On the forex front, the U.S. dollar extended its rally for a fourth straight session ahead of the closely eyed nonfarm payrolls report due later today. The ICE Dollar Index gained 0.2% on the day to 98.47.
The U.S. Labor Department will release the January nonfarm payrolls report (+163,000 jobs, jobless rate steady at 3.5% expected). The Commerce Department will report final readings of December wholesale inventories (-0.1% month expected).
BTC/USD – Daily Analysis
The BTC/USD rises towards $10,000 but disappoints to crush the resistance at $9,800. BTC/USD is in a major bullish development that is expected to be unstoppable until it runs the psychological $10,000 mark.
Besides the positive thoughts and remarks over the leading cryptocurrency as lead BTC prices soar, both fundamentally and technically, to reach highs over $10,000.
The retracement from the prior week’s low at $9,050 has held the surge inside an ascending channel. The channel support has been examined numerous times but keeps proving that the buyers are leading the market now.
The surge seen on Thursday cleared the resistance at $9,800. A move that blasted Bitcoin close to $9,900, but the momentum missed steam short at $9,858. A critical reversal found support at $9,650, giving way for another push towards $9,900.
BTC/USD – Daily Technical Levels
Pivot Point 9,551.8
BTC/USD – Daily Forecast
The technical side of the BTC/USD is mostly the same as the pair hasn’t traded much lately. Previously, the BTC/USD 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. 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 – German Trade Balance
The EUR/USD currency pair flashing green but still below the 1.10 level ahead of German Industrial Production. The EUR/USD is trading at 1.0981 and consolidates in the range between the 1.0978 – 1.0985. However, the currency pair recovered from the 1.0879 to 1.1240 yesterday but eventually came again below the 1.10 handles.
On the technical side, the pair is currently reporting the bullish sentiment and still struggling to cross the 1.10 level. The EUR/USD pair could beat the 1.10 level if the German Industrial Production prints better-than-expectations. On the other hand, the shared currency may drop further if the German Industrial Production disappoints expectations.
Germany, Eurozone’s manufacturing powerhouse, will release Industrial Production data for December at 07:00 GMT. The output is expected to have declined by 0.2% month-on-month, having increased by 1.1% in the previous month. The annualized figure is expected to come in at -4% compared to -2.6% in November.
German manufacturing slowdown worsened in December with Factory Orders declining by 2.1% month-on-month against expectations for a 0.6% increase. On an annualized basis, Factory Orders dropped 8.7% against expectations of an 8% decline. Notably, order books fell at their fastest level in more than a decade.
EUR/USD – Daily Technical Levels
Pivot Point 1.0987
EUR/USD – Daily Forecast
The EUR/USD traded inline with our forecast to break below the triple bottom support area of 1.1009, and it’s now trading at 1.0975. Below this, the EUR/USD pair can drop towards 1.0935 level today as the RSI is holding in the selling zone. The focus will also remain on the NFP data today.
GBP/USD – Horizontal Resistance Breakout
The GBP/USD currency pair found on the bullish track and representing 0.10% gain on the day mainly due to risk-on market sentiment and positive headlines came regarding Brexit. The GBP/USD is currently trading at 1.2942 and consolidates in the range between the 1.2936 – 1.2945. The currency pair hit the multi-day low yesterday in the wake of a stronger greenback, but now the pair has recovered.
On the other hand, the report came from the insurance company Atradius that at the end of the European Union transition period during this year is expecting the worst result for European Union member states. It is worth to mention that the European Union economies settle fears and pressure from the coastal E.U. states, which also increase the probabilities that the region would offer softer term to the United Kingdom during the negotiation between EU-UK on March.
The traders did not give any attention to the allegations concerning favoritism on the United Kingdom Prime Minster Boris Johnson during the nominating Members of the Parliaments (M.P.s) for peerages. There are still some E.U. officials who are holding their heads high and still wanting tough agreements from the United Kingdom.
GBP/USD – Daily Technical Levels
Pivot Point 1.295
GBP/USD – Daily Forecast
The GBP/USD has violated the support mark of 1.295, and now it seems to travel to examine the next support mark of 1.29000 level. At the moment, the GBP/USD is consolidating below the pivot point level of 1.2950, and closing of candles below this level are confirming the breakout and potential of further selling in GBP/USD until 1.2900. Below this level, the GBP/USD may find next support around 1.2835, but it depends upon the release of NFP data.
Both of the technical indicators, the RSI and Stochastics are in the selling region, demonstrating odds of the bearish trend in the GBP/USD. Let’s consider taking sell trades below 1.2950 today.
All the best for today.