On the forex front, the U.S. Dollar Index rose 0.3% on the day to 99.01. The German Federal Statistical Office will release the final readings of December CPI (+1.5% on-year expected). France’s INSEE will report a 4Q jobless rate (8.5% expected).
The U.S. Labor Department will report January CPI (+2.4% expected), and initial jobless claims in the week ended February 8 (210,000 expected).
BTC/USD – Daily Analysis
The BTC/USD price trades at $10,500 after breaking the previous $10,400 to mark a new yearly high at $10,435. BTC/USD is gazing into a reversal because of the formation of a growing wedge pattern.
The BTC/USD has an incredible spring of the year combined with bullish sentiments due to the coming halving event that has seen it posted dramatic gains. The bullish cross over at $10,000 on Sunday additionally supported the position of the buyers in the market. With this, the trader’s interest in BTC continues to grow.
BTC/USD – Daily Technical Levels
Pivot Point 9,901.44
BTC/USD – Daily Forecast
The technical side of Bitcoin remains the same as the BTC/USD is still holding at a peak of 10,400. A day before, the BTC/USD surged dramatically to crossover the double top resistance level of 9,875, which has opened further room for buying until 10750.
Tuesday’s daily candle was bullish engulfing in nature, and Wednesday’s close is also bullish, which may drive further buying in the leading cryptocurrency today. While the immediate support now prevails around 10,150.
EUR/USD – German Final CPI m/m
The EUR/USD currency pair continued its previous losing streak and hit the fresh 33-month lows of 1.0865, mainly due to the ECB rate cut expectations. The rate cut expectations rose in the wake of Eurozone’s industrial output, which dropped sharply since 4-years in December. The EUR/USD is currently trading at 1.0870 and consolidates in the range between the 1.0865 – 1.0877.
The Eurozone’s industrial output declined its steepest drop in four years in December, the official data released on Wednesday showed. Moreover, the German manufacturing recession looks far from over with factory orders dropping by 2.1% in December.
The market traders are now pricing the 6-basis-points of the rate cut by the end of 2020, against the zero chances seen at the starting of this month.
At the USD front, the greenback getting support as a safe-haven flows from the coronavirus fears. Moreover, the United States economy is performing almost strong, as shown last week’s nonfarm payroll report.
EUR/USD – Daily Technical Levels
Pivot Point 1.0889
EUR/USD – Daily Forecast
The EUR/USD trades in line with our forecast to hit the target level of 1.0880, but the bearish sentiment doesn’t seem to halt. The pair has violated the major support level of 1.0880, and now it’s trading at 1.0870. The next support levels are likely to be found around 1.0850 and 1.0825. While 1.0888 and 1.0910 will be working as immediate resistance on Thursday.
GBP/USD – RICS House Price Balance
The GBP/USD currency pair continues to flash red and still trading below the 1.3000 handles mainly due to United Kingdom politics concerns and Brexit concern. Moreover, the coronavirus fear is also weighing on the Cable pair.
The GBP/USD is currently trading at 1.2946 and consolidates in the range between the 1.2945 – 1.2967. However, the uncertainty surrounding the Brexit, and the U.K. politics issues are the main reason the pairs bearish sentiment.
It’s worth to mention that the European Parliament’s decision to push the United Kingdom to follow the E.U. laws indicates that the Brexit talks will be starting on the robust note, perhaps during the early March.
On the news front, the United Kingdom Prime Minister Boris Johnson is ready to declare his new cabinet and expected to avoid the harsh changes which were discussed earlier by his key adviser Dominic Cummings. The Boris Johnson will call the ministers to his office in the early morning to inform them whose services are not needed anymore and also will welcome those who are going to be promoted. Sterling may feel the bearish pressure.
GBP/USD – Daily Technical Levels
Pivot Point 1.2967
GBP/USD – Daily Forecast
On Thursday, the GBP/USD is trading at 1.2967 area, and it’s trying to break above the pivot point mark of 1.2967. The 50 EMA periods EMA is also keeping the pair under pressure today, signifying the chances of the bearish trend in the GBP/USD pair.
On the lower side, the GBP/USD may resume its bearish bias unto 1.2910. The technical indicator like RSI and MACD are directing on the lower side and may drive more selling below 1.2967 level. However, if GBP/USD manages to break above 1.2967, we may see it’s prices going towards a 1.3025 resistance level.
All the best for today.