On Friday (May 31), the US dollar index struggled at 104.77. The US gross domestic product (GDP) was revised to 1.3%. The data "exploded" and disappointing. The number of first-time unemployment claims rose, suppressing the dollar to fall below the 105 mark. Gold stood at $2,347, and risk aversion increased. Under Israel's fierce bombing, the Jabaliya refugee camp in northern Gaza was reduced to ruins. Bitcoin ushered in a sharp rise and fall, and once almost fell below $67,000.
Israel continues to bomb Gaza refugee camps, turning them into ruins
Fierce street fighting and Israeli bombing continued south of Rafah, trapping hundreds of thousands of civilians in the war zone with nowhere to escape.
Gaza's Health Ministry said the latest 24-hour report showed at least 53 people dead and 357 injured in the region.
After 20 days of brutal operations, the Israeli army retreated to the east, leaving the Jabaliya refugee camp in northern Gaza in ruins.
At least 36,224 Palestinians have been killed and 81,777 injured in Israel's war on Gaza since October 7, 2023. The death toll from Hamas's attacks on that day in Israel was at least 1,139, and dozens are still being held in Gaza.
Trump was convicted of 34 felony charges, becoming the first former president in history to be convicted
Republican presidential candidate Donald Trump was found guilty of all 34 felony charges of falsifying business records in the New York "hush money" trial, making him the first former US president to be convicted. He said the trial was rigged. US President Biden's camp responded that the ruling failed to prevent Trump from entering the White House, and only the November election vote could do that.
Trump responded by calling it a "rigged, shameful trial," adding: "The real verdict will be on November 5th."
The Biden campaign also responded, writing in a statement: "Today in New York, we saw that no one is above the law."
"Trump has long mistakenly believed that he would never face consequences for breaking the law for personal gain. But today's verdict does not change the simple reality facing the American people. There is only one way to stop Trump from the White House: the ballot box. Convicted or not, Trump will be the Republican presidential nominee."
US GDP and unemployment data awaken "hawks"
A disappointing U.S. GDP report made investors nervous as consumer spending showed signs of weakness. Headline GDP was revised down to 1.3%.
Markets are eagerly awaiting personal consumption expenditures (PCE) data for April due on Friday, which could influence the Fed's decision.
Unemployment data showed that initial jobless claims increased to 219K from 216K the previous week.
Despite the increase in jobless claims, the probability of rate cuts in June and July remains low, while the probability of a September cut is around 50%.
US Dollar Technical Analysis
FXStreet analyst Patricio Martín said the dollar index largely pared its gains on Wednesday due to poor U.S. economic data.
The relative strength index (RSI) is below the 50 level, which suggests increasing selling pressure and a shift in momentum.
The U.S. Dollar Index fell below its 20-day simple moving average (SMA) and the Moving Average Convergence Divergence (MACD) showed red bars, indicating that bearish sentiment has returned.
Gold Technical Analysis
Bruce Powers, an analyst at FXEmpire, said gold fell to a new correction low of $2,322, where it found support and rebounded. This low successfully tested the 50-day moving average support level of $2,324 as the price was rejected to rise. Also, note that the current high of $2,352 provides another resistance test below the purple 20-day moving average on the chart. The 50-day moving average is a key medium-term trend indicator.
Thursday was the first time that the line tested support since gold broke above it on February 29. This was the start of a massive rally in gold that saw it reach a new all-time high of $2,450 last week. If gold is to reach another all-time high before a further correction, the line should continue to hold support. This means that today’s low support of $2,322 is a critical price level for gold in the near term.
Starting from Friday's trading session, gold prices will show strength by rising above the high of $2,352. But a break above the minor swing high of $2,364 would send a clearer signal of strength as it would also take gold prices back above the purple 20-day moving average, currently at $2,355. However, to clear the bottom of the correction and set the stage for a test of the recent record highs, gold prices should break above last Thursday's high of $2,384. Interestingly, note that the two trend lines cross right around this price area.
However, the picture is a little clearer when looking at the weekly chart. With one more day of trading left this week, unless gold shows more strength before the close of the week, the week will end in a relatively narrow range, with a high of $2,364 and a low of $2,322. Once a breakout is triggered, narrow price ranges usually end with momentum accelerating in one direction or the other. On the weekly chart, it represents consolidation.
There has been only one narrow weekly move since the breakout of the symmetrical triangle on Feb. 29 that began the recent sharp rise. That move occurred on March 11, after which the bull trend resumed. However, prices quickly fell below this week’s low before buyers regained control.
Bitcoin Technical Analysis
CoinTelegraph pointed out that CoinShares data showed that the inflow of funds into Bitcoin investment products exceeded $1 billion last week. In addition to institutional investors, whales also seem to be hoarding Bitcoin. Glassnode analysts said in the The Week On-chain report that long-term investors "began to hoard Bitcoin again for the first time since December 2023."
According to the SEC filing, more than 600 U.S. investment firms have invested in Bitcoin spot ETFs since January. Since their launch, these ETFs have purchased 855,619 Bitcoins, an average of 6,200 Bitcoins per day.
The failure of Bitcoin bulls to push and sustain prices above $70,000 resulted in Bitcoin falling below its 20-day exponential moving average at $67,169.
The price action for the past few days has formed a symmetrical triangle. If the price breaks below the triangle, it will indicate that bears have the upper hand. The pair can drop to $64,600 and eventually to $59,600.
Conversely, if the price turns up from the support line and breaks out of the triangle, it will indicate that bulls are still in command. The pair will then attempt to move up to $73,777. If the bulls overcome this hurdle, the rally is likely to reach $80,000.
If you don't know how to screen strong coins, then I suggest you follow me. Whether it is spot or contract, a little shot may be your limit. The opportunity is short, so you must seize it! Success does not depend on luck, choice is greater than effort, and the circle determines destiny. In the currency circle, in addition to having a keen eye for judging the situation, you must also keep up with a good team and a good leader. If you follow me, you are already halfway to success in the currency circle! Near q1un + Wechat: H98KK5
You can receive the latest free articles in the cryptocurrency world every day. If the articles are good, you can share them with everyone!
