Market Focus

Technology companies led a rebound in U.S. equities on Thursday after a report showing U.S. stocks were mixed after investors were whipsawed in part by volatile trading in high-risk assets such as Bitcoin amid lingering concerns about the inflation outlook. Oil rose for the first time in four trading sessions.

The S&P 500 closed little changed after erasing earlier gains when Philadelphia Fed President Patrick Harker said the central bank should speak about reducing bond-buying sooner rather than later. The tech-heavy Nasdaq 100 finished lower, while the Dow Jones Industrial Average gained as investors shifted from growth to value favorites such as Boeing. Bitcoin resumed its selloff Friday after China reiterated a warning that it intends to crack down on cryptocurrency mining as part of an effort to control financial risks.

European shares climbed earlier on prospects of easing lockdowns and as services data signaled a recovery. Asian shares were mostly higher, although they slipped in China.

China has long expressed displeasure with the anonymity provided by Bitcoin and other crypto tokens and warned earlier in the week that financial institutions weren’t allowed to accept it for payment. China is home to a large concentration of the world’s crypto miners, programmers who use massive computing power to verify transactions on the blockchain.

The global economic revival, the risk of a significant pickup in inflation, and Covid-19 flareups in some parts of the world continue to shape market moves. Stocks have been volatile this week, with speculative ardor cooling as minutes from the latest Fed meeting flagged the possibility of a debate at some point on scaling back stimulus measures. Still, better-than-forecast jobless claims data on Thursday buoyed sentiment.

Main Pairs Movement

The dollar outperformed its Group-of-10 currency peers Friday as a gauge of output at U.S. manufacturers and service providers set a record in May, reflecting strength in the economic recovery. The euro retreated from a key level as investors cut long positions. Treasury yields were little changed, and the dollar gained. Gold dropped from its highest level in more than four months.

Among G-10 peers, the krone was the weakest and is on track to be the worst performer this week; the pound topped all this week, while the loonie was poised for a seventh straight weekly advance, the longest run since September. USD/CAD +0.1% at 1.2077; poised for a weekly drop of 0.2%.

USD/JPY +0.2% to 108.95; pair still heading for a weekly drop of 0.4%; spike in activity after U.S. Markit PMIs; pair tracking Treasury yield-curve flattening.

Bitcoin is heading into the weekend in freefall again after a fresh warning from Chinese officials over cracking down on cryptocurrencies.

The largest digital currency fell as much as 10% in late Friday trading to as low as $35,636, and peer tokens also posted double-digit losses. The coin almost hit $30,000 earlier in the week, after ending May 14 at $49,100.

Technical Analysis

EURUSD (4 hour Chart)

After moving upside bounder near 1.223 in the earlier trading session, the euro fiber cap under bearish stress and hitting the daily low of 1.217, slightly back up way, trading at 1.2184 as of writing. The sheen greenback upward strength amid HIS Markit reported on Friday, the business activities in the private sector expanded at a record-setting pace in May with the Manufacturing PMI and Service PMI that both reach a sanguine high at 61.5 and 70.1, respectively. Meanwhile, German PMI data missed the estimation of 65.9 versus publish 64. For the technical aspect, the RSI indicator set around 47 figures which shows market sentiment turns to slightly bearish momentum. On average price view, 15-long SMA indicator turns its way to southside while the market continued choppy in a range and 60-long SMA retained upside slope yet turn flat move.

As we mentioned recently, the euro seems to fail to defend the 1.22 level as it keeps mess around in a confined range. On the other hand, the RSI indicator and short-term moving average are both show a weakness of buy-side momentum. Moreover, in the price action aspect, the euro fail to build a sideway comfort support area; instead, form a double head pattern.

Resistance: 1,22

Support: 1.2151, 1.2106, 1.207

GBPUSD (4 Hour Chart)

Sterling retreated sharply after touched 1.4233 the highest level since Feb, dropped to nearly day lows at 1.4156 amid dollar hype to 90 thresholds as the highs across the board. The benchmark of U.S. 10 years Treasuries yields move tiny change in the day while the performance of U.S. eco data shows mixed as positive in PMI and home sales fail to estimation. Nevertheless, tri-PMI data shows strong economic performance in recent, still could not thrive the market to the upside. For the RSI side, the indicator shows 40 figures which nearby a neutral market movement after sterling sharply slum. On the other hand, the 15-long SMA indicators remain smooth move and the 60-long SMA indicators remaining an ascending movement.

At the moment, the pound seems to look again to 1.42 level while awaiting further buy-in demand for a bullish boost up. For price action, we believe the pound could still roam between first resistance and support level. In addition, if the pound could break through the 1.42 level, it could see further gains to a higher stage.

Resistance: 1.42

Support: 1.3959, 1.4, 1.4108

XAUUSD (4 Hour Chart)

Gold extended its consolidative sideways price action throughout the European session and remained confined in a limited range, slightly above the 1875 stage, trading at 1879.7 as of writing. For the moving average side, the 15-long SMA indicator retained its slope to an upside trend, and the 60-long SMAs indicator retaining its north side momentum. For the RSI side, the indicator shows 58 figures, suggesting room for the up way in forthcoming.

At the current stage, gold try climbed to closer multi-month perch while seems lack of a bull momentum, however, it jumped to 1888 level in the earlier session. We still believe the gold market is eyeing the $1900 mark, waiting for follow-through buying stimulation. From a long perspective, we still believe the downside trend will be a pivotal support level. Furthermore, we hope the 1850 level could firmly defend if any upwind move.

Resistance: 1900

Support: 1850, 1812.88, 1800, 1763.837