On Friday, the forex trading setups are mostly depending upon the release of PMI data from the Eurozone, the U.K, and the U.S.
Previously, the U.S. dollar index traded bullish on Thursday after the release of FOMC Meeting Minutes, where Federal Reserve decided to hold its Monetary Policy and decided not to cut its rates further this year. Strong USD put pressure on EUR/USD prices on Thursday.
The U.S. & China trade deal was in highlights on Thursday. The South China Morning Post reported that China was waiting to know Donald Trump’s decision regarding the Hong Kong bill passed by the U.S. Senate and would then respond.
Economic Calendar – PMI Figures in the Cards!
BTC/USD – Daily Analysis
The cryptocurrency’s bearish bias dominated the market to trigger a sharp sell-off until $7,334 level. For the moment, the BTC/USD is in a massively oversold zone, suggesting the chances of a bullish correction.
To have a bullish correction, the BTC/USD needs to stay above the crucial trading level of $7,535 today. On the upper side, resistance can be seen around $7,765.
In the daily timeframe, the BTC/USD has formed a descending triangle pattern, which is likely to keep the Bitcoin supported above 7,300 level.
BTC/USD – Daily Technical Levels
Pivot Point 7,706.46
BTC/USD – Daily Forecast
Today’s closing is very crucial to determine whether to expect further selling or bullish correction in the coming week. For instance, the closing of Doji or a spinning top pattern above 7,300 can drive a bullish sentiment for the Bitcoin. Let’s keep an eye on 7,300, as in case of a bearish breakout, the Bitcoin will be exposed to 6,500 zones.
EUR/USD – ECB President Lagarde & PMI In Highlights
The EUR/USD was closed at 1.10581 after placing a high of 1.10969 and low of 1.10521. Overall the movement of the pair remained Bearish that day. On Thursday, The European Central Bank (ECB) released the minutes from their October Meeting. ECB cut deposit rates in September and started a Quantitative Easing Program (QE), so traders were eager to learn about the plans of ECB after the last monetary easing and had a focus on October Meeting Minutes.
The former Head of European Central Bank, Mario Draghi, concluded his last monetary meeting in October and called for unity to increase inflation. The decision was heavily criticized by the policymakers who were in favor of the wait & see approach.
According to the ECB October’s Meeting minutes, some participants of the meeting raised doubts about the side effects of the proposed central bank’s policy. A plea was made for patience to allow the September measures to work through the economy and supported a wait & see approach at the current juncture.
Mario Draghi’s final week of serving as the president of ECB was the time where he received harsh criticism from the chiefs of German, Dutch, French, and Austrian Central Banks. They were against his September’s decision of monetary easing, where he relaunched the Q.E. program and cut interest rates.
However, after October’s meeting, the council decided to keep its monetary policy on hold. They emphasized that further easing would be made only under circumstances where they would help ECB to reach its goal of having inflation below 2%.
Policymakers stressed that to achieve growth and inflation target, there was a long way to go, but they also gave positive expectations in this regard.
Christine Lagarde officially took the position of ECB President after Mario Draghi for a non-renewable term of 8 Years on November 1. She will give her first speech on Friday during a Banking Conference in Frankfurt, and traders would focus on that speech.
On the data front, Europe’s Consumer Confidence was released at 20:00 GMT; it came in as expected -7 and had an almost null effect on EUR/USD prices.
However, on the U.S. side, the U.S. Dollar index was raised on Thursday after the release of the FOMC Meeting Minutes, where Federal Reserve decided to hold its Monetary Policy and decided not to cut its rates further this year. Strong USD put pressure on EUR/USD prices on Thursday.
EUR/USD – Daily Technical Levels
Pivot Point 1.1072
EUR/USD – Daily Forecast
As anticipated, the EUR/USD continued to consolidate in a sideways trading range of 1.1085 – 1.1055. The bullish breakout of 1.1085 may lead the EUR/USD towards 1.1090 and 1.1115 level. Whereas, the violation of 1.1055 can drive further sell-off until 1.1035 today.
The movement in the EUR/USD mostly depends upon the manufacturing and services PMI figures, which are due to come out during the European session today.
GBP/USD – Bullish Trendline Supports
The GBP/USD closed at 1.29047 after placing a high of 1.29698 and a low of 1.28927. Overall the movement of the pair remained Bearish that day. The Strong U.S. Dollar across the board and weakened pound gave pressure to the movement of GBP/USD on Thursday. At 14:30 GMT, the Public Sector Net Borrowing from the United Kingdom was released, which came in 10.5B greater than expected 8.5B and weakened the GBP on Thursday.
However, on the American side, the U.S. Dollar index was raised on Thursday after the release of FOMC Meeting Minutes, where Federal Reserve decided to hold their Monetary Policy and decided not to cut its rates further this year. Strong USD put pressure on GBP/USD prices on Thursday.
On the news front, the U.S. & China trade deal was in highlights on Thursday. The South China Morning Post reported that China was waiting to know Donald Trump’s decision regarding the Hong Kong bill passed by the U.S. Senate and would then respond.
U.S. Yields remain high on Thursday and supported greenback to move the currency pair in a downward direction. However, the lack of economic release from the U.K. side and any major news gave GBP/USD in the hands of Strong U.S. Dollar that day. Traders would be waiting for PMI data to be released on Friday, which would further set the direction of this pair GBP/USD.
GBP/USD – Daily Technical Levels
Pivot Point 1.2935
GBP/USD – Daily Forecast
The GBP/USD continues to trade above previously held support level of 1.2887 level. The 50 periods EMA is now supporting the pair around 1.2895, and besides that, the bullish engulfing candlestick pattern on the 4-hour chart is suggesting chances of a further buying in the cable.
The GBP/USD can continue to trade with a bullish bias above 1.2900, with the next resistance around 1.2945 and 1.2970. Conversely, the bearish breakout below 1.2895 can lead to GBP/USD towards 1.2840.
All the best for today.