Daily F.X. Analysis, January 30 – BOE Monetary Policy Decision in Highlights!
By Eaglefx On January 30, 2020 in Daily Market Analysis
On the forex front, the U.S. Dollar Index edged up 0.1% on the day to 98.06, as the Fed kept its monetary policy stance unchanged against the backdrop of uncertainty. The European Central Bank will post the January Economic Confidence Index (101.8 expected) and final readings of the Consumer Confidence Index (-8.1 previously).
The German Federal Statistical Office will release January CPI (+1.7% on-year expected) and jobless rate (steady at 5.0% expected).
Economic Calendar - BOE Monetary Policy Decision in Highlights
BTC/USD - Daily Analysis
The BTC/USD traded slightly lower but lingered over the $9,150 support versus the U.S. Dollar. The Bitcoin bears need to push the price below $9,150, or the price could rally above $9,500.
The Bitcoin price is trading a crucial support region around the $9,150 level versus the U.S. Dollar. The current technical structure over $9,000 implies the price is planning for the next breakout setup.
BTC/USD - Daily Technical Levels
Support Resistance
9,247.68 9,445.4
9,139.68 9,535.12
8,941.96 9,732.84
Pivot Point 9,337.4
BTC/USD – Daily Forecast
The prices of bitcoin haven't changed much so far as it continues to trade around 9,308 level. The BTC/USD may find strong support at 9,244 today, and this level can keep the BTC/USD prices bullish.
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. Whereas, a bearish breakout of 9,244 support can lead BTC/USD prices towards 9,190 and 9,030.
EUR/USD – German Unemployment Change Ahead
The EUR/USD currency pair still flat and continues struggling to hit the notable bounce despite the rejection faced near the key support. As of writing, the EUR/USD currency pair is currently trading at 1.1016 and consolidates in the range between the 1.1007 - 1.1018.
On the technical side, the daily chart shows consecutive long-tailed candles, which is indicating a seller failure to establish a strong foothold below the psychological level of 1.10. However, the buyers have failed to capitalize on the bear exhaustion sentiment so far.
Moving ahead, the bulls may put the bids during the day ahead because the United States Federal Reserve on Wednesday have confirmed to keep the rates unchanged, but as well as, gave expectation for delivering further rate cut in the wake of higher inflation. Meanwhile, traders hoped for a rate cut by November's meeting after the Fed's statement.
According to the situation, the bullish move will likely remain difficult, and the seller may push for support at 1.10 if the German employment data disappoint expectations, which are generated by the recent macroeconomic numbers like PMIs.
EUR/USD - Daily Technical Levels
Support Resistance
1.0995 1.1024
1.098 1.1037
1.0951 1.1065
Pivot Point 1.1008
EUR/USD – Daily Forecast
The EUR/USD has tested the double bottom level, making it a triple top level at 1.0990. Closing of the daily candle is somewhat bullish in nature, and it may drive the bullish trend in the EUR/USD currency pair. On the higher side, the pair has the potential to go after the 1.1050 level today. While support continues to stay around 1.0990.
GBP/USD - BOE In Focus
The GBP/USD currency pair remains sidelined on a daily basis near the 1.3015, as traders are wary ahead of the key BOE decision due to mixed data. As of writing, the GBP/USD currency pair is currently trading at 1.3013 and consolidates in the range between 1.3003 - 1.3029.
Elsewhere, the European Union (E.U.) finally signed the Brexit bill, while the regional leaders are planning for what will do ahead. Meanwhile, the report came that the United Kingdom Prime Minster Bris Johnson will ready to sacrifice for the free transfer of goods between Britain and Northern Ireland to fulfill his promise. It was also stated that the European leaders would also use strategy to keep up the pressure during the post-Brexit trade talks.
The United States continues to pressurize the United kingdom legislators to rethink their decision to allow China's Huawei the key position in the country's 5G network developments.
The market attention shifted again to China's coronavirus because the death losses rose to 170, and forecasts spread that China will refresh 20-year low due to the disease. Moreover, another reason behind the market's risk-off sentiment could the US-China trade tension because the White House has recently refused to help China regarding tariffs even if coronavirus weighs on its GDP.
GBP/USD - Daily Technical Levels
Support Resistance
1.2998 1.3035
1.2975 1.3049
1.2938 1.3086
Pivot Point 1.3012
GBP/USD – Daily Forecast
The GBP/USD has broken the daily pivot point of 1.3012, and it's consolidating at 1.2985. On the 4-hour chart, the GBP/USD has dropped below the 50 EMA, and it's now very likely to extend resistance around 1.3050.
The RSI and MACD are trading in the buying zone, but they seem to take a bearish turn now. The GBP/USD may encounter subsequent support near 1.2955, and a breakout of this can lead the GBP/USD towards 1.2920. Let's look for selling trades below 1.3012.
All the best for today.