On Friday, the dollar’s bullish trend is a nightmare for the various nations and groups that have borrowed massively in the dollar, pointing to further selling of developing market currencies in a negative feedback circle.
The U.S. Federal Reserve bank has prompted to ease global currency as concerns about a worldwide recession triggered a surge in demand for the U.S. dollar. The Federal Reserve announced it had settled swap lines to establish central banks’ supply in nine countries with the greenback.
On the news front, the eyes will remain on the Eurozone’s PPI & Current account figures, which are likely to exhibit negative economic growth and may weigh on the Euro pairs. Besides, Canadian core retail sales will also have it says in the market as it’s expected to weaken due to dropping oil prices.
BTC/USD – Daily Analysis
The BTC/USD price surged over the $5,500 resistance level, surpassing $6,000 as the leading crypto pair rushed to $6,359. The 18%+ rally restored more than $800 in value to Bitcoin price.
Since the previous week’s catastrophic 50% retracement, the Bitcoin price has grown by 40% from its low at $3,775. Traders will now wait to see if the prior levels of resistance at $5,500, $5,900, and $6,300 will work as support.
The BTC/USD has violated a resistance level of 5,835, which is leading it’s priced towards the next resistance level of 6,345 now. This level used to work as a support in December 2019, and now it’s likely to extend resistance to the BTC/USD pair.
BTC/USD – Daily Technical Levels
Pivot Point 5,950.8
BTC/USD – Daily Forecast
Considering the recent candles of Bitcoin on the daily timeframe, the odds of bullish trend seems stronger, especially the formation of the bullish engulfing candle on the daily chart. A bullish breakout of 6,400 level can lead BTC/USD prices towards 61.8% Fibonacci level of 7,150 while support stays around 5,800.
EUR/USD – Currency Pair Hit Fresh 3-Years Low – Eyes On Risk Market
The EUR/USD was flashing red and hit the fresh 3-year low of 1.0655, mainly due to broad-based USD strength. As of writing, the EUR/USD currency pair is currently trading at 1.0764 and consolidates in the range between the 1.0653 – 1.0769.
The currency pair dropped to 1.0653 on Thursday, the lowest level since April 2017, because investors sold everything, also safe havens like Japan’s yen and Swiss francs, to transfer their money into greenback due to fears of a coronavirus-led recession in the global economy.
On the technical side, the overall trend looks bearish with the 5- and 10-day averages trending south and the weekly chart also reporting a bearish crossover between the 100- and 200-week averages and a below-50 reading on the RSI.
At the time of writing, the EUR/USD pair is trading near 1.0735, representing a 0.40% gain on the day. Whereas China surprisingly kept rates unchanged early Friday, as in result, the Asian equities are flashing green.
EUR/USD – Daily Technical Levels
Pivot Point 1.0753
EUR/USD – Daily Forecast
The EUR/USD is trading at 1.0740, mostly keeping the bearish bias. The EUR/USD is likely to find an immediate resistance around 1.0780, and above this, the pair has the potential to go after 1.0850. Whereas, the EUR/USD has strong chances of staying bearish below 1.0780 to target 1.065. A breakout of 1.065 can open further room for selling until 1.0565.
GBP/USD – Coronavirus Outbreak Fears & Broad-Based USD Strength
The GBP/USD currency pair flashing green and hit the fresh high of 1.670, representing 1.55% gains on the day because the greenback fell from the 3-year high. The strong stimulus from the U.K. is also helping to improve risk sentiment in the market. The GBP/USD is trading at 1.1662 and consolidates in the range between the 1.1414 – 1.1676. As we all well aware that the pair lost 1,800 pips in the last nine-day, due to multiple uncertainties and broad-based USD strength.
Earlier, the GBP/USD pair fell to the fresh low since 1985 after negative coronavirus reports from the U.S. and the U.K. However, the trading sentiment recovered after because traders appreciated the British Chancellor’s upcoming stimulus measure.
However, the reason behind the risk-on market sentiment could also be the Guardian’s news that a huge struggle is started to produce a U.K. vaccine for coronavirus to save further lives ahead.
GBP/USD – Daily Technical Levels
Pivot Point 1.1585
GBP/USD – Daily Forecast
The GBP/USD is trading at 1.1730 level, as the Cable is bouncing off above 1.1400 level. On the daily timeframe, the GBP/USD pair is heading towards 23.6% Fibonacci retracement at 1.1800, and above this, the pair has odds of going towards 38.2% Fibo levels at 1.2016.
The bullish bias remains solid as the RSI and Stochastics are holding in an oversold zone, which supports the bullish bias in the pair. The Cable may find support around 1.1585, and below this, the next support stays around 1.1315. Let’s look for buying trades above 1.1585. Good luck!