Daily F.X. Analysis, April 17 – Eurozone CPI Figures In Focus

The U.S. dollar continues to lose its buying momentum across the board, as the U.S. stocks futures and the Asian equities are flashing green as the renewed hopes for coronavirus treatment. The U.S. dollar slipped on Friday following a news report showing a sign of success in a COVID-19 treatment medication trial, while fresh proposals to reopen the U.S. economy prompted fresh optimism and risk appetite.

 Economic Calendar     

BTC/USD - Daily Analysis

Following a narrow trading session for the previous few days between $6800 – $7000, it initially began with a sharp drop below the critical $6600 support. Whereas the daily low was around $6472, which is the next-mentioned support level we had stated here yesterday. However, it was only a quick glitch below the $6600 because, for the following hours, we saw Bitcoin trading safely above the fundamental level. Nevertheless, it has shifted increasingly challenging to maintain gains towards $7,000. For this purpose, another improvement on Thursday pushed Bitcoin beneath various support levels of $6,800 and $6,600. 

Currently, the BTC/USD trades slightly over $7,000. Following the breach of the $7,000 trading level, along with the descending trendline, as can be observed on the subsequent 4-hour chart, BTC/USD is likely to face resistance around $7150 – $7200 at first. Besides, the next resistance can prevail around a 10-day peak at around $7400 – $7500. The latter is the highest-level Bitcoin price had witnessed considering the COVID-19. 

BTC/USD - Daily Technical Levels

Support Resistance 

6,676       7,376

6,238       7,638

5,977       8,076

Pivot Point 6,938

BTC/USD – Daily Forecast

A day before, the BTC/USD prices slipped below 6,510 support area but failed to give us closing under this level. Consequently, the BTC/USD prices soared sharply to trade around 7,050 level, holding right below an immediate resistance level of 7,140 level. Closing of candles below 7,140 level can drive selling bias in Bitcoin; elsewhere, we may see bullish trend continued until the next resistance level of 7,430. On the lower side, supports stay around 6,550.

EUR/USD – Broad-Based US Dollar Weakness

Today in the early Asian session, the EUR/USD currency pair stops its previous day losses. The pair found fresh bids near 1.0850 one hour ago, having hit the high of 1.0880, mainly due to fresh broad-based weakness in the greenback. 

Most of the weakness came in the wake of risk-on market sentiment, while the risk-on tone triggered by the headline from STAT news that Gilead Sciences' experimental drug redeliver is seeing fast recoveries in fever and respiratory symptoms associated with the coronavirus. Currently, the EUR/USD currency pair is currently trading at 1.0873 and consolidates in the range between the 1.0835 - 1.0880.

At the USD front, the U.S. dollar continues to lose its buying momentum across the board, as the U.S. stocks futures and the Asian equities are flashing green as the renewed hopes for coronavirus treatment. 

On the other hand, the United States President Donald Trump's step to reopening the economy could add some bullish pressure around the equities. While China reported a bigger-than-expected 6.8% decrease in the gross domestic product for the first quarter during the Asian trading hours.

EUR/USD - Daily Technical Levels

Support Resistance 

1.0851      1.0973

1.0792      1.1037

1.067        1.116

Pivot Point 1.0915

Pivot Point 1.0859

EUR/USD – Daily Forecast

The EUR/USD has violated the upward trendline at 1.0885, and now it continues to trade below this level, which is working as strong support for the EUR/USD. On the higher side, immediate resistance lingers nearby 1.0859 an 1.0930. While below 1.0859 level, the market has strong odds of falling further until the next support level of 1.0765. 

Breakout of 1.0859 resistance can drive the EUR/USD prices higher until 1.0930; alternatively, the downward breakout of 1.08230 can trigger a sell-off up to 1.0725. Today, consider selling below 1.08500. 

GBP/USD -  Eyes On Virus Updates 

During the Friday's Asian trading hour, the GBP/USD currency pair stop its 2-day declining streak and rose above 1.2500 level, representing 0.30% gain on the day mainly due to the broad-based U.S. dollar weakness. The dollar weakened in the wale of risk-on market sentiment. Whereas, the reason behind the risk-on market sentiment is the headline from STAT news that Gilead Sciences' experimental drug redeliver is seeing fast recoveries in fever and respiratory symptoms associated with the coronavirus. 

Currently, the GBP/USD is trading at 1.2479 and consolidates in the range between the 1.2450 - 1.2522. At the USD front, the U.S. dollar continues to lose its selling momentum across the board, as the U.S. stocks futures and the Asian equities are flashing green mainly after the renewed hopes for coronavirus treatment. 

Despite the high death toll in the U.S., United States President Donald Trump's decision to reopening the economy could also be the reason behind the risk-on market sentiment. At the U.K. front, the United Kingdom's economy decided to extend its lockdown for at least three weeks while the death toll rose to 13000.

 Lastly, the deputized leader Dominic Raab also declared that it could no longer be "business as usual" with China, as the superpower had "questions to answer" over its handling of the coronavirus pandemic. With this, the Sterling may face resistance to surge higher.

GBP/USD - Daily Technical Levels

Support Resistance 

1.244        1.2612

1.2353      1.2697

1.2181       1.2869

Pivot Point 1.2525

GBP/USD – Daily Forecast

The GBP/USD is exhibiting choppy sessions despite the violation of upward channel, and now the Sterling is trading within a narrow trading range of 1.2520 - 1.2440. On the 4 hour timeframe, the cable is retesting the support level of 1.2435 and has also entered into the oversold zone as you can see, the RSI value is dropping below 50. 

Today on Friday, the GBP/USD will determine the next movement upon the breakout of this sideways channel. The immediate resistance holds around 1.2525, and above this, the next resistance will hold around 1.2658. Whereas, a bearish breakout of 1.2425 can lead the GBP/USD prices until 1.2345 and 1.2200. 

Good luck!