesla CEO Elon Musk, who said that his company would no longer accept the cryptocurrency to its impact on the environment. To stop money laundering, China banned cryptocurrency and made its trading illegal in 2019. however, people were still able to trade in cryptocurrencies through exchanges and online that raised concerns in Beijing. On Tuesday, three state-backed organizations of China, including the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China, issued a warning on social media against cryptocurrency trading. The warning entailed that consumers would have no protection if they were to incur any losses from crypto-currency investment transactions.

The organizations also added that the recent wild swings in the crypto-market violates the safety of people's assets and are disrupting the standard economic and financial order. Following this news, bitcoin posted the biggest daily percentage loss in more than a year as investors rushed to exit the trades to avoid maximum losses.

Bitcoin has been on a rash ride this year as a growing number of retail and institutional investors were hopeful that bitcoin and other cryptocurrencies would gain mainstream acceptance; however, as bitcoin a digital asset, a large price swing is common. This high volatility was the major reason behind issuing a strict warning against institutions from offering cryptocurrency registration, trading, clearing, and settlement.

Furthermore, the U.S. dollar was also strong on Wednesday as the U.S. Treasury yields on benchmark 10-year note rose to 1.692%, and the U.S. Dollar Index (DXY) also rose to 90.29 level gave strength to the greenback. The rising strength in the U.S. dollar came in after minutes from Federal Reserve's latest meeting revealed that Fed might start discussing taper talks in upcoming meetings. The greenback's strength added further weight on the digital asset bitcoin and dragged its prices on the downside.

BTC/USD Intraday Technical Levels

Support Resistance

33727.2 41358.8

30699.5 45962.7

26095.6 48990.4

Pivot Point: 38331.1

BTC/USD - Technical Outlook

The BTC/USD fell dramatically to place a low level of 28,212 on Wednesday; however, the pair has already completed 38.2% Fibonacci retracement. We can see a solid bullish correction in Bitcoin on the daily timeframe as it's now trading right below 40K level. Bitcoin's immediate resistance stays at 40,215 level that marks 38.2% Fibo levels, and above this next resistances stays at 43,999 and 47,740 levels. At the same time, support holds around 36,480 and 32,350 levels today. Bitcoin still remains below 20 and 50 periods EMA levels that place a bearish pressure on BTC/USD pair. Bearish bias seems stronger in 43,150 zones. All the best!

20 & 50 EMA Resistance!

The USD/JPY was closed at 108.88 after placing a high of 109.29 and a low of 108.83. USD/JPY pair continued its bearish streak for the 4th consecutive session and dropped on Tuesday amid the persistent weakness in the U.S. dollar and prevailing risk-off market sentiment. The currency pair USD/JPY extended its losses on Tuesday as the U.S. dollar remained depressed amid the expectations that the Fed will keep interest rates low for longer. The focus of the investors shifted to the release of the FOMC meeting minutes that are scheduled on Wednesday.

The U.S. Dollar Index that measures the value of the U.S. dollar against the basket of six major currencies, slipped to its lowest level since late February on Tuesday by 0.3% and reached below 90 levels to $89.69. Meanwhile, the U.S. treasury yields on the benchmark 10-year note also dropped on Tuesday to 1.628% and added further weight on the U.S. dollar that dragged the currency pair USD/JPY on the downside.

On the data front, at 04:50 GMT, Prelim GDP Price Index for the year from Japan reduced to -0.2% against the forecasted -0.1% and weighed on the Japanese Yen that further capped losses in USD/JPY pair. The Prelim GDP for the quarter from Japan also declined to -1.3% against the projected -1.1% and weighed on the Japanese Yen that limited the losses of the USD/JPY pair on Tuesday. At 09:30 GMT, the Tertiary Industry Activity surged to 1.1% against the predicted 0.8% and supported the Japanese Yen that added further losses in the USD/JPY pair. From the U.S. side,, at 01:00 GMT, TIC Long-term Purchases surged to 262.2B against the estimated 67.0B and supported the U.S. dollar that capped further losses in the USD/JPY pair. At 17:30 GMT, Building Permits remained flat as predicted 1.77M. The Housing Starts fell to 1.57M against the projected 1.71M and weighed on the U.S. dollar that added further losses in the USD/JPY pair.

