A day before, the U.S. dollar slipped across the board as various countries laid out plans to loosen limitations on businesses that have been blocked in the wake of novel coronavirus outbreak, increasing risk appetite and reducing demand for the safe-haven U.S. currency.

The significant movement with risk appetite will probably stem from expectations on when key economies resume. Today, the focus will remain on the latest updates from COVID19, European Spanish Unemployment Rate, and U.S. consumer confidence figures, which are expected to release during the trading sessions today. 

Economic Calendar     

 


BTC/USD – Daily Analysis

On Monday, the Bitcoin prices haven’t changed much due to a lack of liquidity in the market. Even today, on Tuesday, the Bitcoin prices continue to move in a tight trading range 7,625 – 7,800. We can’t have much of the trading opportunity until the bitcoin prices break this range and determine the clear trend. Elsewhere, we can do choppy sessions until this range gets violated. 

Previously, the BTC/USD abruptly soared over $7,700, indicating the remainder of the weekend, accompanying with the weekly close will generate higher than typical levels of movement. Overall, the BTC/USD prices remained comparatively stable during the weekend and even on Monday, maintaining last week’s accumulated gains over $7,500. Nevertheless, the bullish action immediately extended on the upper side, with $8,000 being the immediate resistance. 


BTC/USD – Daily Technical Levels

Support Resistance 

7,685       7,847

7,579       7,904

7,522       8,010

Pivot Point 7,741

BTC/USD – Daily Forecast

The BTC/USD prices haven’t moved much, as it continues to move in a tight trading range 7,625 – 7,800. At the moment, the BTC/USD price is holding around 7,713 level, and a bullish breakout of 7,800 can open buying trend until 8,004 trading range while the bearish breakout of 7,625 level can lead the Bitcoin prices further lower towards 7,448 area. On the 4 hour timeframe, the Bitcoin has also formed an upward channel which is suggesting odds of bullish trend continuation in the Bitcoin. Let’s look for buying trades over 7,635 levels until the trading range violated.


EUR/USD – Spanish Unemployment Rate

Today in the early Asian session, the EUR/USD currency pair continues to retrace back to trade at 1.08250 after soaring over 1.0840 level today. The broad-based U.S. dollar draw offers and reporting losses on the day in the wake of risk-on market sentiment, which eventually supports the currency pair. 

Yesterday’s bullish trend in the EUR/USD pair proved to be short-lived because the European leaders failed to agree on a comprehensive coronavirus stimulus package last week. At the moment, the EUR/USD is holding at 1.0825 and consolidates in the range between the 1.0812 – 1.0843.

On the other hand, the German Chancellor Merkel showed some willingness to offer almost EUR 1 trillion as financial support for a coronavirus recovery package. The leaders failed to reach an agreement on the size of the fund, and it should share the burden of financing with those countries that run fiscal and trade surpluses.

As per the German disease and epidemic control center, Robert Koch Institute (RKI) showed the number of confirmed coronavirus cases increased to 155,193, with a total of 5,750 deaths registered so far. Moreover, the institute surveyed that a total of 114,500 people has recovered from the virus. Therefore, the declining trend in the daily new infections and death tolls is encouraging news, because the government is going towards easing of the lockdown restrictions.


EUR/USD – Daily Technical Levels

Support Resistance 

1.0804      1.0858

1.0779       1.0887

1.0749      1.0912

Pivot Point 1.0833

EUR/USD – Daily Forecast

The EUR/USD is trading at 1.0825 level, and it’s expected to face a resistance level of 1.08500, which is stretched by a bearish trendline on the 4-hour timeframe. For now, the 50 EMA has switched to 1.0825 area, and the EUR/USD is tossing above and below this level. The RSI is in the oversold zone now, but we should ignore it as the market is moving sideways, and during such situations, the RSI doesn’t extend a reliable signal. Today, the EUR/USD may find support around 1.0770 area while the breakout of this level may extend selling until 1.0720. On the higher side, resistance continues to hold around 1.08500 level, and selling should be preferred below this level. 

GBP/USD – Choppy Sessions 

The GBP/USD currency pair succeeded in extending its 4th consecutive day winning streak and rose above mid-1.2400 while representing 0.60% gains on the day mainly due to the broad-based U.S. dollar weakness in the wake of better mood in the market. Apart from this, the on-going criticism about the U.K.’s handling of the coronavirus (COVID-19) crisis and Tory government’s stand on Brexit keeps the currency pair’s gain limited for the time being. 

At present, the GBP/USD is training at 1.2417 and consolidates in the range between the 1.2360 – 1.2455. However, the UK PM Boris Johnson came back from the pandemic infection, which satisfied the buyers. The PM Boris Johnson will likely take its seat back from the acting chief Dominic Raab after getting permission from the doctors at the Chequers. Although, Boris Johnson said that he is looking forward to going to Downing Street on Monday.

As we all well aware that the Uk PM Boris Johnson was absent since early April due to the coronavirus decease. Whereas, the UK Tory government getting an inadequate response from the entire nation about the handling of the coronavirus (COVID-19) crisis despite the hard efforts from the Chancellor Rishi Sunak and Health Secretary Matt Hancock, and the Deputy PM Dominic Raab.

Although, the shortage of medical supplies and the surge in the death toll have forced the United Nations (U.N.) poverty expert Philip Alston to attack the U.K.’s coronavirus response as “utterly hypocritical.

Moreover, the Health Secretary’s optimistic target of 100,000 tests a day got a surprise on Saturday after the government needed to avail the military helps to overcome the 29,000 marks.

At the Brexit front, the European Union’s (E.U.) E.U.’s Chief Negotiator Michel Barnier said that the discussions of Brexit have been disappointing so far. The major reason behind could be the Tory government’s refrain from extending the Brexit deadline from December 31, 2020.

As in result, the market’s risk-tone sentiment remains moderately positive with the U.S. 10-year Treasury yields gaining more than 3-basis points (bps) to 0.632% while the Asian stocks are also flashing gains by the press time.

Looking forward, the UK PM Boris Johnson is set to announce some critical decisions about when the lockdowns will be eased while also expected to give signals about Brexit proceedings. It should also be noted that Chancellor Sunak’s loans to the small companies failed to leave any significant impact.

GBP/USD – Daily Technical Levels

Support Resistance 

1.2374      1.2471

1.2318      1.2512

1.2277      1.2568

Pivot Point 1.2415

GBP/USD – Daily Forecast

The technical side of the GBP/USD pair is suggesting indecision among traders as the pair is holding at 1.2415, attempting to break the sideways trading range of 1.2445 – 1.2400 level. The Sterling is likely to find immediate support around 1.2425, which marks a pivot point level for the day while the bearish breakout of this level can extend sell-off until the next support level of 1.2355 level. The resistance stays at 1.2459 area, and above this, the triple top level will be worth watching at 1.2522 level. 

The RSI and Stochastics are holding below 50, supporting selling bias in the GBP/USD pair. Today, let’s look for buying over 1.2415 and selling below the same level today.

Good luck! 

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