Daily F.X. Analysis, April 10 – Good Friday, U.S. Inflation in Highlights!
On Friday, the greenback started to trade on a tenuous footing and mostly showing a weekly loss in the wake of the massive new lending program from the U.S. Federal Reserves to deal with the COVID 19, which is hurting the business and economic growth drastically. On Friday, the eyes will remain on the U.S. CPI reports, which may help drive some price action during the U.S. session, elsewhere, the European sessions are likely to offer choppy trading sessions. Economic Calendar A day before, the BTC/USD fell to trade above $7000 psychological level as it was dispensing a few bearish signs beneath the $7,400 resistance zone versus the U.S. Dollar. The BTC/USD is currently failing, and it could prolong its inclination towards $7,100 or $6,800. The BTC/USD is fighting to break above the next resistance level of $7,400 and $7,500 versus the U.S. Dollar. The bears are gradually taking control, and they are anticipated to target $7,000. There was a breach beneath a significant bullish trend line with support around $7,300 on the hourly chart of the BTC/USD pair. The BTC/USD pair could improve distinctly towards the $7,100 support or $6,800. Roughly 4-weeks ago, the global equities markets were in trouble as traders eventually recognized that the coronavirus was not just an illness limited to China, but rather a worldwide pandemic which could lastingly damage markets over the globe. Support Resistance 7,177 7,405 7,039 7,495 6,810 7,723 Pivot Point 7266.77 BTC/USD – Daily Forecast Technically, the BTC/USD pair is trading with a bearish bias as the pair has already violated bullish channel which was supporting its prices around 7,200 and double bottom level, which supported around 7,100. Closing of bearish engulfing candle below this level has driven sharp selling in Bitcoin until 6,995. Still, the bearish engulfing suggests bulls are dominated and may trigger more selling until 6,800 and 6,665 support levels. Let's consider staying bearish below $7,050 today as BTC/USD can drop further until previously suggested 6,800 and 6,665 levels. Today in the early Asian session, the EUR/USD currency recently got a fresh boost and rose to a weekly high above 1.0951, mainly due to the broad-based U.S. Dollar weakness. The modest recovery in the risk sentiment is also supporting the shared currency. Currently, the EUR/USD is trading at 1.0936 and consolidates in the range between the 1.0919 - 1.0944. However, the EUR buyers got support from the Eurogroup passed half a trillion euros virus rescue package. Moreover, the shared currency pair got a boost during the previous session. They reached a new 5-days high mainly due to greenback broadly dropped after the U.S. Federal Reserve's (Fed) additional stimulus announcement to control the economic recession of the coronavirus outbreak. At the coronavirus front, the infected people by virus rose more than 1.5 million in all over the world, including over 450K Americans. The reason behind the sharp declines in the greenback is also the U.S. Initial Jobless Claims figures came out, which showed that the weekly new claims exceeded 6 million for the second straight time last week. As in result, the U.S. dollar index slipped 0.06% to 99.46, having placed an intraday high of 99.63 in early Asia, which is weighing on the EUR/USD currency pair. Today, U.S. inflation reports will be in focus during the U.S. session. Support Resistance 1.0862 1.0973 1.0796 1.1018 1.0685 1.1129 Pivot Point 1.0907 EUR/USD – Daily Forecast The EUR/USD has violated the symmetric triangle pattern, which caused a bullish breakout of the sideways trading range of 1.0853 - 1.0887. Breakout of this pattern is likely to drive further bullish trends until 1.0960 an 1.1030. Conversely, a bearish breakout of 1.0918 can trigger a sell-off until 1.0885, and above this, we can expect EUR/USD to bounce off. The bullish bias remains strong today. The GBP/USD currency pair registered modest gains and hit the high of 1.2475 as the markets are inactive on the day due to a Good Friday holiday. Meantime, the currency pair got support from the positive now about UK PM Johnson's exit from the Intensive Care Unit (ICU). While the broad-based USD weakness also boosted the currency pair earlier. As of writing, the GBP/USD currency pair is currently trading at 1.2463 and consolidates in the range between the 1.2446 - 1.2475. However, the traders are awaiting the U.S. Consumer Price Index (CPI) figures. As we already mentioned, the UK PM Boris Johnson was discharged from the ICU but stayed in the hospital. As per the latest report, the UK PM has been moved this evening from intensive care back to the ward, where he will get close checking and care to recover fast. At the coronavirus virus front, the total U.K. hospital deaths from COVID-19 rose by 881 to 7,978 as of 1600 GMT on April 8, as per the government. The reason behind the strong declines in the greenback is also the U.S. Initial Jobless Claims figures came out, which showed that the weekly new claims exceeded 6 million for the second straight time last week. As in result, the U.S. dollar index slipped 0.06% to 99.46, having placed an intraday high of 99.63 in early Asia. As in result, the risk tone flashing mixed signals as the U.K. jostles with the coronavirus (COVID-19) virus. Support Resistance 1.2381 1.2504 1.231 1.2555 1.2187 1.2678 Pivot Point 1.2432 The GBP/USD has exhibited a slight bullish bias on Thursday as it's price soared to trade around 1.2468 level. On the 4 hour timeframe, the cable has formed a triple top pattern, which is likely to extend substantial resistance at 1.2488. A bullish breakout of this 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, the bullish breakout of 1.2488 level can lead the GBP/USD prices until 1.2617 and 1.2735 level today while the support continues to stay around the pivot point level of 1.2432. Good luck!