Double Bottom Support

The EUR/USD pair was closed at 1.2015 after placing a high of 1.2070 and a low of 1.1993. EUR/USD pair remained depressive on Thursday and continued its bearish streak for 3rd consecutive session after U.S. Dollar Index turned positive and ECB maintained a dovish stance.

On Thursday, Euro slipped against the U.S. dollar after the dovish comments from the European Central Bank. The bank indicated that it was in no hurry to reduce its emergency bond purchases despite prevailing optimism over a robust economic recovery.

The ECB (European Central Bank) left its benchmark interest rate at 0.0% as widely expected in its monetary policy meeting and said it would stick with plans to accelerate emergency bond purchases until March 2022 to keep bond yields steady. In its monetary policy statement, ECB noted that the Governing Council expected to continue the purchases under PEPP at a significantly higher pace over the current quarter of this year. The President of the central bank, Christine Lagarde, also downplayed the notions that the central bank would look at tapering bond purchases as it was simply premature. He also added that any changes to the program would be data-dependant. After these dovish comments, the EUR/USD pair continued declining and posted losses for the day.

On the data front, at 18:30 GMT, the Consumer Confidence from Europe dropped to -8 against the projected -11 and supported single currency Euro that capped further losses in EUR/USD pair. From the U.S. side, at 17:30 GMT, the Unemployment Claims from the last week dropped to 547K against the estimated 607K and supported the U.S. dollar, and weighed on EUR/USD pair. At 19:00 GMT, the C.B. Leading Index surged to1.3% against the projected 1.0%, supported the U.S. dollar, and added further losses in EUR/USD. The Existing Home Sales dropped in March to 6.01M against the anticipated 6.18M and weighed on the U.S. dollar that capped further losses in EUR/USD.

On the U.S. front, the greenback remained strong on board despite declining U.S. Treasury yields. The U.S. Dollar Index rose on Thursday and reached a 91.42 level, while the U.S. Treasury yields on a 10-year note dropped to 1.5310.

EURUSD Intraday Technical Levels

Support Resistance

1.2005 1.2052

1.1979 1.2071

1.1959 1.2098

Pivot Point: 1.2025

EUR/USD - Technical Outlook 

The EUR/USD’s trading bias is bullish as the pair is trading at a 1.2020 level. Overall, the trading range of the pair is being limited to 1.2077 – 1.1998 level. A bullish breakout of 1.2077 level opens up further room for buying until the next resistance level of 1.2141 and 1.2240. Conversely, the bearish breakout of an upward channel at the 1.1998 level exposes the EUR/USD pair towards 1.1940 and 1.1877 support levels. So far, the exponential moving averages are in support of a buying trend. However, the histograms of MACD are becoming smaller than the previous ones, suggesting weakness in bullish bias. Today, the trader’s primary focus will remain on the Flash Manufacturing PMI and Flash Services PMI figures from the European countries such as France and Germany, the business hubs. Economists are expecting a slight dip in economic data that can drive a bearish breakout in the pair and vice versa. All the best!

Deep Dive in Bitcoin

The BTC/USD was closed at 51781.3 after placing a high of 55067.0 and a low of 51781.3. BTC/USD remained bearish throughout the day and dropped below 52,000 as Bitcoin’s dominance over the crypto market came below the 50% mark for the first time since 2018 after Ethereum recorded a new all-time high (ATH).

The loss came when Ether, the native currency of the second largest crypto network Ethereum, reached a new ATH of $2600. The present market value of Bitcoin is $1.02 trillion against the total crypto market value of $2.13, with Ethereum accounting for 14.61% of market shares.

JPMorgan Chase & Co. and Tallbacken Capital Advisors LLC had recently warned that there was potential for a further downside after the largest cryptocurrency fell back from its record high of $64,000 on April 14.

The U.S. President Joe Biden was set to propose a tax hike o the wealthiest Americans. The proposal would raise the top marginal rate and increase taxes on investment gains for the rich. The news triggered a sell-off on Wall Street and the crypto market, where significant indexes and digital assets slipped during Thursday’s trading session. The decline in Bitcoin for the seventh time in eight days and extended losses on Thursday after President Joe Biden was set to propose almost doubling the capital gains tax for the wealthy.

