Daily F.X. Analysis, April 06 – Dollar Weakens, Despite NFP Misses Forecasts!
By Eaglefx On April 06, 2020 in Daily Market Analysis
The dollar surged to a more than one-week high versus key competitors, making XAU/USD more expensive for traders holding foreign currencies. There are forecasts that the greenback is unlikely to stay solid, and underlying economic stipulations are getting worse. Therefore, the investors aren't going to get sucked into the short cover on equities.
On the news front, the economic calendar isn't expected to offer any market-moving event. However, the worse than expected NFP figures from Friday may continue to factor in by traders today. The dollar can stay weaker and may drive other currencies and gold higher.
Economic Calendar
BTC/USD - Daily Analysis
The BTC/USD is trading bullish, adding nearly 2%, and it is gaining bullish impulse against the U.S. Dollar. The BTC/USD is expected to grow 4%-5% if it breaks over the major $7,000 resistance area.
The BTC/USD is bestowing a lot of concrete bullish signs over the $6,700 support versus the U.S. Dollar. The Bitcoin is surrounding the major $7,000 resistance and breach zone. Previously, the BTC/USD showed a bullish break over crossing a bearish trendline with immediate resistance at $6,800, which can be seen on the hourly chart of the BTC/USD pair.
The pair could show a dramatic bullish trend if there is a definite breach of the $7,000 resistance area. The BTC/USD is trading choppy within a narrow range of 6,853 - 6,694. Looking at the 4-hour chart, a downward breakout of 6,696 mark can direct to Bitcoin towards the next support level of 6,533.
BTC/USD - Daily Technical Levels
Support Resistance
6,535 6,963
6,363 7,219
5,935 7,647
Pivot Point 6,791
BTC/USD – Daily Forecast
On Monday, the BTC/USD is consolidating in a choppy range of 6,853 - 6,694. Looking at the 4-hour chart, a downward breach of 6,696 mark can lead to Bitcoin towards the next support mark of 6,533. Alternatively, the bullish breakout of 6,853 opens further room for buying until 7,095 and 7,250. Leading indicators, such as RSI and Stochastic, are in a bullish zone, suggesting chances of buying in Bitcoin.
EUR/USD – Manages to Hold Above 1.0800
During the Asian session, the EUR/USD currency pair flashing green and struggles to hold above 1.0800 level so far, mainly due to moderate recovery in the risk sentiment.
The EUR/USD pair dropped to 1.07773 on Friday due to broad-based USD strength in the wake of intensifying fears of global fallout. At the moment, the EUR/USD is trading at 1.0822 and consolidates in the range between the 1.0799 - 1.0836.
After the improvement in Germany's virus situation, the shared currency caught fresh bids before German Factory data released. The EUR currency lost a few pips from the 1.0835 level after the negative German Factory Orders data, but the EUR/USD did not give any significant response to the German data. In fact, the pair started to getting gains once again to trade near 1.0820 level due to risk-on market sentiment.
The EUR/USD hit a daily high of 1.0835 just a few minutes before the data release. At the data front, the German Factory Orders fell in February, suggesting that the manufacturing sector in Europe's largest economy is not out of the woods yet.
EUR/USD - Daily Technical Levels
Support Resistance
1.0769 1.0847
1.0732 1.0889
1.0653 1.0967
Pivot Point 1.081
EUR/USD – Daily Forecast
The EUR/USD has violated intraday support level of 1.0962, and closing of 4-hour candles below this level is supporting odds of more selling in the pair. On the lower side, the EUR/USD has chances of falling further until 1.0835. While the pair is currently trading up and below the daily pivot point level of 1.0810 as it looks like the market is waiting for a major economic events release to derive further trends in the market.
GBP/USD - Choppy Session Continues
Today in the early Asian session, the GBP/USD pair hit the long-term bearish bias for the first time in 11-months and dropped to 1.2210 level mainly due to the reports that the British Prime Minister Boris Johnson is admitted to hospital for the test of coronavirus after showing intense symptoms.
The broad-based U.S. dollar strength also keeps the pair lower. As of writing, the GBP/USD is trading at 1.2230 and consolidates in the range between the 1.2210 - 1.2265. However, the GBP/USD currency pair started this fresh week on a negative note in Asia this Monday.
As we know, the U.K. Prime Minister has been admitted to hospital for tests tonight, leaving traders and U.K. citizens cautious as Prime Minister Boris Johnson continues to have substantial symptoms of coronavirus since 10-days after testing positive for the virus. So, this is a major reason behind the pair's fresh declines.
Besides, concerns about ventilator support for PM will likely collaborate with the GBP declines. Moreover, the greenback continues to getting support against its 6-major rivals as a safe-haven demand in the wake of intensifying coronavirus global concerns and reinforces the fears over a global economic slowdown, which also keeps the pair bearish.
As per the latest report, the death toll from the coronavirus increased by 621 to 4,934. The total number of confirmed infections rose to 47,806. Apart from the coronavirus intensifying concerns, the GBP currency could remain bearish in the European trading hours mainly due to the sluggish data, which is released early Monday and showed the British consumer confidence declined to the weakest since February 2009. Let's look at the technical side of the market.
GBP/USD - Daily Technical Levels
Support Resistance
1.2184 1.2375
1.21 1.248
1.1909 1.267
Pivot Point 1.229
GBP/USD – Daily Forecast
The GBP/USD consolidates around 1.2400 level, but it manages to trade bearish, falling to 1.2450 level. On Thursday, the GBP/USD's pivot point support stays around 1.2383 level, which also marks the 50% Fibonacci support level for the Sterling. At the moment, the GBP/USD is holding below a strong resistance level of 1.2513 level. On the 4-hour timeframe, the Sterling a pair is likely to find support at 1.2350 violation of which can open further room for selling until 1.2305 and 1.2090, which marks 38.2% Fibo level. The leading indicators, such as RSI and Stochastics, are holding in the overbought zone, which supports the odds of selling bias or retracement in the GBP/USD pair. The GBP/USD pair may trade in selling below 1.2360 and buying above the same level today.
Good luck!