Daily F.X. Analysis, November 20 – Top Trade Setups In Forex - Brace for FOMC Minutes!
By Eaglefx On November 20, 2019 in Daily Market Analysis
The greenback and the safe-haven yen traded higher on Wednesday, but not enough, as a lack of evidence on U.S.-China trade discussions kept traders cautious.
Besides, the UK Prime Minister Boris Johnson and the opposition Party Leader Jeremy Corbyn was face to face on ITV’s Political debate after the Liberal Democrats, and the Swiss National Party was barred earlier by Judges from the appearance.
Economic Calendar - Brace for FOMC Minutes In Focus
BTC/USD - Daily Analysis
Bitcoin (BTC) has proceeded gradually, crumbling down as bears get the upper hand over bulls. The sellers have now driven the cryptocurrency down to a critical support level that needs to be supported, or else it will open the doors for significantly additional declines in the near-term.
Analysts are now seeing that those technical indicators may lead to the opportunity that Bitcoin is in the process of placing a double bottom. Still, BTC’s failure to post any firm bounce at $8,000 may lead to an underlying weakness amongst the crypto’s buyers.
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 continues to trade above the psychological support level of $8,000. As we can see in the hourly chart, the BTC/USD fell below $8,000 mark to place a low of $7,960.
On the daily timeframe, the BTC/USD crossed below 50 periods EMA which is placing a bearish pressure on the leading crypto pair now.
At the moment, the BTC/USD is trading at 8,100 level, and it has an immediate resistance at $8365. And support at $8,000. The violation of the 8,000 support level can extend selling until $7,700.
EUR/USD – ECB Financial Stability Review
The EUR/USD closed at 1.10780 after placing a high of 1.10838 and low of 1.10624. Overall the movement for pair remained Bullish that day.
From the Europe side, the Current Account figure was released at 14:00 GMT, as 28.8B, which was higher than the expectations of 22.3B. These figures gave strength to the single currency - Euro on Tuesday against USD. And hence, EUR/USD moved in an upward direction for 4th consecutive day.
On the U.S. side, the Building Permits showed growth to 1.46M against expected 1.39M, and Housing Starts remained steady at 1.31M at 18:30 GMT.
EUR/USD continued to move in an upward direction on Tuesday amid the increased tensions of US-China Trade talks. On Monday, China’s statement to back off from signing a phase-one deal before Trump’s impeachment proceeding and demand for Tariff's removal gave support to an upward trend of the pair.
On Tuesday, the threatening statement from Trump added in the Bullish trend when he said that he would impose more tariffs if the phase one deal would not get signed till 15th December.
EUR/USD - Daily Technical Levels
Support Resistance
1.1054 1.109
1.1036 1.1108
1.1 1.1144
Pivot Point 1.1072
EUR/USD – Daily Forecast
The increased level of uncertainty sounding the U.S. China trade deal as triggered selling in the US dollar, which is why the EUR/USD soared to trade bullish around 1.1080 level.
This level marks a 50% Fibonacci extension level, and the reason we are seeing slight bearish movement in the EUR/USD is FOMC meeting minutes, which are likely to be hawkish.
Traders may trade with a bearish sentiment today. On the lower side, 1.1065 is likely to extend reliable support to direct currency pair along with resistance at 1.1085. A breakout will determine further movement in the EUR/USD.
GBP/USD - Choppy Trading Sessions
The GBP/USD closed at 1.29237 after placing a high of 1.29696 and a low of 1.29101. Overall the movement for pair remained Bearish that day. The CBI Industrial Order Expectations of the United Kingdom were released at 16:00 GMT and showed that it was -26 and not the expected -30.
The UK Prime Minister Boris Johnson and the opposition Party Leader Jeremy Corbyn was face to face on ITV’s Political debate after the Liberal Democrats, and the Swiss National Party was barred earlier by Judges from the appearance.
The debate highlighted many aspects, including the EU’s importance for UK Prime Minister and Brexit. Also, how Johnson sees the National Health Services after giving the decision to cancel plans for corporate tax cuts.
Johnson remained firm on his Brexit bias in debate and supported NHS but also gave importance to the region. He also confronted the allegation by Corbyn on sorting out Brexit by January, Corbyn called it as nonsense. Further, Corbyn showed readiness for another referendum and a better deal.
The Snap Polls showed a different level of popularity than the major polls related to December Elections. The ITV’s poll surprised when the Labour Leader Corbyn was favored with 78%.
The market reacted to this and Bearish sentiment for Pound created on Tuesday for GBP/USD. As there was no big macroeconomic release from the UK, the market continued to move with the UK’s Political news.
On the American front, the US-China trade talks were also under pressure because of trump’s Trade Threats.
GBP/USD - Daily Technical Levels
Support Resistance
1.2901 1.296
1.2876 1.2995
1.2816 1.3055
Pivot Point 1.2935
GBP/USD – Daily Forecast
The GBP/USD is trading sideways around the 1.2910 area; however, technically, the trading sentiment remains bearish. The GBP/USD prices have come under 50 periods EMA which is keeping it in selling below 1.2930 level.
In the daily timeframe, the cable has formed a bearish harami candle below 1.2970, which is followed by a bullish trend.
Typically such a pattern drives the bearish trend, and that's precisely how the GBP/USD reacted. At the moment, the GBP/USD is trading right above 50% Fibonacci retracement level of 1.2900. Continuation and bearish breakout of this level can extend sell-off until 1.2880.
All the best for today.