💵 💴 💶GLOBAL MARKETS💵 💴 💶
Asian stock markets are taking a breather today after global equities posted their best weekly performance in nine months, buoyed by expectations that the U.S. economy will avoid recession and that slowing inflation will lead to interest rate cuts. Gold has risen to $2,500 per ounce for the first time, driven by the prospect of lower borrowing costs, while the dollar has weakened against the euro. Meanwhile, safe-haven assets such as the yen and Swiss franc have declined as risk appetite rebounds. Federal Reserve officials Mary Daly and Austan Goolsbee hinted over the weekend at the possibility of easing monetary policy in September, and this week’s release of the minutes from the latest policy meeting is expected to emphasize a dovish stance.
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Critical Data from the UK
Gold has surpassed $2,500 per ounce for the first time, driven by expectations that the Federal Reserve (Fed) is nearing a decision to cut interest rates. Spot gold rose above $2,500/ounce on Friday afternoon, breaking last month’s record. This increase follows disappointing U.S. housing market data that has strengthened expectations for faster and deeper Fed rate cuts. Lower borrowing costs create a favorable environment for the non-yielding precious metal. Ongoing conflicts in Ukraine and the Middle East, as well as tensions between the U.S. and China, are likely to continue supporting safe-haven demand for gold in the short and medium term. The upcoming U.S. presidential election in November is also expected to contribute to gold’s upward momentum through the end of the year. Additionally, central banks are expected to continue adding gold to their reserves, which will further support prices.
Technical Overview
DXY
The dollar index has fallen out of its declining channel, dropping to the expected support level of 102.26. The lost channel support has now become resistance, continuing the downtrend. The key support level to watch is 100.68.
Resistance: 102.26 / 103.23 / 104.02
Support: 100.68 / 100 / 98.50
BTC/USD
Bitcoin is showing signs of recovery. Trading at around 58,400, the pair remains within its channel. The key support level to watch is 56,650; a break below this could lead to lower levels, but a break above the channel resistance could extend the uptrend to 62,400 and 64,300.
Resistance: 60,000 / 62,000 / 64,000
Support: 56,600 / 52,500 / 47,200
ETH/USD
Ethereum has broken its rising channel, continuing to face potential selling pressure. Currently, ETH/USD is reaching a major horizontal support level and showing signs of upward trend from this area. If it can break and turn the 2,565 resistance level into support, it could push the pair to higher levels.
Resistance: 3,364 / 4,078 / 4,340
Support: 2,565 / 2,565 / 2,200
NASDAQ
The NASDAQ 100 Index has regained its lost rising channel, now trading at 19,500. Volume trends indicate increasing inflows. The key support level to watch is 18,913.
Resistance: 19,445 / 20,000 / 20,985
Support: 18,913 / 18,500 / 18,164
BRENT
Brent crude oil continues its medium-term uptrend. The support level to watch is 79.84, which could act as a buying zone on any pullbacks. A short-term descending channel has formed, with potential buying interest at these levels to start the week. If the 82.15 resistance level is broken with volume, oil could rise to the channel’s upper band resistance at 84.50.
Resistance: 79.84 / 82.15 / 84.46
Support: 76.98 / 74.45 / 72.37
EURUSD
EUR/USD has broken its rising channel resistance and is now trading above both horizontal and channel resistances. If it remains above the 1.0983 resistance level, it could continue to rise towards 1.1146.
Resistance: 1.0114 / 1.0120 / 1.0125
Support: 1.0880 / 1.0800 / 1.0710
XAUUSD
Gold has broken its rising channel structure and is trading above the new all-time high (ATH) level of 2,500. The channel resistance has now turned into support, and gold is likely to aim for the 2,531 resistance level unless it reverts to trading within the channel. The key support level to monitor is 2,477.
Resistance: 2,530 / 2,570 / 2,600
Support: 2,488 / 2,477 / 2,450
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