Daily F.X. Analysis, March 24 – Series of PMI Figures in Highlights!
By Eaglefx On March 24, 2020 in Daily Market Analysis
On Tuesday, the major focus will remain on the research firm Markit which are due to publish preliminary readings of March Manufacturing PMI for the eurozone (39.0 expected), Germany (40.0 expected), France (41.0 expected), the U.K. (45.0 expected) and the U.S. (44.0 expected). Also, preliminary readings of March Services PMI for the eurozone (40.0 expected), Germany (43.0 expected), France (41.0 expected), the U.K. (45.1 expected), and the U.S. (42.0 expected).
The U.S. Commerce Department will report February new home sales (750,000 units expected). The Richmond Federal Reserve will release its Manufacturing Index for March (-10 expected).
Economic Calendar
BTC/USD - Daily Analysis
The BTC/USD price edge higher today, recovering from $5,688 to a daily high at $6,600. The leading cryptocurrency asset defied the most serious concerns of analysts by operating over the $5,400 support, and presently, Bitcoin continues to show increasing strength in the light of wilting stock markets.
The Bitcoin price is now trading beneath the $6,200 and $6,000 support marks. There is a crucial contracting triangle developing with support around $5,780 on the hourly graph of the BTC/USD.
The BTC/USD pair could either drop dramatically below $5,750, or it might strive a fresh surge to $6,500.
One of the significant price levels to be conscious of is the $5,400 mark. If Bitcoin drops beneath that level, it will be a very bearish plot for crypto as a whole. Although the price increased to a daily high of $6,400 on Sunday, a closing of daily price over $5,900 is necessary.
BTC/USD - Daily Technical Levels
Support Resistance
5,489 6,635
4,805 7,097
4,343 7,781
Pivot Point 5,950
BTC/USD – Daily Forecast
The BTC/USD prices continue to hold bearish below double to the resistance level of 6,696, while the bullish bias seems stronger as the recent pivot point support holds around 6,215. The BTC/USD crossover and tested the pivot point support level at 6,215 and closing of candles above this level is suggesting chances of a bullish bias in the Bitcoin.
On the lower side, the BTC/USD prices are likely to find support around 5,606 and 4,770. Whereas, the resistance continues to hold around 6,685. On the hourly chart, the bullish trendline is likely to support the BTC/USD prices around 6,230 area, and we may see Bitcoin prices bouncing off this level today
EUR/USD – Eyes on Series of PMI Figures
Today in the early Asian session, the EUR/USD currency pair caught bids near 1.0720 and hit the fresh session high of 1.0822, mainly due to broad-based USD weakness after the U.S. Federal Reserve statement that there is no limit to their Quantitative Easing program.
The EUR/USD is trading at 1.0796 and consolidates in the range between the 1.0722 - 1.0823. However, the currency pair may drop to the lowest level, and it depends on the upcoming Eurozone and German preliminary Manufacturing PMIs data.
The pair continue to gaining traction in the wake of the weaker dollar and continue to trading above 1.0800, representing 0.65% gain on the day. It is worth to mention that the reason behind the greenback weakness could also be the statements that the U.S. Senate and the Trump administration were close to reaching a deal on the massive coronavirus spending package late Monday.
The riskier assets got support after improvement in risk sentiment in the global market. Asian stocks gained with the futures tied on the S&P 500, adding 4%. Whereas, the Fed's unlimited asset purchase plan may continue to reduce tension in the credit markets, sending the greenback lower.
EUR/USD - Daily Technical Levels
Support Resistance
1.0615 1.0809
1.0529 1.0917
1.0335 1.1111
Pivot Point 1.0723
EUR/USD – Daily Forecast
The EUR/USD is consolidating around at 1.0745, essentially following a choppy trading session in the wake of a lack of major economic events. The EUR/USD is expected to gain a critical resistance nearby 1.08510, and above this, the pair has the chance of going further higher towards 1.1050. In contrast, the EUR/USD has a strong chance of staying bearish beneath 1.0723 pivot point level to target 1.065 as the RSI and Stochastics remain strongly bearish. A breakout of 1.065 can drive more selling until 1.0565.
GBP/USD - Eyes On Activity Numbers
During Tuesday's Asian session, the GBP/USD currency pair flashing green and rose 0.75% to 1.1636, mainly due to broad-based greenback weakness. On the other hand, the currency pair did not give any major attention to the domestic coronavirus fears after declines in the U.S. dollar.
Right now, the GBP/USD is trading at 1.1616 and consolidates in the range between the 1.1509 - 1.1659. However, investors are still careful before the first results of the deadly virus on the critical activity numbers from the U.K. and the U.S.
The United States Senate failed to pass the much-awaited $2 trillion COVID-19 Bill, but the Republicans are still expecting the deal to be started soon. During the Monday, the U.S. Federal Reserve (Fed) announced unlimited Quantitative Easing (Q.E.) to control the disease.
At the coronavirus front, the global death losses rose to 16,380 with more than 335 in the U.K. . While identifying the threat of the outbreak, the British PM Boris Johnson announced the most stringent measures, including penalties on the public and shops during the lockdown, to force the people to stay at home to control the spreading of the virus.
GBP/USD - Daily Technical Levels
Support Resistance
1.1492 1.1872
1.1333 1.2094
1.0953 1.2474
Pivot Point 1.1713
GBP/USD – Daily Forecast
The GBP/USD hasn't changed much as the pair continues to consolidate around 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!