The Dallas Federal Reserve President Robert Kaplan said on Monday that he did not expect interest rates to rise until next year. The Federal Reserve Vice Chair Richard Clarida said that the recent disappointing jobs report was evidence that the economy still needs help. After these comments from Fed officials, the prevailing hopes that Fed will hike interest rates faded away as the officials indicated that Fed will tolerate the temporary acceleration in inflation for some time and will remain lower for longer.

This also weighed on the U.S. dollar and dragged the USD/JPY pair on the lower side. Meanwhile, the rising risk-off market sentiment after eight days of continuous military attacks in Israel and Gaza also kept the USD/JPY pair under pressure. France in collaboration with Egypt and Jordan proposed a resolution with the United Nations Security Council and called for a ceasefire in Israel and Palestine conflict.

USD/JPY Intraday Technical Levels

Support Resistance

109.29 109.47

109.18 109.54

109.11 109.65

Pivot Point: 109.36

USD/JPY - Technical Outlook

The USD/JPY is trading at 109.025 level, bouncing off over the support area of 108.840. On the higher side, the resistance continues to stay at 109.094 level. The 20 & 50 periods EMA are extending resistance at 109.094; therefore, a bullish crossover of 109.094 level exposes the pair towards the next resistance level of 109.481 and 109.650. At the same time, the bearish breakout of 108.840 level leads the pair towards a support area of 108.650. The RSI and MACD are suggesting bullish bias today. Later today, the focus will remain on the FOMC Meeting Minutes from the U.S., and comments on the U.S. economy will determine the further trend in the USD/JPY pair. All the best!

FOMC Meeting Minutes Ahead!

Gold prices were closed at $1870.50 after placing a high of $1875.85 and a low of $1863.75. On Tuesday, gold remained flat after rising for four consecutive days after hitting a four-month high. Gold eased slightly, although yields on U.S. Treasuries inched lower, and the U.S. dollar remained weak. The fears of inflation also maintained the floor under bullion prices, and hence, gold remained flat throughout the day. On Tuesday, the U.S. Dollar Index fell to its lowest since 25th February and extended its losses to $89.69. Greenback dropped for the 3rd consecutive session and supported the bullion prices. The U.S. Treasury yields on a 10-year note also fell on Tuesday and reached 1.628%, making gold more appealing.

The flat movement of yellow metal on Tuesday could be attributed to the correction or profit-taking. Investors also remained concerned about potential interest rate hikes to curb rising inflation. Investors believed that a sign of rising inflation would urge the Federal Reserve to increase interest rates earlier than expected. However, the Atlanta Fed President Raphael Bostic said that he was comfortable with the central bank’s ultra-loose accommodative policy as inflation was spreading across the economy. Bostic even considered rising inflation as a positive sign and said that the recent rising prices were only temporary and likely faded later this year. Meanwhile, Fed President Robert Kaplan also said that inflation was not a problem and reiterated that he did not expect a hike in an interest rate until 2022. He predicted a growth of 6.5% in the gross domestic product in 2021.

On the data front, at 01:00 GMT, TIC Long-term Purchases rose to 262.2B against the expected 67.0B and supported the U.S. dollar, and added pressure on gold. At 17:30 GMT, Building Permits remained flat as expected 1.77M. The Housing Starts declined to 1.57M against the anticipated 1.71M and weighed on the U.S. dollar and supported gold.

Investors now await the minutes from Fed’s last meeting for further clues to the movement of the Fed’s monetary policy that will be released on Wednesday. Gold also remained flat ahead of the Fed’s meeting minutes as investors were waiting to find some clue before diving into the market.

Furthermore, given the rising tensions between Palestine and Israel, on Tuesday, France offered a resolution with the United Nations Security Council (UNSC) in cooperation with Egypt and Jordan. It called for a ceasefire in the Israel-Gaza conflict. However, U.S. blocked a UN Security Council statement calling for a ceasefire. These adverse developments kept safe-haven yellow metal flat on Tuesday.

Gold Intraday Technical Level

Support Resistance

1843.80 1849.70

1840.35 1852.15

1837.90 1855.60

Pivot Point: 1846.25

Gold - XAU/USD - Technical Outlook

Technical side of gold hasn’t changed much as it continue trading strongly bullish at 1,870, having violated the double top resistance level of 1,844 on the daily timeframe. On the 4-hour chart, the pair is gaining support at 1,862 level now along with a resistance at 1,877. Currently gold has entered the overbought zone and facing solid headwind. On the 4-hour timeframe, gold has also closed bullish engulfing candle above 1,864 level that demonstrates that buys are gaining power and sellers are losing control. Gold's immediate support stays at 1,863 and 1,844 areas along with resistance at 1,877 and 1,889. All the best!

