Daily F.X. Analysis, March 17 – E.U. Economic Sentiment & U.S. Retail Sales in Highlights! 

The dollar continues to trade bullish, despite the dovish monetary policy decision from the Federal Reserve. On Sunday, the U.S. Federal Reserve declined interest rates to near-zero, and the dollar showed a slight drop on the news. However, the move drove away from the yield on holding dollars and with it much of their appeal. 

Despite the Fed's 100-basis-point reduction and competitive liquidity standards, the cost of borrowing the greenback internationally - revealed in cross-currency swaps - has continued to surge. The greenback has historically grown bullish momentum in the markets as the increased level of uncertainty has driven the safe-haven appeal in the U.S. dollar. 

Economic Calendar   

BTC/USD - Daily Analysis

The BTC/USD price sank to $3,700 for a short time on March 12, concluding the day at $4,970. By March 13, the price increased from the significant downtrend, closing the day at $5,563 and dispensing an exciting return of more than 11%.

The fresh market turbulence, whether in forex markets or the cryptocurrencies, has elevated inquiries on the price growth for Bitcoin, as well as its fundamental network characteristics. The markets have been extremely volatile, which are making traders unusual weather to treat Bitcoin a safe haven currency or not. 

The BTC/USD price is revealing a couple of scenarios expected to transmit most traders at risk and dilemma. On Monday, the BTC/USD continued to trading above $5,000, which currency marks crucial support. On the higher side, the resistance stays around $6,000, which is keeping the BTC/USD prices in a bearish mode. 

BTC/USD - Daily Technical Levels

Support  Resistance 

4,484        5,337

4,033        5,738

3,180        6,591

Pivot Point 4,886

BTC/USD – Daily Forecast

The trading in Bitcoin has mostly remained the same as its prices continue to trade in a trading range of 5,800 - 5,000. The leading cryptocurrency can drop further in case of a bearish breakout of 5,000 support, which can lead its prices towards 4,106. Conversely, the bullish breakout of 5,835 can lead the BTC/USD prices towards 6,345.

EUR/USD – German ZEW Economic Sentiment

Today in the early Asian session, the EUR/USD currency pair flashing green and stops its 4-day losing streak but still trading below the 1.12 level after Federal Reserve easing on Monday. As of now, the pair is struggling to cross the convincing break above the 1.12 level. At the time of writing, the EUR/USD currency pair is currently trading at 1.1180 and consolidates in the range between the 1.1159 - 1.1189.

As we all well aware that the Federal Reserve (Fed) delivered an emergence rate cut of 100 basis points and announced a quantitative easing in the form of at least $700 billion of asset purchases. 

Whereas, the central bank's aggressive incentive managed the uncertainty in the Eurozone, which is caused by the coronavirus outbreak drew offers for the greenback. 

From the technical perspective, the EUR/USD currency pair defended key Fibonacci support at 1.1061 for the third straight day on Monday, while the bulls failed to create steady bullish progress above 1.12 so far. 

It should be noted that the convincing break above that psychological resistance may continue difficult on Tuesday, mainly because the S&P 500 futures are currently showing to risk reset with 3.3% gains. Moreover, if the equities in Europe and the U.S. pick up a bid, the safe-haven demand for the single currency could weaken. 

EUR/USD - Daily Technical Levels

Support Resistance 

1.1096     1.1238

1.1024     1.1309

1.0882     1.1451

Pivot Point 1.1166

EUR/USD – Daily Forecast

The EUR/USD is trading in a selling tone nearby 1.1146, as it had previously examined the horizontal support mark of 1.1050. On the 4 hour chart, the EUR/USD has created a neutral candle which is suggesting neutral bias amount traders, and it seems like they are waiting for the Eurozone German Economic Sentiment figures to determine the next movement. The 50 periods EMA is extending resistance at 1.1200, and it's keeping EUR/USD in a selling mode.

The EUR/USD may observe a critical resistance at 1.1200 level today. The RSI is still staying in the into the bullish zone, implying the chances of a bullish trend in the EUR/USD. Today, let's keep the focus on 1.1166 level as below this selling can be seen until 1.1100 and 1.1056.  

GBP/USD - G7 Meetings In Focus 

During the Asian session, the GBP/USD currency pair is flashing red and dropped to 1.2231, representing 0.24% decline on the day mainly due to rising coronavirus cases. Traders seem to await well-expected stimulus measures by BOE to control the pandemic, as well as the traders, keep their eyes on the U.K. employment data for fresh impulse. As of writing, the GBP/USD is trading at 1.2233 and consolidates in the range between the 1.2230 - 1.2275.

Due to the 18 new deaths in the previous 24 hours, the GBP/USD currency pair is trading bearish as the government gave the wrong strategy to control the disease. So, from now, the Tory administration will take measures to correct the mistake with much care.

Looking forward, the U.K. PM Boris Johnson will likely use some strong words during his daily coronavirus press conference. However, the presence of Chancellor Rishi Sunak will be vital for them who is expected to show a significant financial package on Tuesday for firms hit by the coronavirus outbreak as per the latest report.

Moreover, February's U.K. employment data, as well as the U.S. Retail Sales, are likely to be significant economic events to watch. The labor market has remained stable in the U.K. despite increasing uncertainties.

GBP/USD - Daily Technical Levels

Support Resistance 

1.2189      1.2362

1.211         1.2454

1.1938      1.2626

Pivot Point 1.2282

GBP/USD – Daily Forecast

The GBP/USD continues to trade bearish for another day as it's the pricing has dropped from 1.2280 to 1.2220. In the daily timeframe, the GBP/USD pair has formed a Doji pattern, which was supposed to support the Cable and drive bullish bias, but eventually, the pair doesn't seem to halt it's selling trend. 

The RSI is still holding ina selling zone and has a vast potential to drive further selling in the GBP/USD pair. On the lower side, the GBP/USD prices may drop until 1.2116 today or in the days coming ahead. So we should look for selling trades below 1.2282 level today. 

Good luck!