Daily F.X. Analysis, January 28 – CB Consumer Confidence In Highlights!
By Eaglefx On January 28, 2020 in Daily Market Analysis
On the forex front, the U.S. Dollar Index edged up 0.1% on the day to 97.94. In the U.K., the Confederation of British Industry will post January retail sales index (4 expected).
The U.S. Commerce Department will release December durable goods orders (+0.4% on month expected). The Conference Board will publish January Consumer Confidence Index (128.0 expected). SP/Case-Shiller will report the 20-City Composite Home Price Index for November (+0.4% on month expected). The Richmond Federal Reserve will release its Manufacturing Index for January (-3 expected).
Economic Calendar - CB Consumer Confidence
BTC/USD - Daily Analysis
The Bitcoin has enhanced the support over $9,000 after breaking through the resistances we mentioned yesterday at $8,700 and $8,800. Bitcoin buyers anticipate concluding the month of January not just in the assertive but also with a bullish bias.
The BTC/USD is entering the $9,081 zone, following an impressive 2% growth in value on the day. The prevailing strong bullish trend is driving off the last of the bears in preparation for the next bull-run to $10,000.
BTC/USD - Daily Technical Levels
Support Resistance
8,676.62 9,100.06
8,408.25 9,255.13
7,984.81 9,678.57
Pivot Point 8,831.69
BTC/USD – Daily Forecast
The BTC/USD is trading with a bullish bias, having tested the major resistance area of 9,125. For now, the BTC/USD is in the overbought zone, and it may drive slight bearish retracement. The BTC/USD may dip until the 8,800 area today.
EUR/USD – Eyes on Manufacturing PMI Figures
The EUR/USD currency pair remains trading bearish despite the upbeat German data. The pair erased almost all gains, which were marked in December while the pair had hit the level of 1.1240 from the 1.1015 in December and started this year at 1.1222. As of writing, the EUR/USD pair is currently trading at 1.1021 and consolidates in the range between the 11015 - 1.1025.
However, the majority of German economic data released this month and increased expectations of a stronger economic recovery in 2020. Meanwhile, an Ifo institute economist said on Monday that it looks possible that the German economy would increase by 0.2% in the first quarter of 2020, having increased by 0.1% in the final quarter of 2019.
Whereas, the EUR currency bulls did not take any support from the recovery in the German economy so far. As we already mentioned, the EUR/USD pair has erased almost entire December gains.
It is worth to mention that the reason behind the EUR currency failure to put the bids could be the trade war between the United States and European Union after the singing of the United States and China phase-one trade deal. Whereas, there seems not a broader trade war between the European Union and the United States.
EUR/USD - Daily Technical Levels
Support Resistance
1.1009 1.1051
1.0993 1.1078
1.095 1.112
Pivot Point 1.1035
EUR/USD – Daily Forecast
The technical side of the EUR/USD is also mostly the same as the Bearish bias for EUR/USD still remains dominant. The closing of the daily candle is somewhat neutral, which suggests the chances of a bullish recovery in the EUR/USD. Today, the pair is likely to keep the trade below 1.1055 level with immediate support around 1.1005 and 1.0995.
GBP/USD - Horizontal Support Breakout
The GBP/USD closed at 1.30705 after placing a high of 1.31724 and a low of 1.30564. Overall the movement of GBP/USD pair remained bearish throughout the day.
At 14:30 GMT, the Flash Manufacturing PMI from Great Britain for January came in as 49.8 against the forecasted 48.8. Britain's Flash Services PMI for January exceeded the expectations of 51.1 and came in as 52.9, which supported British Pound.
On the back of stronger than expected figures of PMI from the United Kingdom, the Sterling jumped to its highest level since January 7. The pair rose near 1.3173 level on Friday due to robust economic data from the British side.
The Traders got fresh clues after the release of stronger than expected PIMI that Bank of England would not go for another rate cut in its next meeting. This gave strength to Sterling against the U.S. dollar and moved GBP/USD on the bullish trend.
However, the bullish trend did not last for long, and the pair GBP/USD started to fell due to the strength of the U.S. dollar across the board. The U.S. dollar had a buying interest in the market on Friday due to an increase in prices of Dollar Index, which was above 98 level on Friday.
The Dollar gained strength by the surprising expansion of the U.S. Services sector in January. A
At 19:45 GMT, the Flash Services PMI from the United States came in as 53.2 against the expected 52.9. The strong U.S. dollar weighed on GBP/USD pair and dragged its prices for 2nd consecutive day on Friday.
GBP/USD - Daily Technical Levels
Support Resistance
1.3028 1.3146
1.2984 1.322
1.2865 1.3338
Pivot Point 1.3102
GBP/USD – Daily Forecast
On the 4 hour timeframe, the GBP/USD has broken the horizontal support pattern, which was prolonging support at 1.3065. Besides this, the GBP/USD has closed bearish engulfing candle below 1.3067 support become resistance area, which is now probably to stretch bearish bias unto 1.2950.
Conversely, the GBP/USD pair may show some bullish momentum upon testing the 1.2950 level. The pair has to breach below 1.2950 support area to target 1.2865 later.
All the best for today.