On Monday, the global stock markets and the dollar were slipped lower following the Federal Reserve rate cut decision in an emergency move, and its significant rivals extended cheap U.S. dollars to help a rash logjam in worldwide lending markets.

On Monday, the G7 meeting and BOJ Press Conference will remain in highlights as investors will be expecting Bank of Japan to introduce some kind of monetary stimulus to cope up with the coronavirus. Likewise, any policy update from G7 nations will also help us determine further trends in the market.

Economic Calendar   

 


BTC/USD – Daily Analysis

The BTC/USD price declines over $5,000 as sideways trading begins across the crypto market. The creation of a bearish flag pattern offers new risks with BTC/USD expected to trade bearish under $5,000 and $4,000, respectively. 

The BTC/USD price is displaying a couple of situations expected to leave most traders in uncertainty and dilemma. The whole weekend session saw $5,000 stand out as crucial support. Even though an attack at $6,000 abandoned to evolve in additional gains, though, losses were settled over $5,000. 

This has displayed some resemblance of stability for the leading cryptocurrency by market capitalization, and that’s why some bulls are considering reentering the market and contribute to pulling the price over $6,000.

BTC/USD – Daily Technical Levels

Support    Resistance 

5,024.56     7,114.43

4,252.86     8,432.6

2,162.99    10,522.47

Pivot Point 6,342.73

BTC/USD – Daily Forecast

On Monday, the Bitcoin is trading in a narrow trading range of 5,800 – 5,000 despite major decisions from the Federal Reserve regarding interest rate cut. The leading cryptocurrency can drop further in case of a bearish breakout of 5,000 support, which can lead its prices towards 4,106. Conversely, the bullish breakout of 5,835 can lead the BTC/USD prices towards 6,345.

EUR/USD – German Buba Monthly Report

Today in the early Asian session, the EUR/USD currency pair flashing green and trading above the 1.1100 level mainly due to the broad-based U.S. Dollar weakness, as the United States Federal Reserve’s delivered the rate cut continues to keep the greenback under pressure. At the press time, the EUR/USD currency pair is currently trading at 1.1121 and consolidates in the range between the 1.1077 – 1.1200. 

Despite the fresh rate cut and Quantitative Easing announcement by the Fed, the market sentiment remains sluggish due to the intensifying concerns about a global recession in the wake of the coronavirus outbreak, because investors are still cautious over whether the globally coordinated policy action will likely help to recover the market sentiment.

At the report front, the Fed cut the key rates to zero and announced that it would increase its bond holdings by $700 billion. Markets were caught unprepared by another unexpected move by the Fed, as they started the week early Monday.

EUR/USD – Daily Technical Levels

Support Resistance 

1.1033      1.1199

1.0961      1.1294

1.0794      1.146

Pivot Point 1.1127

EUR/USD – Daily Forecast

On Monday, the EUR/USD is trading in a bearish mode around 1.1146, as it had already tested the horizontal support level of 1.1050. On the 4 hour timeframe, the EUR/USD has formed a bullish engulfing pattern that has extended slight support to Euro, but at the same time, the 50 periods EMA is keeping the EUR/USD demand under pressure. 

The EUR/USD may find an immediate resistance around 1.1200 level today. The RSI is heading into the bullish zone, suggesting odds of a bullish correction in the EUR/USD. Today, let’s keep an eye on 1.1128 level as above this buying can be seen until 1.1200 level and selling below the same level. 

GBP/USD – G7 Meetings In Focus 

Today in the early Asian session, the GBP/USD currency pair stop its 4-day losing streak and rose to 1.2340, representing 0.50% gain on the day, mainly due to the broad-based U.S. Dollar weakness after the United States Federal Reserve’s unexpected rate cut which continues to keep the greenback under pressure. As of writing, the GBP/USD currency pair is currently trading at 1.2334 and consolidates in the range between the 1.1077 – 1.1200.

At the report front, the U.S. Federal Reserve declared a surprise rate cut to 0.25%, in addition to $700 billion worth of Quantitative Easing (Q.E.), during the early Asian session. Markets were unprepared by another unexpected move by the Fed, as they started the week early Monday.

The global central bankers, including the Fed, BOC, BOJ, ECB, and SNB, joined to lower pricing on standing U.S. dollar liquidity swaps by 25 basis points while central banks will offer greenback swaps with an 84-day maturity, in addition to existing one-week operations.

However, the moves were appreciated mainly by the BOE policymakers, while the U.K. central bank is still considered slow to counter the coronavirus (COVID-19) pandemic.

It is worth mentioning that the global markets remain sluggish despite the Fed, and the RBNZ announced an unscheduled rate cut while the BOJ is in the pipeline. As in result, the risk-tone remains on the back foot with the U.S. treasury yields falling almost 30 basis points while markets in Asia also flash losses by the press time.


GBP/USD – Daily Technical Levels

Support Resistance 

1.2151      1.2513

1.2025     1.275

1.1663      1.3113

Pivot Point 1.2388

GBP/USD – Daily Forecast

On Monday, the GBP/USD is trading slightly bullish around 1.2350 level as it seems to recover from 1.2250 support level to 1.2380. However, the Cable is still holding below the pivot point level of 1.2380, which may place selling pressure on Cable. 

Below this, the pair has the potential to trade in a selling mode and test the next support level of 1.2250. A bearish breakout of 1.2250 level can drive more selling until 1.2096 level. Conversely, the bullish breakout of 1.2380 level can extend buying until 1.2530 and 1.2600. 

Good luck!  

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