The plan will not affect any family earning less than $400,000 a year, but it would also nearly double taxes on capital gains to 39.6% for people making more than $1M. In some states which impose their capital gains tax, the total bill some investors could face might exceed 50%. This news added further pressure on Bitcoin prices, and the prices extended their losses for the day.

BTC/USD Intraday Technical Levels

Support Resistance

52937.4 55591.4

52052.7 57360.7

50283.4 58245.4

Pivot Point: 54706.7

BTC/USD - Technical Outlook 

The BTC/USD is trading sharply bearish at 48,530 level, having dropped from the support level of 55,229 level. On the daily timeframe, the BTC/USD pair has crossed below the 20 & 50 periods EMA (Exponential Moving Average) that converts bullish trend into bearish. Bitcoin’s next support level holds around 46,700, and violation of this level exposes the pair towards 43,737 support. Conversely, the resistance holds around 50,369 and 53,354 levels and the bearish bias dominates Bitcoin below 53,350 level today. All the best!

Ascending Triangle Breakout

Gold prices closed at $1792.30 after placing a high of $1794.10 and a low of $1777.70. Gold extended its gains and reached near $1800 level on Wednesday amid the falling U.S. Treasury yields and sagging global stocks due to revived fears of global economic recovery after a rising number of coronavirus cases from around the world.

The U.S. dollar index fell to 91.09 level on Wednesday from its daily high of 91.43 and caused weakness in the greenback that pushed gold prices even higher. In the meantime, the U.S. Treasury bond yield on a 10-year note also fell below 1.6% to 1.5540 level that added in the weakness of the U.S. dollar and helped precious metal to remain on a bullish track.

According to new data published by the World Health Organization, more new coronavirus cases were reported around the world last week than in any seven days since the beginning of the pandemic. According to the report, about 5.24 million new cases were recorded during last week. This figure broke the previous record set at the start of 2021 with 5.04 million new possibilities in the week ended on January 4. The latest surge was primarily driven by an outbreak in India where the authorities reported that about 300,000 new cases were reported in a single day. The WHO said that India accounts for almost one-third of all new cases worldwide. World Health Organization said that the death rate lead by coronavirus was also accelerating, with more than 83,000 deaths last week than the 76,000 during the week before.

According to a spokeswoman for the WHO, Margaret Harris noted that the pandemic caused 1 million deaths in 9-months, then 2 million deaths in 4-months, and now it took only 3-months to reach 3-million deaths caused by the pandemic. These developments added strength in the precious metal prices as the concerns regarding global economic recovery revived in the market and raised the appeal for safe-haven assets. The changed market sentiment helped to extend gains in the yellow metal.

There was no macroeconomic data from the U.S. side on Wednesday. Market participants are awaiting the release of a policy report from the European Central Bank that’s due on Thursday. Investors are awaiting the news for further clarity about the stimulus plans for the bloc. Whereas the U.S. Federal Reserve policy meeting is scheduled next week. Furthermore, the risk-off market mood was continuously supported by the rising tensions between the U.S. and China and U.S. and Russia. These geopolitical tensions kept the safe-haven appeal intact and gold metal higher.

Gold Intraday Technical Level

Support Resistance

1769.76 1780.56

1762.23 1783.83

1758.96 1791.36

Pivot point; 1773.03

Gold - XAU/USD - Technical Outlook

Gold is trading choppy between a narrow trading range of 1,798 - 1,787 level, having violated the ascending triangle pattern at 1,789. The precious metal was trading in an ascending triangle pattern that we spotted yesterday, and the pattern has now already been violated. On the higher side, it exposes gold prices towards an immediate resistance level of 1,798. Bullish crossover of 1,798 level opens up additional room for bulls until 1,813 resistance level. The immediate support stays at the 1,789 level, and break out of this level can extend the selling trend until the 1,776 level. The 20 & 50 periods EMA are in support of buying, but the further trends in gold will be highly influenced by the violation of the 1,798 – 1,789 trading range. All the best!

