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Daily F.X. Analysis, April 07 – Dollar Weakens, Risk-off Sentiment Continues to Play! 

Daily Market AnalysisApril 07, 2020
On Tuesday, the greenback slipped versus the yen as underlying worries over the economic shock wrought by the coronavirus pressure held many traders on edge. The Britsih Pound clawed back some recent declines versus the U.S. dollar. Still, sentiment for sterling continues to be fragile following British Prime Minister Boris Johnson was transferred to intensive care following his coronavirus signs worsened. While the Japanese yen strengthened after the Japanese Prime Minister Shinzo Abe reveals a massive fiscal incentive worth about $1 trillion to compensate for the economic influence of the pandemic. Overall, the financial markets are trading with risk-off sentiments, keeping the dollar weaker and bullion stronger. Economic Calendar The BTC/USD concluded the week higher about 15.4% at $6,775 and has begun the day with an additional 6% movement to the upside, violating the $7,000 resistance and soaring highs towards $7,300 level. Comparing the Bitcoin performance relative to its rivals, Ether (ETH) and EOS have placed massive gains of over 16% during the past 24 hours. Consequently, the BTC/USD dominance is down 1.5% at 65%. 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. Crypto exchanges were not safeguarded from the destruction that drove the S&P 500 and Dow to exhibit some of the most significant losses since the 2008 global financial crisis, and traders will revive that on March 13, Bitcoin (BTC) price sank over 50% lately. Support Resistance 6,535 6,963 6,363 7,219 5,935 7,647 Pivot Point 6,791 BTC/USD – Daily Forecast Bitcoin is on a bullish run as it seems to share a positive correlation with the yellow metal gold. It's trading bullish around 7,295 with an immediate resistance around the next resistance level of 7,635. On the lower side, bitcoin may find support around 7,118 and 6,969. Bullish bias still remains strong, and it may lead to Bitcoin prices towards the next resistance level of 7,600. Today in the early Asian session, the EUR/USD currency pair flashing green and managed to hold its gain above 1.0800 level. The currency pair recently erased its early losses and rose from 1.0785 to 1.0830 in the last hour, mainly due to the U.S. dollar is losing its bullish momentum after the uptick in the United States stocks futures. At this moment, the EUR/USD is trading at 1.0825 and consolidates in the range between the 1.0784 - 1.0830. However, the futures tied to the S&P 500 index are higher 0.5% at press time and indicating to a continuation of Monday's 7% price rally. At the data front, Germany, Eurozone's manufacturing powerhouse, will release Industrial Production data for February, which is scheduled to publish at 06:00 GMT. The output is expected to have declined by 0.9% month-on-month, having increased by 3% in the prior month. The annual numbers are expected to come in at -3.9% compared to -1.3% in January. Despite the coronavirus on-going supply chain disruption, the slowdown in Germany's manufacturing sector eased in February, as per the latest report by the IHS Markit/BME Manufacturing Purchasing Managers' Index (PMI). Support Resistance 1.0769 1.0847 1.0732 1.0889 1.0653 1.0967 Pivot Point 1.081 EUR/USD – Daily Forecast The EUR/USD is trading bullish on Tuesday, having crossed the pivot point level of 1.0810, which is opening further room for buying until 1.0910, were 50 periods EMA lingers to provide resistance. Over this level, we may see EUR/USD prices heading north towards the next resistance level of until 1.1035. Bullish crossover of 1.1035 level can open up further space for buying until 1.1191 level. The RSI and Stochastics are crossing over 50 supporting the bullish bias. Today, the pair may find immediate support around 1.0760. During the early Asian session, the GBP/USD currency pair stopped its 2-day declining streak and rose 0.36% to 1.2282, mainly due to broad-based U.S. dollar weakness in the wake of the risk-on market sentiment. The pair hit a high of 1.2295 during the Asian session. At the press time, the GBP/USD is trading at 1.2169 - 1.2295, while traders are giving little attention to the UK PM Boris Johnson's critical conditions on the Intensive Care Unit (ICU). The United States President Donald Trump is showing a willingness to declare another relief package after the House Speaker Nancy Pelosi gave hints for the same. This boosted the market's risk-tone after fears of President Trump's last week's statement that upcoming will show a significant increase in the virus. The reason behind the risk-on market trade sentiment could also be the hints of further stimulus from Japan and New Zealand. On the flip side, the U.K. Prime Minister Boris Johnson's health is not so good, and his condition is likely to worsen further time by time. The PM has already transferred the rights to control administration meetings and lead the U.K. through the decease to the Foreign Secretary Dominic Raab due to his worsening condition. Hence, the Foreign Secretary Dominic Raab will conduct the Cobra and cabinet meetings for him. Support Resistance 1.2184 1.2375 1.21 1.248 1.1909 1.267 Pivot Point 1.229 The direct currency pair GBP/USD hasn't changed a lot lately despite weakness in the U.S. dollar as traders are also concerned about the U.K. PM health amid COVID 19 positive results. The cable continues to consolidate to around 1.2400 level, but it manages to trade bearish, falling to 1.2450 level. The GBP/USD pivot point support stays around 1.229, and it's prices are tossing above and below this level. The GBP/USD is holding below a strong resistance level of 1.2513 level. On the 4-hour timeframe, the Sterling a pair is likely to find support at 1.2350 violation of which can open further room for selling until 1.2305 and 1.2090, which marks 38.2% Fibo level. The GBP/USD pair may trade in selling below 1.229 and buying above the same level today. Good luck!
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