On the Forex front, the U.S. Dollar Index moved up 0.1% to 99.10, lifted by stronger-than-expected U.S. inflation figures. Also, the ICE U.S. Dollar Index turned up by 0.1% on the day, to 99.10, driven by stronger-than-expected U.S. inflation release. Let’s take a look at today’s trade plan.
BTC/USD – Daily Analysis
The Bitcoin struggles to hold losses over $9,700 support following a drop from levels over $10,500. The improvement is expedient as long as the BTC/USD soars over the descending wedge pattern resistance.
The BTC/USD is trying to obtain support over $9,700, following a sharp reversal from last week’s top of $10,549. The weekend trading was dominated mainly by extended selling pressure.
For now, the BTC/USD is back below $10,000, following a dull weekend session. Little improvement was made to the north, which enabled the bears time to plan a retaliation mission. Several potential support region were shuttered including $10,400, $10,250 and $10,000.
BTC/USD – Daily Technical Levels
Pivot Point 9872.7
BTC/USD – Daily Forecast
The BTC/USD has opened lower on Monday as it’s trading around 9,765 area, falling below the 10K psychological support area. At the moment, the pair is finding strong support around 9,600 area, and violation of this level can extend selling until 9,344. While the resistance continues to stay at 10K and 10,250. The RSI and Stochastic are heading into the selling zone. The bearish bias remains strong for BTC today.
EUR/USD – Eurogroup Meetings
The EUR/USD currency pair is still trading on the bearish track and currently hit its strongest low level of 8-months, mainly due to risk-off market sentiment in the wake of coronavirus fears. The EUR/USD pair is trading at 1.0838 and consolidates in the range between the 1.0834 – 1.0844.
The EUR currency ended last week at 1.0829 to print its weakest weekly close since April 2017. The single currency created a big red marubozu candle for the second straight week.
Moreover, the risk-tone is holding up well despite the fears that the world’s second-largest economy has stalled in the wake of the coronavirus outbreak. At press time, the S&P 500 futures are up 0.20%, and the Shanghai Composite is adding 1%.
The rise could be the reason for China’s central bank decision to inject 100 billion Chinese Yuan into the financial system. Looking forward, the data docket is light due to the U.S. market closed in the wake of the President’s Day holiday.
EUR/USD – Daily Technical Levels
Pivot Point 1.084
EUR/USD – Daily Forecast
The EUR/USD hasn’t changed much so far as the pair holds above 1.0800. 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 1.0800. Chances of bullish correction also remain until 1.08550 today.
GBP/USD – U.S. Bank Holiday
The GBP/USD currency pair flashing red but still above 1.3000 handles mainly due to the hard Brexit fears. The GBP/USD is trading at 1.3045 and consolidates in the range between the 1.3034 – 1.3054. However, the uncertainty surrounding the Brexit talk has been weighing on the pair. The greenback declines, and lack of data on the economic calendar keeps the traders calm.
The United Kingdom officials continue to avoid global events and raise thoughts of being introvert after Brexit. The United Kingdom normally gives presence at the annual conference in Bavaria, where this year France’s President Emmanuel Macron, U.S. secretary of state Mike Pompeo and Chinese foreign minister Wang Yi gathered to talk about the issues from the transatlantic defense co-operation to the security challenges posed by China and the impact of big tech on elections.
At the coronavirus front, Chinese officials have struggled too much to improve the risk-sentiment, which is severely disturbed by the fears of the coronavirus. The market showed a slight improvement in the risk-tone. On the other hand, concerns of coronavirus have been conveyed by Moody’s and the IMF, which is causing uncertainty and fear in the market.
GBP/USD – Daily Technical Levels
Pivot Point 1.3037
GBP/USD – Daily Forecast
On Monday, the GBP/USD pair is still following the same technical levels from Friday, as the pair haven’t moved much so far. The Cable has crossed over 1.3000 resistance region, and it’s working to break over the technical resistance level given by double top at 1.3065.
The GBP/USD is still holding above the 50 periods EMA which is now underpinning the Cable. Today, the bullish breakout of 1.3065 resistance level can extend buying until 1.3145, whereas, the GBP/USD pair may find support near 1.3000, psychological mark. Good luck!