Daily F.X. Analysis, April 23 – Manufacturing & Services PMI's In Highlights!
By Eaglefx On April 23, 2020 in Daily Market Analysis
On Thursday, the greenback accelerated ahead versus the currencies of oil yielders as a bounce-back in crude prices from an abnormal collapse only partly soothed markets weakened by the massive coronavirus-led decline in global demand. Today, the market's focus is going to be on the manufacturing and services PMI figures, which are scheduled to come out from the Eurozone. Let's take a look at the significant trade setups.
Economic Calendar
BTC/USD - Daily Analysis
The BTC/USD price has started trading in the bullish region around 7,147 area during the Asian session. The BTC/USD has tested and already violated the psychological resistance level of $7000. The Bitcoin price has also crossed over the 50 periods exponential moving average and is already trading over the 200 simple moving average on the 4-hour timeframe.
The price action in Bitcoin is looking strong, as we can observe from the chart here, but the high of 7466.00 is likely to be taken out for the bulls to remain in charge.
If that doesn't appear then, the price could look for support levels around 6,818.58; that level seems solid as it has been examined a few times in the past. The next major downside target stays at $6500, which, if breached, could invite a huge wave of selling.
BTC/USD - Daily Technical Levels
Support Resistance
6,913 7,219
6,730 7,342
6,424 7,648
Pivot Point 7,036
BTC/USD – Daily Forecast
The BTC/USD prices showed slight surged to trade below 7,212 level, but it managed to close below this level. Closing of candles below this level is suggesting chances of a bearish bias in Bitcoin. Below 7,212, we can expect some bearish bias until the support levels of 6,930. Bullish crossover of 7,210 level can extend the buying trend until the next resistance level of 7,430.
EUR/USD – Manufacturing & Services PMI's
Today in the early Asian session, the EUR/USD currency pair failed to stop its previous sessions losing streaks and dropped to weekly lows near the 1.08 level ahead of European flash PMIs while the currency pair is representing 0.10% losses on the day, possibly due to the recent recovery in the U.S. dollar.
The EUR/USD is trading at 1.0814 and consolidates in the range between the 1.0804 - 1.0826. However, traders are cautious about placing any position ahead of European flash PMIs. It should be noted that the Eurozone's preliminary PMI numbers for April may test the desire for the EUR during the European trading hours.
Whereas, Germany's Markit Manufacturing PMI, which is scheduled to release at 07:30 GMT, is expected to show the decline in the manufacturing sector gathered pace in April. In the meantime, the PMI is expected to drop to 39 from March's 45.4.
The Eurozone Manufacturing PMI is also anticipated to drop to 39.2 in April from 44.5 in March. According to on-going circumstances, there should no surprise come if the manufacturing activity release worsens because, as we know, most of the European economy suffered in tight lockdowns earlier this month to control the coronavirus outbreak.
As in result, the shared currency could draw offers during the Europan session if the actual reading shows a bigger-than-expected decrease. Following the data, the trader's focus will shift to the European Union meeting. The EUR/USD currency pair may take strong bids only if the meeting bridges strong divisions on the contentious matter of how to pay for a recovery fund to support the damage economies caused by coronavirus pandemic.
EUR/USD - Daily Technical Levels
Support Resistance
1.0789 1.0871
1.0755 1.0919
1.0673 1.1001
Pivot Point 1.0837
EUR/USD – Daily Forecast
The EUR/USD has violated the symmetric triangle pattern range of 1.0900 - 1.0800, and now it trades below the 1.0850 resistance area. The EUR/USD continues to trade at 1.8115 level, holding below the strong resistance level of 1.0837. On the upside, the next resistance stays around 1.0837 and 1.0859. On the other hand, the EUR/USD has strong odds of showing a selling trend below 1.0837 level, which may lead its prices towards 1.0777 and even lower to 1.0725. Let's wait for the PMI data release for further directions.
GBP/USD - U.S. Jobless Claims Ahead
The GBP/USD currency pair flashing red and dropped to 1.2325 while representing 0.07% losses on the day, possibly due to the Tory government getting criticism about the mishandling coronavirus crisis. The latest and modest recovery in the U.S. dollar keeps the currency pair under pressure.
The GBP/USD is trading at 1.2363 and consolidates in the range between the 1.2313 - 1.2369. However, the traders are keenly waiting for the key UK PMI, and U.S. Jobless Claims data. As in result, they are cautious about placing any strong bids.
It should be pointed out that the members of the cabinet got the chance for the first time to criticize Prime Minister Boris Johnson and Company's poor performance about managing the coronavirus crisis in the U.K. However, the members did not only criticized for the lack of medical supplies, but they also indicated the shortage of nurses.
In return, the deputized PM indicated the nearness to the peak of the outbreak. The Health Secretary Matt Hancock is suggesting the start of the human trials over 300,000 people in a year.
On the positive side, the report came that the Prime Minister johnson will attend his conversation with the Queen through telephone after this week, although his deputy Dominic Raab is officially leading the country due to his absence. The United States President Donald Trump extends pushing for the economic re-start, whereas giving worse warnings to Iran.
GBP/USD - Daily Technical Levels
Support Resistance
1.2279 1.239
1.2221 1.2444
1.211 1.2555
Pivot Point 1.2332
GBP/USD – Daily Forecast
A day before Friday is showing sideways trading ahead of most awaited U.S. Jobless Claims data. The bearish trend in GBP/USD continues as the pair is trading below pivot point level 1.2322, after violating the narrow trading range of 1.2500 - 1.2400. Selling bias seems strong as the Cable has not only violated sideways channel, but also holds below 50 periods EMA which is extending resistance around 1.2400. We may experience a slight bullish recovery in the market, but the resistance level of 1.2335 is likely to hold the pair in a selling mode. Today, the GBP/USD may open further room for selling until 1.2300 and 1.2150. But in case, sterling violates 1.2325 resistance level; the market will be pone to 1.2511 resistance.
Good luck!