Daily F.X. Analysis, December 17 – Top Trade Setups In Forex - UK Labore Report Ahead!
By Eaglefx On December 17, 2019 in Daily Market Analysis
The European Commission will post the October trade balance (20 billion euros surplus expected). The U.K. Office for National Statistics will report a jobless rate for the three months to October (3.9% expected).
Later today, official data on November housing starts (increasing to 1,344,000 units expected), and building permits (falling to 1,418,000 anticipated units) will be reported. Industrial production is likely to rise by 0.8% in November.
European equities remained in positive territory, with the Stoxx Europe 600 Index ending 1.4% higher at a four-year high. Germany's DAX increased by 0.9%, France's CAC climbed 1.2%, and the U.K.'s FTSE 100 jumped 2.3%.
Economic Calendar - PMI Figures in the Cards!
BTC/USD - Daily Analysis
The BTC/USD has violated the triple bottom support level of 7,120. Closing of candles below this level is suggesting chances of further bearish bias, which can lead the leading cryptocurrency towards 6,850. On the higher side, the BTC/USD may face resistance around 7,115.
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. The BTC/USD price performed as anticipated over the preceding week as 8% was stripped off its price of $7,571.80 between December 8 and December 14.
BTC/USD - Daily Technical Levels
Support Resistance
7,201.3 7,304.03
7,146.6 7,352.06
7,043.87 7,454.79
Pivot Point 7,249.33
BTC/USD – Daily Forecast
The BTC/USD has violated the descending triangle pattern, which was supporting the pair around 6,865. The leading crypto pair is now gaining support around 6,865, along with a resistance level of 7,000.
The RSI and MACD are in the selling zone, and the recent bearish Harami candle is suggesting strong bearish bias among investors. The bearish breakout of 6,865 can drive more selling until 6,685.
EUR/USD – Italian Trade Balance
The EUR/USD prices closed at 1.11434 after placing a high of 1.11580 and a low of 1.11226. Overall the pair moved in bullish trend throughout the day.
On the data front, at 13:15 GMT, the French Flash Services PMI showed a growth in the month of December to 52.4 against the expectations of 52.1 and supported Euro. However, the French Flash Manufacturing PMI for December was declined to 50.3 in contrast to expected 51.5 and weighed on Euro.
At 13:30 GMT, the German Flash Manufacturing PMI for December also showed a decline in the manufacturing activity to 43.4 from expected 44.6 and weighed on Euro. The Closely watched German Flash Services PMI showed a growth of 52.0 for December in comparison to November's 51.7 and supported Euro.
At 14:00 GMT, the Manufacturing PMI for the whole Eurozone was published, which also declined to 45.9 from expected 47.3 and weighed on single currency Euro. However, the Flash Services PMI from Eurozone came in favor of the single currency as 52.4 against the expectations of 52.0.
From data published by Eurozone and its biggest economies on Monday, it can be seen that the manufacturing activities have been declining in the month of December, and the services industry has been grown. The services sector showed growth in its activities in comparison to the manufacturing industry for the current month and supported the single currency Euro.
The ING economist Bert Colijn said that "the continued manufacturing contraction throughout Q4 indicates that recession concerns while moderating somewhat due to better geopolitical news, can still not be discarded for now."
EUR/USD - Daily Technical Levels
Support Resistance
1.1093 1.1167
1.1065 1.1214
1.0991 1.1288
Pivot Point 1.1139
EUR/USD – Daily Forecast
The EUR/USD has filled the gap that is visible on the 4-hour timeframe. The pair has now trading bullish above an upward trendline, which is supporting the EUR/USD above 1.1135. Continuation of a bullish bias above 1.1125 can keep EUR/USD bullish until 1.1160 and 1.1185. The EUR/USD's immediate support prevails around 1.1095 today.
GBP/USD - Employment Report In Focus
The British pound retreated 0.6% to $1.3269. The Markit U.K. Manufacturing PMI dropped to 47.4 in December (49.2 expected) from 48.9 in November, and Services PMI was down to 49.0 (49.5 expected) from 49.3. Meanwhile, the U.K.'s jobless rate for the three months to October will be released later today (3.9% expected).
The pound slipped for another day due to disappointing economic figures by lingering optimism following the Conservatives' election victory.
Sterling rallied against most Group-of-10 rivals despite U.K. factories posting their most vulnerable performance in 7 years. The currency pair soared as much as 0.7% following Chief Secretary to the Treasury Rishi Sunak announced the government intends to place legislation ere Parliament prior to Christmas to ensure that the Brexit goes ahead next month.
GBP/USD - Daily Technical Levels
Support Resistance
1.3267 1.3441
1.32 1.3548
1.3025 1.3722
Pivot Point 1.3374
GBP/USD – Daily Forecast
The GBP/USD has plunged dramatically, falling below the pivot level of 1.3374. On the lower side, the GBP/USD has made a strong bearish movement to trade around 1.3190. On the lower side, the GBP/USD may find the next support around 1.3116.
On the 4-hour chart, the GBP/USD has formed three black crows, which are representing chances of further bearish, bearish bias in the GBP/USD pair. On Tuesday, we should consider taking a sell trade below 1.3260.
All the best for today.