Upward Channel Intact

The EUR/USD closed at 1.2033 after placing a high of 1.2045 and a low of 1.1998. The EUR/USD pair extended its losses on Wednesday and reached below the 1.200 level despite the U.S. dollar weakness. Higher equity prices and lower U.S. Treasury yields kept the greenback under pressure on Wednesday while keeping the U.S. Dollar Index near 91.0 level. The U.S. Treasury yield on benchmark 10-year note remained below 1.6% at 1.573% and kept on weighing over the U.S. dollar.

Despite the weakness in the U.S. dollar, the EUR/USD pair continued its bearish momentum on the back of risk-off market sentiment driven by the rising concerns over the global economic recovery amid increased coronavirus infections. On Tuesday, World Health Organization released a report suggesting an increased number of coronavirus infections worldwide during last week. The agency said that the number of cases increased more than ever in seven-day period since the pandemic started last week.

The WHO also reported that the number of deaths from pandemic was also rising at an alarming rate. The report suggested that about 5.24m cases were recorded last week, which is the highest record for seven-day compared to the previous 5.04m for the week ended on January 4.

The rising number of infections worldwide raised fears for economic recovery that ultimately supported the risk-off market environment and dragged the riskier assets like EUR/USD lower. The risk appetite across the global market was dampened on Wednesday due to the rising coronavirus cases and a fall in oil prices. They cast doubts on the strength of the global economic recovery. Furthermore, Eurozone bond yields held below the recent highs on Wednesday, a day ahead of the ECB meeting and after Germany’s constitutional court dismissed challenges to its approval of the E.U. recovery fund.

As the European Central Bank is set to announce its policy decision on Thursday, the investors became cautious about placing any strong position ahead. This type of cautious behavior of investors also kept the pair EUR/USD under consolidation on Wednesday. The ECB is primarily expected to keep policy on hold, while investors were looking for clarity on how it will react to economic recovery in Europe. Essentially in its emergency bond-buying program. On Wednesday, Germany’s constitutional court declined to block the E.U.’s COVID-19 recovery fund.

EURUSD Intraday Technical Levels

Support Resistance

1.2009 1.2068

1.1987 1.2103

1.1951 1.2126

Pivot point; 1.2045

EUR/USD - Technical Outlook

On Thursday, the technical side of the EUR/USD hasn’t changed a lot as it continues to exhibit choppy sessions at the 1.2020 level. The pair is facing immediate resistance at 1.2043 and 1.2112 levels. On the 4-hour timeframe, the EUR/USD pair has formed an upward trendline that is supporting a bullish trend in the pair. However, the formation of Doji and Spinning top candles below the 1.2043 level hurt the market’s bullish sentiment. On the downside, the EUR/USD’s support stays at the 1.1983 level, and break out of this level extends price action towards the 1.1928 level. Considering the RSI and MACD, the overall trading bias remains bullish as their values are holding at 59 and 0.0021, respectively. Trader’s primary focus will remain on the ECB monitory policy decision as this even has the potential to drive sharp volatility in the market. All the best!

Sideways Channel in Play

The BTC/USD closed at 53,822 after placing a high of 56,476 and a low of 53,822. Bitcoin fell again on Wednesday and reach below 54,000 level amid the recent warning by JPMorgan. The strategists at JPMorgan Chase & Co., Nikolaos Panigirtzoglou, warned on Wednesday that if the popular cryptocurrency does not return to the $60,000 level soon, it could soon be at risk of extending its losses to maximum level.

Over the past few days, Bitcoin has experienced a steep liquidation similar to the middle of last February, middle of last January, or the end of last November. Quick recoveries and further price increases have met the previous three dips, but this time looks different. It is yet to see whether Bitcoin will repeat its prior episodes or not; however, the strategists believed that repeating those patterns was less likely this time around due to weaker flow.

Some other companies also joined in, including Tallbacken Capital Advisors CEO Michael Purves, who also said that Bitcoin’s bullish rally could be at crossroads. Furthermore, Scott Minerd, the global chief investment officer of Guggenheim Partner, claimed that Bitcoin had overstretched itself at a dangerous speed. It means the king of cryptocurrencies could dramatically decline in value over the coming weeks.

