Daily F.X. Analysis, January 29 – FED Monetary Policy Decision on Ducket!
By Eaglefx On January 29, 2020 in Daily Market Analysis
The U.S. dollar was little changed despite stronger-than-expected U.S. economic data, as investors awaited the Fed's interest-rate decision. The Dollar Index marked a day-high of 98.15 before easing back to close at 97.97, broadly unchanged from the prior session. The U.S. Federal Reserve will announce its interest-rate decision (expected to be unchanged at 1.50% - 1.75%).
Economic Calendar - FED Monetary Policy Decision on Ducket
BTC/USD - Daily Analysis
On Wednesday, the BTC/USD prices soared to break $9,400 resistance for the very first time in the year 2020. The tug of war among the buyers and the sellers gets momentum, adding a choppy session under $9,400 mark.
Lately, the BTC/USD price has exhibited bullish correction from $9,397 (opening value) on Wednesday to $9,431, which marks the daily high. The bullish strength emanates from the brief surge during the American session on Tuesday. For now, Bitcoin has a market value of $9,332, following an indirect 0.50% loss on the day.
The BTC/USD's bullish trend continues as the leading pair dip to 8,800 support zone ahead of surge until 9,380 level. Although the leading cryptocurrency is in the overbought territory, the latest candlesticks are suggesting chances of bullish trend continuation.
BTC/USD - Daily Technical Levels
Support Resistance
8,895.92 9,183.66
8,749.93 9,325.41
8,462.19 9,613.15
Pivot Point 9,037.67
BTC/USD – Daily Forecast
In the daily timeframe, the BTC/USD has formed three white soldiers pattern, which supports the bullish trend in the BTC/USD. On the higher side, the pair may find next resistance around 9,507, and violation of this can also open further room for buying until 9,775. Conversely, the support stays around 9,190 and 9,030.
EUR/USD – Downward Channel In Play
the EUR/USD currency pair flashing red but still struggling to extend its previous day gains from the 1.10 ahead of federal Reserve meeting. As of writing, the EUR/USD currency pair is currently trading at 1.1013 and consolidates in the range between 1.1013 - 1.1028.
However, the currency pair was marked above Tuesday's high of 1.1025 in early Asian trading hours but again dropped to 1.1013.ahead of London open.
At the fed front, the Federal Reserve (Fed) is expected to keep the benchmark interest rates unchanged for the 2nd-month. Whereas, the course of the American economy remains unchanged since the previous FOMC meeting on December 10-11 last year.
On the other hand, the greenback could come under pressure, because the policymakers will unlikely avoid from pushing back against the slightly increased chance of a rate cut priced-into 2020, in the wake of intensifying fears regarding the coronavirus impact on the economy.
As in result, the EUR/USD currency pair may hit the bullish reversal pattern with a close above 1.1025.
EUR/USD - Daily Technical Levels
Support Resistance
1.1006 1.1031
1.0989 1.104
1.0963 1.1066
Pivot Point 1.1015
EUR/USD – Daily Forecast
The EUR/USD has closed a hammer pattern on the daily timeframe, which typically drive bullish reversals in the market. But today's candle seems to ignore this setup as EUR/USD continues to trade bearish at 1.1010 level.
The EUR/USD pair is likely to find an immediate resistance around 1.1025, and bearish breakout of which is likely to extend bearish bias until 1.1005. The Fed rate decision today will help us drive further trends in the market.
GBP/USD - Horizontal Support Breakout
Today in the early Asian session, the GBP/USD currency pair stops its 4-consecutive day losing streak, and now the pair is sidelined above the 1.3000. As we know, the GBP/USD currency pair was depressed mainly due to the concerns of the United States and the United Kingdom war concerning the UK permission to the Chinese tech giant for 5G development.
As of writing, the GBP/USD currency pair is currently trading at 1.3020 and consolidates in the range between the 1.3015 - 1.3031. However, the moves are lighter in the pair ahead of the BOE meeting on Thursday.
At the front of the leading news, the United States lawmakers have started criticizing the Tory government's plan to allow the Chinese tech giant for 5G development. This headline may leave any negative impact on the US-UK on-going deal, and US Secretary of State Mike Pompeo will properly discuss this matter when he entered Britain today.
GBP/USD - Daily Technical Levels
Support Resistance
1.2982 1.3066
1.2937 1.3105
1.2853 1.3189
Pivot Point 1.3021
GBP/USD – Daily Forecast
The GBP/USD has violated the daily pivot point of 1.3021, and it's currently trading at 1.3012. As we can see on the 4-hour timeframe, the GBP/USD has crossed below the 50 periods EMA which is keeping it bearish below 1.3050.
The RSI and MACD are holding at bearish zone, and these may drive more selling in the GBP/USD. If this happens, the GBP/USD may find next support around 1.2975 and violation of which can also lead the GBP/USD prices towards 1.2920. Let's look for selling trades below 1.3021.
All the best for today.