BTC/USD, ETH/USD, XAU/USD (Gold), XAG/USD (Silver): Technical Outlook, Edition #32 (25/06/21)

Is this the beginning of a diminution of USD strength? Latest announcement from the BoE signals a disparity in expectations with the US Fed. Let's examine the forecasts for BTC, XAU, XAG & ETH...

Bank of England set expectations for a "wait and see" approach to reversing QE, managing inflation 

This time, the BoE did not follow the Fed. 

The latest announcement from the UK central bank indicates they would prefer to sit tight for the time being and assess if inflation is transitory or persistent.

As a result, the GBP/USD has come off with most speculators assuming that the BoE would follow suit with the Fed. 

Risk-on assets and currencies had a pleasant day today as the spotlight moved from the US after last week's FOMC. 

Let's explore forecasts for the following assets:

Q's Trading Idea: Bitcoin

Bitcoin, BTC/USD - 4 Hour (H4)

Attempting to flip USD 34K into support is a good sign for the bulls. 

Plenty of MA/EMA confluence lingers around this zone; flipping the H4 20 EMA (GREEN) is a great start. 

Observe that the H4 50MA is next at USD 35K. 

Successfully turning USD 34K into support will bode well for weekend momentum to continue. 


Q's Trading Idea: Ethereum

Ethereum, ETH/USD - 4 Hour (H4)

We can see Ethereum is using the tailwind from Bitcoin as support. 

It has yet to flip the H4 20 EMA (GREEN) – keep a close eye out for this crucial signal.

The introduction of EIP-1559 on the Ethereum test net also gives us an idea of the impact on future supply the proposal will have. See it work in real-time here.

Q's Trading Idea: Gold 

Gold, XAU/USD - 4 Hour (H4)

Gold is holding the macro .382 fib level at 1770 USD. 

Analysis indicates the traditional inflation hedge is now trying to flip the H4 20 EMA into support - achieving this is a sign our bulls are lively.

Q's Trading Idea: Silver

Silver, XAG/USD - 4 Hour (H4)

Structurally speaking, Silver looks a lot more bullish than Gold. 

Price-action has flipped the H4 20 EMA and will now try to kiss the H4 50 MA 28.60 USD per oz.

Q's Conclusion

There is plenty of action to monitor as we head into tonight's trading session. 

As we've highlighted in our latest Technical Outlook editions, commodity and cryptocurrency markets appear thoroughly on the road to recovery after a beating from last week's surge in USD strength. However, future fundamental occurrences could send markets tumbling once again.

See you again for the next update.

- q

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