Minerd, a member of the Federal Reserve Bank of New York’s Investor Advisory Committee on Financial Markets and Chairman of Guggenheim Investments, has said that Bitcoin would have a significant correction in the coming days. He even said that prices could pull back to 20,000 to 30,000, which would be a 50% decline. He added that the exciting thing about Bitcoin was that it had seen these kinds of drops before.

BTC/USD Intraday Technical Levels

Support Resistance

54932.6 57484.6

53389.3 58493.3

52380.6 60036.6

Pivot point; 55491.3

BTC/USD - Technical Outlook

Technically, the BTC/USD hasn’t changed as it continues to trade with a bearish bias at 55,642 level. The pair is consolidating in a broad trading range of 57,657 level to 53,367 level, and lack of trading volume keeps the pair’s movement limited. On the 4 hour timeframe, the 20 & 50 periods EMA are extending resistance at 55,750 and 60,019 levels. The RSI and MACD values suggest bearish bias among investors; therefore, the pair is looking for a bearish breakout. On the downside, the breakout of the 53,350 support level opens up further room for selling until the next support area of 50,015, whereas resistance stays at 57,657. All the best!

Three White Soldiers Pattern

Gold closed at 1777.05 after placing a high of 1780.65 and a low of 1763.65. gold prices rose on Tuesday after the appeal for precious metals increased due to declining U.S. Treasury yields on the day. On Tuesday, the benchmark bond yield on a 10-year note fell to a 1.5570% level, while the U.S. Dollar Index was up by 0.2% before hitting its lowest level about seven weeks earlier in the session. The recent upward trend in gold has been driven by the fact that bonds were well bid and the U.S. dollar was under pressure.

Given the unprecedented stimulus by the central banks and the inflation associated with it, gold is considered a hedge against inflation. It tends to rise in case of the issuance of extensive stimulus measures. However, gold has been in a tussle with yields for the past six months since higher yields mean higher opportunity cost of holding non-yielding bullion.

As for the stimulus checks, most Americans received their first round of stimulus checks worth $1200 in Spring 2020, plus $500 for each child under 17 to help with the economic impact of the pandemic. As the second wave of virus emerged, the second round of stimulus checks worth $600 was issued in December 2020, the third round worth $1400 each plus $1400 per dependents of all ages started going out last month.

Since the American Rescue Plan was signed by Biden last month, more than 159 million payments worth a total of $376 billion have been delivered. Still, some found these payments not enough and reported falling short while trying to cover household expenses, as per the U.S. Census Bureau data in March 2021. After the issuance of these stimulus checks, gold should have risen and posted gains, but instead, it moved in a bearish trend and remained under pressure because of the rising treasury bond yields. Noe talks about the 4th stimulus check payments that have emerged, and it seems like they are supporting the gold prices. Congress is considering sending additional payments to those most in need once the current $1400 stimulus payments run out.

Meanwhile, Johnson & Johnson said that it would resume the rollout of its coronavirus vaccine in Europe on Tuesday. The comment came after the drug regulator of the European Union said that a warning should be added to the product, indicating a possible link to rare blood clots. Still, the benefits of the shot outweigh the risks.

The company had decided to delay distribution in Europe last week after regulators in the U.S. suspended using its vaccine in the country amid concerns about the potential side effects. The pause on using the J&J vaccine after the AstraZeneca vaccine raised doubts in the market over the economic recovery. It somehow helped safe-haven yellow metal to post gains on Tuesday.

According to Johns Hopkins University data, in the past seven days, the U.S. reported an average of more than 67,100 new coronavirus daily infections. This rate was 25% above its month-ago level, and it was alarming as the country was at the stage of vaccinating its population. These concerns also helped the safe-haven precious metal to post gains for the day.

