Daily F.X. Analysis, December 16– Top Trade Setups In Forex - PMI Figures in the Cards! 

On Monday, the forex market continues to trade risk-on sentiment in the wake of U.K. elections and phase one trade deal between the U.S. and China. This seems to price in the U.K. election findings, which was the victory of Boris Johnson. Boris has promised the withdrawal of the United Kingdom from the Eurozone by the end of January in case of his success. In total, Conservatives secured 365 seats & Labour secured 203 seats in Thursday's British elections. Now that he has won the Prime Minister seat again for the next five years. On the news side, the market is fully loaded with Eurozone's manufacturing and services PMI figures. We may have strong movement in the EUR/USD pairs today. At the same time, the U.K. economy is also releasing manufacturing and services PMI data, which is expected to be positive.

Economic Calendar - PMI Figures in the Cards! 

BTC/USD - Daily Analysis

The BTC/USD was facing triple bottom support around 7080, along with resistance around 50 periods EMA at 7,248. The triple bottom support has recently been violated. 

The RSI and MACD are in a selling zone, suggesting chances of a bearish breakout. In that case, the bearish breakout can expose the BTC/USD towards 6,850 and 6,720.

The BTC/USD price performed as anticipated over the preceding week as 8% was stripped off its price of $7,571.80 between December 8 and December 14.

BTC/USD - Daily Technical Levels

Support     Resistance 

7,201.3       7,304.03

7,146.6       7,352.06

7,043.87    7,454.79

Pivot Point 7,249.33

BTC/USD – Daily Forecast

The BTC/USD seems to have violated the triple bottom support level of 7,120. Closing of candles below this level is suggesting chances of further bearish bias, which can lead the leading cryptocurrency towards 6,850. On the higher side, the BTC/USD may face resistance around 7,115. 

On a bit more top side, the 50 periods EMA is likely to extend resistance around 7,200. The bearish bias remains strong today.

EUR/USD – PMI Figures in the Cards! 

The EUR/USD prices closed at 1.11173 after placing a high of 1.11993 and a low of 1.11032. Overall the trend for the EUR/USD pair remained bearish that day.

On Friday, the German 10-Year bond yield hit a six-month high at -0.215% on the back of the US-China trade deal and Johnson's win in U.K. elections.

The progress in resolving two key geopolitical risks gave strength to the Euro on Friday. The uncertainty in these matters has been dragging the global economy from an extended period, and some clarity on Friday released that pressure from all currencies.

The Euro jumped to its highest level since August at 1.11993 on Friday as the traders priced in the U.K. election findings, which was the victory of Boris Johnson. Boris has promised the withdrawal of the United Kingdom from the Eurozone by the end of January in case of his success. Now that he has won the Prime Minister seat again for the next five years, he will make sure to fulfill his promises, which will be not good for the Eurozone and its currency Euro.

Furthermore, on the economic data front, at 12:00 GMT, the German Wholesale Price Index (WPI) for November was published, which came in as unfavorable -0.1% against the expectations of 0.5% and weighed on single currency Euro on Friday.

The weaker than expected macroeconomic data and victory of the Conservative Party in British general elections on Friday dragged the EUR/USD pair from its highest level. The pair lost all of its gains and fell to 1.11032 level to form a bearish candle.

EUR/USD - Daily Technical Levels

Support Resistance 

1.1093       1.1167

1.1065       1.1214

1.0991       1.1288

Pivot Point 1.1139

EUR/USD – Daily Forecast

The EUR/USD has filled the gap, which is exhibited on the 4-hour timeframe. The pair has now trading bullish above an upward trendline, which is supporting the EUR/USD above 1.1135. Continuation of a bullish bias above 1.1125 can keep EUR/USD bullish until 1.1160 and 1.1185. The EUR/USD's immediate support prevails around 1.1095 today. 

GBP/USD - Conservative Party Wins, Sterling Supported

The GBP/USD pair closed at 1.33338 after placing a high of 1.35143 and a low of 1.31603. Overall the trend for GBP/USD pair remained bullish that day.

The pound jumped to its highest level since May 2018 at 1.35 level on Friday amid the sweeping victory of Prime Minister Boris Johnson's Conservative Party in British general elections.

A 2% increase in the prices of Sterling was seen on Friday after the hopes of Britain to leave European Union by January 31 raised. The country voted for PM Johnson in the hope that the political chaos which has been dragging the economy for almost three years would come to an end after leaving Europe.

PM Boris Johnson was re-elected on Friday with a majority of 80 seats in the parliament. He would now have an opportunity to get enough votes on the withdrawal agreement bill to pass it in a relatively short period before January 31 to assure Brexit on that deadline.

The opposition Labour Party had the worst defeat since 1935 in the latest British elections against Conservative Party, and its leader Jeremy has said that he would step down early next year. In total, Conservatives secured 365 seats & Labour secured 203 seats in Thursday's British elections.

The increased hopes for the end of Brexit drama early next year gave support to the GBP/USD pair and raised its bars across the board amid its highly sensitive nature towards Brexit news.

On the other hand, at 14:30 GMT, the U.K. Consumer Inflation expectations for November dropped to 3.1% in comparison to the previous month's 3.3%. At 19:30 GMT, the British Conference Board Leading index from the United Kingdom for October came in as -0.4% against September's -0.3%.

GBP/USD - Daily Technical Levels

Support Resistance 

1.3267       1.3441

1.32           1.3548

1.3025      1.3722

Pivot Point 1.3374

GBP/USD – Daily Forecast

The GBP/USD exhibited dramatic buying over U.K. parliamentary elections. The GBP/USD has completed 38.2% Fibonacci retracement around 1.3350, and it's bouncing off above this level. The Sterling my find next resistance around 1.3495. The Gap on the 4-hour chart is still unfilled, and this may keep sellers motivated until 61.8% Fibo level of 1.3220. The 50 periods EMA suggests bullish bias in the GBP/USD pair.

All the best for today.