The forex market is exhibiting thin trading volume and volatility in the wake of Thanksgiving holiday in the U.S. During the U.S. holiday session, the market usually exhibits choppy trading, and that’s precisely what we are anticipating from the market today.
Overall, the U.S. dollar is trading with a bullish bias amid better than expected results from US economic data on Wednesday rose, the US Treasury bond yields to 1.78% and helped the US Dollar to remain stronger across the board. The US GDP showed the expansion of the economy at an annualized 2.1% during the third quarter, which surpassed the expectations of 1.9%.
Economic Calendar – German Prelim CPI In Play
BTC/USD – Daily Analysis
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.
Trader’s viewpoint remains silenced as investors are uncertain whether Bitcoin’s price has gained a bottom yet or not. So far, the technical setup is clearly signaling bullish bias on the lower timeframe.
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.
BTC/USD – Daily Technical Levels
Pivot Point 7,358.01
BTC/USD – Daily Forecast
The BTC/USD has finally violated the 7,400 resistance level. On the daily chart, it has formed a bullish engulfing pattern right above the 6,700 support level. This may help drive more buying until 7,700 and 8,050. The bullish bias remains strong for today, especially above the pivot point level of 7,358.
EUR/USD – German Prelim CPI In-Play
The EUR/USD pair closed at 1.09989 after placing a high of 1.10246 and a low of 1.09923. Overall the movement of pair EUR/USD remained Bearish that day. The EUR/USD moved below 1.100 level on Wednesday amid the Strong US macroeconomic data against its rival currency Euro.
The better than expected results from US economic data on Wednesday rose, the US Treasury bond yields to 1.78% and helped the US Dollar to remain stronger across the board. The US GDP showed the expansion of the economy at an annualized 2.1% during the third quarter, which surpassed the expectations of 1.9%.
Besides, the Durable Goods Orders from the United States also expanded to 0.6% for October and supported US dollars. The less than expected US jobless claims also showed growth in the economy for the previous week when came in as 213K against the expectations of 223K.
From the Eurozone side, at 12:00 GMT, the German Import Prices came in favor of single currency-Euro as -0.1% against the expectations of -0.2%. The stronger than expected German macroeconomic data was not enough to roll out the effect of stronger US Dollar and hence gave no effect to EUR/USD air movement on Wednesday.
Apart from macroeconomic figures, the trade optimism around the news also remains in headlines after the positive comment on the Phase-one deal. It gave strength to the US Dollar and helped inn further downward movement of EUR/USD on Wednesday.
EUR/USD – Daily Technical Levels
Pivot Point 1.1002
EUR/USD – Daily Forecast
The EUR/USD is trading in a bearish tone as stronger U.S. fundamentals have played well to drag the EUR/USD lower. Despite this, the EUR/USD hasn’t violated any support or resistance level, and it continues to trade within the expected ranges. The pair may find next support around 1.0990 level along with resistance at 1.1040. The violation of 1.0990 can lead the EUR/USD pair towards 1.0945.
Besides, the EUR/USD has formed a descending triangle pattern on the 4-hour chart, which is also supporting the pair at the exact pivot point level of 1.1000. Let’s keep an eye on this level as bulls can jump into capture quick trades.
GBP/USD – Brexit Optimisation Supports Sterling
The GBP/USD closed at 1.28639 after placing a high of 1.29034 and a low of 1.28348. The overall trend for the GBP/USD pair remained Bearish that day.
At 14:30, the High Street Lending from the United Kingdom showed a drop to 41.2K from the expectations of 43.1K and weighed on Sterling on Tuesday and gave bearish trend to GBP/USD.
On the other hand, the increased New Home Sales from the United States at 733K along with Goods Trade Balance at -66.5B and increased Housing Price Index at 0.6%, gave support to U.S. Dollar, which in turn added in the downward trend for GBP/USD pair.
Adding in the Bearish trend for pair was the latest trade talks between Chinese Vice President Liu He and U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin over the phone on Tuesday.
After the talks, it was reported by Chinese media that both sides discussed resolving core issues and has reached consensus on how to solve related problems. They also have agreed to say in contact over issues remaining for the phase-one trade deal agreement. The boosted the chances for the completion of a phase-one deal shortly and added in raised trade optimism of the market.
As per the latest survey of voting, after the release of Labour Party manifest last week, the opposition has started to hold its ground in upcoming elections against the Conservative Party. For Pound, the best results would be the voting in favor of the Conservative Party In general elections. But, the rising followers of opposition has raised concerns over it.
The chief currency strategist at Royal Bank of Canada said that “the currency’s drop highlights somewhat complacent pricing of political risk in the U.K. It is hard to reconcile this degree of confidence with current polling results.”
GBP/USD – Daily Technical Levels
Pivot Point 1.2891
GBP/USD – Daily Forecast
The trend of GBP/USD seems to be in our favor as the Cable has formed a strong bullish candle on the daily chart, which is engulfing the previous three candles, suggesting strong bullish bias among traders. With this, the GBP/USD can extend buying until 1.2975 today.
Due to lack of volatility on Thanksgiving, we may see less movement, or mixed movement today, but technically bullish bias prevails. On the lower side, 1.2900 is likely to extend support.
All the best for today.