Solid ECN—Gold prices are steady at around $2,410 per ounce this Wednesday. The price calmed a bit after reaching new peaks. As investors ponder comments from Federal Reserve officials, caution remains a theme.
Many Fed leaders suggest waiting a few more months to be sure inflation targets are being met before cutting interest rates. Later today, details from the Fed's recent meeting will be shared, and additional insights are expected from Fed speeches.
Meanwhile, tensions between the U.S. and China, alongside worries about increased conflicts in the Middle East following the death of Iran's President Ebrahim Raisi, are preventing a significant drop in gold prices. Also, efforts in China to address troubles in its real estate sector are helping to support gold prices.
Silver Prices Hold Steady Amid Fed Policy Evaluations
Solid ECN – Silver prices have settled at around $31.7 per ounce, maintaining the peak levels not seen since December 2012. This stability comes as investors reevaluate the U.S. Federal Reserve's future actions based on recent statements from the officials.
Fed Vice Chair Michael Barr highlighted the need for patience in assessing the impact of current policies. At the same time, Atlanta Fed President Raphael Bostic projected only a single interest rate reduction this year. Although higher interest rates generally reduce the attractiveness of non-yield-bearing assets like silver, its demand continues due to widespread industrial use.
Furthermore, silver supply shortages persist, entering the fourth year of deficits. Stock levels at the London Bullion Market Association have dropped to near-record lows in April, with similar trends observed in New York and Shanghai's exchanges.
Solid ECN – Bitcoin's price has stabilized above the 78.6% Fibonacci retracement level at $62,918, aligning with the middle line of the Bollinger Band indicator. The Awesome Oscillator shows red bars, indicating bearish momentum. Meanwhile, the RSI has moved down from the overbought territory, staying above 50, which suggests continued strength.
From a technical standpoint, the primary trend remains bullish. Immediate resistance is found at $70,346. If Bitcoin breaks through the current support, the upward trend could resume, possibly reaching a new target of $73,720.
Conversely, a drop below the immediate support of $69,218 might extend today's consolidation phase toward the 61.8% Fibonacci level at $64,466.
Solid ECN – Ethereum experienced a significant price surge after breaking out from $3,141. The robust bullish momentum eased when the ETH/USD price reached the 78.6% target of $3,813. This surge pushed the RSI into oversold territory, and it currently hovers around the 70 line, indicating a potential correction.
From a technical perspective, entering long positions in an overbought market is not advisable. Traders should wait for the crypto pair to consolidate, which may lead to a dip to the 61.8% Fibonacci support at $3,598, followed by secondary support at $3,446.
EUR/USD Analysis: Bearish Signals and Key Fibonacci Levels
Solid ECN – The EUR/USD currency pair broke below the ascending trendline and is trading a bearish flag in today's session at approximately $1.0827. The technical indicators are bearish, with the RSI hovering below the 50 line and the Awesome Oscillator bars red and below the signal line.
The 23.6% Fibonacci level is the immediate resistance. If the price stays below this level, the downtrend could extend to the 38.2% Fibonacci level at $1.082.
Conversely, the primary uptrend will resume if the bulls close and stabilize the price above the immediate support at $1.083. In this case, the first target would be retesting the $1.089 ceiling.
Solid ECN–The AUD/USD price dipped below the ascending trendline and the EMA 50. As of this posting, the pair is in a downtrend, trading at about $0.662. The technical indicators are bearish, with the RSI value at 38 and the Awesome Oscillator value at -0.004. However, the AUD/USD formed a hammer candlestick pattern, clinging to the 38.2% Fibonacci level, which could indicate a potential trend reversal.
From a technical standpoint, it is recommended that the pair break either the immediate support at $0.660 or the resistance at $0.664 before joining the market. If the price drops below $0.660, the downtrend will likely target the 50% Fibonacci level, followed by the $0.657 mark.
Conversely, the primary bullish trend should resume if the bulls close and stabilize the price above the immediate resistance at $0.664.
Solid ECN – The USD/CAD trend reversed after the price neared the descending trendline, and as of writing, the pair is testing the 50% Fibonacci level at 1.362. The technical indicators signal a continuation. The Awesome Oscillator bar turned red in the current trading session, and the RSI value has dropped to 55 from 65.
