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Daily F.X. Analysis, April 14 – Risk-off Sentiment, G7 Meetings In Highlights! 

Daily Market AnalysisApril 14, 2020
  On Tuesday, the greenback crawled lower, but gains in riskier currencies were capped as traders worried about company earnings and braced for Chinese trade data likely to show the full impact of the coronavirus health crisis on economic activity. Later today, eyes will remain on the G7 meeting, which is expected to drive market movement during the U.S. session... Economic Calendar The BTC/USD prices slipped sharply to trade at 6,575 area, which marks as a double bottom on the 4-hour timeframe. Above this, the Bitcoin may show slight bullish correction until 6,850, but a violation of the descending triangle pattern along with bearish engulfing candle on the 4-hour timeframe is supporting bearish bias among traders. Today, chances of a bearish breakout remain strong; therefore, the bearish breakout of 6,577 level can extend selling until 6,170. BTC/USD is fighting to break above the next resistance level of $7,000 and $7,250 versus the U.S. Dollar. The bulls are gradually taking control, and they are anticipated to target $7,000. The Bitcoin failed to break the significant support level of around $6,550 on the hourly chart of the BTC/USD pair. The pair could improve distinctly towards the $7,100 support or $6,800. Support Resistance 6,672 6,944 6,510 7,054 6,238 7,326 Pivot Point 6,782 BTC/USD – Daily Forecast The BTC/USD is recovering after testing the support level of the 6,575 area, which marked as a double bottom on the 4-hour timeframe. Above this, the Bitcoin may show bullish correction until 7,050, but a violation of the descending triangle pattern. On the 4-hour timeframe, Bitcoin may find resistance around 7,140 and 7,400. Bitcoin has a wide trading range of 7,120 - 6,720, and violation of this level may extend the bullish trend until the next resistance level of 7,400. While bearish breakout of this level can extend selling until 6,150. The RSI and Stochastics are heading towards 50, and bullish crossover of 50 may drive buying in the Bitcoin. Today in the early Asian session, the EUR/USD currency pair continues to struggle to reach above Friday's bullish level while faced rejection near the 1.0950 mainly due to the recent losses in the S&P 500 futures, which eventually bolstered greenback demand. Currently, the EUR/USD is currently trading at 1.0937 and consolidates in the range between the 1.0925 - 1.0947. The EUR currency failed to take fresh bids due to recent declines in the U.S. stocks. The stock futures dropped by almost 2% in early Asia mainly due to the WTI crude oil prices, which dropped despite the decision by the OPEC+, a group of 24 nations led by Saudi Arabia and Russia, to cut the oil output by 9.7 million barrels per day. Whereas, the reason behind the fresh declines in the U.S. stocks is also the on-going surge in the number of coronavirus cases in China. The EUR/USD pair will trade according to the movement in the oil markets and the S&P 50 futures on the day. Looking forward, the European data docket seems empty, which is why the trading volumes might be light, and random moves may be seen in the foreign exchange markets. Support Resistance 1.0877 1.0953 1.0847 1.0998 1.0772 1.1073 Pivot Point 1.0923 EUR/USD – Daily Forecast During the last week, the EUR/USD violated the symmetric triangle pattern, and closing of candles outside, especially on the higher side of EUR/USD may drive bullish bias in the EUR/USD currency pair. On the higher side, immediate resistance stays around 1.0960 an 1.1030. While a bullish breakout of 1.1030 resistance can lead the EUR/USD prices further higher towards 1.1135, conversely, a bearish breakout of 1.0918 can initiate a sell-off until 1.088. Today, consider buying above 1.0953 until the next resistance of 1.1039. The GBP/USD is struggling to continue its 4-day winning streak and violates a 2-days-old trading range to trade over 1.2505 resistance, mainly due to intensifying concerns of a sharp economic recession. Currently, the GBP/USD is trading at 1.2558 and consolidates outside the previously maintained range of 1.2453 - 1.2478. At the UK GDP front, Britain's gross domestic product (GDP) may drop by up to 30% in April to June period, mainly due to the on-going coronavirus outbreak, as per the Finance Minister Rishi Sunak. Furthermore, he added that ten ministers were demanding for the relaxation of lockdown restrictions, starting from May. A statement came from the minister that it will be good to extend the lockdown for another 3-weeks to protect many lives and then we can start to ease it. The requests are rising from all over the world about the end of lockdown as the strong lockdown concerns indicating the economic depression, which would more worsen than the one seen in 1930. On the other hand, if the coronavirus cases continue to increase, then the governments would have no choice but to keep lockdown going. These fears may keep the demand for the U.S. dollar high in the near future. At the coronavirus front, U.K. has recorded 9,875 deaths from the coronavirus pandemic so far and marked as a 5th-highest national number in the world. Prime Minister Johnson's office said he still needs some time to recover from the coronavirus infection, but still, the news of his checking out of the hospital is positive for the economy, and it is driving bullish bias for the GBP/USD pair. Support Resistance 1.2472 1.2541 1.2435 1.2574 1.2365 1.2644 Pivot Point 1.2504 The GBP/USD exhibited a bullish bias yesterday as it is price surged to trade at 1.2558 area. On the 4 hour timeframe, the cable has violated the triple top pattern, which was extending substantial resistance at 1.2488. At the moment, the same level of 1.2480 is likely to work as a resistance. A bullish breakout of 1.2480 level can lead to GBP/USD prices towards the next resistance level of 1.2617. The RSI and Stochastics are suggesting bullish bias, and we may see a continuation of a bullish trend in GBP/USD. Thus, above 1.2508 level, we can see GBP/USD prices going after 1.2617 and 1.2735 level today while the support continues to stay around the pivot point level of 1.2504. Good luck!
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