Daily F.X. Analysis, January 14 – Top Trade Setups In Forex - U.S. Inflation Under the Spotlight! 

The U.S. dollar opened the week held by faith on the Sino-U.S. trade aspect, while the pound staggered lower following weekend signs at an interest rate decreased from a BOE (Bank of England) policymaker.

A U.S.-China trade agreement is expected to be employed at the White House on Wednesday, though rumors on a phase two-pack are expected to draw on for months.

Economic Calendar - U.S. Inflation Under the Spotlight

BTC/USD - Daily Analysis 

The BTC/USD price finished the week at $8,180, factoring an 11% gain for the week after grappling with violating the resistance at $7,600 during the month of November and December. On Monday, the BTC/USD price is down by 1%, but the bulls have maintained the $8K resistance.

The total amount of market cap excluding BTC edged higher by 12.5% last week, indicating that altcoins are beginning to get some market portion from Bitcoin, which is vital given BTC's exciting week and counter to the general downtrend that has been in place since summer. 

BTC/USD - Daily Technical Levels 

Support    Resistance 

8,068.79      8,175.16

8,005.76      8,218.5

7,899.39      8,324.87

Pivot Point 8,112.13

BTC/USD – Daily Forecast

The bullish trend in BTC/USD continues to drive bullish momentum in the market. Currently, the BTC/USD pair is trading at 8,575. Which marks a 61.8% Fibonacci retracement level. A bullish violation of this mark can stretch buying until 8,770. While support stays around 8,398 level today.

EUR/USD – Trendline Resistance Holds 

The EUR/USD currency pair found on the bullish track and representing marginal gains on the day ahead of a consumer price index (CPI). As of writing, the EUR/USD currency pair is currently trading at 1.1136 and consolidates in the range between 1.1132 - 1.1142. Notably, the currency pair has faced multiple rejections between the 1.11340 and 1.1150 range. 

At the data front, China's trade data for December released in Asia and showed better-than-expected data on both imports and exports; this upbeat data is the sign of growing domestic and global demand conditions. Even after, the EUR currency failed to get support from this.

Moving ahead, the cost of living in the U.S., as represented by the consumer price index (CPI), increased 0.3% month-on-month in December, the final data is scheduled to release at 13:30 GMT is forecasted to show. Whereas, the core CPI, which strips out food and energy, is seen rising 0.2%. 

EUR/USD - Daily Technical Levels

Support Resistance 

1.1115       1.115

1.1097      1.1166

1.1062      1.12

Pivot Point 1.1131

EUR/USD – Daily Forecast

The EUR/USD is trading with a bullish bias around 1.1140 as the U.S. dollar seems to trade weaker ahead of the U.S. inflation report. Economists are expecting inflation report to be slightly more vulnerable, perhaps, that's the reason behind bullish bias in the EUR/USD today.

The EUR/USD has crossed over the crucial trading level of 1.1135, and above this, the pair is likely to find resistance near 1.1160, which is extended by the bullish trendline, which was violated earlier. I will consider staying bullish above 1.1135 today with a target of 1.1165 and bearish below 1.1165 ahead of the news release. 

GBP/USD - Descending Triangle 

The GBP/USD currency pair struggling to extend its recovery rally above the 1.30 handle but faced rejection several times so far this Tuesday mainly due to greenback bullish movement. As of writing, the GBP/USD currency pair is currently trading at 1.2994 representing 0.6% gains but consolidates in the narrow range just below 1.3000. 

Notably, the pair is still struggling to beat the 1.30 rejection level and GBP bullish attempts remained limited mainly due to the greenback recovered some ground across the board. The U.S. Dollar found on the recovery rally and getting benefits from the improved U.S. Treasury yields in the wake of optimism surrounding the United States and China phase-one trade deal singing.

On the other hand, the latest report came that the United States Trade Representative removed the currency manipulator tag for China this news also helped in increasing the risk-on market sentiment. 

At the GBP front, despite the big recovery from the 3-week low of1.2691, the GBP currency trader remained cautious from the bearish risk-sentiment due to the increased requests for a Bank of England rate cut as early as this September.

GBP/USD - Daily Technical Levels

Support Resistance 

1.2955      1.303

1.292        1.3071

1.2845      1.3147

Pivot Point 1.2996

GBP/USD – Daily Forecast

The GBP/USD is trading in line with our previous forecast. It's holding at 1.2970 after forming bearish engulfing candle on the 4-hour chart. Bearish engulfing represents a robust bearish bias of traders. On the lower side, the GBP/USD pair may find support near 1.2904 today. 

The 50 EMA is far away from the current market prices, and it's signaling bearish bias for the pair. Moreover, the RSI is also supporting the selling trend in the GBP/USD today. Let's look for selling trade below 1.2990 until the next target of 1.2910 today. 

All the best for today.