Gold Intraday Technical Level

Support Resistance

1764.36 1781.46

1759.33 1793.53

1747.26 1798.56

Pivot Point: 1776.43

Gold - XAU/USD - Technical Outlook

Gold is trading bullish at 1,787 level, gaining immediate support at 1,775. On the 4- hour timeframe, the support is extended by 20 periods EMA (exponential moving average), and gold has formed the “Three White Soldiers” candlestick pattern that supports strong bullish sentiment among traders. Typically, such patterns trigger an upward movement in the market; therefore, the gold’s next resistance prevails at 1,789 level today. On bullish breakout of 1,789 resistance, gold’s bullish capacity increases until the next resistance level of 1,798. On the bearish side, the breakout of 1,776 support opens up room for a bearish trend until the next support area of 1,764. The MACD and RSI are supporting the bullish trend in gold today. All the best!

Upward Channel In Play

The EUR/USD closed at 1.2033 after placing a high of 1.2081 and a low of 1.2022. EUR/USD pair rose in the first half of the day and reached its highest since March 3, but it could not stay there for long and retreat from there ended up losing all of its daily gains. EUR/USD pair ended its day with losses as the U.S. dollar recovered its strength.

Earlier in the day, the currency pair EUR/USD preserved its bullish momentum as the greenback struggled to find demand. Nevertheless, during the second half of the day, the safe-haven appeal raised that changed the market mood, supported the U.S. dollar, and lifted the U.S. Dollar Index on a positive note.

The U.S. Dollar Index DXY was up by 0.15% on Tuesday at 91.22 and supported the greenback that weighed on currency pair EUR/USD. During early trading hours, the declining U.S. treasury yields weighed on the U.S. dollar helped EUR/USD pair to post gains and reach its highest level since early March. However, in late American hours, the market mood changed and shifted to risk-off, which helped the safe-haven U.S. dollar to find some demand and dragged the currency pair EUR/USD on the lower side.

The sentiment of the market changed after Chinese President Xi Jinping called for global solidarity in the face of a thriving anti-China front headed by the United States. He also warned that an open world economy was essential to recovering from the pandemic. Stresses between China and the U.S. have been intensified recently after the U.S. and its allies imposed sanctions on Chinese officials last month over alleged repression of Uighur Muslims and other ethnic minorities in Xinjiang Province, which was condemned and denied by Beijing. The harshest sanctions that the Trump administration imposed on China’s most prominent tech company also remained in place, along with the trade tensions that continue during the Biden administration. The rising tensions between the U.S. and China over the Taiwan issue have also escalated the dispute.

Xi said that bossing around or meddling in others’ internal affairs would not get one any support. He and did not mention name of any country but said that big countries should behave in a manner benefitting their status and with a greater sense of responsibility.

Meanwhile, the tensions between Russia and U.S. also escalated as the U.S. expressed its deep concerns over Russia’s plan to block foreign naval ships. The U.S. and its European partners were worried regarding Russia’s military build-up in recent weeks and they fear Moscow might be planning to invade Ukraine. All these geopolitical tensions raised the risk-off market sentiment and helped U.S. dollar find demand that ultimately weighed on EUR/USD pair.

On data front, at 11;00 GMT, the German Purchasing Price Index in March raised to 0.9% against the expected 0.6% and supported single currency Euro and pushed EUR/USD pair in first half of the day. On Thursday, ECB is set to announce its policy decision that is expected to have a significant impact over the movements of EUR/USD pair.

EURUSD Intraday Technical Levels

Support Resistance

1.1967 1.2074

1.1901 1.2115

1.1860 1.2181

Pivot Point: 1.2008

EUR/USD - Technical Outlook

On the technical front, the EUR/USD is exhibiting a choppy session at the 1.2020 level. The pair is facing immediate resistance at 1.2043 and 1.2112 levels. On the 4-hour timeframe, the EUR/USD pair has formed an upward trendline that is supporting a bullish trend in the pair. However, the formation of Doji and Spinning top candles below the 1.2043 level hurt the market’s bullish sentiment. On the downside, the EUR/USD’s support stays at the 1.1983 level, and break out of this level extends price action towards the 1.1928 level. Considering the RSI and MACD, the overall trading bias remains bullish as their values are holding at 59 and 0.0021, respectively. Trader’s primary focus will remain on the 1.2008 level, as this will be a trendsetter for the day. All the best!

