Daily F.X. Analysis, April 03 – U.S. Nonfarm Payroll Under the Spotlight

On Friday, the U.S. dollar edged toward a 2% weekly rise supported by a bullish wave in the oil price and as investors sought shelter in the wake of worsening economic fallout from the coronavirus pandemic.

Later today, the greenback moves will continue to play a significant role, as attention shifts to the Euro area Final Services PMI report. At the same time, the US Non-Farm Payrolls and ISM Non-Manufacturing PMI data are scheduled to release later this Friday. The coronavirus related headline could also drag attention. 

Economic Calendar    

BTC/USD - Daily Analysis

The BTC/USD has entirely recovered from $5,200 to $7,200 in the preceding two weeks, despite the declining desire for high-risk assets, which also covers single-stocks and cryptocurrencies.  

Due to a meaningful selloff in the U.S. stock exchange and the worsening Coronavirus pandemic that has since tidied beyond the U.S. and Europe, the price of BTC/USD over continued its downtrend. It declined to $3,600 on crypto exchanges. 

The truth that bulls quickly walked in to buy the low and drove the price from $3,600 to $5,200. The BTC/USD price is expected to rally to $8,500 over the short term.

Later yesterday, the leading crypto pair BTC/USD seems to have violated the double top resistance level of 6,525, and closing of these candles over this level are suggesting chances of further buying in the Bitcoin pair. 

BTC/USD - Daily Technical Levels

Support Resistance 

6,518        7,190

6,219        7,563

5,846        7,862

Pivot Point 6,891

BTC/USD – Daily Forecast

The leading crypto pair BTC/USD is trading sideways within a narrow trading range of 6,853 - 6,694. On the 4 hour timeframe, a bearish breakout of 6,696 level can lead to Bitcoin prices towards the next support level of 6,533. 

Conversely, the bullish breakout of 6,853 opens further room for buying until 7,095 and 7,250. Leading indicators, such as RSI and Stochastic, are in a bullish zone, suggesting chances of buying in Bitcoin.

EUR/USD –   Eyes On ISM Non-Manufacturing PMI

Today in the early Asian session, the EUR/USD currency pair hit the fresh six-day lows and dropped below the 108.50 level, mainly due to the broad-based greenback strength. Whereas, the U.S. dollar is continuing to getting support as a safe-haven demand and reached the highest level in 6-days in the wake of risk-off market sentiment. 

The downbeat US data also gave a boost to the greenback. The EUR/USD is trading at 1.0845 and consolidates in the range between the 1.0834 - 1.0863. However, the traders await the relevant US data for the fresh direction.

At the USD front, the US dollar hit the highest levels in 6-days against its 6-major rivals on Thursday, as the safe-haven demand for the US dollar continues to rise due to intensifying coronavirus outbreak and its growing risks on the global economy.

At the data front, the rise of 6.648 million in the US Initial Jobless Claims failed to stop the dollar rally, as the total number of virus cases globally surpassed 1 million, with over 50,000 deaths reported so far, further fueled the risk-off market sentiment. The US dollar index now trades at 100.25, having reached a multi-day high at 100.40.

EUR/USD - Daily Technical Levels

Support Resistance 

1.0796      1.0946

1.0734      1.1032

1.0647      1.1095

Pivot Point 1.0883

EUR/USD – Daily Forecast

On Friday, the major currency pair EUR/USD has violated intraday support level of 1.0962, and closing of 4-hour candles below this level is supporting odds of more selling in the pair. On the lower side, the EUR/USD has chances of falling further until 1.0835. The bearish bias remains strong today.

GBP/USD -   Eyes On UK PMI & U.S. Data

Today in the early Asian session, the GBP/USD currency pair flashing red and dropped below the 1.2400 level, mainly due to broad-based U.S. Dollar strength. Whereas, the U.S. dollar is continuing to getting support as a safe-haven demand and reached the highest level in 6-days.

The coronavirus (COVID-19) crisis also keeps the pair lower. However, the currency pair failed to get support from the good news about medium-sized UK businesses. At the press time, the GBP/USD is trading at 1.2382 and consolidates in the range between the 1.2367 - 1.2411 while the cable traders await for busy economic docket for the next direction.

At the USD front, the US dollar reached the highest levels in 6-days against its 6-major rivals on Thursday, because the safe-haven demand for the US dollar continues to rise due to intensifying coronavirus outbreak and its growing fears about a global recession.

Furthermore, the UK Chancellor Rishi Sunak issued the state-backed aid packages to medium-sized companies with turnovers as high as £500 million during the early Aisa. On the other hand, Health Secretary Matt Hancock also highlighted the idea of distributing certificates to allow people who have built up immunity to the coronavirus to return to a healthy life.

Looking forward, the traders will keep their eyes on the economic calendar with the final figures of the UK’s March month activity data expected to offer intermediate moves. The US NFP and ISM Non-Manufacturing PMI figures will be key to watch.

GBP/USD - Daily Technical Levels

Support Resistance 

1.2324      1.2448

1.2258      1.2508

1.2134       1.2632

Pivot Point 1.2383

GBP/USD – Daily Forecast

The GBP/USD consolidates around 1.2400 level, but it manages to trade bearish, falling to 1.2450 level. On Thursday, the GBP/USD's pivot point support stays around 1.2383 level, which also marks the 50% Fibonacci support level for the Sterling. At the moment, the GBP/USD is holding below a strong resistance level of 1.2513 level. 

On the 4-hour timeframe, the Sterling a pair is likely to find support at 1.2350 violation of which can open further room for selling until 1.2305 and 1.2090, which marks 38.2% Fibo level. The leading indicators, such as RSI and Stochastics, are holding in the overbought zone, which supports the odds of selling bias or retracement in the GBP/USD pair. The GBP/USD pair may trade in selling below 1.2360 and buying above the same level today. Good luck and have a nice weekend!