Daily F.X. Analysis, December 04– Top Trade Setups In Forex - U.S. ADP Report on Cards! 

On the forex front, the U.S. dollar remained under pressure, dragged by sinking Treasury yields. The ICE U.S. Dollar Index was down for a third session as it declined by 0.2% to 97.73.

The U.S. government bonds received bids as the trade war seemed not to end soon. The benchmark 10-year Treasury yield plunged 12.7 basis points to 1.708%, the most substantial loss since August 1. At the same time, the Trump administration is on schedule to impose fresh tariffs on imports from China on December 15.

Economic Calendar - ADP Report In Play

BTC/USD - Daily Analysis

The BTC/USD price is slowly fading, and it lately cracked the $7,200 support zone against the U.S. dollar

The price is currently trading around $7,100 and expected to remain lower. Yesterday's critical declining channel is still working with resistance around $7,320 on the hourly chart of the BTC/USD pair.

The pair could improve higher, but bears are expected to keep market bearish below $7,200 and $7,250.

BTC/USD - Daily Technical Levels

Support     Resistance 

7,197.1       7,404.45

7,076.79    7,491.49

6,869.44    7,698.84

Pivot Point 7,284.14

BTC/USD – Daily Forecast

The BTC/USD bearish bias continues to dominate the market 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 extended bearish candle on the hourly chart signifies chances of the more bearish trend until 7020. Whereas, below 7020, the BTC/USD can drop further until 6867.

EUR/USD – Services PMI Data in Highlight

The euro remained firm at $1.1081. Official data showed that producer prices in the Eurozone dropped 1.9% on year in October (-1.8% expected).

The Markit U.S. Services Purchasing Managers' Index (PMI) for November (final reading) is expected to be in-line with the preliminary reading of 51.6. And the Institute for Supply Management's (ISM) non-manufacturing PMI is expected to release at 54.5 for November (54.7 in October). In Europe, the Markit Eurozone Services PMI (final reading) is expected at 51.5, and the Markit/CIPS U.K. Services PMI (final reading) at 48.6.

At 12:445 GMT, the French Gov Budget Balance was published by the French Treasury Agency, which came in as negative -107.7B. At 13:00 GMT, the Spanish Unemployment Change from the European Ministry of Employment was released, which showed a drop to 20.5K from expected 75.2K and supported the single currency – Euro. 

The EUR/USD currency pair could find acceptance above 1.1097 if the greenback weakens significantly. The US ADP Employment report, due at 13:15, is expected to show the private sector added 140K jobs in November compared to 125K jobs in October. Meanwhile, the ISM Non-Manufacturing PMI (Nov) is seen printing at 54.5 against 54.7 in October.

EUR/USD - Daily Technical Levels

Support Resistance 

1.1025     1.1112

1.097       1.1145

1.0883    1.1232

Pivot Point 1.1057

EUR/USD – Daily Forecast

The EUR/USD soared to place a high 1.1093 region, but here it's examining the triple top resistance at 1.1090 level. Closing of doji and spinning top is suggesting chances of a bearish bias in the EUR/USD pair.

We can anticipate the EUR/USD to slip until 1.1050, the 38.2% Fibo and 1.1040 level, which completes the 50% retracement for the EUR/USD. 

On the other side, a bullish breakout of 1.1085 level can trigger buying until 1.1120, but it seems the least likely scenario due to the absence of significant economic data.

GBP/USD - Final Services PMI Eyed 

The British pound climbed 0.4% to $1.2993, extending its rally to a third session. The Markit/CIPS U.K. Construction PMI posted 45.3 for November (44.5 expected, 44.2 in October). The GBP/USD closed at 1.29912 after placing a high of 1.30110 and a low of 1.29302. Overall the movement of pair GBP/USD remained Bullish that day.

At 5:01 GMT, the Annual Retail Sales Monitor from British retail Consortium (BRC) was published and showed a drop to -4.9% from expectations of -0.4% and weighed on GBP. However, at 14:30 GMT, the Construction Purchasing Manager's Index (PMI) showed growth to 45.3 from expected 44.5 and supported Sterling on Tuesday.

Stronger than expected Construction PMI from the United Kingdom supported single currency – Pound and caused the movement of GBP/USD is Bullish trend.

GBP/USD pair raised above 1.30 level on Tuesday, which was its highest level since mid-October and some pips away from 1.3013 level, which was the highest since May. The rise in GBP/USD was caused by favorable opinion polls for PM Boris Johnson and the weakened U.S. Dollar.

U.S. Dollar has been on the back foot after the release of weak ISM Manufacturing PMI on Monday, and the latest trade headlines are also not helping U.S. Dollar. 

Trump on Tuesday insisted that he would stay out of the upcoming British General Elections. He exclaimed that he did not have designs on National Health Service as part of the post-Brexit US-UK trade deal. 

Trump insisted that If NHS were handed on a silver platter even then, he would not have wanted it. He added that he had nothing to do with the NHS. The comments from U.S. President Trump were considered as an intervention aimed at helping his friend Boris Johnson.

However, the opposition leader Jeremy Corbyn has claimed in his election campaign that if Johnson wins the election, he will strike an uneven post-Brexit deal with U.S. that would undoubtedly see Britain's NHS drugs market in play.

Jeremy acknowledged that his party had obtained classified British Govt. documents which can prove that Washington wanted greater access to NHS for its healthcare companies. Conservative Party, aka Tories, has vehemently denied the allegations.

GBP/USD - Daily Technical Levels

Support Resistance

1.2951       1.3024

1.2908      1.3055

1.2835      1.3128

Pivot Point 1.2981

GBP/USD – Daily Forecast

The GBP/USD is on a bullish run since it violated the triple top resistance level of 1.2975. Even for now, the pair has closed series of candles above this level, which is making this level very crucial for Sterling buyers.

Above this level, the GBP/USD is likely to continue trading on the upper side until 1.3010, while a bullish breakout of 1.3010 level can lead the GBP/USD prices towards 1.3117 level. The 50 EMA and leading indicators like RSI and MACD are also in supporting bullish bias in Sterling.

All the best for today.