Daily F.X. Analysis, March 06 – Investors Braces for the U.S. NFP! 

On Friday, the dollar sustained savage losses versus the Japanese yen and euro as a dive in the U.S. yields to register lows cleaned out the currency's single most significant attraction for traders - higher interest rates.

Mounting concerns over the radioactivity from the Coronavirus has prompted a truly tectonic transformation in expectations for U.S. rates as businesses wager the Federal Reserve will have to lower interest rates by 50 basis points for the other time this month. Let's check out the trade plans.

Economic Calendar  

BTC/USD - Daily Analysis

The BTC/USD prices moved over $9,000 to consolidate around $9,051 at the time of reporting. The leading cryptocurrency is running with substantial bullish impulse following a sustainable break above an important technical level. BTC/USD has achieved over 3.5% since the inception of Thursday and nearly 1% on a day-to-day basis. 

The BTC/USD has formed a bullish candle on a daily graph, that drove the price over the important resistance level. The BTC/USD managed to find support over $8,700, which marks the SMA200 on the daily timeframe. 

The subsequent bullish barrier immediately comes at $9,250, which is produced by a mixture of SMA50 daily and 23.6% Fibo retracements for the downside movement from July 2019 top to December 2019 low.

BTC/USD - Daily Technical Levels

Support    Resistance 

8,001.74      9,587.57

7,426.95    10,598.61

5,841.12    12,184.44

Pivot Point 9,012.78

BTC/USD – Daily Forecast

On Friday, the BTC/USD hasn't changed a lot as it seems like investors are staying out of the market ahead of the U.S. nonfarm payroll figures. The BTC/USD has already violated the double top resistance area of 8,960, which is now working as a support level of the Bitcoin. On the higher side, the next resistance prevails at 9,100, and bullish breakout of this level can extend buying until 9,183 while the support level continues to stay at 9,100. In case market break over the 9,183 level, we may see it's prices going towards 9,440.

EUR/USD – U.S. NFP In Highlights

Today in the early Asian session, the EUR/USD currency pair continues to flash green and hit the 7-month high of 1.1249 because global equities are reporting sharp losses in the wake of intensifying coronavirus pandemic fears. The EUR/USD is trading at 1.1231 and consolidates in the range between the 1.1213 - 1.1249. 

According to the current situation, the EUR currency continues to take benefit from the risk-off market sentiment and flight to safety, which is not surprising now. As we know, the common currency performs as a safe-haven currency due to ECB's negative rates and Eurozone's current account surplus.

It is worth mentioning that the market risk-off tone will likely remain high as coronavirus pandemic is not dispensing any indications of slowing down, and EUR/USD currency pair may take bids further. The gates remain clear for EUR/USD to extend gains toward the next significant resistance near 1.1282 (July 19, 2019 high). 

Looking forward, traders will keep their focus on German Factory Orders (Jan), which are scheduled to release at 07:00 GMT. Meanwhile, the U.S. Nonfarm Payrolls will be critical to watch and expected to release at 13:30 GMT. 

EUR/USD - Daily Technical Levels

Support Resistance 

1.087        1.1118

1.0714      1.121

1.0466     1.1458

Pivot Point 1.0962

EUR/USD – Daily Forecast

The traders seem to do profit-taking in the U.S. dollar ahead of the U.S. nonfarm payroll figures, which has to lead the EUR/USD prices higher towards 1.1280. The EUR/USD is likely finding strong support above 1.1200 level as the bullish bias remains strong due to the closing of the bullish engulfing candle on the daily timeframe. Besides, the pair is forming a higher high pattern on the hourly chart, which is also suggesting bullish bias. Let's expect buying positions over 1.1215 with a target of 1.1280.

GBP/USD - BOE Gov Carney Speaks

The GBP/USD currency pair flashing green but failed to cross the key hurdle at 1.2965 despite the drop in the U.S. treasury yields. At the press time, the GBP/USD currency pair is trading at 1.2955 and consolidates in the range between the 1.2947 - 1.2966.

The on-going risk-off market sentiment continues to weigh on the U.S. treasury yields. The ten-year yield is trading at a record low of 0.892% at press time, having declined by 16 basis points on Thursday. The 30-year yield has also hit record lows, and the 2-year yield is trading at 44-month lows. 

As in result, the greenback is flashing red against the euro and the Japanese yen. However, the British Pound is struggling to continue its 3-day bullish streak. 

The bid tone around the GBP seems to have declined mainly due to dovish BOE expectations. The money markets expect the Bank of England (BOE) to deliver rate cut by 25 basis points this month. While Goldman Sachs thinks the BOE will provide a 50 basis point rate cut. 

It should also be noted that the first death in the U.K. and increasing toll in the U.S., due to lack of test kits, seem to weigh on the market's risk-tone. As of result, S&P 500 Futures seem to await fresh clues to extend the latest risk-off as flashing 0.10% gains to 3,025. Eyes now will remain on the U.S. NFP data, which is coming out later today. 

GBP/USD - Daily Technical Levels

Support Resistance 

1.2689      1.2981

1.2561       1.3146

1.2269       1.3438

Pivot Point 1.2854

GBP/USD – Daily Forecast

The GBP/USD continues to trade bullish during the Asain trading session, as it has already violated the trading range of 1.2725 - 1.2820. The GBP/USD is edging higher to test the bearish channel resistance area of 1.2960, and crossing of this level over 1.2960 can lead the Sterling prices towards 1.3015 and 1.3055. 

On the lower side, support stays around 1.2890 level, which may keep the EUR/USD bullish today. Most of the moment will come on the release of NFP figures, so brace for it. Good luck!