Ethereum Completes 61.8% Fibonacci Retracement!

The ETH/USD was closed at $3376.30 after placing a high of $3512.56 and a low of $3282.72. After declining for three consecutive sessions, ETH/USD rose on Tuesday and placed minor gains after research suggested that Ethereum might be able to reduce its energy consumption by up to 99.95%. After Tesla halted Bitcoin acceptance due to its effects on the environment, crypto energy usage and carbon emissions have become a hot topic. In light of this, the researchers from Ethereum Foundation published an article that estimated that Ethereum might be able to reduce its energy expenditure by 99.95% after it transitions to Proof-of-State consensus.

Currently, Ethereum miners consume about 9.9 terawatt-hours annually. However, this figure is just an estimation, but the research suggested that ETH 2.0 will be 200 times more energy-efficient than its current Proof-of-Work setup. Another factor that added strength in the ETH/USD prices on Tuesday was the report from Invezz that covered the top 20 countries which showed an interest in Ether. According to research, the U.S. was ranked number one with 1,116,000 online searches for Ether per month. After U.S., Germany, and Turkey ranked second and third respectively. Other countries like Brazil, France, UK, and Canada came in fourth, fifth, sixth, and seventh.

An Ethereum based layer-two decentralized finance platform, DiversiFi has secured $5 million in strategic investments from one of the largest venture capital firms in the crypto sector. DiversiFi said that it wants to make Defi trading highly accessible. They have a view that will enable users to invest, trade, and send tokens without paying any gas fees. This news also supported ETH/USD.

On the other hand, the U.S. dollar was also weak across the board on Tuesday. The U.S. Dollar Index that measures the value of the greenback against the basket of six major currencies fell below the $90 level and weighed on the U.S. dollar that supported the rising prices of ETH/USD prices.

ETH/USD Intraday Technical Levels

Support Resistance

3698.37 4288.01

3363.87 4543.15

2774.23 5132.79

Pivot Point: 3928.52

ETH/USD - Technical Outlook

The ETH/USD pair has exhibited a dramatic sell-off from a high level of 4,350 to 2,873 level. The ETH/USD pair has completed 61.8% Fibonacci retracement on the four hourly timeframes, and now it’s gaining support at the 2,850 level. The ETH/USD pair’s immediate resistance stays at 3,456 and 3,818 levels on the higher side. Conversely, the violation of 2,850 opens up additional room for selling until 2,498. The 20 & 50 periods EMA are still in support of selling trend, while the MACD and RSI are also suggesting bearish trend. Considering all technical indicators in mind, bearish bias remains dominant in the ETH/USD pair. All the best!

Intraday Support Breakout!

The USD/JPY was closed at 109.19 after placing a high of 109.50 and a low of 109.07. USD/JPY dropped on Monday and extended its losses for the 3rd consecutive session amid the weakness in the U.S. dollar. On Monday, the U.S. Dollar Index that measures the value of the greenback against the basket of six major currencies increased its losses, sustained its bearish streak for 3rd consecutive session, and reached a $90.15 level. The U.S. Treasury yield on a 10-year note declined to 1.605% in the early session but managed to recover most of its daily losses and reached 1.652%. The declining U.S. dollar index and softer tone around U.S. Treasury yields added pressure on the greenback and dragged USD/JPY prices on the downside on Monday.

On the data front, at 04:50 GMT, the Producer Price Index from Japan rose to 3.6% against the forecasted 3.1% and supported the Japanese Yen that added further losses in the USD/JPY pair. At 11:00 GMT, the Prelim Machine Tool Orders for the year from Japan came in as 120.8% in comparison to the previous month’s 65.1%. From the U.S. side, at 17:30 GMT, Empire State Manufacturing Index surged to 24.3 against the anticipated 23.9 and supported the U.S. dollar, and capped further losses in the USD/JPY pair. At 19:00 GMT, the NAHB Housing Market Index remained flat as projected 83.

