Daily F.X. Analysis, December 23– Top Trade Setups In Forex - Brace for U.S. Durable Goods Orders!
By Eaglefx On December 23, 2019 in Daily Market Analysis
The U.S. dollar managed to remain positive, although the House of Representatives voted to impeach Trump. This strength of the U.S. dollar was backed by the rise in U.S. Treasury bond yields on Friday.
The downside movement escalated after the release of the U.S. economic docket as the consumer sentiment from the University of Michigan was raised a little from expectations and supported the U.S. dollar.
Today, the traders are likely to keep their focus on Canadian GDP and U.S. Durable Goods Orders to drive further movements in the market. Let's brace for it.
Economic Calendar - Brace for U.S. Durable Goods Orders!
BTC/USD - Daily Analysis
The BTC/USD was facing resistance around the 7,245 level. On the four hourly charts, the pair had formed series if indecision candles, which signaled neutral bias among traders. As expected, the bullish breakout of 7,245 was likely to lead BTC/USD towards 7,430, and that's precisely how the market traded during the weekend.
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
7,444.07 7,540.41
7,405.79 7,598.47
7,309.45 7,694.81
Pivot Point 7,502.13
BTC/USD – Daily Forecast
On Monday, the BTC/USD opens higher to trade near the triple top resistance area of around 7,646. Below this, the pair can drop further until 7400 and 7265 levels. Whereas, the bullish breakout of 6646 levels can extend buying until 7775.
EUR/USD – U.S. Durable Goods Orders to Play
The EUR/USD Prices closed at 1.10751 after placing a high of 1.11246 and a low of 1.10662. Overall the movement of EUR/USD remained bearish throughout the day.
At 12:00 GMT, the German Gfk Consumer Climate for December was dropped to 9.6 from expected 9.8 and weighed on Euro. At 12:45 GMT, the French Consumer Spending for November was released, which was also dropped to 0.1% from expected 0.2% and weighed on single currency Euro.
However, at 14:00 GMT, the Current Account Balance from Bank of England showed a rise in October to 32.4B from expected 23.6B and supported Euro. The Consumer Confidence from the eurozone for December dropped to -8 from the expectations of -7 and weighed on Euro.
Weaker than expected consumer confidence from Germany and consumer sentiment of the whole bloc gave pressure on single currency Euro and dragged the pair EUR/USD at the ending day of the week.
The downside movement escalated after the release of the U.S. economic docket as the consumer sentiment from the University of Michigan was raised a little from expectations and supported the U.S. dollar.
U.S. dollar managed to remain positive although the House of Representatives voted Trump be impeached. This strength of the U.S. dollar was backed by the rise in U.S. Treasury bond yields on Friday.
The strong U.S. dollar weighed EUR/USD further and dragged its prices to the weekly low level on Friday at 1.10662.
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 has violated the 1.1100 support level on the 4-hour chart, and now the same level is likely to work as a resistance for the EUR/USD. The 50 and 100 periods of EMA are expected to extend resistance around the 1.1090 area. Below this, the pair can stay bearish until 1.1044 level.
GBP/USD - Bearish Bias Dominates
The GBP/USD pair closed at 1.30006 after placing a high of 1.30792 and a low of 1.29779. Overall the trend of GBP/USD pair remained bearish throughout the day.
At 14:30 GMT, the Current Account for the third quarter from the United Kingdom was released, which showed a drop to -15.9B from expected -15.7B. The Gross Domestic Product (GDP) for the quarter showed a rise to 0.4% against the expected 0.3% and supported British Pound.
The Public Sector Net Borrowing for November was dropped to 4.9B against the expectations of 5.2B and supported British Pound. The Revised Business Investment for the quarter remained flat at 0.0%.
On the economic front, most data came in favor of British Pound and gave it strong against the U.S. dollar, which rose the GBP/USD prices to 1.30792 level on Friday.
On Brexit front, the PM Johnson's deal of Brexit was passed in the U.K. Parliament on Friday. It was widely expected as Johnson holds a vast majority in the new Parliament, and now nothing can stop the U.K. to leave the European Union on January 31.
The focus of Brexit investors has shifted to the upcoming negotiations on the future relationship. Investors have also been concerned about Johnson's intentions to write Brexit into law so that the transition period cannot be extended.
Markets have been already mainly priced on Brexit elections, and that was the reason on which Friday's vote by Parliament on Johnson's deal was ignored and failed to move GBP/USD.
After the release of economic data from the American side, the U.S. dollar gained some strength as the Personal Income and Consumer Sentiment showed growth. GBP/USD in the late session on Friday started to drop on the back of U.S. dollar strength gained after the rise in U.S. Treasury bond yield.
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
The GBP/USD continues to trade bearish below 1.3085 resistance level. It's the same triple bottom level, which was supporting the cable during the previous week. For now, the GBP/USD may find the next support around 1.2958.
All the best for today.