Daily F.X. Analysis, February 27 – U.S. Prelim GDP Under Spotlight!
By Eaglefx On February 27, 2020 in Daily Market Analysis
On Thursday, the dollar held profits against the yen as growing concerns that a coronavirus break is converting into a pandemic sent traders to the safety of U.S. Treasuries. The greenback also traded around a three-month top against the British Pound in the wake of worries Britain's trade discussions with the European Union were delaying and dampened expectations for enormous fiscal spending.
Most currencies remained locked in tight ranges as traders tensely monitor the global outbreak of the coronavirus that began in China. The virus is presently growing faster outside of China than inside, arousing concerns that the economic influence of travel curbs, supply chain interruptions, and falling markets might be far more significant than earlier anticipated.
On Thursday, the focus will remain on the series of fundamentals from the U.S., especially the Prelim GDP q/q and Core durable goods.
Economic Calendar
BTC/USD - Daily Analysis
The BTC/USD has exhibited terrible price action has on Wednesday. The market has shifted away from the highs observed on February 13. The BTC/USD is trading 3% lower on another day for crypto markets. The leading crypto pair has made a fresh lower high lower low pattern, and things could get more serious.
The cryptocurrency exchanges were shaken a day before in the wake of a flurry of selling that noticed more than $190 million worth of longs and shorts liquidated on well-known derivatives exchange BitMEX.
A day before, the BTC/USD market closes under 9,000, which is indicating odds of further selling in the Bitcoin until 8,500 area. For now, we must keep a focus on price action and a breach below 8.7K for the continuation of a selling trend.
BTC/USD - Daily Technical Levels
Support Resistance
8,672.12 8,748.31
8,632.9 8,785.28
8,556.71 8,861.47
Pivot Point 8,709.09
BTC/USD – Daily Forecast
The BTC/USD traded as forecasted in the previous update. The BTC/USD continues to trade with a bearish tone after a violation of the symmetric triangle pattern, which can lead the Bitcoin prices towards the next support level of 8,476. Below this, eyes will be on the 8,245 as it marks a double bottom and may help underpin the falling bitcoin prices.
The RSI has dropped below 20, indicating that sellers are exhausted, and bulls are looming around the corner. Closing of a hammer pattern on the 4-hour timeframe is suggesting odds of a bullish correction in Bitcoin. Let's consider staying bullish over 8,700 to target 8,925.
EUR/USD – German Final GDP q/q
The EUR/USD is also trading mostly in line with our forecast and continues to show bullish momentum. The EUR/USD buyers need to revoke Wednesday's Doji candle to encourage more substantial buying pressure. The EUR/USD is exhibiting bullish bias ahead of the London open. The currency pair is currently holding just over 1.09, representing 0.22% increases on the day, having placed a low of 1.0876 in Asia.
Coronavirus has caught the U.S. borders and could keep the greenback on the defensive. Euro to take hints from the Eurozone consumer and industrial confidence economic figures.
While the traders seem uncertain about the virus as it's presently growing faster outside of China than inside, arousing concerns that the economic influence of travel curbs, supply chain interruptions, and falling markets might be far more significant than earlier anticipated.
EUR/USD - Daily Technical Levels
Support Resistance
1.0857 1.0911
1.0829 1.0937
1.0803 1.0965
Pivot Point 1.0883
EUR/USD – Daily Forecast
The direct currency pair EUR/USD is heading consistently higher in the wake of stronger Euro, and weaker U.S. dollar. Investors are doing profit-taking until the EUR/USD complete's it's retracement on the 4-hour chart. On the upper side, the resistances are likely to be 1.0935 and 1.0970. We can also see, the pair has formed an upward channel which is supporting the EUR/USD above 1.0900 while the pivot point support prevails around 1.0880. Let's consider staying bullish over 1.0880 today.
GBP/USD - Bearish Trendline Breakout
The GBP/USD pair disappointed to breach above the 1.30 resistance to eradicate all the profits it reported on Tuesday. The GBP/USD pair is consolidating at 1.2925, dropping 0.6% daily chart.
The broad-based USD gains bullish momentum against the Sterling on Wednesday weighed on the GBP/USD. With the 10-year U.S. Treasury bond yield leaping sharply from the all-time lows, the greenback climbed over the 99 resistance during the European trading hours. Although the U.S. Treasury bond yields shifted south in the second half of the day, the DXY proceeds to float over 99 and seems to lock its three-day falling streak.
The greenback also traded around a three-month top against the British Pound in the wake of worries Britain's trade discussions with the European Union were delaying and dampened expectations for enormous fiscal spending.
Another reason behind Sterling's drop is the heightened expectations that the Bank of England would lower interest rates. Still, it lingered near its high for February on confidence that a relaxed fiscal policy would encourage Britain's economy.
The outbreak of the coronavirus has driven some traders to think central banks will be forced to relax monetary policy to shield their economies. In the U.K., traders are factoring in a 25-basis-point reduction in the current 0.75% rate by August.
GBP/USD - Daily Technical Levels
Support Resistance
1.2865 1.2978
1.2825 1.3049
1.2753 1.309
Pivot Point 1.2937
GBP/USD – Daily Forecast
On Thursday, the GBP/USD is trading with a bearish bias, holding below a pivot point resistance level of 1.2937. On the 4 hour timeframe, you can see the 50 periods EMA is also suggesting resistance around the same 1.2938 level.
The Cable has closed a Doji candle here, which is supporting the bearish bias, as investors are in the phase of indecision right now. Continuation of a selling trend below 1.2938 is likely to extend selling until 1.2885 and 1.2850. Alternatively, the bullish breakout of 1.2940 can lead the GBP/USD prices towards 1.2980 and 1.3010.
Good luck!