Daily F.X. Analysis, November 13– Top Trade Setups In Forex - Traders Braces for CPI Reports!
By Eaglefx On November 13, 2019 in Daily Market Analysis
The U.S. dollar kept trading within a tight range ahead of the Fed Chair Powell's testimony later today. The ICE U.S. Dollar Index closed broadly flat on the day at 98.20. U.S. stocks placed modest increases as investors tried to digest President Donald Trump's comments on U.S.-China trade. The DJIA was flat at 27691, the S&P 500 added 4 points (+0.2%) to 3091, and the Nasdaq Composite was up 21 points (+0.3%) to 8486.
President Trump pointed out that China is "dying to make a deal. We're the ones who are deciding whether we want to make a deal." Later today, Federal Reserve Chairman Jerome Powell will testify in an "Economic Outlook" hearing in Congress.
Economic Calendar - Traders Braces for CPI Reports!
BTC/USD - Daily Analysis
On Tuesday, the BTC/USD continues to trade under pressure around 8,700 amid a stronger dollar. On the 4 hour chart, the BTC/USD has completed 50% Fibonacci retracement at 8,645, and this level is now working as a support for today. On the upper side, the BTC/USD has an immediate resistance at 8,750, and the violation of this level can extend buying until 8,865.
Robust dollar drives the BTC/USD prices nearby 8,600. The sharp sell-off came following the BTC/USD broke symmetric triangle pattern on the hourly graph. During the early Asian session, the BTC/USD has opened higher with a passage as investors appear to make profit-taking at the start of the new week.
The BTC/USD has formed a bearish engulfing pattern on the hourly chart, which is suggesting the chances of a bearish reversal in the BTC/USD. The pair may continue to face resistance at 9110 levels along with support at 8850 and 8625 today.
BTC/USD - Daily Technical Levels
Support Resistance
8,586.2 9,134.95
8,354.76 9,452.26
7,806.01 10,001.01
Pivot Point 8,903.51
BTC/USD – Daily Forecast
The BTC/USD has mostly traded as anticipated within the trading range of 8,836 - 8,600. The 8,600 level is now working as a double bottom support for the BTC/USD. We may see further clarity in trend as soon as the BTC/USD violates this range. Below 8,550, the BTCUSD can drop until 8200. While the bullish breakout of 8,836 can lead BTC/USD prices towards 9,113.
EUR/USD – Sideways Trading Continues
The euro slipped 0.2% to $1.1012. The German ZEW Current Situation Index rose to -24.7 in November (-22.3 expected) from -25.3 in October, and the Expectation Index jumped to -2.1 from -22.8.
The U.S. Federal Reserve Chair Jerome Powell will testify before the joint economic committee of the Congress. The European Commission will report the eurozone's September industrial production (-0.2% on month expected).
Even after the moderate surge, the EUR/USD currency pair still unsafe and risks dropping below the 1.1000 range, after the weakness in the Chinese Yuan vs. the greenback, because of trade uncertainty affected China's economic recession fears continue to leave a negative impact on the Chinese currency. It should be recorded that China is the biggest exporter in the Europe market.
Ahead of the U.S. inflation report, the German Final CPI figures, Eurozone Industrial Production data, and trade developments will likely give some trading impetus to the prices. However, the significant event risk for Wednesday continues Powell's testimony on the economic outlook before the congressional Joint Economic Committee, which is scheduled at 1600 GMT.
The German Federal Statistical Office will release October CPI (+1.1% on-year expected).
EUR/USD - Daily Technical Levels
Support Resistance
1.1006 1.1045
1.0992 1.107
1.0953 1.1108
Pivot Point 1.1031
EUR/USD – Daily Forecast
The EUR/USD proceeds to trade in a bearish tone, despite having better German Economic Sentiment survey. The EUR/USD is trading around 1.1015, right above a strong support level of 1.1010 level. On the higher side, the resistance prevails at 1.1050 and 1.1080 later on. But bearish breakout of 1.100 should also be eyed to target 1.0990. as we can expect bullish reversals around these levels
GBP/USD - U.K. Inflation Reports to Play
The British pound was flat at $1.2851. Official data showed that the U.K. jobless rate for the three months to September fell to 3.8% (steady at 3.9% expected). On the other hand, October inflation data will be released later today (CPI +1.6% on year expected).
Markets await October month Consumer Prices Index data from the United Kingdom ahead of watching over the United States CPI for the same month as well as eyes on the Fedra Reserve Chiajrman Powells statement, whereas there are very few chances to deviate the figures of United States inflation.
The UK CPI could decline to 1.6% against 1.7% previous on YoY basis, whereas expected declining to -0.1% from +0.1% earlier on the MoM basis.
GBP/USD - Daily Technical Levels
Support Resistance
1.2754 1.281
1.2732 1.2845
1.2676 1.2901
Pivot Point 1.2789
GBP/USD – Daily Forecast
The GBP/USD hasn't traded much after it reversed amid less bad than expected GDP figures from the United Kingdom. That signaled better growth in the U.K. economy. On the news, the GBP/USD soared to violate a bearish trendline resistance level of 1.2815. For now, the Cable is gaining support around 1.2840, and above this, the bullish trend can extend buying until 1.2890.
All the best for today.