On the forex front, the U.S. Dollar Index climbed 0.5% on the day to 99.45. The U.S. Federal Reserve will release its latest monetary policy meeting minutes. The U.K. Office for National Statistics will release January CPI (+1.6% on-year expected).

The U.S. Commerce Department will post January housing starts (1.42 million units expected) and building permits (1.45 million units expected). The Labor Department will release December PPI (+1.6% on-year expected).

Economic Calendar 

BTC/USD - Daily Analysis 

The BTC/USD overcomes the uptrend with a rise of $10,200 for the first time since Saturday. The dismissal at the weekly highs describes the bears back in business as BTC/USD begins to spiral.

The BTC/USD bullish scenario is back, heeding the prices over $10,000. Since the rejection of BTC/USD prices at $10,500, the BTC/USD buyers got beaten in the confines of a descending channel. The bearish trend continued to lows near $9,000 ere, giving way to an upward reversal, mainly on Monday and Tuesday this week.

As predicted, the BTC/USD pair bought in a bullish mode, surging over 9,400 area. Yesterday, the BTC/USD pair were crossing above 20 EMA, which is pushing the buying trend, and it's expected to lead Bitcoin prices towards the next resistance area of 10,500 for now.

BTC/USD - Daily Technical Levels

Support    Resistance 

9,777.14       10,435.42

9,366.01       10,682.57

8,707.73       11,340.85

Pivot Point 10,024.29

BTC/USD – Daily Forecast

The BTC/USD has covered its losses as it bounced off the support level of 9,540. Continuation of a bullish trend is likely to lead the BTC/USD prices towards 10,500, but on the way, the leading crypto pair is likely to face resistance around 10,200. Overall, the bitcoin is still holding above 20 and 50 periods EMA which may keep the BTC/USD pair bullish.

EUR/USD – Current Account In Focus 

The EUR/USD currency pair continues to flash red and dropped below the 1.07 handles on Tuesday, mainly due to the risk-off market sentiment in the wake of intensifying coronavirus fears. As of writing, the EUR/USD currency pair is currently trading at 1.0798 and consolidates in the range between the 1.0791 - 1.0804. However, the currency pair registered its worst level in almost 3-years, and shared currency trader's still adding bets for further losses in the day ahead.

As we already mentioned that the renewed risk-of market sentiment leaves the negative impact on the common currency, which is fell to their lowest levels since October on Tuesday, indicating investors are adding bets to position for further losses in the EUR currency. 

The EUR currency may suffer a deeper loss as expected by investors if the coronavirus gets worse further, increasing the haven demand for the U.S. Treasuries. As in result, the futures on the S&P 500 are reporting a 0.35 % drop. 

At the virus front, more than 74,000 people are infected by the virus in China so far, with hundreds of more cases in some 25 countries. The outbreak is threatening to destroy the global economy and also getting a warning from the iPhone apple company about its slower production and lower demand in China.

EUR/USD - Daily Technical Levels

Support Resistance 

1.0774      1.0826

1.0754      1.0858

1.0702      1.091

Pivot Point 1.0806

EUR/USD – Daily Forecast

The technical side of the EUR/USD hasn't changed so far as it continues to trade as per our previous forecast. The bearish bias still looks stronger as the EUR/USD pair formed another bearish candle on the daily timeframe. The EUR/USD pair seems to form three black crows pattern, which signifies the chances of more selling in the EUR/USD. The aggressive bearish target remains 1.0655 and 1.0570.

GBP/USD - U.K. Inflation Report in Highlights

The GBP/USD currency pair struggles to cross the 1.3000 handles as traders await the key data in the day ahead. As of writing, the currency pair currently trading at 1.2992 and consolidates in the range between the 1.2990 - 1.3006. However, traders seem cautious to place any position ahead of the U.K. Consumer Price Index (CPI) data.

The chances of the rate cut by the Bank of England decreased after the release of a multi-year low British jobless rate. So, traders now keep their eyes on the U.K. Consumer Price Index (CPI) data for January to taking fresh directions. Regarding this, the BOE's line should indicators of domestic prices remain relatively weak becomes the key. Markets expect a slight recovery in headline CPI (YoY) figure to 1.6% from 1.3%, lagging behind BOE's 1.8% forecast.

On the other hand, the United Kingdom's political headlines and the Brexit related headlines will also be essential to watch. Its worth to mention that the newly appointed Chancellor's willingness to give the budget on March 11 represents the high-performance bar for the Toris, the British government said no to visas for low-skilled workers. As well as, the European Union negotiator Michel Barnier again disagreed from the U.K.'s calls for the Canada-style trade deal.

GBP/USD - Daily Technical Levels

Support Resistance 

1.2964      1.3043

1.2928      1.3085

1.285        1.3164

Pivot Point 1.3007

GBP/USD – Daily Forecast

On Wednesday, the GBP/USD is trading sideways after violating the bullish channel, which can be seen on the 4-hour chart. The GBP/USD is now trading below the pivot point level of 1.3007, which is likely to drive more selling in the GBP/USD. It looks like the traders are waiting for the U.K. inflation data ahead of securing any position in the GBP/USD pair. 

On the lower side, the GBP/USD may find support around 1.2940, along with resistance around 1.3065. The RSI and Stochastics are staying in a bearish zone, hiking chances for a sell trade. Let's look for bearish trades below 1.3007 today to target 1.2925. 

Good luck!