Choppy Session in Play

The BTC/USD was closed at 56,476 after placing a high of 56,950 and a low of 54,398. After falling for four consecutive sessions, Bitcoin raised on Tuesday and broke its bearish streak. The bearish trend in Bitcoin finally broke on Tuesday, thanks to PayPal. Venmo, the peer-to-peer payment service owned by PayPal Holdings Inc., said on Tuesday, has started allowing its users to buy, hold, and sell cryptocurrencies on its app.

This latest jump on the Bitcoin craze by famous digital wallet Venmo with 60 million active users raised the odds that this step could inspire more mainstream adoption of the digital asset class. The company said that the users would be able to buy Bitcoin, Ethereum, Litecoin, and Bitcoin Cash for as little as $1 and public transactions on the app’s feed.

Venmo is one of the most accepted payment platforms in the US, particularly among younger customers who use it to pay friends and family. Last year, Venmo processed around $159 billion in payments. This positive news helped Bitcoin found its lost ground, and BTC/USD posted gains for the first time in five days over this news. Furthermore, the gains in Bitcoin were also associated with the latest statement made by the executive director of the Blockchain Association, Kristin Smith. He dismissed fears that the US Department of the Treasury was close to crackdown on Bitcoin and other cryptocurrencies.

Over the weekend, the rumors of the Treasury bringing money laundering charges against some financial institutions using cryptocurrencies began circulating on social media that took a toll on Bitcoin prices and over the whole crypto market. However, now these concerns were faded after Smith’s comments and helped Bitcoin find its demand back.

BTC/USD Intraday Technical Levels

Support Resistance

54581.6 57027.8

53524.1 58416.5

52135.4 59473.9

Pivot Point; 55970.3

BTC/USD - Technical Outlook

On Wednesday, the BTC/USD pair continues to trade with a bearish bias at 55,642 level. The pair is consolidating in a broad trading range of 57,657 level to 53,367 level, and lack of trading volume keeps the pair’s movement limited. On the 4 hour timeframe, the 20 & 50 periods EMA are extending resistance at 55,750 and 60,019 levels. The RSI and MACD values suggest bearish bias among investors; therefore, the pair is looking for a bearish breakout. On the down side, the breakout of the 53,350 support level opens up further room for selling until the next support area of 50,015, whereas resistance stays at 57,657. All the best!

20 EMA Supports Metal

Gold prices were closed at 1772.25 after placing a high of 1790.35 and a low of 1766.70. Gold prices tried to continue their previous day's bullish trend on Monday and continued rising during the first half of the day but reversed their course in the second half of the day and ended with a bearish trend. After rising for two consecutive sessions, gold dropped on Monday after reaching its highest level since 25th February at 1790. However, gold couldn't live there for long and retreated as the U.S. bond yields started to recover after three days of disappointing performance.

Gold was rising toward the 1,800 level amid the recent weakness in the U.S. dollar, but after reaching its more than 7-week highest level, the yellow metal reversed its momentum on the back of soaring U.S. Treasury yields that weighed on non-yielding bullion's appeal. The benchmark 10-year U.S. Treasury yield rose above 1.6% after hitting a multi-week lowest level last week.

On Monday, U.S. President Joe Biden held his second infrastructure meeting with Democratic and Republican members of Congress as GOP lawmakers were pushing to shrink the $2 trillion proposals by the president. Usually, such big-sized stimulus measures led to dollar debasement and inflation that could benefit gold due to its status as an inflation hedge. However, this logic has not supported gold prices; instead, gold has suffered due to rising yields.

On the other hand, China, the world's biggest gold consumer, has permitted domestic and international banks to import a large amount of gold into the country. This information was received from five similar sources with the matter and pushed gold prices higher on Monday. Furthermore, the losses in gold prices on Monday could also be attributed to the latest news from the U.S. that has reached another important milestone in the race to protect its population against the coronavirus.

On Monday, the U.S. reported that about 25.4% of its population had been fully vaccinated, which means more than a quarter of Americans are fully protected against coronavirus, with more than 84 million people receiving both vaccine shots. Centers for Disease Control and Prevention released this report on Sunday. This news added support to the weak U.S. dollar and added pressure on the rising prices of gold on Monday.

