Daily F.X. Analysis, April 09 – Busy Day, GDP & Labor Market Reports In Focus!
By Eaglefx On April 09, 2020 in Daily Market Analysis
A day before, the greenback remained firmed as confidence that the coronavirus crisis was reducing has faded, boosting traders' anxieties over the economic influence of the pandemic. The single currency euro amongst was the primary loser versus the U.S. dollar. Yesterday, the EUR/USD dropped after the greenback suffered its worst slide versus a basket of currencies in almost two weeks. Today, eyes will be on the series of high impact events from the U.K., U.S., and Canada.
Economic Calendar
BTC/USD - Daily Analysis
The leading cryptocurrency BTC/USD is dispensing a few bearish signs beneath the $7,400 resistance zone versus the U.S. Dollar. The BTC/USD is currently failing, and it could prolong its inclination towards $7,100 or $6,800.
The BTC/USD is fighting to break above the next resistance level of $7,400 and $7,500 versus the U.S. Dollar. The bears are gradually taking control, and they are anticipated to target $7,000. There was a breach beneath a significant bullish trend line with support around $7,300 on the hourly chart of the BTC/USD pair. The BTC/USD pair could improve distinctly towards the $7,100 support or $6,800.
Roughly 4-weeks ago, the global equities markets were in trouble as traders eventually recognized that the coronavirus was not just an illness limited to China, but rather a worldwide pandemic which could lastingly damage markets over the globe.
BTC/USD - Daily Technical Levels
Support Resistance
7,221 7,430
7,113 7,531
6,904 7,740
Pivot Point 7322.09
BTC/USD – Daily Forecast
The BTC/USD prices consolidate to trade over the support level 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 – U.S. Jobless Claims Ready to Play
The EUR/USD pair is flashing green and registered moderate gains to trade until 1.0880 ahead of the European Union minister meeting. The EUR/USD failed to extend its previous losses below key short-term SMA confluence and looking flat because traders keenly await the ECB meeting. The European Union finance ministers struggle to agree on a coronavirus economic rescue package.
The EUR/USD is trading at 1.0863 and consolidates in the range between the 1.0854 - 1.0880, while the currency pair faced some moderate declines on Wednesday because Spain reported the highest daily increase in coronavirus cases deaths in four days.
Moreover, the European Central Bank (ECB) said this is our responsibility to keep the rates low for an extended period while leading Germany economic forecast institutes observe the economy declining approximately 10% in the second quarter. As in result, the EUR currency could suffer in deeper losses.
As the talks about coronavirus stimulus package faced failure to happen overnight, so the finance ministers of the European Union nations are scheduled to resume discussions on Thursday. It is worth mentioning that the Spanish Agriculture Minister Luis Planas said, the European Union's future is at the risky note as per Reuter's latest report.
Lastly, the European Central Bank (ECB) has asked for a fiscal stimulus package worth 1.5 trillion euros. However, the European ministers have failed to deliver the stimulus so far due to a constant standoff between southern European states like Italy and fiscally conservative countries like the Netherlands. Hence, we have not seemed much price action in the EUR/USD currency pair.
EUR/USD - Daily Technical Levels
Support Resistance
1.0829 1.0887
1.08 1.0917
1.0742 1.0975
Pivot Point 1.0858
EUR/USD – Daily Forecast
The EUR/USD has formed a symmetric triangle pattern, which is keeping the pair in consolidation mode between 1.0853 - 1.0887. Breakout of this pattern will help determine further trends in the market. On the higher side, the bullish breakout of this level can lead EUR/USD prices towards the next resistance level of 1.0930. Conversely, a bearish breakout of 1.0850 level can trigger further selling until 1.0835 and even below until 1.0820. The key pivot point is 1.0860, and the market can stay bearish below and bullish above this level today.
GBP/USD - U.K. GDP Figures Ahead
Today in the early Asian trading hours, the GBP/USD currency pair continued its 3-day winning streak and registered mild gains on the day, representing 0.10% gains and taking round to 1.2400 ahead of the U.K.'s February month data which dumped and Fed Chair Powell's speech.
The GBP/USD is trading at 1.2377 and consolidates in the range between the 1.2377 - 1.2419. However, the traders keenly await the busy economic calendar, which can offer additional catalysts to traders.
Although the United Kingdom Prime Minister Boris Johnson gave positive vibes about his health and announced as stable inside the Intensive Care Unit (ICU), while the deputy leader Dominic Raab facing trouble as the coronavirus (COVID-19) intensifying outbreak pushes the policymakers to extend the lockdown.
The expected extension about a three-week-old lockdown is putting British policymakers in trouble. Still, the expected shortage of ventilators ahead of the National Health Services (NHS) prediction also did the same. In the meantime, the Guardian indicates the NHS study expecting the pace in cases in around seven to 10 days.
Besides, the European Central Bank (ECB) has asked for a fiscal stimulus package worth 1.5 trillion euros. However, the European ministers have failed to deliver the stimulus so far due to a continuous standoff between southern European states like Italy and fiscally conservative states like the Netherlands. Whereas, the E.U. keeps criticizing the Brexit deadline. With this, we
GBP/USD - Daily Technical Levels
Support Resistance
1.2315 1.2447
1.2236 1.25
1.2104 1.2632
Pivot Point 1.2368
GBP/USD – Daily Forecast
The GBP/USD continues to consolidate above and below a pivot point level of 1.2368. The overall trading range remains limited in between 1.2515 - 1.2250, while investors await the GDP figures before entering further positions in the market. 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. The GBP/USD pair may trade in selling below 1.2368 and buying above the same level today.
Good luck!