Daily F.X. Analysis, December 20 – Top Trade Setups In Forex - Final GDP & Parliamentary Votes In Focus! 

On Thursday, the U.S. dollar, it remained firm 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 - Final GDP & Parliamentary Votes In Focus

BTC/USD - Daily Analysis

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. 

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. 

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.

BTC/USD - Daily Technical Levels

Support     Resistance 

7,059.28      7,238.58

6,963.46      7,322.06

6,784.16       7,501.36

Pivot Point 7,142.76

BTC/USD – Daily Forecast

The Bitcoin hasn't moved much on Thursday, as it continued to trade within a narrow trading range of 7180 - 7030. Yesterday, the BTC/USD showed 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.

Today on Friday, the BTC/USD is facing resistance around 7,245 level. On the four hourly charts, the pair has formed series if indecision candles, which are signaling neutral bias among traders. A bullish breakout of 7,245 can lead BTC/USD towards 7,430. A bearish breakout of 7,030 can drive further selling until 6,790.

EUR/USD – U.S. Final GDP Eyed

The EUR/USD closed at 1.11204 after placing a high of 1.11442 and a low of 1.11072. Overall the pair EUR/USD remained bullish throughout the day.

The 10-year bond yield of Germany rose to six-month high on Thursday amid the focus of the market, turning towards the session's central bank meetings, in particular, Sweden Central Bank.

The Riksbank of Sweden on Thursday announced that it had abandoned the negative rate policy for the first time in almost five years. The executive board of Riksbank increased the repo rate by 25 basis points from -0.25% to 0.0%. 

The new rate would be applied from January 8, 2020. Only two of the six members of the executive board voted for a delay in the rate hike. Board has said that it aims to maintain the repo rate at 0% in the coming years also.

This move has made the Riksbank a first central bank in the world to have adopted negative interest rates and then dispensed with them. 

Germany's benchmark 10-year bond yield surged to -0.23%, which is closest to a six-month high of -0.22%.

Besides the rising German bond yield and Sweden rate hike, another factor involving in the upward trend of EUR/USD pair on Thursday was the weaker than expected U.S. macroeconomic data.

The Existing Home Sales, C.B. Leading Index, and the Quarterly Current Account Balance from the United States were declined and weighed on the U.S. dollar and helped in rising EUR/USD prices. The increased number of jobless claims last week from the United States also put pressure on the U.S. dollar and helped the EUR/USD to gain strength in the market.

EUR/USD - Daily Technical Levels

Support Resistance 

1.1106       1.1143

1.1088      1.1162

1.1051       1.12

Pivot Point 1.1125

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 - Final GDP & Parliamentary Votes 

GBP/USD closed at 1.30090 after placing a high of 1.31323 and a low of 1.29896. Overall the movement of GBP/USD pair remained bearish that day. The GBP/USD dropped for the 4th consecutive day on Thursday amid the Brexit uncertainties and its fears, which could lead towards another rate cut, as said by Bank of England.

At 14:30 GMT, the Retail Sales from the United Kingdom for November were declined to -0.6% from expected 0.3% and weighed on British Pound. However, the Confederation of British Industry (CBI) Realized Sales surged to 0 from expected -2 in December and supported British Pound at 16:00 GMT.

On Thursday, Bank of England held its interest rates at 0.75% but also warned that Brexit uncertainties and fears of global growth could still cause the cuts. The BoE reduced its forecast for growth in the fourth quarter to 0.1%, which was previously expected to increase by 0.2%. This decline in growth expectations came in because of prevailing Brexit uncertainties.

The minutes of the Bank of England's previous meeting revealed that the Monetary Policy Committee voted by 7- 2 to keep interest rates unchanged. Only two members were against holding the rates and called for a cut to 0.5%.

The members opposing unchanged rates this meeting said that a rate deduction was needed in given weaker than expected growth of the economy where inflation was at 1.5%, and the employment growth was slow.

On the other hand, the majority of the committee believed that growth would surge above the potential next spring, expecting that the Brexit deal would be passed by then. According to BoE, if growth is recovered as forecasted, then a rate hike will be needed.

On Thursday, GBP/USD fell to 1.2989 level after the rising Brexit uncertainty and weaker than expected U.S. macroeconomic data. More jobless claims and less existing Home Sales weighed on the U.S. dollar.

GBP/USD - Daily Technical Levels

Support Resistance 

1.2955      1.3098

1.29          1.3188

1.2757      1.3331

Pivot Point 1.3044

GBP/USD – Daily Forecast

Weaker than expected retail sales figures from the UK drove the further bearish trend in the GBP/USD. Consequently, Cable has violated its support level of 1.3060, so now the same level is likely to work as a resistance for the GBP/USD. On the lower side, the GBP/USD can fell further until the next support level of around 1.2940.

All the best for today.