Daily F.X. Analysis, April 30 – ECB Monetary Policy In Highlights!
By Eaglefx On April 30, 2020 in Daily Market Analysis
A day before, the U.S. dollar weakened after the Federal Reserve kept the Fed fund interest rates steady and reiterated a pledge to do what it needs to shore up the economy that has been punished by business shutdowns due to the novel coronavirus.
The dollar has declined over 3% after mounting a more than the three-year high of 102.99 in late March as global central banks initiated massive incentive measures to preserve economies from the coronavirus pandemic. The Fed's statement was released after the economic data exhibited that the U.S. economy shrank in the first quarter.
Economic Calendar
BTC/USD - Daily Analysis
On Wednesday, during the U.S. session, the BTC/USD pair soared dramatically to trade at 8,900 levels, and it seems to head toward $10,000 soon. The bitcoin price surged over 30% since the end of March, has almost erased its coronavirus crash losses—and is beating the U.S. S&P 500 index along with most other major markets.
On Wednesday, Bitcoin (BTC) price shattered by a range of essential resistance levels as investors ponied up and initiated their target on the $9K level. Today's $1,123 wave enabled Bitcoin price to violate several crucial levels, such as the major resistance at $8,000 and $8,500. With the move above $8,000, the BTC/USD has also cleared the yearly pivot level of $8,100, which makes it bullish for now. Let's look at the technical side of the market.
BTC/USD - Daily Technical Levels
Support Resistance
8,540 9,137
8,147 9,342
7,942 9,735
Pivot Point 8,745
BTC/USD – Daily Forecast
The BTC/USD traded dramatically bullish to trade at 8,900 level. The leading crypto pair has already violated the major resistance level of 8,841 level. The BTC/USD pair has closed a bullish engulfing candle on the daily timeframe, which is signaling odds of more buying soon. With that being said, the pair can soar towards the initial trading level of 9,208, and bullish crossover of this level may drive further buying until the next resistance level of 10k. On the lower side, Bitcoin's immediate support holds around 8,745.
EUR/USD – ECB Policy Decision In Highlights
The EUR/USD surged from 1.0860 to 1.0880, touching a new daily high upon the announcement of the FOMC statement. The U.S. dollar dragged back over the board, but several minutes later, retrieved from most of its losses. At the moment, the EUR/USD pair is consolidating at 1.0870, keeping a bullish intraday bais blow triple top resistance level.
Most of the moment in the EUR/USD pair was driven in the wake of the weaker U.S. dollar. Following two months of exceptional action in reply to the coronavirus pandemic, Federal Reserve executives joined via web conference over the past two days to get a current report and will release their conclusions openly later Wednesday afternoon.
At the same time, the European Commission confirmed a 5 billion euro (4.37 billion pounds)credit guarantee to the carmaker Renault group to alleviate the influence of the coronavirus crisis. The Commission, which manages competition policy in the European Union, has tentatively relaxed its rules to allow E.U. nations to help their economies that are expected to go into bankruptcy as a consequence of lockdown measures.
The scope of the Fed's reply to the health crisis is remarkable, but in a sense, the central bank is yet, like each of us, directed to fluid developments in combating COVID-19 and questions about when the stay-at-home orders are repealed. Overall, the EUR/USD pair gained support on the release of dovish FOMC.
EUR/USD - Daily Technical Levels
Support Resistance
1.0843 1.0897
1.0809 1.0919
1.0788 1.0952
Pivot Point 1.0864
EUR/USD – Daily Forecast
On Thursday, the EUR/USD is consolidating at 1.0865 level. The is expected to face an immediate resistance around 1.0880, which is extended by a triple top pattern that can be seen on the 4-hour chart above. The 50 EMA is suggesting buying, while the Stochastic is also holding above 50, both are suggesting a bullish trend in the EUR/USD.
We may see further buying trend in the EUR/USD pair if it manages to crossover 1.0885 resistance level. On the higher side, the next resistance will prevail around 1.0935. Conversely, a bearish crossover of 1.08400 level can extend selling until 1.0816 level. Consider taking buying trades above 1.0880 resistance today, and selling below 1.0860.
GBP/USD - Upward Channel In-Play
The GBP/USD continues to exhibit bullish bias in the wake of a weaker U.S. dollar. On Thursday, the GBP/USD is consolidating in between a narrow trading range of 1.2389 and 1.2485, as investors seem to ignore the FOMC report's impact.
The U.S. Central Bank Federal Reserve has left rates steady, although greatly improved the statement. In a collective vote on Wednesday, the Federal Open Market Committee (FOMC) declared that the Fed is going to leave the benchmark interest rate steady within the same target range of 0% - 0.25%, however, no major move was seen since this was widely expected decision.
The British Pound has soared along with few other 'risk-on' currencies as traders praised moves by major economies to reduce limitations on daily life, boosting hopes of a swift recovery from the historical depths of recession expected to have been explored by many amid the contemporary crisis. British PM Boris Johnson will meet the leaders of the devolved administrations in Scotland, Wales, and Northern Ireland to discuss extending or easing the strict social distancing measures.
Today, investors will be keeping their eyes on the U.S. jobless claims data, which is due during the U.S. session as it has the potential to drive some movement in the GBP/USD pair.
GBP/USD - Daily Technical Levels
Support Resistance
1.241 1.2507
1.2351 1.2545
1.2314 1.2604
Pivot Point 1.2448
GBP/USD – Daily Forecast
The GBP/USD pair trading bullish around 1.2476 level, and it's exhibiting strong bullish bias, especially due to profit-taking in the U.S. dollar. On the 4 hour timeframe, the GBP/USD has formed a bullish engulfing candle, which is suggesting strong odds of bullish trend continuation in the GBP/USD pair. Continuation of a bullish trend may lead the GBP/USD prices further higher until 1.2522 level, while support holds around 1.2453 level today. The 50 periods EMA and RSI are staying in a bullish zone. Hence we should look for buying trades in the Cable today.
Good luck!