Daily F.X. Analysis, April 20 – Eyes on E.U. Trade Balance & German Buba Report!
By Eaglefx On April 20, 2020 in Daily Market Analysis
On Monday, the eyes will remain on the German PPI, current account, and Trade balance figures. But these are low impact economic events and may not be able to drive sharp price action today. The U.S. President Donald Trump showed some willingness for another relief package while also pushing for an economic reopen plan.
Economic Calendar
BTC/USD - Daily Analysis
During the weekend, the BTC/USD price traded sharply bullish to crossover the next resistance level of $7,200, soaring towards the next resistance level of $7,293 to briefly escape the resistance cluster the price has been trapped within since April 6. The traders are currently focusing focused on pushing the price over the $7,258 resistance to aim for the next resistance level of $8,000.
On the way, the Bitcoin may find next resistance, and the strongest one, if I must say, $7,400 is the next significant level. The Bitcoin prices are crossing over the resistance level of 7,140, which opens up a room for further buying until 7,430 resistance levels.
In any case, the BTC/USD price is stable above $7,000, but a violation of this level could cause a drop until $6,500, the support level from the last week.
BTC/USD - Daily Technical Levels
Support Resistance
6,999 7,130
6,936 7,196
6,806 7,327
Pivot Point 7,066
BTC/USD – Daily Forecast
On Monday, the Bitcoin prices are crossing over the resistance level of 7,140, which opens up a room for further buying until 7,430 resistance levels. For now, the support may be seen around 7,020 level if 7,140 level gets violated. Recently, the Bitcoin is forming neutral candles such as doji and spinning top, which is suggesting indecision among traders. Hence, buying can be seen at over 7,140 level today.
EUR/USD – Trade Balance & German Buba Report
The EUR/USD currency pair flashing red and dropped to 1.0857, having faced rejection at a crucial resistance on Friday. However, the currency pair representing 0.20% losses on the day, mainly due to the risk-off market sentiment, which tends to weaken the shared currency and provides support to the U.S. dollar.
The EUR/USD is trading at 1.0855 now and consolidates in the range between the 1.0857 - 1.0878. By the way, the trendline resistance is located at 1.0897, which is also housing the 10-day average.
As per the latest forecasted report, the EUR/USD currency pair could be dropped to 1.06 level from the 1.08 level, mainly due to the on-going concerns of Eurozone growth in the wake of intensifying coronavirus fears. The increase in debt rates also weakens the shared currency.
Meanwhile, investors can understand the worse outlook of the whole world and would continue to put bids in the U.S. dollar. So, the future efforts of the U.S. dollar turned out to be one of the key factors behind why the euro could test its three year low of 1.0636 versus the U.S. dollar.
The coronavirus outbreak has brought to the fore the deep divides among the member states on fiscal spending. Italy and Spain have blamed northern nations led by Germany and the Netherlands - of not doing enough.
EUR/USD - Daily Technical Levels
Support Resistance
1.0826 1.0907
1.0779 1.094
1.0698 1.1021
Pivot Point 1.0859
EUR/USD – Daily Forecast
On Monday, the EUR/USD has broken the upward trendline at 1.0885. Now, the EUR/USD currency pair continues to trade below this level 1.0885 level, which is working as strong resistance for the EUR/USD. On the higher side, the next resistance holds at 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. The downward breakout of 1.08230 can trigger a sell-off of up to 1.0725. Today, consider selling below 1.0859.
GBP/USD - Eyes On Virus Updates
Today in the early Asian trading hours, the GBP/USD currency pair failed to continue its Friday's gains and dropped to a fresh low of 1.2455, representing 0.30% losses on the day mainly due to broad-based U.S. dollar strength in the wake of risk-off market sentiment. As well as, the fresh rise in the U.K. death toll and lockdown fears from coronavirus also undermine the British Pound.
The GBP/USD currency pair is currently trading at 1.2458 and consolidates in the range between the 1.2455 - 1.2504. At the USD front, the U.S. dollar continues to take bids mainly due to its safe-haven demand in the wake of intensified coronavirus fears. As per the latest report that the United States death toll rose above 40,000, whereas SkyNews mentions the U.K. has a bit over 16,000 people who died from the virus.
On the other hand, the report came that the United Kingdom PM Boris Johnson is still cautious about lifting lockdown because the latest headlines from the Financial Times (F.T.) suggest above 21,000 Uk business companies collapsed during March than the same month a year ago, while the first proof of the damage by coronavirus is taking on companies.
GBP/USD - Daily Technical Levels
Support Resistance
1.2433 1.2544
1.2365 1.2586
1.2254 1.2697
Pivot Point 1.2475
GBP/USD – Daily Forecast
The GBP/USD is exhibiting selling bias on Monday, as the upward channel has already been violated. The channel supported the pair at 1.24785, and this opens up further room for selling in the GBP/USD, which may lead its prices towards the next support level of 1.2300 and 1.2150. On Monday, the GBP/USD will determine the next movement upon the breakout of this sideways channel, which is supporting Sterling at 1.2420 area along with resistance around 1.2525. The bearish bias remains strong today.
Good luck!