Daily F.X. Analysis, March 12 – European Central Bank Ready to Release
By Eaglefx On March 12, 2020 in Daily Market Analysis
The ECB remains in the highlights due to its monetary policy meeting and rate decision. Odds of rate change are pretty low, but considering the behavior of major central banks around the globe, traders are pricing in chances of a rate cut or further Q.E. to accommodate the economy against the Coronavirus. This can drive selling in the Euro today.
Economic Calendar
BTC/USD - Daily Analysis
The BTC/USD tanks further as the WHO reports the Coronavirus as a global pandemic. The BTC/USD remains exposed to drops, particularly with the strong resistance and weak support in court.
The cryptocurrency market, the stock exchange, and other worldwide markets are suffering in the wake of fears that the Coronavirus could become uncontrollable. The World Health Organization (WHO) has considered the deadly COVID-19 a global pandemic. This comes as countries take steps to either carry the virus or hold it at bay. The global financial markets remain to undergo troubles, including the BTC/USD.
The leading crypto has disappointed and failed to gain demand, especially in a situation of global emergencies such as the Coronavirus. Instead, the BTC/USD has extended to the tank bottom by the side with the other traditional businesses.
BTC/USD - Daily Technical Levels
Support Resistance
7,617.2 7,973.43
7,426.55 8,139.01
7,070.32 8,495.24
Pivot Point 7,782.78
BTC/USD – Daily Forecast
The BTC/USD continues to trade lower but mostly with in the same trading range that we spoke about earlier. It's maintaining the 8,200 - 7,600 wide trading zone. Closing of candles below 7,600 level can extend selling until 7,300 and 7,150 levels. While the 50 EMA resistance is likely to keep the leading cryptocurrency bearish.
EUR/USD – ECB Rate Decision Ahead
The EUR/USD currency pair takes bids and hits a high level of 1.13 again, mainly due to the new risk-off sentiment in the market. However, the currency pair climbed from the 1.1266 level to 1.1334 within 1-hour as the fresh risk-off sentiment found in the stock markets after Donald Trump failed to reduce the fears about intensifying coronavirus slowdown in the global economy.
The EUR/USD is trading at 1.1295 and consolidates in the range between the 1.1251 - 1.1333. Whereas, the Asian stocks, oil, and the S&P 500 futures are reporting sharp losses.
During the congress, United States President Donald Trump announced a 30-day travel ban on tourists, especially from Europe. Trump offered immediate payroll tax relief instead of something more substantial. Whereas, investors were expecting more robust stimulus measures from Trump. As in result, the risk sentiment grew after Trump's speech, boosting demand for safe-haven investments like Japanese Yen, Euro, and U.S. treasuries.
Looking ahead, the EUR/USD currency pair could continue to trade bullish before the European Central Bank (ECB) rate cut decision, which is scheduled to release at 12:45 GMT. The central bank is fastened between a rock, a hard place, and the Coronavirus and has limited scope to act. The rates are already below zero, which is why a rate cut may not leave a positive impact on the economy.
EUR/USD - Daily Technical Levels
Support Resistance
1.1105 1.1335
1.1178 1.1408
1.1220 1.1450
Pivot Point 1.1293
EUR/USD – Daily Forecast
The EUR/USD is trading bearish at 1.1290, closing below 1.1335 can drive selling in the EUR/USD prices. On the hourly timeframe, the EUR/USD has formed a descending triangle pattern, which is likely to support the EUR/USD around 1.1265, and violation of this level can drive selling until the 1.1225 area today.
GBP/USD - NIESR GDP Estimate
The GBP/USD currency pair is flashing red and dropped to 1.2811 despite the broad-based U.S. dollar weakness after the U.S. President Donald Trump offered an immediate payroll tax relief.
However, the reason behind the pair's declines could be the UK PM Boris Johnson emergency meeting about Coronavirus (COVID-19). At the press time, the GBP/USD currency pair is currently trading at 1.2816 and consolidates in the range between the 1.2811 - 1.2851.
The Tory leader asked for an emergency meeting to improve the struggles to control the deadly outbreak. The meeting, which is scheduled to happen around 13:15 GMT, could convey the decision move to the so-called "delay phase" from contain.
The Guardian's increased doubts regarding the further European Union and United Kingdom talks, which are scheduled to happen during the next week in London, as confirmed by the Duchy of Lancaster Michael Gove. Thereby, the currency pair gave a little attention to the U.K.'s RICS Housing Price Balance that sent the pair to the four-year high.
On the other hand, U.S. President Donald Trump offered immediate payroll tax relief and failed to reduce the fears about intensifying coronavirus slowdown in the global economy, while investors were expecting stronger stimulus measures from Trump. As in result, the risk sentiment grew after Trump's speech, boosting demand for safe-haven investments like Japanese Yen, Euro, and U.S. treasuries.
Later today, the eyes will be on the European Central Bank's interest rate decision, which is likely to deliver a rate decision. The decision can also influence the GBP/USD pair.
GBP/USD - Daily Technical Levels
Support Resistance
1.2758 1.293
1.2695 1.304
1.2523 1.3212
Pivot Point 1.2867
GBP/USD – Daily Forecast
The GBP/USD is trading with a bearish bias due to the rate cut decision made by the BOE yesterday. The GBP/USD is trading at 1.2815, and it's pretty much likely to head towards the next support area of 1.2730. Continuation of a selling bias can lead the GBP/USD prices towards the next support level of 1.2730.
The RSI and Stochastics are holding in the oversold zone and suggesting chances of a bullish reversal in the pair. In this happens, we may see a bullish retracement until the 1.2850/70 area, and then the pair can again show selling trend until support level of 1.2730. Good luck!