Another reason behind the declining prices of USD/JPY was the rising risk-off market sentiment amid the prevailing tensions between Palestine and Israel. According to a human rights group, Amnesty International, the bombing raids conducted by the Israeli government on Palestinian women, men, and children can account for war crimes and crimes against humanity. The fears that these tensions can escalate and convert into war raised the risk-off market sentiment and supported the safe-haven Japanese Yen that ultimately dragged the USD/JPY currency pair on the downside.

The risk-off market sentiment was underpinned by the rising cases of coronavirus in Asia. The World Health organization, Soumya Swaminathan, said that there were still many parts of the country that have not yet experienced the peak.

In addition, Japan, Singapore, and Taiwan have announced new restrictive measures as they try to combat recent coronavirus outbreaks amid the fears that the Indian variant of COVID-19 was spreading throughout Asia. This raised the risk-off market sentiment and supported the safe-haven Japanese Yen that added pressure on the USD/JPY pair.

USD/JPYIntraday Technical Levels

Support Resistance

109.29 109.47

109.18 109.54

109.11 109.65

Pivot Point: 109.36

USD/JPY - Technical Outlook

The USD/JPY is trading bearish at 108.965 level, having violated an intraday support level of 109.078. Overall, the USD/JPY pair has formed a symmetrical triangle pattern that’s keeping the pair in consolidation. However, the trading range is quite broad, having an upper boundary of 109.700 – 108.650. In between this range, the USD/JPY pair was gaining support at 109.078, which has now been violated. On the lower side, the USD/JPY’s next support holds at 108.693 and 108.373 levels. Bearish bias seems dominant today. All the best!

Safe Haven Appeal Triggers!

Gold prices were closed at $1869.55 after placing a high of $1869.75 and a low of $1844.00. Gold extended its gains for the 4th consecutive session and reached its highest since January 2021. The rising prices of yellow metal could be attributed to the weakness in the U.S. dollar and losses in the benchmark U.S. stock indexes. The U.S. Dollar Index that measures the greenback's value against the basket of six major currencies extended its losses and continued its bearish streak for 3rd consecutive session and reached a $90.15 level on Monday. The U.S. Treasury yield on the 10-year note dropped to 1.605% in the early session on Monday but managed to recover most of its daily losses and reached 1.652%.

Meanwhile, the benchmark stock indexes of the NYSE fell and posted losses on Monday that helped gold gathered its strength against the U.S. dollar. The NASDAQ fell by -0.60% and reached $13,196.57, S&P 500 dropped by -0.25% to $4142.69, and Dow Jones Industrial Average declined by -0.16% and reached $34,176.65.

On the data front, at 17:30 GMT, Empire State Manufacturing Index rose to 24.3 against the forecasted 23.9 and supported the U.S. dollar, and capped further gains in the yellow metal. At 19:00 GMT, the NAHB Housing Market Index remained flat as expected 83. On Monday, the Fed Chair Richard Clarida said that the U.S. economic growth could hit 7% this year as labor and other supply bottlenecks get resolved, and the recovery accelerates. He also added that it might take more time to re-open a $20 trillion economy than it did to shut it down.

Meanwhile, the Atlanta Federal Reserve President Raphael Bostic also said on Monday that he was comfortable with the ultra-loose policy of the central bank even as inflation was gaining steam in the economy.

Bostic repeated that there was still an 8 million jobs shortage compared to the pre-pandemic level. Until this gap is closed, Fed will likely keep policies in a very strongly accommodative stance. Bostic considers rising inflation as a positive sign and has often said that the most recent price increases were temporary factors that will disappear later this year.

Furthermore, another factor included in the rising prices of safe-haven metal was the prevailing war-like situation between Palestine and Israel. According to a human rights group, Amnesty International, Israel's shocking disregard for Palestinian civilians might be a war crime.

On Monday, the group of human rights stated that the Israeli government has engaged in a pattern of deadly attacks against residential homes in Gaza. According to Amnesty International, the Israeli government carried out bombing raids without giving the innocent men, women, and children inside any time to escape. This act by Israel may amount to a crime against humanity and a war crime. The escalating tensions between Israel and Palestine could trigger a war, and these fears raised an appeal for safe-haven metal that supported rising prices of gold prices on Monday.

