Daily F.X. Analysis, December 05– Top Trade Setups In Forex - Eurozone's GDP In Focus! 

The U.S. dollar remained mixed as the long-awaited ADP Non-Farm Employment change from the United States was released and came in as 67L against the expectations of 137K and weighed on USD. At 20:00 GMT, the ISM Non-Manufacturing PMI of the United States also dropped to 53.9 from the expectations of 54.5 and weighed on USD.

Weaker than expected private-sector jobs in the United States and declined Non-manufacturing PMI added inn the upward trend of EUR/USD on Wednesday and helped it to rise to its highest level since 5 November.

Economic Calendar - Eurozone's GDP In Focus! 

BTC/USD - Daily Analysis

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 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 above $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 

7,263.17     7,380.99

7,195.44     7,431.08

7,077.62     7,548.9

Pivot Point 7313.26

BTC/USD – Daily Forecast

Just like other currency pairs in the market, the BTC/USD is also trading sideways, showing dramatic movements above $7075. This level is extending solid resistance around 7600. Today, we need to keep an eye on the 7150 support zone as a violation of this can trigger sell-off until 6862 level.

EUR/USD – Revised GDP In Focus 

The EUR/USD was closed at 1.10775 after placing a high of 1.11161 and a low of 1.10667. Overall the movement of EUR/USD remained Bearish that day. The EUR/USD pair hit the highest level since November 5 on Wednesday but turned towards downside into negative territory for the day.

At 13:15 GMT, the Spanish Services PMI for November showed a growth to 53.2 from expected 51.9 and supported Euro. At 13:45 GMT, the Italian Services PMI showed a decline to 50.4 from expected 51.2 and weighed on Euro. At 13:50 GMT, the French Services PMI also weighed on Euro when it declined to 52.2 from expected 52.9. 

However, the German Final Services PMI at 13:55 GMT showed a growth to 51.7 from expected 51.3 and supported Euro. The overall Final Services PMI for the whole Eurozone also came in favor of Euro when it increased to 51.9 from the expectations of 51.5.

Positive data from Eurozone supported single currency – Euro and showed a growth in the Service Sector of the economy in the month of November, which indicated that the non-manufacturing sector of the European Union was growing. 

On the other hand, at 18:15 GMT, the long-awaited ADP Non-Farm Employment change from the United States was released and came in as 67K against the expectations of 137K and weighed on USD. At 20:00 GMT, the ISM Non-Manufacturing PMI of the United States also dropped to 53.9 from the expectations of 54.5 and weighed on USD.

Weaker than expected private-sector jobs in the United States and declined Non-manufacturing PMI added inn the upward trend of EUR/USD on Wednesday and helped it to rise to its highest level since 5 November.

But in the late session, it started to move in a downward trend after the raised hopes on the trade deal when Bloomberg reported that China & the US were negotiating the amount of tariff which would be rolled back in the phase-one deal.

The news was highly marketed and gave its impact in favor of greenback, which found some support after dropping due to the release of poor macroeconomic data on Wednesday. Riskier assets gained traction in the market after this news as safe-haven demand decreased amid increased trade optimism.

EUR/USD - Daily Technical Levels

Support Resistance 

1.1068      1.1095

1.1053      1.1108

1.1025      1.1136

Pivot Point 1.1081

EUR/USD – Daily Forecast

The EUR/USD showed a bullish fakeout on the 4-hour chart when it crossed over the 1.1090 resistance level. But the gains were limited as the pair reversed to trade below 1.1090 resistance right in the next candle. For now, this level is extending strong resistance, and below this, we can expect a slight retracement in the EUR/USD until 1.1060 and 1.1038. Conversely, the bullish breakout can lead EUR/USD prices towards 1.1120.

GBP/USD - Final Services PMI Eyed 

The GBP/USD pair was closed at 1.31029 after placing a high of 1.31202 and a low of 1.29824. Overall the trend for GBP/USD remained Bullish that day.

At 14:30 GMT, the Final Services Purchasing Manager’s Index (PMI) from the United Kingdom was released, which showed a growth in the month of November to 49.3 from the expectations of 48.6 and supported single currency – Pound on Wednesday.

The poor ADP Non-Farm employment change from the United States, along with the decline in ISM Non-Manufacturing PMI on Wednesday, weighed on greenback against its rivals. At 18:15 GMT, the long-awaited ADP Non-Farm Employment change from the United States was released and came in as 67L against the expectations of 137K and weighed on USD. At 20:00 GMT, the ISM Non-Manufacturing PMI of the United States also dropped to 53.9 from the expectations of 54.5 and weighed on USD.

The stronger Pound and weaker USD helped GBP/USD pair to move in an upward direction that day. Adding in the Bullish trend was the results from polls suggesting victory of PM Boris Johnson in upcoming British Elections on 12 December. YouGov MRP Poll, which was considered as a highly accurate predictor, suggested that Tories would hold the maximum number of seats in the UK Parliament in the next elections.

On the back of the Conservative party’s expectations to win the election and leave the UK from the European Union by the end of January 2020, Pound remained in continuous demand for four previous days. And on Wednesday after the release of macroeconomic data in favor of Pound, GBP/USD pair raised to its 6-months highest level and crossed the 1.312 level.

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 GBPUSD is entering the overbought zone, and it may offer us a selling trend until 1.3085 and 1.3055 before offering further buying trends. 

Above 1.3120 level, the GBP/USD is likely to continue trading on the upper side 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.

All the best for today.