On the forex front, the ICE U.S. Dollar Index dropped 0.2% on the day to 97.86. The European Commission will report 4Q GDP growth (+1.1% on-year expected) and January CPI (+1.4% on-year expected). The German Federal Statistical Office will release December retail sales (-0.5% on month expected).
Whereas, France’s INSEE will post 4Q GDP growth (+1.2% on-year expected) and January CPI (+1.5% on-year expected).
BTC/USD – Daily Analysis
The BTC/USD price is stuck below the significant resistance level of $9,500 and prominent support at $9,250. The BTC/USD is still in jeopardy of tearing down to $8,000, particularly with the development of a mounting wedge pattern.
The BTC/USD is stuck between two key areas; the obstinate resistance at $9,500 and the major support newly established at $9,250. The leading cryptocurrency in the world is consolidating 0.53% lower towards the end of the Asian session on Friday.
This week’s trading has been mainly bullish aside from Wednesday’s correction from levels over $9,400 to examine another critical support at $9,200.
BTC/USD – Daily Technical Levels
Pivot Point 9,440.84
BTC/USD – Daily Forecast
The BTC/USD has closed three white soldiers’ patterns on the daily timeframe, which are supporting the bullish bias in the pair. However, the pair seems to find resistance at 9,575. It’s a double top pattern now and may drive slight bearish movement in the BTC/USD pair until 23.6% Fibonacci retracement level of around 9,313.
A bearish breakout of 9,266 can lead to Bitcoin prices further down until 9,065. But in the longer run, a bullish breakout of 9,575 level can lead the Bitcoin prices towards 10K mark.
EUR/USD – CPI & GDP In Focus
The EUR/USD currency pair continues its losing streak while the pair registered the biggest monthly loss since July 2019 ahead of the German Retail Sales report. Moreover, the pair representing a 1.76% loss and dropped from the monthly open bullish level of 1.1222 As of writing, the EUR/USD currency pair is currently trading at 1.1023 and consolidates in the range between the 1.1022 – 1.1036.
At the data front, the Consumer spending, as represented by Retail Sales, is expected to have dropped by 0.5 month-on-month in December, after November’s 2.1% rise. The annualized figure is expected to have increased by 5% compared to November’s 2.1% rise.
It is worth to mention that the Euro currency had recovered from 1.1157 level to 1.1205 level on January 6 in the wake of an above-forecast November Retail Sales print. As we know, traders are not taking any position ahead of the German Retail Sales data, because this same situation could be seen today if the retail sales data release better-than-expected.
EUR/USD – Daily Technical Levels
Pivot Point 1.1026
EUR/USD – Daily Forecast
The EUR/USD recovered a bit but still trades below 1.1040 level, which markets the double top pattern for EUR/USD. For now, the pair is likely to maintain bearish bias until 1.1010, and there we can expect EUR/USD to gain a bit of support today. Conversely, the bullish breakout of 1.1040 can lead EUR/USD prices towards 1.1060.
GBP/USD – Horizontal Resistance Breakout
The GBP/USD currency pair flashing green and hit the above level of 1.3100, mainly due to the Bank of England announced no rate cut as well as the UK-US trade tensions decreased. Whereas, traders will keep their eyes on the United Kingdom Prime Minister Boris Johnson’s speech, which is scheduled to happen at 22:00 GMT during the day of joy and sorrow. As of writing, the GBP/USD currency pair is currently trading at 1.3096 and consolidates in the range between the 1.3084 – 1.3106.
The Bank of England’s (BOE) previously bearish bias failed to gain much support between the monetary policy committee (MPC) because the Bank of England had to leave the benchmark interest rate unchanged on Thursday. The central bank decreased its growth forecast and marked Brexit uncertainty as a risk.
On the other hand, the United States kept the U.K. at the top of the list despite disagreements of Britain’s decision regarding China’s Huawei’s inclusion in building 5G networks. In short, the United States respected its friendship with the United Kingdom in the case of Huawei.
It should be noted that the United Kingdom Prime Minster wants a deal with the European Union like Canada-style, but nothing has confirmed yet. The risk has seen again in the market in the wake of mixed headlines regarding China’s coronavirus. The World Health Organization finally had released a notification for a global emergency but later gave some hope that coronavirus will likely be controlled soon.
GBP/USD – Daily Technical Levels
Pivot Point 1.306
GBP/USD – Daily Forecast
The GBP/USD has violated the intraday pivot point of 1.306 on the higher side, and now it’s trading at 1.3125. On the 4-hour chart, the GBP/USD has soared above 50 periods EMA support, and it’s now very likely to extend bullish bias until the 1.3175 resistance area.
The RSI and MACD are trading holding in the bullish zone, underpinning the GBP/USD prices. On the higher side, the GBP/USD may find resistance around 1.3175, a violation of which can lead the GBP/USD prices towards 1.3250, while support can be found around 1.3060 today.
All the best for today.