Gold Intraday Technical Level

Support Resistance

1863.80 1874.70

1844.35 1889.15

1837.90 1900.60

Pivot Point: 1863.25

Gold - XAU/USD - Technical Outlook

Gold is trading strongly bullish at 1,870, having violated the double top resistance level of 1,844 on the daily timeframe. Closing of candles above 1,844 level supports a solid upward trend in gold. At the moment, gold has entered the overbought zone and facing solid resistance at 1,874 level. On the 4-hour timeframe, gold has also closed Doji candles below 1,874 level that demonstrates that buys are exhausted, and sellers are looming around the corner. Typically, such scenarios drive bearish correction in security, and gold can exhibit downward correction in case of failure to break 1,874. Gold's immediate support stays at 1,863 and 1,844 areas along with resistance at 1,874 and 1,889. All the best!

Symmetrical Triangle Pattern!

The DOGE/USD was closed at $0.487220 after placing a high of $0.513340 and a low of $0.475650. DOGE coin dropped on Monday and posted losses for the day mainly due to the latest comments from Elon Musk. The CEO of Tesla and SpaceX said that he might develop his crypto if Dogecoin, the crypto that launched as a joke, cannot do what he wants. Elon Musk has been blamed for many movements in the cryptocurrency market after his company decided to acquire $1.5 billion worth of bitcoin earlier this year.

Recently, the billionaire, who calls himself the doge father for supporting DOGE, has called out bitcoin to contribute to the growing use of fossil fuel and the consequences that affect the environment. In his latest tweet, Musk said that cryptocurrency was a good idea on many levels, and he believed that it has a promising future, but he strongly disagreed that this could not come at a great cost to the environment. After his tweet, bitcoin prices a steep decline and weighed on the whole cryptocurrency market due to its impact on the market. Dogecoin also followed the trend and declined on Monday.

Meanwhile, when Musk was asked if he would start his cryptocurrency to do all that he wants. He responded in favor of Dogecoin. He answered that only if Dogecoin cannot do it would he go for making his cryptocurrency. Tesla has repeatedly said that Musk wants a coin with significant low transaction fees and excellent energy efficiency.

With his favorable tweet for Dogecoin, Musk doubled down on his bet that Dogecoin can become a currency that addresses Tesla’s new set of environmental requirements. Musk said that he was working with Dogecoin developers to improve the currency and hoped that it could evolve to be more energy-efficient in the future.

On the other hand, the co-founder of Dogecoin, Billy Markus, said that he had made the Dogecoin in just two hours, and he did not think of its environmental impact. These comments from the co-founder of Dogecoin added weight to its value as Musk has decided not to take payments in Bitcoin due to its impact on the environment. If the same will happen with Dogecoin, then it could cause a decline in dogecoin value.

DOGE/USD Intraday Technical Levels

Support Resistance

0.477756 0.544416

0.441283 0.574603

0.411096 0.611076

Pivot Point: 0.507943

DOGE/USD - Technical Outlook

The DOGE/USD pair is trading sideways at 0.4922 level. On the 4 hour chart, the pair has formed a symmetrical triangle pattern that demonstrates indecision among traders. It looks like the investors are waiting for some solid news to trigger a breakout in Doge. Typically, the symmetrical triangle breakout on either side, depending upon the news release; therefore, the traders will be keeping a closer eye on the pair to capture any significant price action. The DOGE/USD has immediate support at 0.4660, and below this, the next support stays at 0.3735. Conversely, the resistance holds at 0.5273 and 0.5925. All the best!

Three White Soliders Pattern!

Gold prices were closed at $1843.85 after placing a high of $1845.50 and a low of $1819.45. Gold extended its gains on Friday and reached the $1845 level on the back of the weak U.S. dollar amid poor-than-expected U.S. economic data. Gold posted about 0.8% gain for the day on Friday and a 0.3% gain for the week. It was a second straight weekly gain posted by gold due to decreased strength in the U.S. dollar. The survey from the University of Michigan said that U.S. Consumer Confidence dropped in May as Americans started worrying about inflation and its impact on their incomes.

The Federal Reserve acknowledged that prices were rising due to disrupted supply chains that were struggling to cope with the demand in an economy after re-opening from pandemic-induced lockdowns. However, the central bank said that these inflationary pressures were temporary and will fade eventually with the recovery in the economy. Fed has also said that there was no need to raise interest rates yet.

