Daily F.X. Analysis, April 08 – Mixed Risk Sentiments FOMC Meeting Minutes

On Wednesday, the U.S. dollar found a footing as traders reacted to safe-havens, reclining some risk currency gains produced on concerns the coronavirus crisis in Europe and New York was reducing.

The greenback extended versus most of the major's currencies besides the Japanese yen, a day after experiencing its severest decline versus a basket of forex currencies. The safe-haven surge was sparse but picked speed in early Asian trading, especially after the bullish rally in Asian stock markets lost steam and bonds, and gold prices improved.

Economic Calendar    

BTC/USD - Daily Analysis

The BTC/USD recovers the chances of bullish recovery to $8,000 ere May 2020 halving. The Bitcoin is following a bullish bias, with immediate to be found at $7,400 and $7,500, respectively. A day before, the BTC/USD prices slipped to test the support level around 7,060, but the closings of candles above this support level may drive bullish bias for the Bitcoin today. 

The BTC/USD bulls are indeed in power to lead a breakout not only over $7,000 but also $7,400. Improvement from the $6,000 area has taken a long time with various limits at $6,400, $6,800 and $7,000 being in the way. Nevertheless, BTC/USD is now consolidating at $7,365. 

Intraday metrics confirm the price having scored nearly 2% on its value on the day after having a retracement over $7,201. The primary goal for the buyers is to push for profits over $7,400. This could improve the investor's confidence in the recovery, and targeting $8,000 resistance mark. 

BTC/USD - Daily Technical Levels

Support Resistance 

7,020        7,394

6,863        7,611

6,489        7,985

Pivot Point 7,238

BTC/USD – Daily Forecast

The BTC/USD prices slipped to test the support level around 7,060, but the closings of candles above this support level may drive bullish bias for the Bitcoin today. At the same time, the leading cryptocurrency is also expected to face resistance around 7,440, and bullish breakout of this level can extend buying until the next resistance level of 7,615. 

The bullish bias remains strong as the Bitcoin has closed a bullish engulfing pattern on the 4-hour timeframe, which is likely to keep it bullish above the 7,215 support zone.

EUR/USD –  Failed To Continue Its Previous Day Recovery 

The EUR/USD pair failed to continue its previous day winning rally and dropped to 1.0859 level, representing 0.28% losses on the day mainly due to the U.S. dollar retakes the lead due to the risk-off market sentiment in the wake of intensifying coronavirus concerns. 

The pair recently returned from the previous day high level of 1.0926 to 1.0859. The EUR/USD pair is currently trading at 1.0859 - 1.0902. As we already mentioned that the U.S. Dollar taking bids on the day, as the S&P 500 futures slumped by 0.5%, indicating the risk-off sentiment in the global market after New York reported 731 deaths from coronavirus on Monday- the most significant daily rise. On the other hand, Spain's daily losses of coronavirus deaths also increased for the 1st-time in 5-days.

The reason behind the fresh risk-off sentiment could also be the recent action in which the rating agency Standard and Poor's put the country's AAA rating on the negative, which indicates a recent decline in the fiscal metrics.

Moving on, the bearish moves in the EUR/USD currency pair could take place if the European equities open on the negative note in the wake of intensifying coronavirus fears. On the flip side, the trader should be noted that the oil benchmarks are flashing green, which could be seen well for stocks; in this case, the safe-haven U.S. dollar will likely get weaker.

EUR/USD - Daily Technical Levels

Support Resistance 

1.0827      1.0941

1.0762      1.0991

1.0647      1.1106

Pivot Point 1.0876

EUR/USD – Daily Forecast

On Wednesday, the EUR/USD is trading with a bearish bias, having crossed the pivot point level of 1.0876 on the lower side. With this, the odds of bearish bias improves, and we may see EUR/USD prices heading lower towards the next support level of 1.0772. 

As we can see on the 4-hour chart, the pair has formed a symmetric triangle pattern, which signifies the neutral sentiment among traders, and it can exhibit a breakout on either side of the market. 

Hence, a bearish breakout of 1.0750 support level can extend selling until 1.0664 level, which also marks a double bottom pattern today. So let us look for selling trades below 1.0876 with a stop loss of over 1.0950 and take profits around 1.0666. 

GBP/USD - Renewed Coronavirus Concerns & UK PM Health In Focus

During the early Asian session, the GBP/USD currency pair flashing red and did not succeed in holding its previous session gains. The pair has dropped to 1.2310 and representing 0.18% declines on the day mainly due to the renewed coronavirus concerns and UK PM Boris Johnson health issue. 

The fresh uptick in the U.S. dollar also keeps the pair lower, and the GBP/USD continues to trade at 1.2325. Overall, the cable consolidates in the range between the 1.2310 - 1.2353. Despite the recovery in the UK PM Boris Johnson health, the GBP seems depressed due to a rise in virus statistics and expectations of further deterioration.

Deputy PM Dominic Raab said that all strategies to control the coronavirus outbreak is going according to Mr. Johnson's plans. While the Foreign Secretary looking confident about the UK PM Boris Johnson's health and said that he would recover from pandemic while describing him as a "fighter."

On the other hand, the United Kingdom's death losses challenged the previous weakness and again took pace while rose to the all-time high. Despite this, CNN still shows doubts about the preparation of the data. As per the latest prediction, almost 66,000 UK deaths from COVID-19 by August, with a peak of nearly 3,000 a day, based on a steep rise in daily deaths early in the outbreak.

GBP/USD - Daily Technical Levels

Support Resistance 

1.2269       1.2395

1.2201       1.2453

1.2075       1.2578

Pivot Point 1.2327

GBP/USD – Daily Forecast

On Wednesday, the GBP/USD continues to consolidate to around 1.2400 level, but it manages to trade bearish, falling to 1.2450 level. The GBP/USD pivot point support stays around 1.229, and it's prices are tossing above and below this level. 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. 

Today, the GBP/USD pair may trade in selling below 1.2327 and buying above the same level today to target 40 pips on both sides. 

Good luck!