Daily F.X. Analysis, December 19 – Top Trade Setups In Forex - BOE Monetary Policy In Highlights! 

On Thursday, the U.S. dollar, it remained strong against other counter currencies on Wednesday amid the attention on U.S. Congress. White House lawmakers will vote for the impeachment of U.S. President Donald Trump. Democrats have enough numbers to pass the impeachment without the need for Republican votes.

Today, the traders are likely to keep their focus on the BOE interest rate decision, although BOE isn't expected to change rate, yet it will be worthy to see the MPC voting decision. Let's brace for it.

Economic Calendar - BOE Monetary Policy In Highlights! 

BTC/USD - Daily Analysis

The cryptomarket is improving slightly following a sell-off in the previous couple of days. The consolidation across the last weekend finished in losses on Monday, which continued to Tuesday. Bitcoin placed new low for December concludes at $6,500.

Bitcoin, for example, is consolidating around $6,660 in the track of a 0.68% bullish correction on the day. The buyers crave to understand the price climbing the levels over $7,000. Nevertheless, the technical picture persists gray. Watch out the new technical levels below.  

BTC/USD - Daily Technical Levels

Support        Resistance 

6,639.03        7,420.23

6,146.99        7,709.39

5,365.79        8,490.59

Pivot Point 6,928.19

BTC/USD – Daily Forecast

The BTC/USD is showing dramatic volatility as the pair slipped to place a low around 6,385 level, but reversed soon to recover losses and put a high around 7,420. At the moment, the BTC/USD is facing resistance around the 7,245 level. 

On the four hourly charts, the pair has formed a Doji pattern, which is signaling indecision among traders and may divert bullish bias into bearish as investors may look for doing profit takings. The bearish bias remains strong today.

EUR/USD – German Ifo Business Climate 

The EUR/USD closed at 1.11127 after placing a high of 1.11541 and a low of 1.11102. Overall the movement for the EUR/USD pair remained bearish that day.

At 12:00 GMT, the German Producer Price Index (PPI) for November showed a decline to 0.0% from the expectations of 0.1% and weighed on single currency Euro. At 14:00 GMT, the German Ifo Business Climate for December showed a growth of 96.3 from the expected 95.6 and supported single currency Euro.

At 15:00 GMT, the Annual Consumer Price Index (CPI) remained flat with the expectations at 1.0% for the whole bloc. The Final Core Consumer Price Index (CPI) for the year also remained unchanged from previous and expected 1.3%.

On Wednesday, the President of European Central bank Christine Lagarde and the Greek Prime Minister Kyriakos Mitsotakis had their first one-to-one meeting. In this meeting, ECB's President hailed Greece's economic reform progress.

Lagarde said that the commitment of Greece towards its economic reforms was reflected in the multitude of legislation adopted and the positive post-surveillance report by Greece's creditors.

Mitsotakis said that Greece's aim to reduce primary surplus targets would start in the first half of 2020. Both also talked about the execution of the Hercules project designed to reduce the size of non-performing loans incumbering Greek banks and to lift the restrictions the banks have from exposure to Greek bonds.

Meanwhile, the increased trade tensions between the European Union and the United States hurt EUR as well. The U.S. Trade Representative Lighthizer on Tuesday said that "we can't get global U.S. trade deficit down without reducing the trade deficit with Europe. We have a basic trade problem with Europe; we have to find ways to sell more goods to the European Union."

On the other hand, the ongoing technical correction gave strength to the greenback on Wednesday and further added in the pressure on EUR/USD pair. The U.S. Dollar index rose 0.27% on Wednesday and advanced to its highest level in the week at 97.45.

EUR/USD - Daily Technical Levels

Support Resistance 

1.1102        1.1134

1.109          1.1154

1.1058       1.1187

Pivot Point 1.1122

EUR/USD – Daily Forecast

The EUR/USD seems to face a hard time breaking the 1.1160 resistance level due to a lack of trading volume in the market. The EUR/USD is likely to show choppy trading within a broad trading range of 1.1100 - 1.1160 today. Consider selling below 1.1160 and buying above 1.1100.

GBP/USD - BOE Rate Decision In Focus 

The GBP/USD closed at 1.30767 after placing a high of 1.31341 and a low of 1.30594. Overall the trend for pair GBP/USD remained bearish that day.

At 14:30 GMT, the Consumer Price Index (CPI) from the United Kingdom was published, which came in as 1.5% and exceeded the expectations of 1.4% to support British Pound on Wednesday. However, the Producer Price Index (PPI) Input came in -0.3% weaker than expected 0.0% and weighed on British Pound.

The Core Consumer Price Index from the United Kingdom remained flat with expectations of 1.7%. However, the Housing Price Index (HPI) from Britain dropped to 0.7% from expected 1.5% and weighed on British Pound. The Producer Price Index (PPI) Output was also dropped to -0.2% against the expectations of 0.1% and put pressure on Sterling. Finally, the Retail Price Index (RPI) from the United Kingdom showed growth to 2.2% from forecasted 2.0% and supported single currency Pound.

Most of the data came against British Pound on Wednesday and dragged GBP/USD prices to its week fresh low point at 1.30594. On the other hand, the Bank of England will announce its monetary policy decisions on Thursday, and the market is expecting no change. However, still, it would remain under the focus of the attention of traders on Thursday to further decide the movement of GBP.

Regarding the U.S. dollar, it remained strong against other counter currencies on Wednesday amid the attention on U.S. Congress. White House lawmakers will vote for the impeachment of U.S. President Donald Trump. Democrats have enough numbers to pass the impeachment without the need for Republican votes.

GBP/USD - Daily Technical Levels

Support Resistance 

1.3049       1.3118

1.3019       1.3159

1.295         1.3229

Pivot Point 1.3089

GBP/USD – Daily Forecast

The GBP/USD pair hasn't changed much lately as investors seem to stay out of the market ahead of Bank of England's monetary policy decision. The GBP/USD is likely to follow previously mentioned technical levels. It's facing horizontal support around 1.3065, where the closing of candles above this level can drive buying in the GBP/USD. 

A bearish breakout of this level can open further room for selling until 1.2975. While failure to break below 1.3065 can lead the GBP/USD prices higher towards 1.3220. 

All the best for today.