From a technical standpoint, the primary trend is bearish. However, the price must close and stabilize below the 1.366 mark for the downtrend to resume. If this scenario continues, the next target will likely be the 61.8% Fibonacci level at 1.361.
Conversely, if the bulls maintain their position above the immediate support at 1.366, the trend can reverse in the short term and target the 1.370 mark.
Solid ECN – The USD/CNH currency pair is dipping from the 78.6% Fibonacci level at $7.257. The RSI indicator also demonstrates bearish momentum by turning downward, and the awesome oscillator bar has just turned green.
The immediate resistance that paused the robust bullish momentum is at $7.257. If the price remains below this ceiling, the Chinese Yuan will likely erase some recent losses against the U.S. Dollar. Additionally, the USD/CNH price could dip to the 61.8% Fibonacci level at $7.237.
As mentioned above, bulls must push the price beyond the key resistance level for the uptrend to resume.
Solid ECN – The long wick candlestick pattern on the Bitcoin daily chart resulted in the price dipping from the $71,909 higher low.
Bitcoin 1-Hour Chart
As of writing, the BTC/USD pair trades at about $68,000, close to the lower line of the bearish flag. This proximity might ease the current downtrend momentum and could result in the price testing the broken support at $68,774. If the price stays below the broken support, the Bitcoin price will likely dip to $66,400.
For the uptrend to resume, the bulls must close and stabilize the price above the descending trendline.
Solid ECN—WTI Crude Oil's downtrend has resulted in stabilizing below the 50% Fibonacci level at $77.5. The 50-day EMA is the primary resistance that separates a bear market from a bull market.
The Awesome Oscillator bars have turned red, signaling a continuation of the downtrend. Therefore, from a technical perspective, oil could decline to the next support level at $75.2.
However, the 50-day EMA challenges the bearish market, a barrier reinforced by the descending trendline and the 38.2% Fibonacci level. Should the price rise above the primary resistance, the bearish outlook will be invalidated accordingly.
Solid ECN—The Silver price bounced from the 38.2% Fibonacci retracement level at $30. As of this writing, XAG/USD is trading at about $30.5, stabilizing momentum above EMA 50 and the Ichimoku cloud. The RSI (14) value is rising at 46, supporting the primary bullish trend.
From a technical standpoint, if XAG/USD remains above the primary resistance at $30, the uptrend will likely resume, with an initial target of $30.9.
Conversely, the downtrend at $32.5 could dip to the 50% Fibonacci retracement level if the U.S. Dollar pushes Silver prices below the immediate support at $30.
Gold Falls Below $2,353: Bearish Momentum and Key Levels
Solid ECN—The XAG/USD fell below $2,353 in today's trading session. Currently, gold is trading around $2,338, retracing to test the former support level as new resistance. From a technical standpoint, the gold price dip was anticipated due to a clear divergence signal from the Awesome Oscillator. The bearish momentum has eased today due to Friday's lower trading volumes.
If XAG/USD stays below the immediate resistance at $2,353, the decline will likely extend to the EMA 50, followed by April's all-time low at $2,276.
Conversely, if bulls push the price above the immediate resistance, the uptrend is expected to resume, targeting $2,450.
Solid ECN—The EURUSD currency pair trades in a bearish flag near the upper band. At the time of writing, the bears are keeping the price below the 50% Fibonacci level at $1.084. Interestingly, the 4-hour chart has formed an inverted hammer, suggesting that the downtrend may resume.
The technical indicators suggest a neutral market, with awesome oscillator bars small and clinging to the zero line and the RSI indicator moving sideways alongside the 50 line.
From a technical standpoint, the immediate support is the 61.8% Fibonacci retracement level at 1.086. If the exchange rate remains below this level, the downtrend that began in May is likely to extend with an initial target at the middle Bollinger band, followed by the 23.6% Fibonacci level at $1.082.
Conversely, if the bulls close and stabilize the price above the immediate support at 1.086, the bullish wave that began last week could target the 78.6% Fibonacci at 1.087, followed by the May all-time high at 1.089.
Solid ECN—The GBP/USD currency pair trades in an uptrend, facing the $1.276 immediate resistance. The Stochastic oscillator (14.3.3) suggests an overbought market. Therefore, the pound sterling might lose ground against the U.S. Dollar. The ascending trendline supports the current bullish wave, while the Awesome Oscillator indicates a divergence.
