On the forex front, the U.S. dollar strengthened for a second session as economic data released were better than expected. The Dollar Index gained 0.2% on the day to 97.95.
Later today, January Automatic Data Processing (ADP) Employment Change (+158,000 private jobs expected), Markit U.S. Services Purchasing Managers Index (PMI, final reading, 53.2 expected), Institute for Supply Management’s (ISM) Non-Manufacturing Index (55.1 expected), and December trade balance (deficit of 48.2 billion dollars expected) will be reported.
BTC/USD – Daily Analysis
The BTC/USD buyers have an opportunity for growth, mainly if the support level of $9,200 is tested again. Technical levels begin to adjust with the BTC/USD bullishness towards the medium-term mark at $9,400.
Bitcoin recently disappointed to maintain gains over the violated resistance level of $9,600, although the major focus remains on the $10K, the leading cryptocurrency headed to touch $9,624.
The Bitcoin has several support levels that have been shuttered, including at $9,500, $9,400, and $9,200. A day before on Wednesday, the BTC/USD barely survived the short term level of around$9,150. Let’s look at the technical trade setup today.
BTC/USD – Daily Technical Levels
Pivot Point 9,174.45
BTC/USD – Daily Forecast
The BTC/USD slipped to test $9,050, which marks the 38.2% Fibonacci retracement, and now it’s consolidating in a very narrow range of 9,150 – 9,250. Breakout of this range will help determine further trends in the Bitcoin. We should keep an eye on the 9,104 marks as above this; bitcoin can stay bullish until 9,345 and 9460. Whereas, the violation of 9,104 is likely to drive the bearish trend until 8,880.
EUR/USD – ECB President Lagarde Speaks
The EUR/USD currency pair continued its losing streak and found near the 1.1034, representing 0.10% losses on the day, mainly due to risk reset in the financial market in the wake of coronavirus fears. The EUR/USD is trading at 1.1035 and consolidates in the range between 1.1033 – 1.1047.
The currency pair has faced rejection near 1.11 on Monday. However, traders are curious to place any position ahead of Eurozone PMIs. Whereas, global equities were found on the green track on Tuesday after the People’s Bank of China provided a net 150 billion yuan ($21.4 billion) of liquidity. As in result, the fears of the coronavirus were eased.
The S&P 500 index surged more than 1.5%, and the Nasdaq Composite Index printed a record close. The U.S. ten-year yield also recovered from 1.52% to 1.61%, increasing the bid tone around the greenback. The Asian stocks also got strong gains on Wednesday. Moreover, oil benchmarks are reporting a 1% gain at the press time.
On the other hand, the treasury yields will likely to continue Tuesday’s gains with the increasing risk-sentiment. Therefore, the EUR/USD currency pair could drop to 1.10. However, the pair may stop its bearish streak if the German PMI figures and Eurozone retail sales data release better-than-expected by a significant margin.
Traders will keep their eyes on the economic calendar, mainly because there are much data to watch ahead. So all focus will be on German PMI figures, Eurozone Retail Sales, and ADB Employment Change (Jan). The trade balance figure will take center stage for taking fresh directions.
EUR/USD – Daily Technical Levels
Pivot Point 1.1047
EUR/USD – Daily Forecast
The EUR/USD continues to gain support around 1.1035 level and has closed candles above this level. At the moment, the pair may gain support around 1.1030, along with resistance around 1.1045. A bullish breakout of this level can extend buying until 1.1065 and 1.1095 areas. Let’s keep an eye on 1.1045 as the pair can also trade with a bearish bias below this level today.
GBP/USD – Horizontal Resistance Breakout
The GBP/USD currency pair failed to continue its recovery rally and again dropped to 1.3013, mainly due to fresh blame on the United Kingdom Prime Minister Boris Johnson regarding terrorists and environmental uncertainty. The broad-based greenback strength is also pushing the pair lower. At the moment, the GBP/USD is trading at 1.3018 and consolidates in the range between the 1.3012 – 1.3041.
At the Brexit front, the Tory leader announced to cancel the law that permitted terrorists to be released from the jails after finishing half time punishment, whereas Labour Party lawmakers showed uncertainty on the Tories’ ability to pass such regulations. The fresh criticism of the U.K. Prime Minister Boris Johnson environment policies that postpone performance on a net-zero emissions economy also weighing on the pair.
At the USD front, the greenback continues to flash green after upbeat data came in the previous day. The currency pair took bids on the last day, mainly due to the lack of fresh negative news regarding the European Union and United Kingdom talks as well as upbeat U.K. Construction PMI figures.
GBP/USD – Daily Technical Levels
Pivot Point 1.3006
GBP/USD – Daily Forecast
The GBP/USD tried to break the support level of 1.3000, but it recovered even after testing 1.29500 level. At the moment, the GBP/USD price is holding above the pivot point level of 1.3006, and the closing of candles above this level is likely to keep the GBP/USD bullish.
The RSI and Stochastics have entered the oversold zone, which is suggesting odds of bullish reversal in the GBP/USD pair. A bearish breakout of 1.3006is likely to lead the GBP/USD prices towards 1.2920, whereas the cable can stay bullish above 1.3006 until 1.3100 today.
All the best for today.