Daily F.X. Analysis, January 03 – Top Trade Setups In Forex - Safe Haven Dominates!  

On Friday, the U.S. dollar bounced off fresh weakness as gloomy economic headlines from Europe and the U.K. hefted on primary opponents. Besides, the figures due later in the session are anticipated to lead to some growth in the U.S. manufacturing sector.

The U.S. dollar snapped a six-session losing flare to trade around 96.747, surging slightly higher from the recent six-month low nearby 96.355.

Economic Calendar - FOMC In Focus

BTC/USD - Daily Analysis

Lately, It looked like the BTC/USD bulls aren't starting 2020 off on the right foot as the BTC/USD pair fell to as low as 6,800 level on Thursday. However, Friday's Asian session proved that it was short-lived as the BTC/USD pair made a strong recovery and placed a high of around. 

During the past few days, BTC/USD moved in between $7,300 and $7,100, examining the $7,100 and $7,050 support levels several times. Consequently, for various investors, it was no wonder when the price fell beneath $7,100 as many retests of support exhaust this level. 

BTC/USD - Daily Technical Levels

Support      Resistance 

6,859.27         7,107.31

6,759.17          7,255.25

6,511.13          7,503.29

Pivot Point 7,007.21

BTC/USD – Daily Forecast

Bitcoin showed dramatic movement in the market as it's price surged to place a high of around 7,250 after placing a low of 6,850. The 50 periods EMA is likely to extend resistance around 7,240 now. With this kind of spike, the odds of a bullish bias become pretty strong. A bullish breakout of the resistance level of 7,250 is likely to lead the bitcoin prices towards 7,400 level. While support continues to be around 6,850.

EUR/USD – Fibonacci Retracement In-Play

The EUR/USD closed at 1.11722 after placing a high of 1.12143 and a low of 1.11635. Overall the trend for EUR/USD remained strongly bearish that day.

On macroeconomic data front at 1:15 GMT, the Spanish Manufacturing Purchasing Manager's Index (PMI) for December showed a growth towards 47.4 against the expected 46.9 and supported single currency Euro. However, at 1:45 GMT, the Italian Manufacturing PMI for December showed a decline to 46.2 from the expected 47.3 and weighed on single currency Euro.

At 1:50 GMT, the French Manufacturing PMI came in a little more than expected as 50.4 from forecasted 50. At 1:55 GMT, the German Manufacturing PMI for December came in as 43.7 against the expected 43.4.  

Finally, at 2:00 GMT, the Final Manufacturing PMI for the whole bloc was released, which also supported the Euro because it came in more than expected for December. The actual increase in the manufacturing activity in December in Eurozone was recorded as 46.3 against the forecasted 45.9.

EUR/USD - Daily Technical Levels

Support Resistance 

1.1153       1.1203

1.1133       1.1234

1.1082      1.1284

Pivot Point 1.1183

EUR/USD – Daily Forecast

The EUR/USD has completed 38.2% Fibonacci retracement around 1.1170, and it's holding right below this level as it's working as resistance now. Despite being in the oversold territories, the EUR/USD is likely to exhibit further bearish bias in the EUR/USD if the pair continues to trade below 1.1185 area. On the lower side, the next support stays at 1.1155 level, which marks 50% retracement for the EUR/USD.

GBP/USD - Eyes On Construction PMI MoM (UK)

GBP/USD closed at 1.31363 after placing a high of 1.32305 and a low of 1.31150. Overall the movement of GBP/USD remained bearish throughout the day.

The Final Manufacturing PMI from the United Kingdom was released at 2:30 GMT for the month of December. The figures showed that manufacturing activities in Britain at the end of the year were declined to 47.5 from the expectations of 47.6 and weighed on British Pound.

The weak Manufacturing PMI from the U.K. dragged the pair GBP/USD and broke the streak of the bullish trend of 5 days on Thursday. The downward trend of GBP/USD was also caused by the strength of the U.S. dollar that day. U.S. dollar returned to its pace after falling for six consecutive days in last week.

Markets are now anticipating to examine how the trade negotiations between E.U. and U.K. will start off. Only a few more parliamentary stages are left for Brexit withdrawal bill becomes the law, and U.K. leaves E.U. on January 31.

The opposition Labor Party's leader Jeremy Corbyn has demanded another delay to the Brexit process if the end of June 2020 did not secure the trade deal. He has tabled an amendment to the E.U. withdrawal Bill. According to his amendment, the transition period to secure a deal with E.U. will be extended until 2023 in the absence of any comprehensive agreement.

GBP/USD - Daily Technical Levels

Support Resistance 

1.3094      1.321

1.3047      1.3278

1.2932      1.3393

Pivot Point 1.3163

GBP/USD – Daily Forecast

The GBP/USD pair is dispensing bearish retracement since the cable has fallen from 1.3160 to 1.3110, which marks a 50% Fibonacci retracement level. Today's pivot point for the GBP/USD remains around 1.3160, and closing of candles below this level is suggesting further chances of a bearish trend in the market. The GBP/USD is crossing below 50 periods EMA from the upper side, which suggests the chances of a bearish reversal in the market today. Let's consider taking sell trades below 1.3160 today. 

All the best for today.