Daily F.X. Analysis, October 18 – Top Trade Setups In Forex - U.K. & E.U. Agree on Brexit Deal! 

The European Union and the United Kingdom agreed on a proposed deal for Brexit on Thursday. However, Northern Ireland's Democratic Unionist Party announced in a statement that they would vote against the deal on Saturday. After this statement, the traders lost interest in British Pound, and the demand shifted towards the Euro. Hence, EUR/USD rose to 6 weeks high on Thursday.

According to the new deal agreement, Northern Ireland would legally remain in the United Kingdom's customs territory. Which will allow Johnson to boast the country "whole & entire" had left the E.U. 

But Ireland would remain in a single market of European Union for goods, and E.U.'s customs code would be enforced on products coming from the U.K. into Northern Ireland.

Economic Calendar - U.K. & E.U. Reaches on Brexit Deal

BTC/USD - Daily Analysis

Bitcoin is consistently getting weak, having lost nearly 2% on growing trading volumes yesterday. The leading cryptocurrency by market-rate dropped from $8,150 to $7,912 in the early U.S. trading hours on Wednesday before publishing a close at $7,996.

The price slide strengthened the case for a retest of fresh lows near $7,750 put forward by Tuesday's bearish "outside bar" candle. 

The buyers need to push prices back over $8,300 immediately or risk allowing full market control to the sellers in the short term.

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

The BTC/USD continues to trade in a narrow range of 8,125 - 7,770 as traders look for fundamental reasons to break these levels and determine future trends. Lately, the 8,115 level was working as a support, but now since BTCUSD is trading below this level, it may work as a resistance level. On the lower side, 7780/50 is a very very basic 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

Bullish trend remains dominant in the EURUSD, especially on the daily timeframe. The EURUSD has violated the bearish trendline at 1.1010 level along with a horizontal resistance level of 1.1075. For now, the 1.1075 is likely to support the pair, while the closing od bullish engulfing on the daily timeframe is suggesting chances of further buying in the EUR/USD. On the upper side, 1.1150 remains the target. 

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 some changes 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

The GBP/USD is testing 1.2975 over the Brexit deal between the U.S. and EAU. Thursday's candle is showing long shadows, which is signifying that bulls are exhausted, and sellers may be looming around the corner. Below 1.2975, the GBP/USD may go for retracement until 1.2765 and 1.2670 in the coming days.

All the best for today.