On the forex front, the U.S. Dollar Index bounced 0.4% on the day to 97.81, lifted by stronger-than-expected manufacturing data. On Tuesday, the Research firm Markit will publish January U.K. Construction PMI (47.1 expected). The European Commission will report the eurozone’s December PPI (-0.7% on year expected).
The U.S. Commerce Department will post December factory orders (+1.2% on month expected)
BTC/USD – Daily Analysis
The BTC/USD price failed to stay over the $9,500 resistance and declined recently versus the greenback. The BTC is likely to find support, and it might bounce back from $9,150, or it might sink heavily in case of a bearish breakout.
The BTC/USD bulls are striving hard to preserve the key $9,200 and $9,150 support marks versus the greenback. The price settles at the risk of an explicit drop if there is a breach under $9,150.
There is a downward channel being formed with resistance around $9,320 on the hourly timeframe of the BTC/USD pair. The buyers need to attain momentum over $9,500 to avoid a collapse below $9,150
BTC/USD – Daily Technical Levels
Pivot Point 9,301.89
BTC/USD – Daily Forecast
The technical side of the BTC/USD mostly the same as it continues to face resistance around the 9,575 area. On the daily timeframe, the BTC/USD has formed a bearish candle followed by a tweezers top pattern, 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 flashing red and found below the 100-day Moving Average at 1.1060 while having failed to cross the high level of 1.11 on Tuesday as the greenback’s bids soared during the North American session. As of writing, the EUR/USD is trading at 1.1061 and consolidates in the range between the 1.1056 – 1.1064.
At the U.S. dollar front, the greenback gained support during the North American session after the US ISM Manufacturing Purchasing Manager’s Index released a better-than-expected of 50.9 in January. That is the first above-50 figures in 6-months.
So, the EUR/USD currency hit the low of 1.1035 during the previous session and then regained some poise to trade at 1.1059. However, the slight recovery came mainly due to WTI oil recovery, which sent the sending treasury yields lower.
The U.S. 10-year yield is trading at 1.54%, representing a 3-basis points increase from the low of 1.51% observed in early Asia. Looking forward, the Eurozone Producer Price Index for December is scheduled for release at 10:00 GMT. In the U.S. docket, Factory Orders for December will be essential to watch.
EUR/USD – Daily Technical Levels
Pivot Point 1.1061
EUR/USD – Daily Forecast
The EUR/USD gained support around 1.1035 level and has closed candles above this as this marks the 50% Fibonacci retracement area. At the moment, the pair is gaining support around 1.1035, along with resistance around 1.1065. A bullish breakout of this level can extend buying until 1.1075 and 1.1095 areas. Let’s keep an eye on 1.1065 today.
GBP/USD – Horizontal Resistance Breakout
The GBP/USD currency pair found on the bullish track above 1.3000 after registered most significant losses in the year. Notably, the currency pair recently got support in the wake of risk-on sentiment and due to the lack of negative political headlines regarding the United Kingdom. As of writing, the GBP/USD is trading at 1.3020 and consolidates in the range between the 1.2981 – 1.3023.
The GBP/USD currency pair dropped by 1.6% during the previous session, mainly due to the Brexit deal uncertainty between the United Kingdom and the European Union. The reason could be the U.K. Prime Minister Boris Johnson’s strong promise to keep the British demands closely in focus before agreeing to the European Union’s demand to open fishing areas.
Apart from this, another reason behind the pair’s bearish sentiment could be the U.S. data, and the statement came from the London Mayor Sadiq Khan that represents the lack of satisfaction from the government’s efforts in decreasing terrorist activities.
GBP/USD – Daily Technical Levels
Pivot Point 1.3049
GBP/USD – Daily Forecast
On Tuesday, the GBP/USD has violated the support level of 1.3000, which was also the psychological level for the pair. Considering the bearish breakout, the GBP/USD has formed a strong bearish candle, which is now may lead the Sterling towards the next support area of 1.2915.
The RSI and Stochastics are holding in the oversold zone, suggesting odds of bearish bias in the GBP/USD pair. A bearish breakout of 1.2915 is likely to lead the GBP/USD prices towards 1.2820 today.
All the best for today.