Daily F.X. Analysis, March 03 – U.K. Monetary Policy Report Hearings & G7 Meetings Ahead! 

The U.S. dollar shifted to a six-week low versus a basket of currencies on Monday, as traders speculate on the U.S. Federal Reserve raising policy in a bid to counter the negative influence from the spread of the new coronavirus.

The dollar index, which gauges the greenback's health against a bucket of six other major currencies, was 0.53% lower at 97.448. Global risk assets, including stocks, were beaten hard last week as traders worried about the economic influence of the worldwide spread of the disease.

On Tuesday, the eyes will remain U.K. Monetary Policy hearing and G7 meetings, which are due later today. 

Economic Calendar  

BTC/USD - Daily Analysis 

The BTC/USD price surged to the most in a couple of weeks, soaring alongside U.S. stocks amid speculation the Federal Reserve and other central banks will bolster markets as the coronavirus grows. The largest cryptocurrency by market price increased by 4.1% to $8,874. Last week, despite a bullish sentiment among some traders the BTC/USD would work as a safe-haven asset similar to gold or U.S. Treasury bonds. In contrast, the leading cryptocurrency had dropped lately simultaneously with riskier assets such as stocks.

Yesterday, the sell-off shifted as global authorities, which include the U.S. Federal Reserve, Bank of Japan, International Monetary Fund, and World Bank has pledged to work if required to support neutralize any lasting economic suffering from extensive travel cancellations, quarantines, and industry disorders.

BTC/USD - Daily Technical Levels

Support    Resistance 

8,711.77      9,062.59

8,479.08    9,180.72

8,128.26    9,531.54

Pivot Point 8,829.9

BTC/USD – Daily Forecast

On Tuesday, the Bitcoin is trading at 8,825, holding right below the double top resistance level of 8,940. On the 4 hour timeframe, Bitcoin prices have formed a bearish engulfing pattern, which is suggesting odds of bearish trend continuation for the Bitcoin. 

On the lower side, the BTC/USD is likely to stay supported above 8,670 and 8,474. Whereas, the bullish breakout of 8,970 can lead the Bitcoin prices towards 9,106. It's the same level where the 50 EMA is also likely to extend resistance.

EUR/USD – CPI Flash Estimate y/y

The single currency Euro recovered in the wake of a weaker dollar. The Euro continued to trade slightly upward just below its highest in two months versus the dollar on Tuesday. 

The single currency Euro last bought $1.1129, and the dollar remains neutral at 97.544. However, the trading has been capped; most of the investors are waiting to examine whether central banks can live up to forecasts.

Most of the bullish trend came on forecasts that coronavirus-driven dovish monetary policy in the United States may drive weakness in the U.S. dollar, causing the movement of funds into the Euro.  

Both U.S. Federal Reserve Chairman Jerome Powell and European Central Bank (ECB) President Christine Lagarde have indicated at odds of action in recent days. However, with the ECB's benchmark interest rate at 0% and the Fed's interest rate may range between 1.5% and 1.75%. The U.S. Federal Reserve has more opportunity to maneuver, driving traders to unwind carry trades, respectively.

EUR/USD - Daily Technical Levels

Support Resistance 

1.1053     1.1199

1.0972    1.1265

1.0826    1.1412

Pivot Point 1.1119

EUR/USD – Daily Forecast

The EUR/USD is trading at 1.1145 as it faces a hard time breaking above the 1.1175 resistance level. Continuation of a bullish trend can extend buying until the next target level of 1.1245. The bullish bias is still strong, and we can expect EUR/USD prices to stay strong above 1.1125 support level. In any case, if the EUR/USD pair breaks below 1.1120 level, it may see it drop further towards the 1.1103 mark.

GBP/USD - Monetary Policy Report Hearings

The U.K. Sterling slipped broadly, placing a fresh four-and-a-half month low versus a stronger euro as traders ratified a careful view at the commencement of discussions between Britain and the European Union on their involvement after Brexit.

Nearly 100 UK executives were in Brussels for the initial series of discussions with the E.U.'s executive wing, the European Commission, which are expected to continue until Thursday. Nearly half a trillion euros' value of annual trade and tight security draws are at pale in what are bound to be tense talks.

Prime Minister Boris Johnson has told Britain would not be wrapped by E.U. laws or the power of its highest court — all-important, in the E.U.'s opinion, to guarantee fair competition.

GBP/USD - Daily Technical Levels

Support Resistance 

1.2722     1.2916

1.2627     1.3015

1.2432     1.3209

Pivot Point 1.2821

GBP/USD – Daily Forecast

The GBP/USD continues to consolidate sideways, holding mostly within a narrow trading range of 1.2725 - 1.2820. On Tuesday, the Asian trading session mostly brought a slight bullish correction in the GBP/USD pair as it maintains a slightly bullish stance around 1.2729. The GBP/USD pair crosses below the pivot point support level of 1.2821, which is now working as a resistance.

On the 4 hour timeframe, the 50 EMA is lingering around 1.2880 level while the GBP/USD prices are operating near 1.2790, just below the pivot point, which suggests bearish bias among traders. The GBP/USD may trade bearish below 1.2821 until the next support level of 1.2725, while resistance can be found around the 1.2900 level. Good luck!