Daily F.X. Analysis, March 09 – Market Shakes Amid Risk-Off, What's Going On? 

On Monday, the buck dropped against the euro and yen as a slip in oil prices coupled with coronavirus concerns to push U.S. yields to historic lows. Oil prices fell 30% after Saudi Arabia shocked traders with a promise to slash prices and increase output following the breakdown of an OPEC supply contract. Here's what to trade today.

Economic Calendar  

BTC/USD - Daily Analysis

The BTC/USD trades bearish and concludes to 10%, and it split the key $8,000 support versus the U.S. Dollar. The BTC/USD price is now exposed, but the $7,500 support zone could spark improvement in the short term. 

The BTC/USD is dipping heavily under the $8,200 and $8,000 support levels versus the U.S. Dollar. The price split many major supports, which also includes the 100-day SMA. There was a breach beneath a significant bullish trend line with support at $8,670 on the daily graph of the BTC/USD pair. The next crucial support on the downside is around the $7,500 area, where the bulls are expected to arrive.

BTC/USD - Daily Technical Levels

Support     Resistance 

8,366.21     9,174.52

7,983.12     9,599.74

7,174.81    10,408.05

Pivot Point 8,791.43

BTC/USD – Daily Forecast

There's a flood of sellers in the market as the Bitcoin prices have dropped from 9,100 to trade lower at 7,790, and it's likely to drop further until 7,666. Whereas, violation of this level can drop further until 7.350. The MACD is signalings odds of further selling bias in the Bitcoin.

EUR/USD – Weaker Dollar In-Play

The EUR/USD currency pair hit the 14-months high and continue to gain bullish bias mainly due to the risk-off market sentiment and increased demand for treasuries while the entire yields have fallen beneath 1%. The oil prices crash also leaving the impact on the market risk-tone and pushing the EUR/USD currency pair higher. The EUR/USD is trading at 1.1406 and consolidates in the range between the 1.1336 - 1.1493.

The demand for anti-risk assets rose, pushing the U.S. yields lower, and the EUR and other safe havens like JPY, CHF, and gold sent higher. The financial markets are flashing red this Monday, with oil benchmarks reporting a 22 % drop. Meanwhile, the futures on the S&P 500 are reporting a 4.5% drop, and the U.S. 10-year yield has dropped to record lows below 0.5%. 

Saudi Arabia dropped its export oil prices during the weekend, starting a price war with Russia. Apart from the oil headlines, the coronavirus continues to spread outside China, notably in Italy and South Korea, at a faster rate. As per the Washington Post, some White House executives are worried that the number of confirmed cases in the U.S. would double or more in the next 48 hours. 

EUR/USD - Daily Technical Levels

Support Resistance 

1.1221      1.1356

1.1152      1.1424

1.1016      1.1559

Pivot Point 1.1288

EUR/USD – Daily Forecast

The EUR/USD prices also surged to place a high around 1.1485 before dropping to the 1.1395 area. The pair has formed a higher high pattern, which is likely to trigger further buying in the EUR/USD. On the lower side, the EUR/USD may find support around 1.1360 and 1,1325 today. Bullish bias may prevail during the day.

GBP/USD - BOE Gov Carney Speaks

GBP/USD currency pair flashing green and got supported by the broad-based U.S. dollar weakness while representing 0.32% gains to 1.3075 on the day. As the press time, the GBP/USD is trading at 1.3056 and consolidates in the range between the 1.3048 - 1.3120.

At the virus front, the 30% increase in the total numbers of coronavirus (COVID-19) cases to 273, as well as the 3rd death due to the deadly virus, seem to represent the stronghold of the disease on the British economy. Whereas, the coronavirus continues to spread outside China, notably in Italy and South Korea, at a faster rate. As per the Washington Post, some White House officials are worried that the number of confirmed cases in the U.S. would double or more in the next 48 hours. 

On the other hand, the worsening conditions in Europe gain major attention to trigger the early-day risk-off market sentiment that pushed the U.S. treasury yields to the record lows below 1.0%. Due to no major data on the U.K.'s economic calendar, markets traders will keep their eyes on the virus updates while waiting for Wednesday's Budget from the British Chancellor Rishi Sunak.

GBP/USD - Daily Technical Levels

Support Resistance 

1.2981      1.3084

1.2913      1.312

1.281        1.3224

Pivot Point 1.3017

GBP/USD – Daily Forecast

Just like any other currency pair, the GBP/USD also has shown some serious gains, as it opened higher with a massive gap. On the 4 hour timeframe, the GBP/USD seems to have filled the bullish gap at 1.3045, and now it's likely to find another support around 1.3045 area. 

Above this level, the GBP/USD may bounce off until the next target level of 1.3120, and bullish breakout of this can lead the GBP/USD prices towards 1.3205. The RSI and Stochastics are in the extremely overbought zone, suggesting chances of a bearish retracement. So let's wait for 1.3015 before taking any further buying positions. Good luck!