Daily F.X. Analysis, February 14 – Markets on Hold Ahead of U.S. Inflation Report!
By Eaglefx On February 14, 2020 in Daily Market Analysis
On the forex front, the U.S. Dollar Index edged up 0.1% on the day to 99.10, supported by stronger-than-expected U.S. inflation data. On the forex front, the ICE U.S. Dollar Index edged up 0.1% on the day to 99.10, backed by stronger-than-expected U.S. inflation data. Let's take a look at today's trade plan...
Economic Calendar
BTC/USD - Daily Analysis
The BTC/USD has begun a downside retracement from the $10,500 level versus the greenback. The BTC declined under $10,200, though it is still staying below the major 100 hourly moving average.
The BTC/USD price failed to soar over $10,500 and retraced on the lower side against the U.S. Dollar. There is a crucial contracting triangle working with resistance nearby $10,290 on the hourly graph of the BTC/USD pair. The pair could either rally again above $10,300, or it might continue its decline under the $10,100 support.
The technical side of Bitcoin remains mostly the same as the Bitcoin is still staying at the top of 10,400. A day earlier, the BTC/USD climbed dramatically to crossover the double top resistance level of 9,875, which has revealed a further opportunity for buying unto 10750.
BTC/USD - Daily Technical Levels
Support Resistance
9,727.28 10,042.98
9,585.74 10,217.14
9,270.04 10,532.84
Pivot Point 9,901.44
BTC/USD – Daily Forecast
The BTC/USD continues to maintain the same trading range of 10,550 - 10,000 due to a lack of volatility. On Friday, the BTC/USD pair is likely to trade choppy sessions with in the same range. Whereas, a bearish breakout of 1,000 level can extend selling until 9,895.
EUR/USD – German Final CPI m/m
The EUR/USD currency pair continues to flash red and hit the fresh 34-month low of 1.0827 ahead of German preliminary Q4 GDP data. The EUR/USD currency pair is currently trading at 1.0833 and consolidates in the range between the 1.0828 - 1.0843.
Looking forward, the currency pair may drop further below the 1.08 if the German data disappoints expectations, intensifying slowdown fears and force the market to price in higher chances a rate cut by the European Union Bank later this year.
At the data front, the German gross domestic product (GDP), which is scheduled to release at 07:00 GMT, is expected to show the economy expanded 0.1% quarter-on-quarter in the final 3-months of 2019, having registered a similar growth rate in the third quarter. However, the annualized growth rate is seen decelerating to 0.2% from 1.0%.
Both Factory Orders and Industrial Production registered an annualized decline of 6.68% and 8.7%, respectively, in December, signaling a worsening of the recession in the manufacturing sector. Meanwhile, exports rose just 0.1% in December, missing the forecast for a 0.5% rise, after having dropped by 2.2% in November.
EUR/USD - Daily Technical Levels
Support Resistance
1.0821 1.0876
1.08 1.091
1.0767 1.093
Pivot Point 1.0855
EUR/USD – Daily Forecast
The EUR/USD selling bias remains solid as the pair has violated the support area of 1.0900, below this level, the pair is pretty much likely to continue selling with an immediate target of 1.0825 a d 1.0800. Chances of bullish correction also remain until 1.08550 today.
GBP/USD - RICS House Price Balance
The GBP/USD currency pair looking flat near the 1.3050, mainly due to a lack of fresh catalysts. As of writing, the GBP/USD currency pair is currently trading at 1.3045 and consolidates in the range between the 1.3037 - 1.3051. However, the GBP/USD currency pair rose during the previous day, mainly after the surprise resign letter of FinMin Sajid Javid.
The main reason behind the pairs gains is the U.K.'s Finance Minister Sajid Javid's surprise resignation. The Chancellor Sajid Javid cited the UK PM Boris Johnson's push to fire the team as a reason for leaving the post. After the Sajid Javid's resignation, Rishi Sunak will manage the team and seems to have a Tory leader's support due to bias towards further spending.
It is worth to mention that the departure of some of the key leaders could be the reason for the United Kingdom cabinet changes that were mostly mentioned earlier. Although, the coming Attorney General Suella Braverman has a strong view to take back control from an interfering court, as noted by The Guardian.
Moreover, the United Kingdom Prime Minister Boris Johnson has rejected the visit of the U.S. again, according to The Sun's report, which left a negative impact on their friendships. The United States leader earlier showed hate for British support for China's Huawei.
GBP/USD - Daily Technical Levels
Support Resistance
1.2971 1.3095
1.2895 1.3145
1.2846 1.322
Pivot Point 1.302
GBP/USD – Daily Forecast
The GBP/USD has crossed over 1.3000 resistance area, and it's trying to break above the double top level of 1.3065. Yesterday, the GBP/USD also crossed over the 50 periods EMA which is now extending the pair with bullish support.
Today, the bullish breakout of 1.3065 resistance level can extend buying until 1.3145 whereas, the pair may find support around 1.3000, psychological level — all the best for today.