Daily F.X. Analysis, March 13 – Risk Sentiment Remains Mixed, Coronavirus Plays!
By Eaglefx On March 13, 2020 in Daily Market Analysis
On Friday, the U.S. dollar stood tall as traders pushed for the world's most liquid currency amid intensifying panic regarding the Coronavirus while the euro aided losses following the European Central Bank disappointed traders by not lowering the interest rates.
The market is likely to trade on mixed sentiment despite a list of European economic events that are due to come out during the European session today. Coronavirus panic is sharing the stage and has become the main highlight of these days, overshadowing economic events.
Economic Calendar
BTC/USD - Daily Analysis
The BTC/USD price fell to $3,864 (new 2020) lows amid a massive cryptocurrency selloff. The breakdown, which occurred late February following Bitcoin price hit its 2020 high at $10,533, was connected to the fatal Coronavirus. Nevertheless, market volatility and panic tried to take advantage to drive one of the most serious selloffs in the cryptocurrency market with the BTC/USD plunging to $3,864
Bitcoin sellers have not left any stone unturned to reach $3,000 zone. The selloff in the whole cryptocurrency market has also entered extreme levels with higher than $110 billion washed off like a spot of dirt on white linen.
BTC/USD - Daily Technical Levels
Support Resistance
5,024.56 7,114.43
4,252.86 8,432.6
2,162.99 10,522.47
Pivot Point 6,342.73
BTC/USD – Daily Forecast
The Bitcoin is having one of it's worst days, as it's price dipped dramatically from 8,000 marks to 3,750. On the higher side, the leading crypto pair may find resistance around 6,350 levels while the support continues to stay around 3,750. Violation of this level can extend selling until the 3,200 mark. The sentiment is mixed, and it's hard to say which side the market is going to move due to coronavirus panic.
EUR/USD – ECB Leaves Rate Unchanged
The EUR/USD currency pair continues to flash green and hit the above the 1.12 level and could continue to trade bullish mainly due to intensified fears of the global slowdown in the wake of on-going deadly Coronavirus. The EUR/USD is currently trading at 1.1220 and consolidates in the range between the 1.1153 - 1.1221.
As we all well aware that most of the government took drastic measures across Asia and Europe to lock down their cities at the expense of their economies, the Quarter-1 period will be a dark one for most countries.
Whereas economists at JP Morgan have updated lower U.S. gross domestic product (GDP) forecast to -2 percent annualized growth in the 1st-quarter of 2020, and -3 percent in the 2nd-quarter. The world's second-largest economy is expected to enter a recession in 2020.
Traders are cautious and continue to invest their money into safe-haven currencies like the EUR. The shared currency becomes a new safe-haven currency, which is not surprising because a huge Eurozone current account surplus supports it, and the European Central Bank is running a negative interest rate policy.
EUR/USD - Daily Technical Levels
Support Resistance
1.1045 1.1309
1.0918 1.1447
1.0654 1.1711
Pivot Point 1.1182
EUR/USD – Daily Forecast
The EUR/USD is trading bearish at 1.1260, as it had already completed the 61.8% Fibonacci retracement at 1.1086 level yesterday. Closing of the neutral candle on the daily timeframe suggests indecision among traders. However, this level is now likely to extend support around 1.1086 along with resistance around 1.1250 and 1.1345 level today.
GBP/USD - NIESR GDP Estimate
The GBP/USD currency pair hit the 5-months low of 1.2550, representing 0.17% losses on the day mainly due to intensifying Coronavirus (COVID-19) fears. The Brexit pessimism is also weighing on the pair's movement. At the press time, the GBP/USD is trading at 1.2550 and consolidates in the range between the 1.2506 - 1.2600.
The intensifying outbreak of the deadly virus shaken the global market very severely while the United Kingdom Prime Minister Boris Johnson considered it the worst for a generation. Such as the EU-UK Brexit trade deal talks already canceled due to Coronavirus that was set to start in London from the next week, although both sides showed a willingness to provide legal reports in the meantime.
On the other hand, the chancellor Rishi Sunak is expected to take a U-turn from the previous decision about tax hike as per the latest news while the previous tax-raising plans were held in the wake of the coronavirus crisis.
At the virus front, the risk sentiment in the market is getting worst day by day due to intensifying Coronavirus. The latest one came after the BOJ injected 700 billion Japanese yen. As in result, the U.S. ten-year treasury yields recover to 0.82% with S&P 500 Future rising 1.0%. However, stocks in Asia continue to flash red.
GBP/USD - Daily Technical Levels
Support Resistance
1.2436 1.2774
1.2295 1.297
1.1957 1.3308
Pivot Point 1.2633
GBP/USD – Daily Forecast
On Friday, the GBP/USD is trading with a strong bearish bias as investors continue to price in the BOE interest rate cut decision. As of now, the GBP/USD is trading at 1.2515, and it has already entered the oversold zone, which means sooner or later, we may see some bullish correction in the market.
Closing of the bullish candle on the 4-hour chart is suggesting chances of a bullish retracement in the GBP/USD pair. In that case, the pair can head toward the north to complete a 38.2% Fibonacci retracement level around 1.2675 level. Continuation of a bullish bais can lead it's prices further higher towards 1.2720 today. Good luck!