Daily F.X. Analysis, December 27 – Top Trade Setups In Forex - ECB Economic Bulletin In Focus 

On Friday, the dollar trades near a six-month high against the JPY while the Aussie continues to surge to its highest mark since July on Friday, buoyed by rising Sino-U.S. trade tensions.

The confidence around forecasts for a Phase 1 trade deal diminished the desire for safe-haven currencies such as Japanese Yen (JPY). However, with global forex markets enjoying the holiday season in the wake of Christmas and New Year, the overall trading is mostly subdued on Friday. 

Economic Calendar - ECB Economic Bulletin In Focus 

BTC/USD - Daily Analysis

A day after Christmas brings movements in the market as the BTC/USD has violated the 7,210 support level to hit the low of 7,105. On the 4 hour chart, the pair has crossed below 50 EMA, which may now extend resistance near the 7,211 area. On the lower side, 7,050 is likely to work as strong support for the BTC/USD. 

A day after Christmas drove the BTC/USD higher towards the 7,420 resistance area. This level marks a double top resistance level and is likely to keep the BTC/USD lower. 

BTC/USD - Daily Technical Levels

Support     Resistance 

7,193.53          7,234.09

7,177.66          7,258.78

7,137.1             7,299.34

Pivot Point 7,218.22

BTC/USD – Daily Forecast

The BTC/USD may find resistance around 7,105. On the 4 hour chart, the pair has crossed below 50 EMA, which may now extend resistance near 7,230 area. On the lower side, 7,050 is likely to work as strong support for the BTC/USD.

EUR/USD – ECB Economic Bulletin In Focus 

The EUR/USD closed at 1.10974 after placing a high of 1.11088 and a low of 1.10820. Overall the movement of the EUR/USD pair remained bullish that day. On Thursday, after the Christmas holiday, traders came back and started to invest with a relatively significant volume and raised EUR/USD pair.

The Brexit MEP for the West Midlands, Rupert Lowe on Thursday said that the only thing which has supported the European economy and Euro currency was the European Central Banks' quantitative easing program. In the Q.E. program, the central bank prints and issue money into the economy to stimulate growth and job creation. ECB has bought around 2.1T euro worth of assets to boost European Union economic activity since 2015.

This Friday, the ECB will publish the Economic Bulletin, and from the American side, there will only be the release of minor commodity-related figures. Ahead of year-end holidays, trading will remain choppy in financial markets.

EUR/USD - Daily Technical Levels

Support Resistance 

1.1106         1.1143

1.1088        1.1162

1.1051         1.12

Pivot Point 1.1125

EUR/USD – Daily Forecast

As discussed yesterday, the EUR/USD has violated the 1.1100 level and has already hit the target of 1.1120 level. Continuation of this level can extend buying until 1.1145, and below this, we can expect a slight bearish reversal in the EUR/USD. On the downside, the pair may find support around 1.1100. The 50 EMA is also supporting the bullish bias in the pair.

GBP/USD - Leading Indicators Enters Overbought Zone 

The GBP/USD pair closed at 1.29921 after placing a high of 1.30155 and a low of 1.29595. Overall the trend for GBP/USD remained bullish that day.

The GBP/USD pair remained range-bound throughout the day on Thursday before year-end holidays. After general elections in the U.K. this month, GBP has gained more than 500 pips, and now it is moving in a tight range since then. 

With the victory of Conservatives in U.K. elections, investors came under the realization that the U.K. might still end up with a hard Brexit if no trade deal was reached within a year. This news put some pressure on the rising prices of GBP/USD.

GBP/USD - Daily Technical Levels

Support Resistance 

1.2955       1.3098

1.29            1.3188

1.2757        1.3331

Pivot Point 1.3044

GBP/USD – Daily Forecast

The GBP/USD extends trading on the higher side at 1.3065, just below 1.3085 resistance level. It's the identical triple bottom level, which was holding the cable during the past week. At the moment, the GBP/USD may gain the next support near 1.2958. 

The leading indicators, such as the RSI and MACD, are holding in the overbought zone, suggesting chances of a bearish reversal in the market. Let's keep an eye ion 1.3020 to stay bearish below and bullish above this level. 

All the best for today.