On Wednesday, the forex trading is all about FOMC, and Federal Reserve Rate cut decisions. The renewed optimism from Brexit headlines supported the upward trend for Euro. The weak Consumer Confidence from the United States for September added in the upward trend of EUR/USD on Tuesday.
Besides, the Bank of Canada is also expected to release monetary policy decisions, but it’s not likely to change it’s rate today.
Economic Calendar – FOMC & FED In Highlights
BTC/USD – Daily Analysis
During the previous weekend, the BTC/USD exhibited a historic move: just in 24 hours, the leading cryptocurrency surged by 42%, to trade around $10,500 after dropping as low as $7,300. This labeled Bitcoin’s fourth-largest daily action in its history and the most significant move higher since 2011.
This movement was undeniably bullish. Nevertheless, not everyone is persuaded that the bounce places Bitcoin in the decisively bullish region, as there exists some proof to propose that the trend is still negative.
BTC/USD – Daily Technical Levels
Key Trading Level: 9,359.35
BTC/USD – Daily Forecast
The BTC/USD hasn’t changed much so far as the formation of a Doji and Spinning Top pattern beneath the 10,000-mark is keeping the BTC/USD prices in check. For now, the BTC/USD seems to face support around 8,900 (38.2% Fibonacci retracement) and 8,600 the 50% Fibo level. Whereas, the immediate resistance stays at 9,470 area and 9,800. On the upper side, the bullish breakout of the 10K market can extend the bullish trend until 10,350 and 10,750.
EUR/USD – 1.1100 Stays In Eyes
The EUR/USD pair was opened at 1.10994 and has placed a high of 1.11184 and a low of 1.10735. The pair has shown a sharp Bullish trend and is currently trading at 1.11111.
With no macroeconomic data from Eurozone, EUR/USD was moved by U.S. Dollar o Tuesday. EUR/USD rebounded to 1.1100 after the challenging 2-weeks low range.
The renewed optimism from Brexit headlines supported the upward trend for Euro. The weak Consumer Confidence from the United States for September added in the upward trend of EUR/USD on Tuesday.
At 19:00 GMT, the consumer confidence of the U.S. was dropped to 125.9 from 126.3 of the previous month and weighed on U.S. Dollar, which in turn gave strength to EUR/USD pair. FOMC on Wednesday is in focus of traders with 25 basis points rates cut expectations on board, which is also weighing on U.S. Dollar and supporting EUR/USD.
EUR/USD – Daily Technical Levels
Key Trading Level: 1.1101
EUR/USD – Daily Forecast
The EUR/USD bounced off after testing the support level of 1.1065 for another day. The support level was extended by a bullish trendline. The pair soared to the retest 1.1100 zones. For now, the EUR/USD seems to gain support at 1.1100 area, and below this, it can go after 1.1065 and over 1.1100, the primary resistance is likely to be found around 1.1145.
GBP/USD – Sideways Range In-Play
The GBP/USD was opened at 1.28591 and has placed a high of 1.29044 and low of 1.28064 until now. The pair has shown a Bullish trend for the day and is currently trading at 1.28640.
At 11:58 GMT, the Nationwide HPI from the United Kingdom showed growth to 0.2% against the expectations of 0.0% and supported the single currency – Sterling. The pound was further supported by the release of M4 Money Supply at 14:30 GMT, which came in as 0.7% against the expectations of 0.3%. The 66k higher than expected mortgage approvals for September also supported the Sterling. The Net Lending to Individuals remains fat for September as 4.6B.
The macroeconomic data from the United Kingdom on Tuesday remained in favor of Sterling and moved GBP/USD in an upward direction.
After the release of U.S. Data ahead of the FOMC Meeting, Dollar was under pressure on Tuesday. The less than expected U.S. Consumer Confidence weighed on U.S. Dollar and supported the upward trend of GBP/USD on Tuesday.
On the news front, the no-deal Brexit in October got off the table after the PM Johnson accepted the Extension Grant by the E.U. The Opposition Labour Party’s Leader, Jeremy Corbyn, announced that he would support the December Elections. After the comment of Corbyn, GBP/USD gained sudden traction and moved in Bullish sentiment.
But the votes were favored to the Creasy amendment by the House of Commons on Tuesday, which would allow the election motion to be amended. This situation gave a boost to the uncertainty on December Elections, and the upward direction of GBP/USD lost its momentum.
GBP/USD – Daily Technical Levels
Key Trading Level: 1.2859
GBP/USD – Daily Forecast
The GBP/USD trades with the same technical due to a lack of significant market movements. Today, 1.2800 continues to remain the fundamental trading level as under this, the GBP/USD pair can extend to trade lower till 1.2750. On the flip view, the bullish violation of 1.2835 can drive the GBP/USD towards 1.2920.
All the best for today.