Gold Intraday Technical Level

Support Resistance

1762.51 1786.16

1752.78 1800.08

1738.86 1809.81

Pivot Point; 1776.43

Gold - XAU/USD - Technical Outlook 

On Tuesday, gold is trading bearish at 1,772 level, gaining immediate support at 1,769. On the 4- hour timeframe, the support is extended by 20 periods EMA (exponential moving average), and gold has closed series of Doji and Spinning top candles right above 1,769 level. Typically, such patterns trigger an upward movement in the market; therefore, the gold’s next resistance prevails at 1,789 level today.

On the bearish side, the breakout of 1,769 support opens up room for a bearish trend until the next support area of 1,759 and 1,754. The MACD and RSI are supporting the bullish trend in gold today. The U.S. economy isn’t expected to release any significant economic events today; therefore, the price action in gold will heavily depend upon the technical levels. All the best!

Bullish Bat Pattern Continue to Play!

The EUR/USD closed at 1.2033 after placing a high of 1.2049 and a low of 1.1942. EUR/USD pair rose on Monday and reached its highest since 4th March amid U.S. dollar weakness. The demand for Euro continued to rise due to weakness in its rival currencies, including the British Pound and the U.S. dollar. On Monday, the U.S. Dollar Index dropped sharply near its 7-week lowest level at 91.03 level and weighed heavily on the U.S. dollar that helped its rival currencies, including Euro, as both share a negative correlation. It means the weakness in the U.S. dollar has driven the recent strength in Euro.

The greenback was suffering as the market unravel speculation that the Federal Reserve could tighten U.S. monetary policy anytime soon. This was added by the unsurprising U.S. inflation data that faded any hope for a surge in inflation. Investors are starting to sell the U.S. dollar in favour of other riskier currencies for getting higher yields. So, the evaporated speculations of more hawkish Federal Reserve continued weighing on the U.S. dollar and benefitting EUR/USD pair.

On the data front, there was no macroeconomic data to be released from the U.S. side, from the European side, 13;00 GMT, the Current Account Balance from the Eurozone dropped to 25.9B against the expected 31.2B and weighed on single currency Euro that capped further gains in EUR/USD pair.

However, the EUR/USD pair gains were limited throughout the day amid the rising U.S. treasury bond yields. The benchmark 10-year Treasury yield rose above 1.6% on Monday in the second half of the day and supported the U.S. dollar prices a little that eventually capped further gains in EUR/USD pair.

Meanwhile, on Sunday, the European Commissioner for Interior Market, Thierry Breton, said that Europe could decide not to renew its contract with the AstraZeneca pharmaceutical group due to delays in the delivery of vaccines since the start of the year.

On Tuesday, Germany will unveil the March Producer Price Index, and on Thursday, the European Central Bank is expected to hold its April policy decision. If the bank takes a more optimistic tone on the Eurozone economy, it could lead to stronger support for Euro and vice versa. On Thursday, French and Eurozone confidence data will also be revealed along with the U.S. jobless claims data.

EURUSD Intraday Technical Levels

Support Resistance

1.1967 1.2074

1.1901 1.2115

1.1860 1.2181

Pivot Point; 1.2008

EUR/USD - Technical Outlook 

The technical side of the EUR/USD is exhibiting a solid bullish bias amid a weaker dollar and stronger Euro. Most of the market movement in the EUR/USD continues to depend upon the technical outlook as both nations lack high-impact economic events. The single currency Euro is trading at 1.2060 level, having disrupted an immediate resistance level of 1.2040. Above this, the next resistance holds around 1.2112 level, and violation of this level can also extend EUR/USD pair towards the next double top resistance level of 1.2246. The bullish bat pattern on the daily timeframe is playing well for the EUR/USD pair as it has already achieved its expected targets at 1.1983 and 1.2112. The recent bullish crossovers on MACD and RSI are supporting a bullish trend in the pair. Overall, bullish bias dominates in EUR/USD pair, especially over the 1.2008 level today. All the best!