Daily F.X. Analysis, February 28 – German CPI & Franch GDP In Focus! 

A day before, the U.S. dollar slipped as traders bet the Federal Reserve would lower interest rates to compensate the influence of the spreading coronavirus, providing the signal euro its most significant daily gain since May 2018.

On the news front, the economic calendar is almost muted, which is why the focus will remain on the technical outlook. No significant price action is expected so far. Sideways and choppy sessions are due to thin trading volume.

Economic Calendar  

BTC/USD - Daily Analysis 

The BTC/USD price disappoints to maintain this level, then a fresh lower low under the Feb.4 price of $9,089 is possible. Below $9,089, the next level of support can be seen at the 200-day moving average that is also at $8,800.

The BTC/USD is presently recovering from the $8,512 weekly low versus the greenback. Nevertheless, BTC/USD is still covering many key hurdles near $9,000, and it could return its decay. BTC/USD is exhibiting symptoms of a short term upward retracement from $8,512 versus the greenback. 

The sellers are still in control, except there is a definite break over $9,000 and $9,200. There is possibly a bearish flag forming with support around $8,735 on the hourly graph of the BTC/USD pair. The BTC/USD could continue its drop beneath the $8,735 and $8,600 mark in the near term.

BTC/USD - Daily Technical Levels

Support     Resistance 

8,595.6       9,015.6

8,365.3      9,205.3

8,175.6       9,435.6

Pivot Point 8,785.3

BTC/USD – Daily Forecast

The BTC/USD extends to trade with a bearish trend following a breach of the symmetric triangle, which can drive the Bitcoin prices towards the subsequent support level of 8,476. Under this, the focus will be on the 8,245 as this level marks a double bottom and may support the falling bitcoin prices. 

The RSI has crossed above 50, indicating that sellers are exhausted, and bulls have entered the market. But the new candles are still showing a lack of clarity about the upcoming trend. Let's consider staying bullish over 8785.3 to target 9,115.

EUR/USD – German Final GDP q/q

The EUR/USD showed a dramatic bullish trend as the pair surged to 1.1000. Later today, the eurozone's Economic Confidence Index for February will be released (102.8 expected). During the Asian session, the EUR/USD stood at $1.0993 following Thursday's surge of more than 1%, the biggest increase in more than two years as traders rewound odds against the currency against the greenback.

Versus the single currency Euro, the dollar dropped to a three-week low, floating just beneath that at 1.099, falling 1.02% on Thursday afternoon. The dollar index sank 0.658% to 98.463, having earlier fallen to its lowest since February 6.

It had dropped approximately 1% since last week when it reached near the three-year top, well thanks to the safe-haven appeal. The U.S. economy was comparatively sheltered from the coronavirus radioactivity. However, the currency's safe-haven attraction has wrapped off.

EUR/USD - Daily Technical Levels

Support Resistance 

1.092       1.1041

1.0842    1.1084

1.0799     1.1162

Pivot Point 1.0963

EUR/USD – Daily Forecast

The EUR/USD has traded in line with the previous forecast and has completed the 61.8% Fibonacci retracement at 1.0976, and for now, it has already violated this level to trade at 1.1000. The pair is in the overbought zone, but it seems to continue its bullish momentum despite a stronger U.S. dollar. On the higher side, we may see EUR/USD prices heading towards 1.1040.

GBP/USD - MPC Member Haldane Speaks

The GBP/USD trades with a slight bearish bias, dropping nearly -0.05%, to trade at 1.2885. The Cable survived and ignored the general greenback's weakness the previous day as the UK PM Boris Johnson's crew set forth plans of their post-Brexit trade-deal discussions with the European Union. As of now, the next week's Brexit talks are the key fundamental for traders along with the coronavirus, which is driving the risk-off sentiment on the market. 

A day before, the Sterling prices dropped to hit a more than five-week low against the Euro and dollar. It's mainly because Britain reinforced a hardline stand on trade discussions with the E.U. and frustration grew that the new finance minister may not boost spending as much as anticipated.

In addition to this, the Sterling is also dropping on the back of heightened forecasts that the Bank of England would reduce it's interest rates. As of now, the BOE interest rate lingered near its high for February on concerns that a relaxed fiscal policy would support Britain's markets.

GBP/USD - Daily Technical Levels

Support Resistance 

1.285       1.2936

1.2812     1.2984

1.2764     1.3022

Pivot Point 1.2898

GBP/USD – Daily Forecast

The GBP/USD is trading with a selling bias, staying beneath a pivot point resistance mark of 1.2898. On the 4 hour timeframe, the 50 EMA is holding around 1.2940 level while the GBP/USD prices are holding around 1.2870, below the pivot point, which suggests clear bearish bias among traders. 

The GBP/USD has closed a strong selling candle below 1.2998 level, which is favoring the selling trend. Continuation of a bearish bias below 1.2898 has the potential to extend selling until 1.2850. 

Good luck!