Daily F.X. Analysis, December 11– Top Trade Setups In Forex - Fed Monetary Policy In Focus! 

The U.S. dollar continued to trade with a mixed bias because of the FOMC meeting and the U.S. Inflation report today. The Brexit optimism, due to the prediction of the majority for the Conservative Party by YouGov Poll, remained under headlines since the poll was released. It is going to be updated, and if its prediction of 68 seat majority for Tories remains the same, the U.K. currency would see a massive boost in the market.

While Euro remains stable in the wake of ZEW Economic Sentiment, which increased to 11.2 from expected 2.2, it further supported the Euro. 

Today, most of the traders will be focusing on U.S. Fed Monetary Policy and Inflation figures, which are scheduled to come out later during the U.S. session...

Economic Calendar - Fed Monetary Policy In Focus! 

BTC/USD - Daily Analysis

The BTC/USD traded in a bearish tone, shedding 1.80% at the time of writing, as the bulls try to break below $7500. The BTC/USD tested high at $7,660 and a low at $7,370, with most of the price action taking a point in the other half of the day.

A day before, the BTC/USD price is bestowing positive symptoms over the $7,400 resistance zone versus the U.S. Dollar. The price is expected to clear the $7,560 and $7,600 resistances to stay higher.

Bitcoin price is consolidating in a bullish zone over $7,400 versus the U.S. Dollar. BTC is expected to test the $8,000 resistance as long as it is over the $7,160 swing low.

BTC/USD - Daily Technical Levels

Support      Resistance 

7,383.18       7,703.07

7,187.84       7,827.62

6,867.95      8,147.51

Pivot Point 7,507.73

BTC/USD – Daily Forecast

The BTC/USD has dropped below the trading range of 7400 - 7300, to trade around 7,200 level. The leading crypto pair was trading within a symmetric triangle pattern, which was supporting it around 7330. At the moment, the same support level is working as a resistance, keeping the BTC/USD prices below 7,330 today.

Today, the continuation of a bearish trend may lead it towards the 7095 area while the pair may face resistance at 7435 now. The leading indicators, such as RSI and MACD, are also in support of bearish bias today. 

EUR/USD – U.S. Inflation and Rate In-Play

The EUR/USD prices opened at 1.10635 and have placed a high of 1.10976 and a low of 1.10627 until now. Overall the movement of the EUR/USD pair remained bullish throughout the day and is currently trading at 1.10963.

At 11:30 GMT, the French Final Private Payrolls for the third quarter was dropped to 0.2% from expected 0.3% and weighed on single currency Euro. At 12:45 GMT, the French Industrial Production for November came in higher than expectations as 0.4% and supported Euro.

At 14:00 GMT, the Italian Industrial Production for November came in as -0.3% from expected -0.2% and weighed on Euro. The closely watched German ZEW Economic Sentiment was released at 15:00 GMT, which showed a massive growth to 10.7 against the expectations of 1.1 and supported Euro on Tuesday.

The ZEW Economic Sentiment for the whole Eurozone also increased to 11.2 from expected 2.2 and further supported Euro. The Euro gained strength against its rival currency U.S. dollar on Tuesday after the release of better than expected German economic sentiment. Euro rose 0.28% higher on that day amid the massive increase in ZEW economic sentiment of both Germany & the whole Eurozone.

This indicated the possible revival of the German economy, and investors started to consider that European Central Bank would hold its rates on Thursday in its policy meeting due to improved economic figures. The outcome of British elections is also awaited in the market.

After tomorrow, more volatility is expected to be seen in the market due to the most significant risk events this week, like Central Bank meetings and U.K. elections.

The EUR/USD jumped higher on Tuesday after the stronger than expected macroeconomic data from Germany & Eurozone and is continuously rising still.

EUR/USD - Daily Technical Levels

Support Resistance 

1.1072      1.1105

1.1052      1.1118

1.102        1.1151

Pivot Point 1.1085

EUR/USD – Daily Forecast

The EUR/USD currency pair traded mostly bullish in the wake of positive fundamentals. It has already completed the 50% Fibonacci retracement around 1.1050 level. The EUR/USD currency pair is gaining support around 50 periods EMA which is expected to drive the pair higher towards 1.1085 pivot point mark. 

While on the leading indicator side, the Relative Strength Index (RSI) is holding in the selling zone. The RSI signals the chances of further bearish moves in the EUR/USD. The bullish crossover of 1.1085 is suggested to have additional buying opportunities until 1.1110 today. 

GBP/USD - U.K. GDP Declines

The GBP/USD pair closed at 1.31530 after placing a high of 1.32148 and a low of 1.31325. Overall the trend for GBP//USD pair remained bullish that day.

At 14:30 GMT, the Gross Domestic Product for November from the United Kingdom was published and showed a decline to 0.0% from the expectations of 0.1% and weighed on GBP. However, the Manufacturing Production for the month showed a growth of 0.2% from the expectations of 0.1% and supported Pound.

The Construction Output also declined to -2.3% from 0.2% of expectations. The Goods Trade Balance of the United Kingdom also declined to -14.5B against the prediction of -11.5B. The Services Index also dropped to 0.2% against the forecasted 0.3%.

The British Industrial Production also dropped to 0.1% against the expectations of 0.2% and further weighed on Sterling.

Despite the weaker than expected data from the United Kingdom, Sterling remained steady as polls continue to predict the victory of the Conservative Party in upcoming elections on December 12. 

Brexit optimism due to the prediction of the majority for the Conservative Party by YouGov Poll remained under headlines since the poll was released. It is going to be updated, and if its prediction of 68 seat majority for Tories remains the same, the U.K. currency would see a massive boost in the market.

On the other hand, the Non-Farm productivity for the 3rd quarter fell on Tuesday and weighed on the U.S. dollar. U.S. Fed will hold its interest rates after its two days meeting, which will end on Wednesday.

GBP/USD - Daily Technical Levels

Support Resistance 

1.3121       1.3204

1.3085      1.3252

1.3002     1.3335

Pivot Point 1.3168

GBP/USD – Daily Forecast

Unlike the EUR/USD, trading in the GBPUSD remained mostly limited bearish. Overall, the GBP/USD is trading under pressure as the decline in GDP data continues to weigh on Sterling. 

The GBP/USD is consolidating at1.3135 level, staying mostly above the 50 periods EMA level. The GBP/USD is supporting the pair around 1.3125. The Cable may find the next resistance at 1.3165, and under this, GBP/USD can fall unto 1.3113 and 1.3075 marks.

All the best for today.