Global markets ended on a positive note last month boosted by strong economic data from the US and China. Precious metals and currency pairs like Euro and GBP prices reached a fresh multi-month high while Bitcoin, the world’s largest digital currency by market value finally regained strong bullish momentum and surged almost 40% in January.
One of the other reasons behind the market's rebound on the hope that the Fed and other central banks may slow the pace of monetary tightening as inflation starts to cool off. Moving ahead, February month started on a mixed note as investors remained cautious ahead of big economic releases and earnings results.
Check the below technical analysis for levels of support and resistance of the important assets, specifically Bitcoin and Gold.
King Dollar: DXY
The technical scenario is bearish due to the markets thinking that the Federal Reserve would be less restrictive in their monetary policy in the coming months. While considering the recent bearish momentum the USD may find strong support below 101. On the upper side, a close above 102.60 is now needed to ease bearish pressure while bulls need to see a close above 102.80 to shift focus back to the 104 regions.
The sustainability of any further gain in the currency pair in the coming days will largely depend on how the US dollar behaves. The main trend is up according to the weekly chart. A trade through 1.0950 will signal a resumption of the uptrend. A move through 1.0800 will change the main trend to down, a further breakout of 1.0760 can lead the pair towards 1.0700 and 1.0650 levels.
The technical scenario is absolutely bullish. While considering the recent bullish momentum the crypto pair may find strong resistance above 25,200, the high of August 2022. On the downside, rejection, and pullback from the resistance allow for a dip towards 23,400, with 21,500 and 20,300 forming additional downside targets.
Gold and Silver
From a technical perspective, gold is maintaining a positive bias according to the monthly chart. If the bullish momentum continues then the next key supply area to watch is $1950 then $1970. On the downside, If the metal fails to extend the rally and retreats back below $1900 then the slump will quickly extend toward the $1865/60 mark.
Silver price struggles for a firm direction after reaching a fresh 10-month high. An extension of the ongoing price surge is expected to be slowed down again near the upper trend line, which crosses the 24.50/60 range. On the other hand, if the metal consolidates its gains by declining, support could be provided by the 23.00 mark, before the 22.40 and 21.60 levels are reached.
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