On Tuesday, the U.S. dollar index surged versus the basket of currencies. One of the primary reason was the U.S. President Donald Trump’s permission of the utilization of an emergency crude inventories in reply to assaults on Saudi Arabian refining facilities reduced a rush in WTI crude oil prices.
On the other hand, the safe-haven currencies such as Japanese yen and Swiss franc gave up much of their original gains. Investors felt less uncertain about the markets after crude prices started heading lower.
Nevertheless, traders continued to be nervous about another assault,
which is keeping the demand for safe-haven assets underpinned, along with the crude oil prices.
Economic Calendar – ZEW Economic Sentiment On the Radar
BTC/USD – Daily Analysis
Lately, the leading cryptocurrency strived to achieve bullish momentum above the $10,400 resistance area versus the Greenback. The last swing high was made around $10,437 right before the BTC/USD pair started a downside correction.
On the technical side, it seems like the 61.8% Fib retracement level of the fresh drop from the $10,437 high to $10,270 low is working as a resistance.
More specifically, there is a breakout pattern on the 4-hour timeframe with resistance near $10,400 on the hourly chart of the BTC/USD pair.
In case, the bitcoin violates the trend line support around $10,300 along with the 100 periods EMA; we may see a further downward movement in the BTC/USD pair.
Immediate support is around the $10,250 level, and the bearish breakout of this can extend bearish trend until $10,000.
BTC/USD – Daily Technical Levels
Pivot Point 10,238.03
BTC/USD – Daily Forecast
The leading cryptocurrency BTC/USD continues to trade in the Symmetric Triangle Pattern, which is supporting it around 10,000 level along with resistance at 10,400 level. A bearish breakout can drive sell-off until 9,910 area, and a bullish breakout is likely to push BTC towards 10,500 and 10,700.
EUR/USD – Fibonacci Retracement In-Play
The EUR/USD currency pair slipped on Monday has traders seems to do profit-taking to settle at pre-ECB levels around 1.1000. The drop was triggered by a risk-averse sentiment which was driven from Saudi Arabia oil facilities attack during the weekend. It has affected up to 50% of the Kingdom’s production.
Secondly, the news that pressured the shared currency originated from the World Trade Organization, as the organization ordered in support of the U.S. in the case of unauthorized aids awarded to European aerospace Airbus. Concerns are that the U.S. will now inflict tariffs to E.U. goods for as much as $21billion.
Lastly, the dovish ECB, which announced to deliver an asset purchase program of around EUR 20bn along with the negative interest rate, is also weighing on the single currency Euro.
On Monday, the single currency Euro took the slight bearish turn to complete the 61.8% Fibonacci retracement at 1.0959 area. Let’s look at the technical side of the market below.
EUR/USD – Daily Technical Levels
Pivot Point 1.1027
EUR/USD – Daily Forecast
The EUR/USD traded lower to test the support level of around 1.0997 and has closed Doji candles here. It’s signaling odds of a bullish reversal. We may see buying above 1.0997 until 1.1045 and 1.1075. However, the bearish breakout will lead EUR/USD towards 1.0935.
GBP/USD – Corrects Lower, Brexit In Focus
The GBP/USD is trading around 1.2415 area, mostly keeping the bearish trend as investors seem to follow our previous forecast. It’s mostly trading in line with our forecast of bearish retracement.
Overall, the Sterling corrected on the downside on the back of a risk-off market. Traders reacted to a cocktail of negative national and international headlines at the start of what guarantees to be a fully loaded week for the British Pound.
The Sterling traded mostly bearish against all significant rivals on Monday as traders left ‘risk’ assets and retreated to safety after a drone attack on a Saudi Aramco oilfield. The offense has sidelined around 6% of global output, stoking fears of a conflict in the Gulf.
Investors will also be focusing on the BOE rate decision and Inflation figures later.
GBP/USD – Daily Technical Levels
Pivot Point 1.2436
GBP/USD – Daily Forecast
The Cable is trading slightly lower in the wake of bearish retracement which is likely to be completed around 1.2390 and 1.2368, the 50% and 61.8% Fibonacci retracement levels. These are the levels where we can expect a bullish reversal in GBP/USD. On the upper side, resistance stays at 1.2445 and 1.2485 areas.
All the best for today.