Daily F.X. Analysis, January 10 – Top Trade Setups In Forex - Eyes on NFP Figures!
By Eaglefx On January 10, 2020 in Daily Market Analysis
On Friday, the market participants' primary focus stays on the U.S. NFP data, which is due to come out during the U.S. session. At 18:30 GMT, the Unemployment Claims form the United States Department of Labour for the previous week showed that the jobless claims decreased to 214K from the expected 221K and supported the US dollar.
The trader's focus will also be on the US Employment data for December, Nonfarm Payrolls (NFP) to be very specific. Expectedly, there will likely be no change in the US Hourly Earnings and Unemployment Rate figures of 3.1% and 3.5%, respectively. Though, NFP is likely to soften to 164K from 266K prior.
Economic Calendar - Trump Eases War Tensions
BTC/USD - Daily Analysis
Following a high of $8,000 yesterday, the BTC/USD pair seems to trade lower in the $7000's zone. The cryptocurrency’s capacity to operate over this level is bullish, and further proves the chance that it is in the process of developing a long-term bottom that could eventually spark the following macro uptrend.
This open denial drove the cryptocurrency as low as $7,777 a few hours before, just before bulls climbing up and ardently supporting this mark, which emerged in BTC rising back towards $8,000.
BTC/USD - Daily Technical Levels
Support Resistance
7,704.87 7,950.22
7,604.72 8,095.42
7,359.37 8,340.77
Pivot Point 7,850.07
BTC/USD – Daily Forecast
The BTC/USD pair has already hit the bearish target of 7765 in the wake of a stronger U.S. dollar. On the 4 hour timeframe, Bitcoin was facing double bottom support at 7765, which is now likely to be violated. Below this level, the Bitcoin can take a further bearish run until 7,633 level. Below this, the next support prevails around 7,485. On the flip side, 7,875 is a crucial level for bitcoin, and it may keep the BTC/USD bearish.
EUR/USD – Bullish Trendline Breakout
The EUR/USD prices were closed at 1.11051 after placing a high of 1.11203 and a low of 1.10923. Overall the movement of EUR/USD remained stagnant as it closed at the same level it was opened with.
At 12:00 GMT, the German Industrial Production for the month of November showed a growth of 1.1% against the forecasted 0.9% and supported single currency Euro. However, the German Trade Balance for the month of November showed a deficit of 18.3B from expected 20.9B and weighed on single currency Euro.
At 14:00 GMT, the Italian Monthly Unemployment Rate for November showed a decline to 9.7% from expected 9.8% and supported Euro. However, the unemployment rate for the month of November for the whole bloc remained flat at 7.5%.
The stronger German Industrial Production and the low Unemployment rate from Italy gave support to the Euro and made EUR/US pair to move toward 1.112 level. However, the pair could not remain bullish and continued dropping after that on the back of a stronger US dollar.
At 18:30 GMT, the Unemployment Claims form the United States Department of Labour for the previous week showed that the jobless claims decreased to 214K from the expected 221K and supported the US dollar.
The stronger US dollar dragged the pair EUR/USD on Thursday from its early gains, and the pair closed its day at the same level it was started with at 1.1105 level.
The President of the European Central Bank, Christine Lagarde, supported the bank’s active involvement in the development of central bank digital currency to support the demand for cheaper and quicker cross-border payments.
EUR/USD - Daily Technical Levels
Support Resistance
1.1093 1.1121
1.1079 1.1134
1.1051 1.1162
Pivot Point 1.1107
EUR/USD – Daily Forecast
The EUR/USD pair has entered the oversold zone, and investors seem to look for a reason to initiate buying. One of the reasons can be the NFP report today, which may help us predict further trends of the EUR/USD. The pair is now holding above the strong support level of 1.1100, which is extending solid support to the EUR/USD.
In the daily timeframe, the pair has closed a spinning top candle, followed by a dramatic bearish trend. Typically such kinds of patterns initiate bullish reversals. On the upper side, the EUR/USD pair can trade bullish until 1.11250 and 1.1145. Bearish support stays at 1.1066.
GBP/USD - Descending Triangle
The GBP/USD currency pair stop its declining streak and stuck in the bearish track ahead of the US Non-Farm Employment Payrolls. As of writing, the GBP/USD currency pair is currently trading at 1.3087 and consolidates in the narrow range between the 1.3086 - 1.3089.
The losses came after the Bank Of England Governor Mark Carney's showed dovish attitude. Notably, the recent headlines regarding the Brexit, domestic catalysts are giving positive vibes. Moving ahead, traders will keep their eyes on the political headlines for fresh direction before the release of the US employment data.
The cable pair declining streak could be attributed to the Bank Of England Caney's dovish comments while hinting almost 250 pips rate cuts in the future. Meanwhile, the policymaker also used negative words regarding the latest growth forecast and policy risks as well. Moreover, the uncertainty increased in the wake of EU’s chief Brexit negotiator Michel Barnier who gave warning to the United Kingdom regarding leaving without any deal if it sticks to the timelines of 31-December-2020.
With this, the market’s risk tone stays sluggish and US ten-year treasury yields taking rounds to 1.86%, due to the UK-Canada accusations that Iran was the criminal behind the Ukrainian plane crash.
Looking forward, the investors will have their eyes on the political headlines, especially for the United States and Iran tensions, which is dropping so far. On the flip side, the trader's focus will also be on the US Employment data for December, Nonfarm Payrolls (NFP) to be very specific. Expectedly, there will likely be no change in the US Hourly Earnings and Unemployment Rate figures of 3.1% and 3.5%, respectively. Though, NFP is likely to soften to 164K from 266K prior.
GBP/USD - Daily Technical Levels
Support Resistance
1.3013 1.3124
1.2958 1.318
1.2846 1.3291
Pivot Point 1.3069
GBP/USD – Daily Forecast
The GBP/USD is trading at 1.3115, holding below a strong resistance level of 1.3135. The RSI and 50 EMA both are suggesting bearish bias among traders. Below 1.3120, the cable has the potential to go after 1.3050 and 1.2990 on the lower side. While the bullish breakout of 1.3135 can lead the GBP/USD prices towards 1.3189.
All the best for today.