Daily F.X. Analysis, October 17 – Top Trade Setups In Forex - U.K. & U.S. Fundamentals Ahead!
By Eaglefx On October 17, 2019 in Daily Market Analysis
The risk sentiment turned on after the series of positive news coming from the Brexit and Chian. Which eventually added bearish pressure on the safe-haven asset gold.
European Union gave the task to PM Boris Johnson of getting support from the Democratic Union Party of Ireland on Tuesday to secure a Brexit Deal before E.U. Summit, which is due on Thursday.
The dollar gained bullish momentum after the Eurozone's Final CPI from European Union showed a drop to 0.8% against 0.9% expectations and weighed on Euro. However, the Final Core CPI remained flat as expected 1.0% and supported Euro. At 14:33 GMT, the European Trade Balance showed growth to 20.3B against 18.6B expectations and supported the single currency Euro on Wednesday.
Economic Calendar - U.K. & U.S. Events In Focus
BTC/USD - Daily Analysis
Securities and Exchange Commission (SEC) of the United States is frequently demanding comments on a proposed exchange-traded fund (ETF) based nearby bitcoin and Treasury bonds.
BTC/USD experienced a massively bearish Wednesday, wherein its rate dropped from $8,158 to $7,994, moving under the $8,000-level in the process. So far now, the price has dropped more to $7,975.
The hourly analysis reveals to us that BTC/USD was trending horizontally ere it fell from $8,151.38 to $7,984 in merely in 2 hours.
BTC/USD - Daily Technical Levels
Support Resistance
8,133.86 8,654.05
7,951.34 8,991.72
7,431.15 9,511.91
Pivot Point 8,471.53
BTC/USD – Daily Forecast
Bitcoin has come out of its tight trading range of 8,115 - 8,340. The BTC/USD broke on the lower side, and now it has opened its way towards the 7780 support zone. The new support level of 8,115 is now likely to work as a resistance level. Since 7780/50 is a very very crucial level, the bearish breakout of this can be dangerous for bulls. It can lead BTC towards 7000 and even 6670 levels.
EUR/USD – Resistance Become Support
The EUR/USD was closed at 1.10710 after placing a high of 1.10854 and a low of 1.10225. The overall trend for Prices of EUR/USD remained Bullish that day.
At 14:00 GMT, the Final CPI from European Union showed a drop to 0.8% against 0.9% expectations and weighed on Euro. However, the Final Core CPI remained flat as expected 1.0% and supported Euro. At 14:33 GMT, the European Trade Balance showed growth to 20.3B against 18.6B expectations and supported the single currency Euro on Wednesday.
The macroeconomic data from the European Union side supported the single currency Euro and made an upward trend for prices of EUR/USD in the financial market on Wednesday.
The escalating tension in US-China trade talks and U.S. interference in Hong Kong also added in the upward trend of EUR/USD and helped in placing a high of 1.10854 that day.
The very poor Retail Sales data from the American side also helped this pair to continue its Bullish trend for that day. At 17:30, the Core Retail Sales from the U.S. came in negative as -0.1% against 0.2% expectations. The same went for Retail Sales, which came in as -0.3% against 0.3% expectations.
The weak U.S. Dollar due to increased hopes of the third rate cut by Federal reserve and Strong Euro gave jump to EUR/USD prices to a one month high.
EUR/USD - Daily Technical Levels
Support Resistance
1.1005 1.1067
1.0972 1.1096
1.091 1.1158
Pivot Point 1.1034
EUR/USD – Daily Forecast
On the 4 hour chart, the EUR/USD has completed a descending triangle model, which is helping the Euro at 1.0999 with resistance at 1.1045. The bullish bias appears to redirect now as investors are in a state of uncertainty. Break beneath 1.0999 level can continue sell-off until 1.0975.
GBP/USD - Sterling On Fire Amid Brexit Updates
The GBP/USD was closed at 1.28291 after placing a high of 1.28775 and a low of 1.26566. The overall trend for Prices of GBP/USD remained Bullish that day.
European Union gave the task to PM Boris Johnson of getting support from the Democratic Union Party of Ireland on Tuesday to secure a Brexit Deal before E.U. Summit, which is due on Thursday.
In the U.K. session on Wednesday, there were reports that two E.U. senior sources said that the Democratic Unionist Party (DUP) has accepted the latest proposal on consent and removed the main hurdle of Brexit Deal. The party expressed its concerns about the E.U. and U.K. Brexit deal. The problematic issues were the custom borders of the Irish Sea and the mechanism for democratic consent for citizens of Northern Ireland.
After this report was published, GBP/USD showed a sudden jump amid the increased hopes for orderly Brexit. But in a later session, the DUP leader reported this news as false and dismissed the statement. Sterling dropped but did not give all gains back and continued to move in Bullish Trend as the Brexit talks were in progress.
In late Wednesday, it was announced that Eu and U.K. would not declare a deal on Brexit that day. But there are chances that could be published in this week because the latest negotiations were unclear.
On the macroeconomic front, the Consumer Price Index from the United Kingdom was released at 13:30 GMT, as 1.7% against 1.8% expectations. The PPI Input came as -0.8% against an expected 0.2%. The RPI came as 2.4% against expected2.7%. All of these were not in support of GBP.
However, the Housing Price Index of the U.K. Government came in favor of Pound as 1.3% against 0.9% expectations.
GBP/USD - Daily Technical Levels
Support Resistance
1.2469 1.2768
1.2289 1.2887
1.199 1.3185
Pivot Point 1.2588
GBP/USD – Daily Forecast
Sterling is testing the strong resistance level of 1.286, and the GBP/USD has closed a less bullish candle on the daily timeframe. It's signifying that the buyers/bullish sentiment is getting weaker or bulls need another solid reason to get in the market. We can expect correction below 1.2860 level, and the GBP/USD can stay bearish until 1.2754 and 1.2736 areas.
All the best for today.