On the data front, at 17:30 GMT, Retail Sales for April dropped to 0.0% against the expected 1.0% and weighed on the U.S. dollar that pushed gold prices higher. The Import Prices remained flat with the expectations. At 17:32 GMT, the Core Retail Sales also dropped to -0.8% against the forecasted 0.5% and weighed on the U.S. dollar that added further gains in gold prices. At 18:15 GMT, the Industrial Production for April also declined to 0.7% against the projected 0.9% and weighed on the U.S. dollar and pushed gold prices higher.

The Capacity Utilization Rate remained flat at an expected 75.0%. At 19:00 GMT, the Prelim UoM Consumer Sentiment for May reduced to 82.8 against the estimated 90.2 and weighed on the U.S. dollar and added further strength in rising prices of gold. Business Inventories remained flat at 0.3%. The Prelim UoM Inflation Expectations also remained the same as expected 4.6%.

The poor than expected macroeconomic data from the U.S. on Friday weighed heavily on the greenback as the U.S. Dollar Index that measures the value of the greenback against the basket of six major currencies fell to $90.27 on Friday. The U.S. Treasury yields on a 10-year note also declined on Friday and reached 1.625%. Furthermore, an Independent Panel for Pandemic Preparedness and Responses released a report on global handling of coronavirus pandemic that stated that global crisis could have been avoided if proper measures had been taken.

The panel concluded that WHO should have declared a public health emergency sooner, while countries took too long to implement measures to curb the spread of the virus. The panel also said that to avoid such a crisis in the future, the WHO should be granted more financing and more authority in publishing outbreak-related information. The panel also urged rich countries to donate at least one billion vaccine doses to COVAX by September and emphasized the importance of agreeing on voluntary licensing and transfer of vaccine technology to increase global supply. This report added weight to the already declining U.S. dollar and pushed gold higher. Meanwhile, the rising tensions between Palestine and Israel after airstrikes and missile attacks added to the fears of a new war that led to the risk-off market sentiment that ultimately supported safe-haven yellow metal prices.

Gold Intraday Technical Level

Support Resistance

1812.89 1833.19

1800.52 1841.12

1792.59 1853.49

Pivot Point: 1820.82

Gold - XAU/USD - Technical Outlook

Gold is trading strongly bullish at 1,853, having violated the double top resistance level of 1,844 on the daily timeframe. Above this, gold’s next immediate resistance stays at 1,854. A violation of this exposes gold towards 1,874 areas. At the same time, the support continues to be at 1,844 level. The RSI and MACD support a buying trend, along with the 20 and 50 EMA held at 1,807 level. Gold has closed three white soliders pattern that demonstrates srong bullish bias amoung investors on the daily timeframe. All the best!

Choppy Session in Play

The EUR/USD closed at 1.2140 after placing a high of 1.2150 and a low of 1.2070. EUR/USD pair rose on Friday after declining for two consecutive days and recovered most of its previous day’s losses amid the weakness in the U.S. dollar. On Friday, the European Central Bank released its latest minutes from the meeting held in March. The central bank noted that they succeeded in maintaining favorable financing conditions as the recent measures had been effective.

ECB also stated that the risks to activity had become more balanced as they were tilted to the upside. This hawkish comment came after so long as the risks had been on the downside due to slow vaccination campaigns in the EU. However, if the vaccination program goes well, there are more chances that ECB could deliver more clues on tightening. The Governing Council of the European Central bank did not discuss any tapering of the bond program. Furthermore, the minutes from the meeting also suggested that countries across Europe with more service-dependent were anticipated to improve at a slower pace despite re-opening. Euro became strong after the release of minutes from ECB and pushed EUR/USD pair higher on Friday.

On the other hand, the U.S. dollar remained weak for the day due to a weaker-than-expected macroeconomic data release. The U.S. Dollar Index fell to $90.27, and the U.S. Treasury yields on the 10-year note dropped to 1.625% on Friday that added further pressure on the U.S. dollar and pushed EUR/USD higher on board.

There was no data to be released from the Europe side on the data front, but from the U.S. side, at 17:30 GMT, Retail Sales for April declined to 0.0% against the estimated 1.0% and weighed on the U.S. dollar that pushed EUR/USD pair higher. The Import Prices remained flat with the projections of 0.7%. At 17:32 GMT, the Core Retail Sales declined to -0.8% against the anticipated 0.5% and weighed on the U.S. dollar that added further gains in EUR/USD. At 18:15 GMT, the Industrial Production for April also fell to 0.7% against the predicted 0.9% and weighed on the U.S. dollar that supported EUR/USD gains. The Capacity Utilization Rate remained flat as expected 75.0%.

