Daily F.X. Analysis, December 13– Top Trade Setups In Forex - U.S. Retail Sales on Cards!
By Eaglefx On December 13, 2019 in Daily Market Analysis
The U.S. dollar continues to keep the bearish bias over dovish monetary policy. Despite the rates being on hold, the U.S. dollar did not gain traction in the market and continue to decline. The decision of the Federal Reserve to not change its rates or policy next year came in line with the market expectations and failed to give strength to the U.S. dollar.
When asked whether a hike in interest rates would be seen next year, Chairman Jerome Powell answered that a persistent increase in inflation would be required to withdraw the stimulus Fed added this year.
Economic Calendar - U.S. Retail Sales on Cards!
BTC/USD - Daily Analysis
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. 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.
BTC/USD - Daily Technical Levels
Support Resistance
7,112.52 7,258.74
7,035.64 7,328.08
6,889.42 7,474.3
Pivot Point 7,181.86
BTC/USD – Daily Forecast
The BTC/USD hasn't changed much yesterday as investors focus mostly stayed on the British Elections and the ECB interest rate decisions. The BTC/USD is still facing triple bottom support around 7080, along with resistance around 50 periods EMA at 7,248. The RSI and MACD are in a selling zone, suggesting chances of a bearish breakout. In that case, the bearish breakout can expose the BTC/USD towards 6,850 and 6,720.
EUR/USD – ECB Leaves the Rate Unchanged
The EUR/USD pair opened at 1.10914, and it has placed a high of 1.11447 and a low of 1.10701 until now. Overall the movement of pair remained bullish throughout the day and is currently trading at 1.11309.
EUR/USD dropped to 1.107 before bouncing back to the upside after the Federal Reserve released its decision on Wednesday. The pair is trading close to 1.114 level when the American session is near to end.
Some technical factors and the weakness of greenback drove this pair EUR/USD in the upward direction. Fed voted to conserve its rates on hold and announced to not change them in 2020 also.
Despite the rates being on hold, the U.S. dollar did not gain traction in the market and continue to decline. The decision of the Federal Reserve to not change its rates or policy next year came in line with the market expectations and failed to give strength to the U.S. dollar.
When asked whether a hike in interest rates would be seen next year, Chairman Jerome Powell answered that a persistent increase in inflation would be required to withdraw the stimulus Fed added this year. And that was a reasonably high bar which he does not think will be met in 2020.
Following the meeting of the Federal Reserve on Wednesday, the 10-year Treasury bond yield fell below 1.80% to the lowest in a week, which affected the U.S. Dollar Index and made it decline to its lowest intraday level since August. The U.S. Dollar Index dropped to 97.10 on Wednesday and weighed on U.S. dollar prices.
Weak U.S. dollar gave strength to its rival currency against it, and hence, the EUR/USD pair moved in an upward direction in the absence of any macroeconomic data from the Eurozone.
However, on Thursday, the governing council of the European Central Bank will have its policy meeting with its new president Christine Lagarde. The expectations of the market suggest no change in the policy.
EUR/USD - Daily Technical Levels
Support Resistance
1.1121 1.1218
1.1063 1.1258
1.0966 1.1355
Pivot Point 1.116
EUR/USD – Daily Forecast
The EUR/USD has also exhibited sharp buying in the wake of weaker the U.S. dollar. The EUR/USD seems to form an ascending triangle pattern, which may extend resistance around 1.1175. The bullish breakout of this level can continue buying until 1.1250. Whereas, the EUR/USD can find support around 1.1115 level today
GBP/USD - Exit Poll Exhibits Sizeable Conservative Majority
The GBP/USD pair opened at 1.31937, and it has placed a high of 1.32288 and a low of 1.30492 until now. Overall the movement of pair has remained bearish. The pair is currently trading at 1.31803 and is moving towards the upside.
The British Pound shot higher as forex traders rushed to price in a victory for the Conservative party in the United Kingdom general election after Boris Johnson captured an overall majority in parliament. Sterling soared 2.7% to trade around $1.351, its highest mark versus the US dollar since May 2018, leading it on course for one of its most significant ever one-day profit. Sterling reached its highest level versus the euro since December 2016, placing €1.207.
Since the UK general elections have been called on 29th October, Sterling has gained its strength. The upbeat movement was supported by the speculations that Prime Minister Boris Johnson’s Conservative Party will secure more majority in the election, and that’s precisely what has happened.
There are two viable outcomes for 2019 UK general elections one is the most widely expected, which is the victory of the Conservative Party. However, the market has already priced in a win for Tories so, any immediate upside in Sterling is likely to be limited.
On the other hand, the trade optimism after a positive tweet of Donald Trump supported the US dollar and added in the downward trend of GBP/USD on Thursday.
GBP/USD - Daily Technical Levels
Support Resistance
1.3168 1.3633
1.2876 1.3807
1.2411 1.4273
Pivot Point 1.3342
GBP/USD – Daily Forecast
The GBP/USD exhibited dramatic buying over U.K. parliamentary elections. The GBP/USD pair is trading bullish on the weekly timeframe, as GBP/USD has crossed over 1.3295 double top resistance, and now this level may work to support. Continuation of a bullish trend above 1.3325 can lead the GBP/USD prices towards 1.3660 level soon.
All the best for today.