Daily F.X. Analysis, January 15 – Top Trade Setups In Forex - U.K. Inflation In Highlights the Spotlight! 

The Consumer Price Index (CPI) for December rose 0.2% as expected, and the Core Consumer Price Index (CPI) in December dropped to 0.1% from expected 0.2% ad weighed on the U.S. dollar.

After the release of Core CPI from the United States moved EUR/USD prices a bit upward to recover some of its day's losses. The weaker than anticipated Core CPI from the U.S. added in the upward movement of GBP/USD and EUR/USD pairs on Tuesday.

Economic Calendar - U.K. Inflation In Highlights the Spotlight

BTC/USD - Daily Analysis 

The bullish bias in BTC/USD proceeds to stimulate bullish momentum in the market. Currently, the BTC/USD pair is trading at 8,575. Which marks a 61.8% Fibonacci retracement level. A bullish violation of this mark can stretch buying until 8,770. While support stays around 8,398 level today.

BTC/USD - Daily Technical Levels 

Support     Resistance 

8,517.99     8,909.2

8,295.34    9,077.76

7,904.13    9,468.97

Pivot Point 8,686.55

BTC/USD – Daily Forecast

Earlier today, the leading cryptocurrency surged to $8,848.92 before falling back to 8,686 zones. The BTC/USD has completed 38.2% Fibonacci retracement around 8,564 level, and this level is now supporting the Bitcoin prices. On the 4 hour timeframe, the pair seems to form a bearish engulfing candle. 

If this happens, we may see BTC/USD prices going towards 8,447 or even towards 61.8% Fibo level of 8,445. Let's keep an eye on 8,564 as Bitcoin can trade bullish above this level and bearish below this.

EUR/USD – Trendline Resistance Remains Intact

The EUR/USD closed at 1.11272 after placing a high of 1.11444 and a low of 1.11042. Overall the movement of EUR/USD remained bearish throughout the day.

On Tuesday, the EUR/USD pair traded low amid the drop in 10-year government bond yield in Eurozone. The fall in European bond yield made the single currency Euro less desirable against the U.S. dollar and dragged the prices of EUR/USD.

The board member of the European Central Bank, Yves Mersch, said on Tuesday that the growth rate and Inflation appeared to be stabilizing after a significant fall last year. He noted that the accommodative monetary policy from the central bank proved to be the right decision. 

He said that the development could force the ECB for an early risk assessment to find out whether the growth risks still prevail or whether the growth was somehow more balanced now.

The European Central Bank will hold its next meeting on January 23, and it is expected that ECB will keep its policy on hold for now. Furthermore, the macroeconomic data from the United States were mixed on Tuesday. The Consumer Price Index (CPI) for December rose 0.2% as expected, and the Core Consumer Price Index (CPI) in December dropped to 0.1% from expected 0.2% ad weighed on the U.S. dollar.

After the release of Core CPI from the United States moved EUR/USD prices a bit upward to recover some of its day's losses. There was no macroeconomic data release from the Europe side on Tuesday, so the EUR/USD pair remained at the mercy of the U.S. dollar.

On Wednesday, the French Final CPI, Trade Balance, and Industrial Production will be released, which will affect the movement of EUR/USD prices as traders will be keeping an eye on them for further investment.

EUR/USD - Daily Technical Levels

Support Resistance 

1.1107      1.1147

1.1086     1.1166

1.1045     1.1206

Pivot Point 1.1126

EUR/USD – Daily Forecast

The EUR/USD pair is also trading with a bullish bias in the wake of the weaker U.S. dollar. The pair is likely to find next resistance around 1.1149, while the immediate support stays around 1.1125. The bullish bias remains solid above 1.1125 today.

GBP/USD - Descending Triangle 

The GBP/USD pair closed at 1.30157 after placing a high of 1.30330 and a low of 1.29541. Overall the movement of GBP/USD remained bullish throughout the day.

After dropping to its lowest in weeks, the British Pound pulled back and recovered its early losses on Tuesday on the back of rising concerns about the economic state and possible rate cut this month by Bank of England.

On Monday, when the policymaker from Bank of England said that he would vote for an Interest rate cut in the next meeting if there will be no improvement in economic data. The upcoming downside risk to Sterling made traders hold their positions in the market, which raised GBP/USD pair on Tuesday.

On Brexit front, the E.U.'s Chief negotiator, Michel Barnier, on Tuesday said that under the Brexit deal negotiated with Boris Johnson, the border checks on trade inside the U.K. would be made. He confirmed that the checks & controls between Britain and Northern Ireland would be made according to the Brexit deal of Boris Johnson.

Prime Minister of United Kingdom, Boris Johnson falsely claimed in his election campaigns that there would be no border checks on the Irish Sea. He was then accused of lying by the opposition parties, but Johnson insisted that he would not accept any circumstance which would lead to checks on goods going from Northern Ireland to Great Britain.

The text of the deal signed in November revealed that there would indeed be checks on goods whether the PM had misunderstood the agreement or he was indeed lying to the public to win the elections.

During his election campaigns, he was very definite that businesses would face no extra costs and checks for goods being exported from Northern Ireland to Great Britain.

The former chief of staff, Theresa May, said that Boris Johnson's Brexit deal gave the European Union what it originally wanted regarding Northern Ireland. The closest advisor of Theresa May, Lord Barwell, noted that this would be bad for the European Union and its economy as it would create a border in the single market.

Furthermore, on Tuesday, the British PM, Boris Johnson, refused the request of Scottish First Minister Nicola Sturgeon to give the powers to hold another Scottish Independence Referendum. She argued that with U.K. set to leave E.U. on January 31, the Scots deserve a new independence referendum because they were majorly against Brexit when most English voters supported it in 2016.

Besides Brexit, there was no macroeconomic data released from the U.K., and from the American side, the Core Consumer Price Index (CPI) for December was declined to 0.1% from expected 0.2% and weighed on U.S. dollar. The weaker than anticipated Core CPI from the U.S. added in the upward movement of GBP/USD on Tuesday.

GBP/USD - Daily Technical Levels

Support Resistance 

1.2972     1.3051

1.2924     1.3081

1.2845     1.316

Pivot Point 1.3002

GBP/USD – Daily Forecast

The GBP/USD has traded mostly sideways below 1.3050 to .12950 zone. Currently, it's trading at 1.3029, just below the bearish trendline resistance, which falls at 1.3050. The RSI and Stochastic of GBP/USD have entered the overbought zone, which is suggesting odds of bearish correction in the GBP/USD prices. 

On the lower side, the pair is likely to find resistance around 1.3080 and support around 1.2950 and 1.2905. Let's keep an eye on the UK CPI figures to determine the next movement in the market. 

All the best for today.