This website uses cookies to ensure you get the best experience on our website
Join us on Telegram for FREE daily market updates!

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

The Daily Cryptomenon

This analysis was written at 9:00 am GMT +3, on 12.08.2021

For todays important  economic announcements, visit our Economic Calendar.

The market was rather disappointed by the US CPI data, as they thought the figure was going to push the FED to increase interest rates much earlier than expected. However, that wasn’t the case, and the USD experienced some negativity during the US and Asian sessions. This has allowed the other instrument to rebound higher, as traders waited for some fresh impetus to trade the next leg.

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

Bitcoin Consolidates as Correction Risk Increases

Bitcoin price is still facing strong resistance near the $46,500 and $46,700 levels. BTC is currently consolidating below the resistance level of $46,700. Recently, there was a slight downward correction from the mentioned resistance. The price traded below the support level of $46,000, falling below the 50% Fibonacci retracement level of the uptrend, which takes the low of $44,714 to a high of $46,699. It also fell below the main uptrend line, supporting around $46,000 on the hourly BTC/USD chart.

The currency pair is currently located above the $45,000 area and the 100-hour simple moving average. The immediate downside support is near $45,450. On the other hand, the initial resistance is at $46,200. The first major resistance is around $46,500. A huge resistance is currently formed near $46,700. A clear breakthrough of $46,700 is needed for the Bulls to retake control and show some positive momentum, in which case, the price could easily rise to the $47,500 level.

 

 


The next major resistance is near $48,000, and it might continue to fall, unless Bitcoin rises above the resistance levels of $46,200 and $46,500l. Initial support for the downward movement is near $45,450. Now the first major support is near the $45,200 area and the 100-hour moving average. The basic support may be $45,000. Therefore, a break below the $45,000 support area may trigger a sharp decline, with the next important support level at $43,400.

Current Market Sentiment:Consolidation with Bearish Bias


EURUSD Moves to 1.1750 after US CPI

EUR/USD rebounded to 1.1740, bouncing off the intraday low, but remained unchanged on the day preceding the European session on Thursday. Although the earlier US dollar weakness may be related to the July US CPI data and the comments of Fed policymakers, the recent decline reflects the hesitation of traders amidst mixed dynamics.

According to the latest inflation data from the United States and Germany, and due to the rise in COVID cases as well as the future actions of the Federal Reserve and the European Central Bank, the policies of the United States and Europe on economic recovery issues are causing problems for the euro/dollar currency pair. Due to rising government bond yields and slightly optimistic fundamentals, EUR/USD traders will focus on industrial production in the Eurozone in June as well as the US Producer Price Index (PPI) in July.



After last week's strong NFP results, weekly US Unemployment Claims data are also important. It is crucial to keep an eye on COVID headlines and US budget negotiations. As for the new direction, it should be pointed out that the Euro/Dollar pair Bears may be losing some steam at the current support, meaning that any negative news against the USD will be met with Bullish zeal.

Current Market Sentiment:Consolidation


Gold Struggles Near $1,750

Due to the weakening of the U.S. dollar and the falling U.S. Government Bond yields, the price of gold is trying to rise above $1,750. The dollar index (DXY), which measures the vitality of the USD and compares it to the six main currencies, fell below 93.00. The US inflation came in at 5.4%, in line with market expectations of 5.3%. The lower inflation read in the United States has eased investors’ concerns about the Fed’s expected downsizing.

The falling Government Bond yields and the weaker U.S. dollar are helping the precious metals catch their breath. The bet is that the Fed may act faster-than-expected to reduce the $120 billion allocated each month for the epidemic-hit-economy. Concerns about COVID Delta spreads have limited the fall in the price of gold. At the time of writing, the XAU/USD price was $1,750, and it remained unchanged on the day of the overnight transaction consolidation.

 


Core inflation in the US in July was not as strong as expected, since the US bonds and dollar fell. The market is consolidating the recent volatility surrounding the central bank's narrative (at least temporarily), and the continued underperformance of gold indicates a lack of investor interest in the context of declining real returns. Analysts have also stated that short-term hedging and profit-taking have played a role in tracking lows. However, trend followers may further increase their short positions in the upcoming trading day, growing the selling pressure as the market seeks supply.

Current Market Sentiment:Consolidation


Got any unanswered questions related to the financial markets?

No matter what your question is, feel free to reach out to your CryptoAltum Account Manager or our outstanding Customer Care Team. Your personal and dedicated Account Manager is on hand ready to help you with any questions. If you don’t have a CryptoAltum trading account yet, get one here. You’ll get your very own Account Manager.


For more market updates go ahead and visit our Blog 

Risk Disclosure: Trading cryptocurrencies or any other financial instrument involves a significant level of risk and may result in a total loss of your investment. You should consider carefully whether investing in Bitcoin or any other instrument offered by CryptoAltum is appropriate to your financial situation. CryptoAltum only accepts deposits in Cryptocurrencies. By trading with CryptoAltum you acknowledge your understanding of this risk disclosure and your agreement with the Terms and Conditions.
  • Copyright Excel Innovations Ltd (CryptoAltum) 2020