However, the trend hasn't reversed, and it seems the divergence signal refers to a consolidation phase. The market is still overbought, and we do not suggest going long in this market situation.
From a technical standpoint, the uptrend will likely escalate if the bulls cross above the immediate resistance at 1.276. If this scenario occurs, the road to the next significant support at $1.289 can be paved.
On the other hand, if the bears cross below the ascending trendline (in red), the price could dip to the key support at $1.263. This level provides a decent bid for bullish traders to reevaluate the market. Therefore, it is recommended that traders wait for the GBP/USD to either break out or dip to the key support before joining the market, either as a bull or as a bear.
Solid ECN —AUD/USD resumed its uptrend after hitting the ascending trendline at $0.659. As of writing, the pair is trading inside the symmetrical triangle, testing the upper line at $0.664.
The technical indicators suggest a resumption of the uptrend. Therefore, if the bulls manage to close and stabilize the price above the immediate resistance at $0.664, the next bullish target could be $0.668.
On the flip side, if the price remains inside the wedge pattern, it will likely float sideways to the apex, targeting the ascending trendline again.
Solid ECN—USD/CAD broke below the 61.8% Fibonacci level today, and as of writing, the pair trades at approximately 1.363 CAD. The current bearish momentum will likely target the 78.6% Fibonacci level at 1.362 CAD.
Bullish traders should wait for signs of a reversal or consolidation phase at the 78.6% Fibonacci level. If the selling pressure exceeds this level, the next bearish target will be the May low of 1.358 CAD.
Solid ECN—The EUR/USD currency pair trades in a bullish flag pattern, stabilizing above the 78.6% Fibonacci level at $1.08. The technical indicators are bullish. The RSI (14) value at 65 indicates some room left before becoming oversold, suggesting that the bullish momentum will likely continue.
From a technical standpoint, the uptrend is expected to persist as long as the EUR/USD trades above the ascending trendline and the 61.7% Fibonacci level at $1.086. In this scenario, the next target will be $1.089.
Conversely, if the price dips below $1.086, the 50% Fibonacci level at $1.084 will be the next support. If the price falls below $1.084, the bullish outlook should be invalidated, and the trend would likely shift from a bull market to a bear market.
Solid ECN— The silver price became overbought after the bulls hit the $31 high. Subsequently, the chart formed a long-wick bearish candlestick pattern, which led to the price entering a consolidation phase. As of writing, the pair is testing the Ichimoku cloud as support, maintaining its position above the 25-day simple moving average.
From a technical standpoint, the primary trend is bullish, and the 23.6% Fibonacci level offers a decent opportunity to join the bull market. Another option to join the bullish market is to wait for a breakout above the immediate resistance at $31.8. If this scenario continues, the next bullish target will be $32.5.
Conversely, the bullish outlook should be canceled if the silver price dips below the 25-day SMA. In this case, the dip that began today could extend to the 38.2% Fibonacci level at $30.
Pound Sterling Soars: Technical Analysis of GBP/USD
Solid ECN—The GBP/USD currency pair broke above the 1.276 immediate resistance in today's trading session. This development in the pound sterling drove the relative strength index indicator into the overbought area, signifying that the market might reverse or initiate a consolidation phase.
From a technical standpoint, the road to 1.28 is paved, but for the bulls to achieve this target, the price must maintain its position above the ascending trendline.
The bullish outlook will be invalidated if the GBP/USD price drops below the ascending trendline. 1.267 is the next support level in this scenario, followed by 1.263.
Solid ECN—The NZD/USD currency pair broke above the immediate support at 0.6139, and as of writing, it is trading at approximately at 0.616. The RSI indicator is becoming overbought, indicating that the uptrend might ease and the market will likely experience a consolidation phase.
From a technical standpoint, the overbought RSI could lead the U.S. Dollar to erase some of its recent losses. Hence, if the price dips to the ascending trendline, this level around 0.613 can provide a decent entry point to join the bullish momentum. In this scenario, the next bullish target should be set at 0.621.
Conversely, if the NZD/USD dips below the ascending trendline, the initial support level will be 0.608, followed by the secondary support level at 0.603.
