Bitcoin on the verge of huge selloff which might take it to $ 6,500 levels

The Bitcoin price is currently on a very important technical level which position it for a rapid price change in the near future.

If the price manages to break the current level, there is a possibility for it to retest $13,000 level which was the highest since June 2019.

But the chart patterns identified, suggests a more bearish move is much expected within the short horizon to the level around $ 6,500. With the expectation of recoveries in the world economy from Covid-19 Pandemic, it will be expected for Bitcoin and Cryptocurrencies assets to experience a temporary selloff.

EUR/USD surges towards 1.09 on EU reconstruction plans, risk-on

• Euro gains momentum after Merkel and Macron back EU fund for recovery.
• EUR/USD hovering around 1.0900, up almost a hundred pips.
• Markets are rising amid hopes for a corona-virus vaccine and rising oil prices.

The EUR/USD extended gains boosted by a decline of the US dollar across the board on risk-on. Also the announcement that France and Germany proposed for the European Union to raise debt jointly added more strength to the euro.

The pair reached at 1.0913 the highest level since May 5 and it is hovering near the peak, holding a strong bullish tone. EUR/GBP eared losses while EUR/CHF jumped above 1.0550, to the highest in two weeks.

On Technical analysis, the Euro display potential to strengthen against USD.

The US dollar is under pressure hit by risk appetite. The DXY is falling 0.65% and bottomed at 99.70. In Wall Street, the Dow Jones gains 3.45% and the Nasdaq 2.38%. Hopes about a vaccine for coronavirus triggered optimism.

More recently, equity prices rose even further after German Chancellor Merkel and French President Macron announced a recovery fund of around 500 billion euros for the recovery of the coronavirus crisis. Macron said it will be grants and not loans.

EUR/USD ticks higher amid gold's rally to 7 year high

Gold's rally to multi-year highs is likely weighing over the US dollar and pushing the EUR/USD higher on Monday. German minister calls for a temporary ban on Chinese takeovers.  Escalation of the US-China or EU-China tensions could cap the upside in the spot.

EUR/USD drops to 1.0815 during the early Monday trading session. In doing so, the quote stays depressed below 200-HMA while also staying inside a short-term triangle formation. Although the pair’s immediate failures to cross 200-HMA drags it towards 1.0800 mark, the formation support, at 1.0775 now, will keep the sellers in check. Should there be a clear break below 1.0775, April month bottom surrounding 1.0730/25 will be the bears’ favorite.

On the contrary, an upside break of 200-HMA level of 1.0823 will push the pair towards a three-day-old resistance line, at 1.0840 now. Though, the pair’s further rise past-1.0840 will be hindered by the said triangle’s resistance line near 1.0860.

Looking ahead, the upside in EUR/USD could stall if China objects to the German minister's appeal to the European Union to block Chinese takeovers of companies. 

"We have to see that Chinese companies, partly with the support of state funds, are increasingly trying to buy up European companies that are cheap to acquire or that got into economic difficulties due to the coronavirus crisis," said Manfred Weber, a senior German conservative and head of the center-right EPP grouping in the EU Parliament, according to Reuters. 

Moreover, the US-China trade tensions are already on the rise and could weigh on risk assets. On the data front, German Bundesbank's Monthly Report is scheduled for release on Monday. Across the pond, the focus will be on the NHB Housing Market Index (May).