On Monday, the market continues to trade with the risk-on sentiment as traders are feeling optimistic about the market since the release better than expected Chinese manufacturing PMI data. That reflects the world’s one of the biggest nations is still on track to recovery. 

The dollar remained under pressure on Friday amid the increased tensions between US & China after the signing to Hong Kong Bill by US President Trump and gave GBP/USD an upward track. The US Dollar index remained under pressure after the thanksgiving holiday despite higher US yields. 

The German Unemployment Change at 13:55 GMT supported Euro with a drop to -16K against the expectations of 5K. At 14:00 GMT, the Italian Monthly Unemployment rate was also dropped to 9.7% from the expectations of 9.8% and supported Euro. 

Economic Calendar – ECB President Lagarde Ahead! 

 

 


BTC/USD – Daily Analysis

Over the weekend, the BTC/USD hasn’t made much progress as it continued to trade above 7,310 support zone. Overall, the pair has formed a symmetric triangle pattern, which is keeping the Bitcoin in consolidation within the 7,700 – 7,300 area. 

The BTC/USD price is now beneath the 200-DMA ($9,403), and the graph shows price drawing closer to the price at $5,660. Traders will also see that through times of consolidation, Bitcoin value mounts along with the 200-week moving average, which is at $4,878 on the daily chart.

Since sinking below the descending channel on Nov. 25, Bitcoin (BTC) has recovered $7,000, netted some strong resistance at $7,400, and now proceeded to it’s way up to over $7,500 during the time of writing this review.

BTC/USD – Daily Technical Levels

Support    Resistance 

7,495.8        7,925.5

7,248.79     8,108.05

6,819.16      8,537.68

Pivot Point 7,678.42

 

BTC/USD – Daily Forecast

A bearish breakout of 7,300 levels on the 4-hour chart can help traders capture a sell position until 6,900. Conversely, the closing of Bitcoin above 7,300 can extend buying until 7415 today. The leading indicator, such as MACD, is crossing below zero, suggesting chances of a bearish bias among traders today.

 


EUR/USD – Brace for ECB President Lagarde 

The EUR/USD closed at 1.10152 after placing a high of 1.10282 and a low of 1.09810. Overall the trend for the EUR/USD pair remained Bullish that day. At 12:00 GMT, the German Retail Sales for October were dropped to -1.9% against the expectations of -0.2% and weighed on the single currency – Euro. At 12:45 GMT, the French Consumer spending remained flat at 0.2%. However, the French Prelim CPI was increased to 0.1% from the expected 0.0% and supported Euro. The French Prelim GDP also remained flat with expectations of 0.3%.

The German Unemployment Change at 13:55 GMT supported Euro with a drop to -16K against the expectations of 5K. At 14:00 GMT, the Italian Monthly Unemployment rate was also dropped to 9.7% from the expectations of 9.8% and supported Euro. 

At 15:00 GMT, the CPI Flash Estimate for the Year from Eurozone showed growth to 1.0% against the expectations of 0.8% and supported Euro. The Core CPI Flash Estimate also rose to 1.3% from the forecasted 1.2%. The Italian Prelim CPI came in as 0.0% against the expectations of -0.2% and supported the single currency. 

Finally, the Unemployment Rate for Eurozone was also dropped in October to 7.5% from September’s 7.6% and supported Euro.

The Stronger than expected macroeconomic data from Eurozone on Friday supported the single currency – Euro and raised it against its rival currency US Dollar. Strong Euro gave a jump to the prices of EUR/USD at the ending day of the week but remained under selling pressure due to the strength of the US Dollar. US Dollar was strong across the board throughout the week amid Stronger than expected macroeconomic data suggesting a firm foot of US Economy under current unstable global situations. 

EUR/USD dropped near two weeks low point on Friday amid the escalating tensions of US & China but managed to end its day with a Bullish trend on the back of robust economic data. Though the data showed that eurozone inflation for November accelerated faster than expected but, the annual inflation remained far lower than the target of the European Central Bank.

Members of ECB were discussing the potential for resetting the inflation target at below but close to 2%.

EUR/USD – Daily Technical Levels

Support Resistance 

1.099       1.1037

1.0962     1.1056

1.0915      1.1103

Pivot Point 1.1009

EUR/USD – Daily Forecast

The EUR/USD violated the narrow trading range of 1.1016 – 1.0992 to trade around the 1.1020 trading level. For now, the EUR/USD’s new trading range is 1.1030 – 1.1015. A bullish breakout of 1.1030 can lead the EUR/USD prices towards 1.1055, and on the lower side, 1.0985 remains the ultimate support.

 


GBP/USD – Final Manufacturing PMI In Focus 

The GBP/USD closed at 1.29170 after placing a high of 1.29418 and a low of 1.28788. Overall the trend for GBP/USD remained Bullish that day. The Sterling was calm on Friday with Brexit hanging over the UK and general elections after two weeks. No news from Brexit or UK Politics held the movement of GBP/USD within a tight range at the ending day of the week.

On the data front, the Gfk Consumer Confidence at 5:00 GMT, from the UK, remained flat at -14. At 14:30 GMT, the M4 Money Supply from the UK for October dropped to 0.0% from the expectations of 0.5%.

The Mortgage Approvals also remained flat with expectations of 65K. However, the Net Lending to individuals from the UK showed growth to 5.6B against the expectations of 4.5B. Mixed data from the United Kingdom on Friday gave almost null-effect to GBP/USD prices. 

The dollar remained under pressure on Friday amid the increased tensions between US & China after the signing to Hong Kong Bill by US President Trump and gave GBP/USD an upward track. US Dollar index remained under pressure after thanksgiving holiday despite higher US yields and supported the upward trend of GBP/USD.

On the other hand, Pound traders continued to buy GBP/USD with the expectations of Torrie’s victory in upcoming general elections in mid-December. The YouGov MRP analysis this week predicted the triumph of the Conservative Party in forthcoming elections. This poll in 2017 accurately predicted the fall of Theresa May and was highly under observation this year for the prediction of election results.

GBP/USD – Daily Technical Levels

Support  Resistance 

1.2889       1.2955

1.285         1.2984

1.2784       1.3051

Pivot Point 1.2917

GBP/USD – Daily Forecast

On the hourly chart, Sterling has completed 61.8% Fibonacci retracement at 1.2900 level, and it’s extending its reliable support. Above this, the pair can soar to 1.2930 today. Whereas, the bearish breakout of 1.2900 can drive further selling until 1.2880. The trading range is still very narrow for the GBP/USD, and it’s 1.2930 – 1.2900.

All the best for today. 

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