Daily F.X. Analysis, March 26 – U.K. Bank of England Rate Decision In Focus!
By Eaglefx On March 26, 2020 in Daily Market Analysis
On Thursday, the U.S. dollar has soared nearly 7% in the last 15 days, as concerns across the economic fallout of the coronavirus pandemic have pointed traders towards the U.S. dollar, often regarded as a haven of last resort.
It has settled near multi-year highs despite the U.S. Federal Reserve's attempts to facilitate a global deficit of dollars. Considering this, the U.S. Senate unanimously announced a $2.2 trillion emergency aid plan yesterday as the United States recorded over 200 coronavirus-related deaths. With this, the dollar is getting a bit weaker, and stock markets are gaining support.
Economic Calendar
BTC/USD - Daily Analysis
The BTC/USD extends trading within the same trading range of 6,850 to 6,575. As the COVID-19 pandemic proceeds to display with terrible consequences beyond the globe, desperate measures to keep the economy floating continue to be steered by global governments.
Presently, the most striking illustration is the U.S., which lately announced an extensive quantitative easing plan and also entered an agreement for a $2 trillion stimulus program. The extensive quantitative easing means will cause the Federal Reserve to buy assets "in the quantities required to accommodate smooth market functioning.
Right after the decision was made, the leading cryptocurrency Bitcoin rallied nearly 10% from $6,300 to $6,900. At the moment, the BTC/USD has sunk to $6,630, and crypto markets have remained relatively stable during the day.
BTC/USD - Daily Technical Levels
Support Resistance
6,507 6,962
6,228 7,139
5,772 7,594
Pivot Point 6,683
BTC/USD – Daily Forecast
The BTC/USD extends trading within the same trading range of 6,850 to 6,575. We may see further trends in Bitcoin only when it breaks either on the higher side or the lower side.
On the lower side, violation of the 6,530 support level can extend selling until 6,395, and even below this, the next support is likely to be found around 6,175. Conversely, the bullish breakout of the 6,815 level can drive more buying until 7,260.
EUR/USD – Currency Pair hit The Fresh High Above 1.09
Today in the early Asian session, the EUR/USD currency pair continued its previous day recovery rally and crossed above to 1.09 level mainly due to the broad-based U.S. Dollar weakness, having hit the fresh high of 1.0934 and representing 0.32% gains on the day.
However, the greenback getting weak time by time in the wake of strong expectations of the U.S. fiscal stimulus and the upbeat market mood. As of writing, the EUR/USD is trading at 1.0911 and consolidates in the range between the 1.0870 - 1.0934.
The Senate Democrats and Republicans finally agreed on the Trump administration-backed stimulus package plan and eventually passed the U.S. Senate and will likely put to the vote in the lower house on Friday. As in result, the global equities could continue its previous day recovery rally, triggered deeper losses in the safe-haven USD, and sent the pair further higher.
Looking forward, the U.S. jobless claims report will be a key to watch for the dollar's safe-haven status. Economists are looking for claims to increase to 1.5 million, which may hit the U.S. dollar and drive bullish support to the EUR/USD currency pair.
EUR/USD - Daily Technical Levels
Support Resistance
1.0742 1.0885
1.0673 1.0957
1.0531 1.11
Pivot Point 1.0815
EUR/USD – Daily Forecast
The tug of war between the bulls and bears continues to drive no significant price action in the EUR/USD prices. The EUR/USD is consolidating around at 1.0905, mostly following a slightly bullish trading session in the wake of weaker U.S. dollar. The EUR/USD is likely finding resistance at 1.09510, and above this, the pair has the potential of going towards 1.1050.
Conversely, the EUR/USD has a strong chance of staying bearish beneath 1.1056 resistance. While the violation of 1.0815 support level may also drive further selling in the major currency pair EUR/USD. The RSI and Stochastics remain in a buying zone, supporting the upward movement in the EUR/USD.
GBP/USD - Eyes On UK Retail Sales & BOE
During the early Asian session, the GBP/USD pair is flashing red and still trading under pressure near 1.1855, mainly due to the sharp rise that came in the cases of coronavirus in the U.K.
The traders are cautious about placing nay positions ahead of the U.K. Retail Sales and BOE monetary policy decisions, which are due to come out later today. The GBP/USD is trading at 1.1848 and consolidates in the range between the 1.1778 - 1.1900. However, the currency pair failed to get any support from the broad-based weaker U.S. Dollar as intensifying fears of coronavirus continues to cause a sell-off in the U.S. dollar.
As per the latest report about coronavirus, the U.K. reported a sharp surge of 1,500 cases in a single day, with a new total of 9,529 cases, which are up from 8,077. The increase in the death losses from 422 to 463 also demotivated the U.K. PM Boris Johnson's lockdown struggles.
The BBC news agency also indicated the fear of intensifying virus with headlines stating, many thousands of Covid-19 cases found across Northern Ireland (N.I.).
Furthermore, the Senate Democrats and Republicans finally agreed on the Trump administration-backed stimulus package plan and finally passed the U.S. Senate. Now it will likely be put to the vote in the lower house on Friday. Consequently, the U.S. equities could continue its previous day recovery rally, which triggered deeper losses in the safe-haven USD.
GBP/USD - Daily Technical Levels
Support Resistance
1.1662 1.1858
1.1535 1.1927
1.1339 1.2122
Pivot Point 1.1731
GBP/USD – Daily Forecast
On Thursday, the GBP/USD pair continues to consolidate around 1.1830 level as most of the traders seem to feel hesitant to take major positions ahead on BOE rate decision today.
On the 4-hour chart, the GBP/USD is facing double top resistance at 1.1963, and closing of candles below this level are suggesting odds of selling bias in the GBP/USD pair. The leading indicators, such as RSI and Stochastics, have started coming out of the overbought zone, which supports the selling correction bias in the pair.
The cable may find support around 1.1715, and below this, the next support stays around 1.1515. Let's look for buying trades above 1.1585. Good luck!