Daily F.X. Analysis, March 23 – Coronavirus Continues to Keep the Markets on Knees!
By Eaglefx On March 23, 2020 in Daily Market Analysis
The U.S. and European stock indices dropped along with stock futures following a lift in the global death losses from the coronavirus and a breakdown by Congress to accept on an aid program.
The U.S. SPX (S&P 500) plunged nearly 5% while the European stocks dropped over 6% as administrators struggled to impose more limitations on people's movements. Shares in Australia, South Korea, and Hong Kong also collapsed, while India dropped over 10% in the wake of Coronavirus fears. The dollar declined versus major peers following the Federal Reserve, and counterparts opened daily operations to contribute dollars throughout the world.
Economic Calendar
BTC/USD - Daily Analysis
The BTC/USD is down over 5%, and it violated the $6,000 support zone versus the U.S. Dollar. The BTC/USD is now exhibiting selling signs, and it could proceed to move down. Bitcoin began a fresh drop after it disappointed to break above the $6,500 resistance versus the U.S. Dollar.
The Bitcoin price is now trading beneath the $6,200 and $6,000 support marks. There is a crucial contracting triangle developing with support around $5,780 on the hourly graph of the BTC/USD.
The BTC/USD pair could either drop dramatically below $5,750, or it might strive a fresh surge to $6,500.
One of the significant price levels to be conscious of is the $5,400 mark. If Bitcoin drops beneath that level, it will be a very bearish plot for crypto as a whole. Although the price increased to a daily high of $6,400 on Sunday, a closing of daily price over $5,900 is necessary.
BTC/USD - Daily Technical Levels
Support Resistance
5,489 6,635
4,805 7,097
4,343 7,781
Pivot Point 5,950
BTC/USD – Daily Forecast
On Monday, the BTC/USD has tested the pivot point resistance level of 6,686, and the closing of candles below this level is suggesting chances of a bearish bias in the Bitcoin. On the lower side, the BTC/USD prices are likely to find support around 5,606 and 4,770. Whereas, the resistance continues to hold around 6,066 and 6,685. On the hourly chart, the bullish trendline is likely to support the BTC/USD prices around 5,700 area, and we may see Bitcoin prices bouncing off this level today.
EUR/USD – Eyes On German Bundesbank's Monthly Report
Today in the early Asian session, the EUR/USD currency pair trading on the bullish track and rose to 1.0735, representing 0.35% gains on the day as the global equity markets flashing red. As in result, the EUR currency is getting bids as a safe-haven demand.
As of writing, the EUR/USD currency pair is currently trading at 1.0729 and consolidates in the range between the 1.0637 - 1.0735. However, the EUR currency is still finding bids against currencies like the New Zealand dollar, including the Australian dollar and, eventually, the EUR/USD currency pair getting a boost from it.
Global equity markets showing a selling in Asia with the S&P 500 futures showing losses with a 5% drop, because the fears of a coronavirus-led recession in the global economy were increased as the U.S. Senate failed to push forward with the rescue package.
Earlier, the currency pair was stuck near the 1.0635 level on Friday but again took bids around that level during Monday's Asian trading hours.
On the technical side, the double bottom has the neckline resistance at 1.0831; if the pair succeed to break, it will open the doors to 1.0442 (target as per the measured move method).
EUR/USD - Daily Technical Levels
Support Resistance
1.0615 1.0809
1.0529 1.0917
1.0335 1.1111
Pivot Point 1.0723
EUR/USD – Daily Forecast
The EUR/USD is consolidating around at 1.0745, essentially following a choppy trading session in the wake of a lack of major economic events. The EUR/USD is expected to gain a critical resistance nearby 1.08510, and above this, the pair has the chance of going further higher towards 1.1050. In contrast, the EUR/USD has a strong chance of staying bearish beneath 1.0723 pivot point level to target 1.065 as the RSI and Stochastics remain strongly bearish. A breakout of 1.065 can drive more selling until 1.0565.
GBP/USD - Coronavirus Outbreak Fears & Broad-Based USD Strength
During the early Asian session, the GBP/USD currency pair flashing green and getting bids near the 1.1690. The currency pair struggles to extend its recovery gains toward the 1.1700 despite the United Kingdom's lockdown concerns.
With this, the currency pair representing 0.49% gains so far. At the press time, the GBP/USD is currently trading at 1.1688 and consolidates in the range between the 1.1533 - 1.1697. However, the currency pair could have taken clues from the U.S. Senate's failure to pass President Donald Trump's Coronavirus (COVID-19) Bill.
At the U.K. front, the United Kingdom Prime Minister Boris Johnson gave warning to the public about the lockdown. Mainly after ignoring their appeal by society to stay indoor during Mother's Day.
Meanwhile, the Tory leader increased concerns while indicating the Italy-like situation in the Kingdom, after knowing that the death losses reached 281 and there are 5,683 confirmed cases, as per the latest report.
GBP/USD - Daily Technical Levels
Support Resistance
1.1492 1.1872
1.1333 1.2094
1.0953 1.2474
Pivot Point 1.1713
GBP/USD – Daily Forecast
The GBP/USD hasn't changed much as the pair continues to consolidate around 1.1730 level, as the Cable is bouncing off above 1.1400 level. On the daily timeframe, the GBP/USD pair is heading towards 23.6% Fibonacci retracement at 1.1800, and above this, the pair has odds of going towards 38.2% Fibo levels at 1.2016.
The bullish bias remains solid as the RSI and Stochastics are holding in an oversold zone, which supports the bullish bias in the pair. The Cable may find support around 1.1585, and below this, the next support stays around 1.1315. Let's look for buying trades above 1.1585. Good luck!