Daily F.X. Analysis, March 05 – Market Trades Sideways Ahead of NFP Day!
By Eaglefx On March 05, 2020 in Daily Market Analysis
On Thursday, the dollar gained its standing as upbeat jobs figures supported it to recoup a bit of its bearish bias versus the single currency euro. In contrast, the dollar remains steady on the yen following the U.S. Federal Reserve's surprise rate reduction.
The safe-haven yen also returned a portion of fresh winnings, as the revival of moderate Joe Biden in the Democratic Party primaries boosted traders' risk appetite.
On Thursday, the markets will be trading the technical side of the market due to a lack of high impact economic events today.
Economic Calendar
BTC/USD - Daily Analysis
The BTC/UD is hitting the 61.8% Fibo resistance to clear the track for more upside trend until $9,000. The technical levels remain in support of the buyers amid steadily increasing bullish entries. The BTC/USD price is again in a bullish zone, and this may help the Bitcoin to soar over $9,000. The BTC/USD is trading around $8,937 after surging higher 2% on the day.
During the last couple of days, the BTC/USD trading has mostly supported the bulls. Nevertheless, the buyers miss the power to pick the Bitcoin price over $9,000.
The leading cryptocurrency has, nevertheless, supported over $8,800 despite the concerns that the Coronavirus may become a worldwide pandemic. The BTC/USD immediate bullish resistance is likely to be found around the 61.8% Fibonacci level, and the overall consolidation phase is expected to be within 10,524 and a swing low of $6,431 on the bigger timeframes.
BTC/USD - Daily Technical Levels
Support Resistance
8,665.97 8,840.62
8,581.08 8,930.38
8,406.43 9,105.03
Pivot Point 8,755.73
BTC/USD – Daily Forecast
The BTC/USD traded in line with our previous forecast to test the double top resistance area of 8,960. On the higher side, a bullish breakout of 8,970 levels can extend buying until 9,093, while the support level continues to stay at 8,800. In the case market break over 9,093 level, we may see it's prices going towards 9,440.
EUR/USD – French 10-y Bond Auction
The EUR/USD currency pair flashing green and representing 0.4% gains on the day. The pair stopped its 4-day recovery rally and dropped by 0.32% on Wednesday, mainly due to the risk-on sentiment in the U.S. equities.
At the press time, the EUR/USD currency pair is currently trading at 1.1138 and consolidates in the range between the 1.1130 - 1.1144. However, the currency pair may take selling pressures if the risk recovery in the financial market gathers steam.
The EUR/USD prices are tossing in red and green, mostly maintaining the choppy trading session in between a narrow trading range of 1.1106 - 1.1190. On the lowe side, the crossover of 1.1093 opens chances for 1.1049 for a 38.2% Fibonacci retracement before going for 1.0997, the mean reversion point.
As we already mentioned that the EUR currency took selling because the U.S. stock markets recovered after the U.S. House of Representatives authorized almost $8 billion for virus stopping.
EUR/USD - Daily Technical Levels
Support Resistance
1.109 1.1182
1.1047 1.1231
1.0955 1.1323
Pivot Point 1.1139
EUR/USD – Daily Forecast
The EUR/USD has also remained neutral due to a lack of major economic events in the market. The release of the U.S. Fed rate cut decision has driven the EUR/USD prices towards a 1.1215 resistance level. It has now formed a double top pattern, which is keeping the EUR/USD pair under pressure below the 1.1215 area. Technically, the pair should reverse back below 1.1217 level for a retracement until 1.110 and 1.1065.
GBP/USD - BOE Gov Carney Speaks
The GBP/USD currency pair continued its 3rd-day bullish streak and rose to 1.2875, the pair representing 0.04% gains on the day mainly due to the greenback weakness. While the Bank of England's refrain from further rate cut also supported the GBP currency.
At the time of writing, the GBP/USD is trading at 1.2878 and consolidates in the range between the 1.2860 - 1.2890. Therefore, traders will keep eyes on today's speech from the BOE Governor Mark Carney for near-term direction.
The British pound is heading towards its best day versus the single currency euro and U.S. dollar in two weeks. The GBP/USD pair crawled up from four-and-a-half-month lows versus the greenback on Wednesday, as incoming Bank of England Governor Andrew Bailey announced action could be required to balance the impacts of the Coronavirus.
GBP/USD - Daily Technical Levels
Support Resistance
1.28 1.2903
1.2734 1.294
1.2631 1.3043
Pivot Point 1.2837
GBP/USD – Daily Forecast
The GBP/USD continues with its sideways trading session, lingering within a tight trading range of 1.2725 - 1.2820. The GBP/USD is operating above and beneath the pivot point level of 1.2837, which is presently working as support.
On the 4-hour timeframe, the 50 EMA is operating nearby 1.2810 level while the GBP/USD is buying above this level. Bullish crossover of this level can continue buying unto 1.2896 and 1.3015. While on the downside, the bearish crossover of 1.2800 can drive selling until 1.2725 level. Good luck!