Daily F.X. Analysis, January 22 – Canadian Rate Decision In Focus!
By Eaglefx On January 22, 2020 in Daily Market Analysis
The U.S. Dollar Index stayed range-bound on Tuesday, closing flat on the day at 97.61. German ZEW Indicator of Economic Sentiment climbed 16 points to 26.7 in January to place the highest mark since July 2015. The ZEW data confirmed the economy hit the lowest point in the last quarter of 2019 and is witnessing a rebound.
Later today, U.S. existing homes sales are anticipated to increase to an annualized rate of 5.43 million units in December. The U.S. government bonds were in demand, as the benchmark U.S. 10-year Treasury yield sank to 1.768%, its lowest level since December 3, from 1.834% last Friday.
Economic Calendar - U.K. Labor Canadian Rate Decision In Focus
BTC/USD - Daily Analysis
On Wednesday, the BTC/USD has seen some volatility following a dip of as low as $8,400 before swiftly rising towards $8,800. This dip and consequent growth validate the massive volume of support that endures right below BTC's current trading level, and it can bolster Bitcoin's demand.
The BTC/USD survived to close over 8,654. The leading crypto pair is consolidating above 8,640, with next support around 8,600 and resistance at 8,730. On the higher side, 8,845 is a key beneath which the BTC/USD is expected to keep the bearish momentum.
BTC/USD - Daily Technical Levels
Support Resistance
8,549.34 8,831.08
8,377.32 8,940.8
8,095.58 9,222.54
Pivot Point 8,659.06
BTC/USD – Daily Forecast
The BTC/USD has violated the double top resistance level of 8680, which is now likely to support the pair. Violation of 8680 has opened further room for buying until 8,835. On the lower side, BTCUSD may go after 8510 on bearish breakout of 8680. The bullish bias remains solid today.
EUR/USD – Resistance Becomes Support
The EUR/USD currency pair found on the slippery ground after rejection above 1.11 on Tuesday despite the Upbeat German data. As of writing, the EUR/USD currency pair is trading at 1.1083 and consolidates in the range between the 1.1077 - 1.1087.
As we already mentioned that the EUR/USD hit the high of 1.1118 during the European trading hours on Tuesday in the wake of the positive German data report, but later the pair got rejection above 1.11 and dropped to 1.1077 range.
At the data front, the German ZEW Indicator of Economic Sentiment climbed 16 points to 26.7 in January to place the highest mark since July 2015. The ZEW data confirmed the economy hit the lowest point in the last quarter of 2019 and is witnessing a rebound.
The EUR/USD currency pair bullish level above 1.11 was not long-lived. The pair closed the day with 0.11% losses, creating an inverted hammer and confirming a head-and-shoulders breakdown on the daily chart.
Looking forward, Italy's Business Climate, Industrial Sales, and Industrial Orders for November are scheduled to release today. However, these data could not influence the market. The U.S. housing data is expected to release and will likely leave the impact on the U.S. Dollar.
EUR/USD - Daily Technical Levels
Support Resistance
1.1069 1.1106
1.1057 1.1131
1.102 1.1168
Pivot Point 1.1094
EUR/USD – Daily Forecast
The EUR/USD has formed a double bottom level at the 1.1075 area, which is currently supporting the EUR/USD prices. Closing of Doji candle above this area is likely to extend the bullish trend until 1.1093, which is a most crucial level today. A bullish breakout of this level can drive further buying until 1.1110.
GBP/USD - Descending Triangle
The GBPUSD currency pair continues to flash green and still found on the recovery track for the 2-consecutive days mainly due to the upbeat U.K. fundamentals and the greenback weakness while the pair did not give any response to the Brexit uncertainty so far. As of writing, the GBP/USD currency pair is currently trading at 1.3060 and consolidates in the range between the 1.3035 - 1.3060.
As we already mentioned that the House of Lords rejected 3-bills of the United Kingdom Prime minister Boris Johnson's regarding the Brexit departure agreement. It is worth to say that this was the 1st parliamentary defeat for the ruling Conservative after the general election.
On the flip side, the statement came from the U.K. Express that the European Union is preparing for a hard deal with the United Kingdom. However, it was straightforward to judge the regional leader's recent behavior, and this news could weigh on the Brexit talks between the United Kingdom and the European Union.
Apart from the Brexit news, the United States President Donald Trump's impeachment and the explosion of the coronavirus in China still weighing on the market risk-sentiment. Whereas, the U.S. ten-year treasury yields rose by 2-basis points (bps) top 1.79% by the time of writing. Notably, the traders prefer safe-haven investment due to the risk-off market sentiment.
GBP/USD - Daily Technical Levels
Support Resistance
1.3003 1.3091
1.2955 1.3132
1.2867 1.322
Pivot Point 1.3043
GBP/USD – Daily Forecast
The GBP/USD's sideways trend continues as the pair is stuck in between 1.3096 - 1.3040. Presently, the GBP/USD is finding support near 1.30400, and it needs to be violated to have a more bearish trend in the GBP/USD. Below this level, the GBP/USD may find the next support around 1.2960.
On the higher side, the GBP/USD can trade bullish above 1.3040 level today with a target of 1.3090 as the RSI and Stochastics remain in the bullish zone, and 50 EMA also supports the bullish bias.
All the best for today.