On the forex front, the U.S. Dollar Index slid 0.5% on the day to a two-week low of 97.36. January Markit U.S. Manufacturing Purchasing Managers Index (PMI, final reading, 51.7 expected), Institute for Supply Management’s Manufacturing PMI (48.4 expected), construction spending (+0.5% on month expected), and total vehicle sales (16.8 million units expected) will be reported.
BTC/USD – Daily Analysis
The BTC/USD price surged over the $9,550 resistance to revoke a key head and shoulders pattern versus the U.S. Dollar. It appears like BTC is ready for a massive rally over $10K.
The BTC/USD bears disappointed to drive the price under the main $9,150 support versus the U.S. Dollar. The buyers augmented control, ending in a new high over $9,500. There is an upward bullish trend line along with support around $9,280 on the hourly timeframe of the BTC/USD pair. On the upper side, the $9,500 and $9,580 marks endure the key for the next major rally.
BTC/USD – Daily Technical Levels
Pivot Point 9,342.83
BTC/USD – Daily Forecast
The BTC/USD has traded mostly in line with our forecast and continues to face resistance around the 9,575 area. In the daily timeframe, the BTC/USD has formed a tweezers top pattern on the daily timeframe, which is very likely to drive bearish retracement until 9,130. Whereas, the resistance stays around 9,545. The choppy session can be seen in BTC/USD today in between 9,575 – 9,235.
EUR/USD – Manufacturing PMI Ahead
The EUR/USD currency pair took a 0.61% gains last week and ended the 4-week losing rally since November 2018, while having faced rejection at 1.1095 & representing a 0.12% drop during the Asian trading hours despite the ECB’s Lane comments. The EUR/USD currency pair is currently trading at 1.1082 and consolidates in the range between the 1.1080 – 1.1095.
At the ECB front, the European Central Bank’s chief economist Philip Lane said on the weekend that the permanent disconnect between the labor costs and prices couldn’t be possible, and the increasing labor cost will ultimately reignite inflation. The central bank is on the way toward its 2% inflation goal.
Whereas, the EUR/USD currency pair is still stuck in a bearish range as represented by the trendlines connecting December 31 and January 16 highs and October 01 and January 28 lows.
From the technical perspective, a channel breakout is still needed to break the rejection level at 1.1095 to establish a bullish reversal of the January 16 high of 1.1173.
EUR/USD – Daily Technical Levels
Pivot Point 1.107
EUR/USD – Daily Forecast
The EUR/USD exhibited a strong bullish recovery to trade around 1.1095, the horizontal resistance level. For now, the pair may find support around 1.1065, which is likely to keep it bullish until 1.1125. Below this, the support is expected to be found around the 1.1040 level. The bullish bias remains dominant today.
GBP/USD – Horizontal Resistance Breakout
The GBP/USD currency pair failed to continue its multi-day bullish streak and dropped to 1.3160, mainly due to the fears of hard Brexit, as well as the greenback’s safe-haven demand also keeps the pair bearish. As of writing, the GBP/USD currency pair is currently trading at 1.30163 and consolidates in the range between the 1.3156 – 1.3184.
However, investors will closely observe the US/UK PMI’s numbers, whereas UK PM Boris Johnson’s speech will be key to watch for taking fresh direction.
It is worth to mention that the Guardian news agency published passage of the UK PM’s speech (which is scheduled to happen later in the day) that will be delivered to ambassadors and businesspeople on Monday morning.
There is no need for such a free trade agreement in which the U.K. has to accept E.U. rules on competition policy, subsidies, social protection, the environment, or anything similar any more than the European Union should be required to accept U.K. rules.
On the other hand, China’s market opened again for trading for the first time since January 23, which was closed due to the extended Lunar New Year holidays, but now its time to end the holidays. During the holidays there have many changes came in the wake of coronavirus. Moreover, the coronavirus has pressurized the investors.
GBP/USD – Daily Technical Levels
Pivot Point 1.3171
GBP/USD – Daily Forecast
The GBP/USD continues to hold below the pivot point of 1.3171 on the lower side, and presently it’s trading at 1.3101. On the 4-hour chart, the GBP/USD has soared over 50 periods of EMA support, and it can extend the bullish trend above 1.3050 until the 1.3171 resistance area
The RSI and MACD are holding in the overbought zone, underpinning the GBP/USD values. The GBP/USD may continue to face a hurdle near 1.3175, where the breakout of this level can lead to GBP/USD prices towards 1.3250.
All the best for today.