On the forex front, the U.S. Dollar Index rose 0.3% on the day to a two-month of 98.26, supported by an upbeat ADP private jobs report.
Regarding U.S. economic data, the Automatic Data Processing (ADP) jobs report showed an addition of 291,000 private jobs in January, exceeding expectations of +157,000.
The Markit U.S. Services Purchasing Managers Index (final reading) expanded to 53.4 in January (53.2 expected). The Institute for Supply Management’s (ISM) Non-Manufacturing Index rose to 55.5 (55.1 expected).
BTC/USD – Daily Analysis
The BTC/USD price hits a knot short of $9,800, giving room for a buying until $9,600. The BTC/USD soaring channel is expected to grow the trend in the following weeks.
Bitcoin is back in its bullish form after examining lows close to $9,000 at the start of the week. The revival has led back the expectation that $10,000 is close.
The BTC/USD has violated the horizontal resistance level of 9,520, which is keeping the leading cryptocurrency bullish. The pair is trading at 9,616 now, right above the previously violated double top pattern, which is now extending support at 9,520.
BTC/USD – Daily Technical Levels
Pivot Point 9,551.8
BTC/USD – Daily Forecast
The BTC/USD is trading at 9,616 now, right above the previously violated double top pattern, which is now extending support at 9,520. With the violation of this double top level, the BTC/USD is now exposed to 9,925 and even 10K level, especially due to the daily bullish engulfing candle. The bullish bias is likely to remain dominant today.
EUR/USD – ECB President Lagarde Speaks
The EUR/USD currency pair continued its three-day losing streak and hit the daily low of 1.0995; the pair lost 100 pips so far during this week, mainly due to greenback strength after U.S. economic data. As of writing, the EUR/USD currency pair is currently trading at 1.0995 and consolidates in the range between the 1.0995 – 1.1001. However, traders are cautious about placing any position ahead of Germany Factory Orders data.
At the USD front, a bullish U.S. dollar sending the EUR/USD further to the downside. The greenback was already bullish in the market and rose further after the U.S. economic data that exceeded expectations.
From the forecasted view, the German factory orders are expected to have risen by 0.6% month-on-month in December, having dropped by 1.3% in November. The annualized figure is expected to come in at -6% compared to the previous month’s -6.5%. The data will be released at 07:00 GMT.
EUR/USD – Daily Technical Levels
Pivot Point 1.1014
EUR/USD – Daily Forecast
The bearish trend in EUR/USD doesn’t seem to halt as it’s prices are holding around the strong support level of 1.09920, and violation of this level can drive strong selling in the pair.
It looks like the pair will break the 1.09920 support level today as it has formed three black crows candlestick patterns on the daily timeframe, which suggests bearish bias in the pair. Below 1.09920, the pair has the potential to go after 1.0945.
GBP/USD – Horizontal Resistance Breakout
The GBP/USD currency pair continues its two-day losing streak and still found near the 1.2980, mainly due to the uncertainty surrounding the United Kingdom Brexit, as well as the greenback strong bullish sentiment, keep the pair under pressure. As of writing, the GBP/USD currency pair is currently trading at 1.2979 and consolidates in the range of 1.2972 – 1.3003.
At the front of the leading news, the French Fishermens gave warning to their United Kingdom counterparts after the U.K. Prime Minister Boris Johnson canceled the deal at the London Fisheries Convention during the early weekdays. As in result, the uncertainty increased in the European Union and the United Kingdom on-going agreement.
On the other hand, the Conservative Party is still struggling to adopt emergency restricting laws regarding release terrorists from the jail in a hurry. The U.K. culture secretary Nicky Morgan has asked for aa decision of on-going dispute between the British political journalists and UK PM’s communications chief.
Apart from this, the report came from the National Institute of Economic and Social Research (NIESR), that there is only approximately 20% chance that the U.K. economic growth will increase its pace of expansion twice, against the country’s continued run of poor productivity.
GBP/USD – Daily Technical Levels
Pivot Point 1.301
GBP/USD – Daily Forecast
The GBP/USD managed to violate the support mark of 1.3000and now it seems to head to test the next support level of 1.29500 level. At the moment, the GBP/USD is trading below the pivot point of 1.3006, and the forming of candles below this mark is expected to keep the GBP/USD bearish.
The RSI and Stochastics, technical indicators, have entered the selling zone, suggesting chances of the bearish trend in the GBP/USD. The GBP/USD prices are likely to trade bearish today with a target of 1.2950 and 1.29150. All the best for today.