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Technical Analysis for Bitcoin, Euro vs U.S. dollar, and Gold for 10th August 2021

The Daily Cryptomenon

This analysis was written at 9:00 am GMT +3, on 10.08.2021

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The market is still reeling from the US NFP (Non-Farm Payroll) result from last Friday as the USD gains against all the major currencies. The market is simply too engrossed by the positive news coming from the US, as well the negative information that is associated with geopolitical tensions and increasing COVID case numbers. All of which only give the USD added pressure to be called on as safe-haven, which in turn adds negative pressure on other instruments.

With that said, let’s find out how the markets are doing on August 10th, 2021.

Bitcoin Bulls Remain in Control

The price of Bitcoin was revised below $43,500, just like Ethereum. Nevertheless, BTC remained strong at around $43,000 and $42,800. Its trading price is only $42,855, and a new surge has recently begun. There was a major breakthrough above the $44,000 resistance zone. The hourly chart of the BTC/USD currency pair broke through the main downtrend line and the resistance came near $44,000. It’s currently trading above $45,000 and the 100-hour simple moving average.

It even broke the $46,000 resistance zone. Bitcoin is currently consolidating profits, and the direct support is around $45,650. The 23.6% of the most recent Fibonacci retracement level went from a low of $42,855 to a high of $46,511. An ascending channel was also formed on the same chart, and the support level was around $45,650. On the other hand, there was also resistance close to the $46,200 level. The first major resistance was around $46,500.

 

 


A significant breakthrough of the USD 46,500 resistance zone may trigger a new rebound. The next major resistance is near $47,200, and any additional victory could push the price up to $48,000. The resistance at $47,200 may start a bearish correction. The initial downside support is near $45,650, but now the first major support level is around $45,250. The next important support level may be at $44,680, which is close to the 50% Fibonacci retracement level of the latest wave from a low of $42,855 to a high of $46,511.

Current Market Sentiment:Slightly Bullish


EURUSD Struggles Against Four-Month Lows

After falling sharply last week, the EUR/USD exchange rate has remained calm since the beginning of this week. Prior to the release of key Eurozone data, the currency pair is steadily approaching a four-month low. At the time of writing, the EUR/USD is trading at 1.1740, which is higher. The 10-year US Treasury bond yield is expected to rise to 1.32%, suggesting a rise by 0.45% due to better vacancy data.

The U.S. dollar index (DXY), which tracks the U.S. dollar against six major competitors, rose by 93.00. In addition to Atlanta, Federal Reserve Chairman Rafael Bostic and Richmond Federal Reserve Chairman Tom Barkin reiterated their stance on rising inflation, which is already at a level that can guarantee the start of interest rate hikes.



At the same time, the U.S. Senate continued to vote on the $1 trillion infrastructure bill on Tuesday, and then immediately began debating another $3.5 trillion bill. On the other hand, the single currency traded below 1.1800 in the second week of August, which was the lowest level since mid-April. The data from today's German ZEW survey will be specifically used to measure the performance of the common currency against the US dollar.

Current Market Sentiment:Bearish


Gold Rebounds Hinges on $1,737

Gold showed positive momentum for the first time in four days, consolidating its previous rebound from a five-month low of $1,688. The Senate will vote on the bill at the end of Tuesday. Gold traders are now waiting for the US CPI report later this week, as well as the Fed's policy stance, which will provide new trading clues for metals.

The pivot point is S1 on the one-week chart, and 61.8% Fibonacci are proving to be the main levels that Bears are trying to break under. Given the latter's refusal, the seller may turn around and look for a target at the previous four-hour high of $1,733. If the downward pressure increases, performing the Fibonacci 161.8% test, at a price of $1,725 is inevitable. Further south, 38.2% of Fibonacci in one day will face a risk of $1,718.

 


On the other hand, should traders accept a movement above the important limit of $1,737, this will be crucial to extend the recovery momentum to the four-hour SMA10 of $1,743. A challenge to the Bollinger Band for 1 hour at a price of more than $1,748, and the door above this price opened to $1,759, which marks the low point of the previous week.

Current Market Sentiment:Bearish


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