Daily F.X. Analysis, December 30 – Top Trade Setups In Forex - Eyes on Chicago PMI
By Eaglefx On December 30, 2019 in Daily Market Analysis
During the preceding trading session, the U.S. dollar remained weak across the board of currencies due to increased risk factors in the market, which came in after the Chinese officials confirmed that the U.S. & China were in close contact for signing the phase-one trade deal.
The dollar index, which gauges the U.S. dollar performance against the basket of six currencies, dropped 0.6% on Friday to the level of 96.951. Here's a trading plan for the day.
Economic Calendar - Eyes on Chicago PMI
BTC/USD - Daily Analysis
The Bitcoin (BTC) has conferred intensity rather uncharacteristic to its offering over the preceding few weeks, climbing to $7,520 just an hour or two before. But since then, the price of the major cryptocurrency has departed, turning to $7,350 after bulls disappointed to break through $7,500.
Analysts are currently split over what this price action indicates for the crypto market: some say that it is symbolic of an upward breakout to the high-$7,000s or perhaps $8,000s in the following days. Whereas, others think that fresh rejection is an antecedent to a further drawdown.
BTC/USD - Daily Technical Levels
Support Resistance
7,139.09 7,376.58
6,982.69 7,457.67
6,745.2 7,695.16
Pivot Point 7,220.18
BTC/USD – Daily Forecast
The BTC/USD higher towards the 7,420 resistance area. This level marks a double top resistance level and is likely to keep the BTC/USD lower. On the downside, the BTC/USD may find resistance around 7,105. On the 4 hour chart, the pair has crossed below 50 EMA, which may now extend resistance near 7,230 area. On the lower side, 7,050 is likely to work as strong support for the BTC/USD.
EUR/USD – ECB Economic Bulletin In Focus
The EUR/USD prices closed at 1.11760 after placing a high of 1.11882 and a low of 1.10940. Overall the movement of EUR/USD remained strongly bullish that day.
On Friday, the European Central Bank released its latest economic bulletin after its December meeting. It included the summary of ECB's latest policy decision in recent global economic conditions.
In ECB's Economic Bulletin, the survey-based indicators suggested that the stabilization of global activity has started in the fourth quarter. At the start of 2019, global weakness continued on the back of the Sino-US trade war, but at the year-end, the signs of stabilization have started to emerge.
The U.S. dollar remained weak across the board of currencies due to increased risk factors in the market, which came in after the Chinese officials confirmed that U.S. & China were in close contact for signing the phase-one trade deal. The dollar index, which gauges the dollar against the basket of six currencies, dropped 0.6% on Friday to the level of 96.951.
EUR/USD - Daily Technical Levels
Support Resistance
1.1161 1.1231
1.1133 1.1302
1.109 1.14
Pivot Point 1.1204
EUR/USD – Daily Forecast
The EUR/USD is trading around 1.1199, just below the horizontal resistance level of 1.2115. The bullish momentum in the EUR/USD has driven the currency pair towards the overbought zone, as we can see in the RSI and MACD.
The closing of candles below 1.1215 is likely to drive bearish retracement in the pair until 1.1160. Conversely, the bullish breakout of the EUR/USD pair can lead its prices towards 1.1256.
GBP/USD - Leading Indicators Enters Overbought Zone
The GBP/USD closed at 1.30845 after placing a high of 1.31170 and a low of 1.29682. Overall the movement of GBP/USD pair remained bullish that day.
The rise in risk sentiment of the market and the broad weakness in the U.S. dollar gave benefit to the British Pound on Friday and raised its prices to the best level after post-election rally two weeks ago.
The thin trading ahead of year-end gave strength to Sterling and pushed it above $1.31 level on Friday to outperform all its rivals. The riskier assets gained traction across the market that day amid the increased confidence of traders as the US-China trade tensions are softening.
Besides, the demand for extending the deadline for talks about a new trade relationship with Britain from Ursula raised Sterling on Friday.
GBP/USD - Daily Technical Levels
Support Resistance
1.3013 1.3138
1.2941 1.319
1.2816 1.3315
Pivot Point 1.3065
GBP/USD – Daily Forecast
The GBP/USD pair hasn't changed much due to the lack of fundamentals in the market. The pair is trading at1.3105, just below 1.3135 resistance level. Overall, it's a double top level, which is keeping the GBP/USD in a bearish mode, while at the same time, 1.3065 is keeping it supported. Chances of bullish trend continuation remain higher today.
All the best for today.