Daily FX. Analysis, December 06– Top Trade Setups In Forex - Eyes on NFP Today!
By Eaglefx On December 06, 2019 in Daily Market Analysis
Today, the market is likely to exhibit thin volatility until the release of NFP figures. The German factory orders for October came in negative as -0.4% against the expectations of 0.3% and weighed heavily on single currency Euro. At 15:00 GMT, the Final Employment Change for Q3 from Eurozone remained flat at 0.1%.
The Retail Sales for the month of October from Eurostat also came in negative. The figure was -0.6% versus the expectations of -0.4%, which weighed on the Euro.
Economic Calendar - Eyes on NFP Today!
BTC/USD - Daily Analysis
Slimier to another trading instrument in the market, the BTC/USD is trading in choppy ranges, exhibiting climactic moves over $7075. This level is increasing substantial resistance near 7600. Today, we want to keep the focus on the 7150 support zone as a violation of this can trigger sell-off until 6862 levels.
The BTC/USD bearish bias proceeds to impact the BTC/USD as it has crossed below 50 periods EMA at the 7300 levels. The leading crypto pair has also violated the double bottom support level of 7210 to trade at 7130. The BTC/USD price is slowly fading, and it lately cracked the $7,200 support zone against the US dollar.
BTC/USD - Daily Technical Levels
Support Resistance
7,222.66 7,511.71
7,065.24 7,643.34
6,776.19 7,932.39
Pivot Point 7,354.29
BTC/USD – Daily Forecast
The BTC/USD is also trading sideways with in the same trading level of 7720 - 7100, On the lower timeframe, the narrow trading range still remains 7465 to 7200. The 50 periods EMA is supporting the BTCUSD around 7300 today. Breakout will determine further bias for BTC/USD.
EUR/USD – German Industrial Production Ahead
The EUR/USD pair prices were closed at 1.1042 after placing a high of 1.11079 and low of 1.10771. Overall the trend for the EUR/USD pair remained Bullish that day.
The German factory orders for October came in negative as -0.4% against the expectations of 0.3% and weighed heavily on single currency Euro. At 15:00 GMT, the Final Employment Change for Q3 from Eurozone remained flat at 0.1%.
The Retail Sales for the month of October from Eurostat also came in negative. The figure was -0.6% versus the expectations of -0.4%, which weighed on the Euro.
The EUR/USD exchange rate has been performing poorly in the last weeks but appeared to be on track to sustain substantial gains this week. The combination of global trade concerns and weak US data has weighed on the US dollar this week.
The pair has shown mixed movements throughout the week until after the shocking contraction in US Manufacturing was released. Since then, the EUR/USD pair has gained traction and has been trending much higher.
The latest data from Eurozone on Thursday did a little to offset the economic concerns when German Factory Orders and Retail Sales contracted. The figures came out in less than expected and weighed on the Euro. However, the Employment Change and GDP for Q3 remained flat and gave mixed signals.
Fears that the trade talks of US & China could collapse because of mixed statements from US President Donald Trump has weighed on US Dollar. Trump has said that trade deal might get delay until after US elections in 2020 November, but China has not responded to US President's comment. As a result, the US Dollar remained unappealing throughout the market and gave a boost to its rival currencies like Euro.
EUR/USD - Daily Technical Levels
Support Resistance
1.1086 1.1115
1.1068 1.1126
1.104 1.1155
Pivot Point 1.1097
EUR/USD – Daily Forecast
The EUR/USD formed a bullish trade setup yesterday as it violated and closed above a strong resistance level of 1.1090. This opens up further room for buying until 1.1155 and 1.1170, but again it depends upon the NFP.
There are strong chances of a bullish trend in EUR/USD pair, but if NFP comes out to be positive, we may see selling in the EUR/USD pair. Support stays around 1.1080 and 1.1035.
GBP/USD - Eyes on US NFP Figures
The GBP/USD pair prices were closed at 1.31553 after placing a high of 1.31663 and a low of 1.31015. Overall the trend for GBP/USD pair remained Bullish that day.
The pair GBP/USD remained stronger on the outlook of next week's British Elections, where PM Boris Johnson's Conservative Party is maintaining a commanding lead. The GBP/USD has raised to 1.315 level this week ahead of UK elections on the back of demand for GBP.
It is highly expected that the December 12 election of the United Kingdom will bring some form of closure to the British political uncertainty because of the increased expectations that the Brexit deal of PM Boris Johnson will remove the risks of the UK crashing out of the EU. This has opened the potential of further upside movement for Sterling.
On the other hand, the US Dollar has remained under pressure due to mixed comments on trade deal from Trump. The uncertainty revolves around the completion of the interim trade deal. Trump first said that trade deal completion could delay to next year's end, and then he said talks were going very well. China has not commented on this statement of deal delay but has told that as part of the interim deal, tariffs must be removed.
On Thursday, due to a lack of economic data from the United Kingdom, the pair GBP/USD moved with the Elections' forecast in favor of Torries and trade deal uncertainty. The US Dollar was supported after the release of the steady macroeconomic events like Trade Balance and Jobless claims, which helped to limit the gains of GBP.
GBP/USD - Daily Technical Levels
Support Resistance
1.312 1.3181
1.3082 1.3204
1.3021 1.3265
Pivot Point 1.3143
GBP/USD – Daily Forecast
Recalling our previous analysis that above 1.3120 level, the GBP/USD is likely to extend trading bullish until 1.3145, while a bullish breakout of 1.3150 level can lead the GBP/USD prices towards 1.3197 level. The 50 EMA and leading indicators like RSI and MACD are also in supporting bullish bias in Sterling.
The GBP/USD strong bullish trend continues as the pair is soaring towards 1.3180 resistance level. Technically, the pair should retrace back to complete 23.6% and 38.2% correction at 1.3125 and 1.3090. Let's see how NFP plays today.
All the best for today.