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Technical Analysis for Bitcoin, Euro vs U.S. dollar, and Gold for 12th July 2021

The Daily Cryptomenon

This analysis was written at 9:00 am GMT +3, on 12.07.2021

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There seems to be a return of the bullish momentum in the market. Economic events are starting to change things up as well as the new increase in the COVID-19 Variant across the world adding more restrictions after the economies of the world started to recover, but still this is looking better as the vaccines are proving to be more effective than anticipated. This allowed the EURUSD, Gold, and Bitcoin to climb back to their respective resistance levels as they aim for higher marks.

With that said, let’s find out how the markets are doing on July 12th, 2021.

Bitcoin Restarts Journey to $40,000

Bitcoin’s prices closed in green at the weekend's close, and the instrument was trading higher than $34,000. Last week's trading was basically flat, falling sharply from a weekly high of more than $35,000 to a low of less than $33,000, reaching a low of $32,000. That is where 50- and 100-SMAs provide urgent help. The 4-hour closing price above $34,000 confirms the next step, which may be a key obstacle to the $35,000 level indicated by the 200-SMA.

Through successive obstacles, investors are confident of the upward trend. This further increases the chances of trading Bitcoin in excess of $40,000. The Moving Average Convergence Divergence (MACD) indicator is a technical tool used to track asset trends and calculate their dynamics. Stable rise from the negative area to the area above the centerline (0.00) increases confidence in the bullish forecast. In addition, MACD allows you to send a buy or sell signal so that investors can maintain a downward or upward trend. At the time of writing, Bitcoin has the least resistance to the upside. 

 


On the other hand, a breakthrough of $35,000 (200 SMA) will emphasize the strengthening of bullish price control. It’s worth noting that the Relative Strength Index (RSI) has risen above the midline and is moving towards the overbought zone, which shows that the Bulls are tensing their muscles to become active again this week. RSI follows the trend of assets and shows how strong this strong uptrend is, similar to the current trend of Bitcoin. A rebound tends to attract more buyers into the market, thereby increasing profits by up to $40,000.

Current Market Sentiment:Bullish


EURUSD Eases Towards 1.1850

After two days of rising, the euro/dollar fell to the 1.1850 level, because the US dollar tried to rebound moderately amidst mixed risk-sentiment. Starting next week, as Sydney expands its lockdown restrictions as the epidemic continues to intensify, Covid traders’ concerns will continue unabated. The market is cautious about what the U.S. inflation and Fed Chairman Jerome Powell said in the semi-annual monetary policy report released on Friday.

After a record close on Wall Street last week, regional stock markets rebounded. Despite the correction, major currency pairs still held most of Friday's gains to test the 1.1850 level. The instrument is currently trading around 1.1870 as it fell slightly from a three-day high of 1.1882 on Friday. The EUR/USD has not lost its bearish potential on the daily chart. The currency pair continued to climb below the 61.8% retracement level of the March-May uptrend at 1.1920, which is the main resistance level.



All 20 SMA heads are almost vertically below their current levels. Extend the decline below the converging 100 and 200 SMA. The momentum indicator fell back from the midline, while the RSI rebounded moderately around 41. The 4-hour chart shows that although the bearish 100 SMA was capped, the flat 20 SMA provided support. The technical indicators are neutral within the positive level, which indicates that it’s possible to test the above-mentioned level 1.1920 in the near future.

Current Market Sentiment:Bullish


Gold Struggles to Hold $1,800

On Monday, gold rebounded above the $1,800 mark and continued the gains of the previous trading day, but failed to maintain its bullish momentum. The rise in U.S. Treasury yields from low levels have put pressure on gold. The higher dollar value makes gold more expensive. At the same time, due to the highly contagious Delta variant, there’s renewed concern about the increase in coronavirus cases, which forces investors to invest in gold.

The minutes of the Fed meeting last week showed that the economic recovery has made little progress, but further progress is expected and market sentiment has risen further. As the U.S. dollar fell by 0.27%, the gold price reached a maximum of $1,812.44. The US dollar index (DXY) fell from a high of 92.541 points to a low of 92.090 points, due to the rise in US Treasury bonds, which led to a rebound in risk appetite.

 


Data from the US this week is also crucial, in particular the CPI and retail sales. Fed officials once again stated that they don’t recommend making inferences because of “temporary” factors, but the next increase in used car prices, as well as the surge in air tickets and hotel prices, may cause the CPI to rise sharply again.

Current Market Sentiment:Bullish


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