At 19:00 GMT, the Prelim UoM Consumer Sentiment for May dropped to 82.8 against the anticipated 90.2 and weighed on the U.S. dollar that pushed EUR/USD higher. Business Inventories remained flat at 0.3% expected. The Prelim UoM Inflation Expectations also remained flat as projected 4.6%. The dismal economic data from the U.S. added pressure on the already declining U.S. dollar and supported the rising prices of the EU/USD currency pair on Friday.

EURUSD Intraday Technical Levels

Support Resistance

1.2050 1.2108

1.2021 1.2137

1.1992 1.2165

Pivot Point: 1.2079

EUR/USD - Technical Outlook

The EUR/USD is trading choppy from 1.2150 to 1.2120 level. Technical side of the EUR/USD pair has remain mostly unchanged as the direct currency pair is gaining immediate support at the 1.2067 level, and violation of this level exposes the EUR/USD level until the next support area of 1.1992 level. On the 4-hour chart, an upward trendline supports the EUR/USD pair at 1.2067, and below this, the EUR/USD will come under selling pressure. However, holding of EUR/USD over 1.2064 level is keeping the pair bullish. On the 4-hour chart, the EUR/USD pair has closed a bearish engulfing candle which is also adding selling pressure on the pair. The EUR/USD immediate resistance holds at 1.2150 and 1.2178 along with support around 1.2120 and 1.2064. All the best!

Bitcoin Takes a Nosedive!

The BTC/USD is currently trading at $44012.0 and is on the course for another bearish day. Bitcoin has been declining continuously since12th May. BTC/USD tried to recover its previous daily losses but failed and remained flat for the day. The latest decline in Bitcoin prices was due to a recent tweet from CEO of Tesla Elon Musk that implied that the electric vehicle maker has sold or may sell the rest of its bitcoin holdings. Musk has been a big-time supporter of cryptocurrencies and has also helped digital coins, including bitcoin, to surge many times in the past year.

In February, Tesla revealed that it bought $1.5 billion worth of bitcoin. The company later said that it registered a net gain of $101 million from sales of bitcoin during the quarter and boosted the company's net profit to a record high in the first quarter. Another reason behind the declining prices of Bitcoin was the latest statement from the CFO of Square, Amrita Ahuja, that the company has no plans to purchase more bitcoin. This statement came in after Elon Musk's announcement that Tesla would no longer accept BTC.

Square, alongside Tesla and MicroStrategy, is among the top tech companies who have been supporters of bitcoin holdings as a hedge against economic inflation. A negative statement from such a company related to Bitcoin added pressure on BTC/USD prices and dragged it below the $45,000 level. On Monday, Bitcoin prices dropped to a three-month lowest level as investors started selling crypto coins in the wake of the latest hinting from Elon Musk that he was considering or may have already sold some of its bitcoin holdings.

Furthermore, the declining pressure among cryptocurrencies, especially Bitcoin, was raised over the weekend after Financial journalist Edward Chancellor predicted that launching central bank digital currencies could be catastrophic for Bitcoin. Many central banks of numerous leading economies like China, Japan, and the U.S. are moving forward and researching the option of launching their digital currency. According to Edward, the projects of central bank digital currencies are hazardous and could lead to the destruction of bitcoin.

BTC/USD Intraday Technical Levels

Support Resistance

44795.2 48915.2

43007.6 51247.6

40675.2 53035.2

Pivot Point: 47127.6

BTC/USD - Technical Outlook

The BTC/USD pair is trading sharply bearish at 44,971 level, having dropped from 49,800 high to the low level of 42,029. On the 4-hour timeframe, Bitcoin has formed a bearish channel that's supporting strong selling bias among investors. However, the channel is extending support at 42,900 area. Closing of candles above this level makes it more robust support, and BTC is exhibiting a bullish correction above 42,900 support. The leading crypto pair's next resistance stays at 45,500 and 47,510 levels. At the same time, a bullish breakout of 47,510 level exposes the pair towards the 49,300 mark. Considering the leading indicators such as RSI and MACD, bearish bias dominates Bitcoin today. All the best!