Global financial markets continue to remain on knees in the wake of an increased number of coronavirus cases around the globe. On the forex front, the ICE U.S. Dollar Index dropped a further 0.5% on the day to 101.60.
Today, eyes will remain the U.K. Office for National Statistics will release February CPI (+1.7% on-year expected). The U.S. Commerce Department will release February durable goods orders (-1.0% on month expected). The FHFA will release January House Price Index (+0.4% on month expected).
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
Pivot Point 6,683
BTC/USD – Daily Forecast
On Wednesday, the prices for BTC/USD continue to trade within the same trading range of 6,850 to 6,575. We may see further trends in Bitcoin only when it breaks either on the higher side or the lower side. On the lower side, violation of the 6,530 support level can extend selling until 6,395, and even below this, the next support is likely to be found around 6,175. Conversely, the bullish breakout of the 6,815 level can drive more buying until 7,260.
EUR/USD – Eyes On German IFO Business Climate
Today in the early Asian session, the EUR/USD currency pair continues its previous day bullish streak and rose above the 1.08 level once again, mainly due to broad-based greenback weakness in the wake of risk-on market sentiment and high expectations of the fiscal stimulus package.
As of writing, the EUR/USD is consolidating around at 1.0812 and trades in the range between the 1.0761 – 1.0824. However, the traders are keenly awaiting the German IFO Business Climate to take fresh directions.
At the USD front, the greenback came under pressure once again because the Asian stocks continue to flash green, following the overnight rally on Wall Street, which was boosted by high expectations of U.S. fiscal stimulus.
The congress meeting, which happened on Tuesday, was very close to passing a $2 trillion stimulus package to decrease the economic recession from the coronavirus outbreak. Still, it was not clear that when will be the Democrats and Republicans ready to vote on the Bill.
EUR/USD – Daily Technical Levels
Pivot Point 1.0815
EUR/USD – Daily Forecast
The EUR/USD is consolidating around at 1.0815, mostly 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 – Pair Hit session high mid-above 1.1800
During the early Asian session, the GBP/USD pair continues to flashing green and hit the session high mid-above 1.1800 despite the broad-based U.S. dollar weakness. However, the cable traders remain careful ahead of the UK CPI data release. The GBP/USD is currently trading at 1.1826 and consolidates in the range between the 1.1736 – 1.1856.
The GBP/USD currency pair jumped to a session high of 1.1850 shortly before press time and is currently trading at 1.1826, representing a 0.60% gain on the day. The cost of living in the United Kingdom as represented by the Consumer Price Index (CPI) for February month, which is scheduled to release early on Wednesday at 07:00 GMT.
From the forecasted view, the headline CPI inflation is forecasted to arrive at 1.7% on a yearly basis, softer than the prior +1.8%. The core inflation rate that doesn’t include food and energy items is likely to have increased by 1.5% YoY last month compared to the prior rise of 1.6%. In this regard, the market expecting the February CPI to mark at 0.3%, while inflation should remain weak indefinitely.
GBP/USD – Daily Technical Levels
Pivot Point 1.1731
GBP/USD – Daily Forecast
The GBP/USD hasn’t changed much as the pair continues to consolidate around 1.1830 level, as the Cable is bouncing off pivot point support level of 1.1730 level. On the daily timeframe, the GBP/USD pair is heading towards 23.6% Fibonacci retracement at 1.1830, 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!