Daily F.X. Analysis, February 24 – Eyes on German IFO Business Climate! 

On Monday, the currencies slid dramatically as the speedy spread of the coronavirus exceeding China prompted fears of a pandemic and sent traders crowding to gold and the dollar for safe-haven shelter.

Italy, South Korea, and Iran posted sharp growth in the coronavirus infections over the weekend. South Korea presently has over 760 cases, Italy, more than 150, and Iran 43 instances. The World Health Organization declared it was worried about the expanding number without any obvious link to the epicenter of the outbreak in China. Eventually, the market is trading with a risk-off sentiment, making dollar and gold stronger. 

Economic Calendar 

BTC/USD - Daily Analysis 

The BTC/USD opened the week higher to test 10,000 psychological resistance level and dropped the very next moment to cover the weekend's gap and trade at 9,515.

If we compare the price movement of the prior two weeks, the current weekend was relatively relaxed for the BTC/USD traders. On Saturday, the Bitcoin fell $10,000 mark before dropping back to $9,794, and at the time of addressing the price proceeds to face resistance at $9,900.

The BTC/USD price proceeds to push forward with the descending trendline pattern at $9,989. A breach above this trendline may put the Bitcoin over the at $9,892 and near to the 61.8% Fibonacci retracement mark. While on the lower side, the technical levels may change a bit. 

BTC/USD - Daily Technical Levels

Support     Resistance 

9,554.7         9,743.65

9,472.72      9,850.62

9,283.77    10,039.57

Pivot Point 9,661.67

BTC/USD – Daily Forecast

The BTC/USD opened the week higher to test 10,000 psychological resistance level and dropped the very next moment to cover the weekend's gap and trade at 9,515. The overall trading range continues to be 500, from 10,000 level to 9,500 support. 

The 50 EMA is suggesting the odds of buying in the leading cryptocurrency. In the daily timeframe, the pair has formed a higher low and higher high pattern, which is suggesting odds of a bullish trend in the BTC/USD pair.

EUR/USD – German Ifo Business Climate

The EUR/USD currency pair continues to flash red and dropped to 1.0815 mainly due to the coronavirus is spreading in Italy, having started the week well below the 200-hour Moving Average at 1.0834. The EUR/USD is trading at 1.0821 and consolidates in the range between the 1.0815 - 1.0843. However, the coronavirus infected people in Italy have risen from 54 to 89 on Sunday.

According to the latest report, the number of coronavirus cases in Italy's Lombardy region climbed to 89 on Sunday from 54, leaving the country with 150 confirmed infection, the highest in Europe, and about five times that of Germany.

Moreover, the number of cases has increased sharply in less than a week and could fuel fears of a deeper infection. As we know, Italy is part of the Schengen borderless travel area. 

As in result, the EUR currency is expected to remain bearish in Europe. On the other hand, the selling pressure could decrease, allowing a bounce if the upcoming German IFO Expectations (Feb) index betters estimates by a significant margin, forcing markets to scale back expectations for a slowdown. 

EUR/USD - Daily Technical Levels

Support Resistance 

1.0804      1.0878

1.076         1.0908

1.0686      1.0982

Pivot Point 1.0834

EUR/USD – Daily Forecast

On the technical side, the currency pair needs to rise above the last week's high of 1.0864. That would confirm the seller exhaustion signaled by the previous week's bullish hammer candle and may yield a notable corrective rally toward 1.10. The 50 periods EMA is also likely to extend support at 1.0815, and we may see a bounce off above this level. The same level also marks the 50% Fibonacci retracement, while 61.8% Fibo support prevails at 1.0815. On the higher side, resistance can be seen around 1.0845.

GBP/USD - MPC Member Haldane Speaks

A day before, the GBP/USD has recovered slightly, exhibiting indications of support yet again at the 1.29 mark. I guess at this point, the market is anticipated to continue trading towards 1.30 level but will presumably gain a bit of resistance just over there in the form of the 50 days EMA. 

On Friday, the British Pound advanced versus both the dollar and euro as British companies recorded the fastest growth in production for ten months in February, satisfying some concerns over the economy as Britain plans for trade discussions with the E.U.

The manufacturing PMI surged to its highest mark since April and pounded all estimates of economists polls, although there were hints that the coronavirus outbreak might influence output in the United Kingdom. 

The U.K. survey tolled with other measures which confer the economy has pulled up since Prime Minister Boris Johnson's election success in December, even though the level of the PMI prevails beneath its long-run average.

GBP/USD - Daily Technical Levels

Support Resistance 

1.2902      1.2998

1.2845      1.3038

1.2749      1.3134

Pivot Point 1.2942

GBP/USD – Daily Forecast

The GBP/USD is trading with a selling bias, trading beneath the pivot point 1.2942. Below this mark, the GBP/USD has the possibility of sinking further unto 1.2902, the primary support level. Breakout of this level can prolong the bearish bias till the next support zone of 1.2845. The 50 days EMA is also holding at 1.2900 area, suggesting a bearish trend in the GBP/USD pair.  

The RSI and Stochastics are trading in an overbought sphere, hiking chances for a sell trade. Let's look for selling positions under 1.2981 today to target 1.2942 and 1.2900. Alternatively, buying can be seen over 1.2980 with a target of 1.3040. 

Good luck!