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Technical Analysis for Bitcoin, Euro vs U.S. dollar, and Gold for 4th May 2021

The Daily Cryptomenon

This analysis was written at 9:00 am GMT +3, on 04.05.2021

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The market's volatility at the start of the week soon faded as the day progressed and as we started a new one, the markets are relatively set in their current direction without much change. Bitcoin continues to struggle to regain the bullish momentum as the $57,000 resistance level is going to play a major part deciding the next leg of the journey.

EURUSD continues to battle against the increasing bearish pressure coming in from all sides especially with the USD price dynamics increasing. The 1.2050 is the most important support as they try to break above 1.2080 to regain the bullish pressure. Gold, on the other hand, seems to be heading to the topside with the current Cup and Handle pattern showing more upside momentum building.

With that said, let’s find out how the markets are doing on May 4th, 2021.


Bitcoin Struggling Against $57,000 

Bitcoin’s upward momentum allowed it to break above the $58,500 resistance zone, however, it quickly found itself facing against the $59,000 zone, and failed to continue higher. A slight break above the $59,000 can be observed but the sellers were in control of the instrument as they started a downward move. The price broke the $58,000 and $57,000 support levels. By breaking below the $57,000 support, BTC also fell below the 200-SMA on the 4-hour chart before coming to rest around the 100-SMA on the same timeframe.

BTC is now trading below the $57,000 resistance level as well as the 200-SMA. However, the Bulls were able to enter the fray at the 100-SMA and started a push higher allowing it to break the $55,500 resistance level. The first level of bearish resistance can be found at the 200-SMA and $57,000, where the main resistance is now forming. A successful break above the $56,800 and $57,000 resistance levels could open the doors for a fresh move towards the $59,000 level.



The focus of the Bulls is to drive the price of BTC above $57,000, if that doesn’t happen, additional downward pressure can be expected. The first level of support can be seen near $55,000. The first key support is near the $54,500 level and the recent low. A downside break below the $54,500 support might call for a drop towards the $52,000 support zone.

Current Market Sentiment:Cautiously Bearish


EURUSD Trades Below 1.2100

EURUSD fails to extend the previous day’s recovery moves beyond 1.2070, easing to 1.2057 amid the initial Asian session on Tuesday. In doing so, the currency major pair fizzles the previous day’s bounce off 100-SMA below a three-day-old resistance line. It should, however, be noted that the easing bearish bias of MACD (Moving Average Convergence Divergence) and the pair’s sustained trading beyond the key SMA seems to favor EURUSD buyers in crossing the nearby hurdle around 1.2080.

Following that, the 1.2100 round figure and the previous month’s high near 1.2150 should test the Bulls. Meanwhile, the pair’s declines below the 100-SMA level of 1.2025 can stall near the 1.2000 psychological magnet, if not, then the 200-SMA around 1.1925-20 would become the key support to watch. The RSI (Relative Strength Index) is still showing that the Bears are in charge of this instrument as the indicator was unable to break above the 50 level.


If the EURUSD drops below 1.1920, odds of the pair’s south-run to an area surrounding 1.1860, including multiple levels marked in early April, can’t be ruled out. From the economic calendar’s perspective, there isn’t much going on so one can expect that any movements in the EURUSD will be affected by the price dynamics of the USD.

Current Market Sentiment:Cautiously Bearish


Gold Regains Upside Momentum

Gold is easing off its three-month highs, as the Bulls face a hurdle at the technical resistance near the $1798-$1799 zone. Broad-based USD demand amid a risk-off mood and upbeat comments from Fed Chair Powell continue to put added negative pressure on the yellow metal. Regardless, the XAU Bulls remain hopeful as the US Treasury yields continue to fall. After the ISM Manufacturing PMI data disappointed markets, gold traders will most likely take any trading ques from the USD price dynamics amid a dry economic calendar.

Technically, gold is almost at the end of a Cup and Handle pattern on the 4-hour chart. This usually appears in the chart when the instrument has stalled at the topside. It’s usually designated as a continuation pattern meaning that we can expect the instrument to continue higher after the handle portion of the pattern is completed. By the looks of things, one can expect that a move towards the $1,780 is the first target before the Bulls take over and push the instrument past $1,800.

 


The resistance and support structure of gold indicates that the path of least resistance seems to be to the upside with limited resistances. The first major resistance level can be seen between the $1,793 and $1,795 zone, however, should the Bulls want to break above $1,800, a strong foothold above $1,798 needs to be established. From there, the $1,806 and $1,810 will be viable targets for the bullish momentum. On the downside, strong support awaits near $1,787 followed by $1,780 which will try and limit any downside movements on the instrument.

Current Market Sentiment:Bullish


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