Daily F.X. Analysis, November 25 – Top Trade Setups In Forex - German Ifo Business Climate Eyed!
By Eaglefx On November 25, 2019 in Daily Market Analysis
On Monday, the dollar edged higher on broadly bullish captions regarding U.S.-China trade reports, while the Pound soared on expectations of an expected Brexit and an end to years of political insensibility.
Trump's denial to sign Hong Kong Human Rights & Democracy Act to maintain a phase-one trade deal with China remained under headlines on Friday.
The Pound, however, was not that affected by stronger U.S. Dollar as Euro was affected due to the upcoming U.K. General Elections in December. Let's look at major trade setups today...
Economic Calendar - PMI Figures in the Cards!
BTC/USD - Daily Analysis
On Monday, the leading cryptocurrency Bitcoin prices decreased over the last 24 hours, placing their lowest price in more than six months.
The virtual currency touched $6,616.24 just in a short moment.
At this moment, the cryptocurrency had fallen more than 35% from its immediate high of $10,000 in October and over 50% from its 2019 high of almost $14,000 placed in June.
The leading virtual currency fell as much as 11% from Friday's close and was consolidating around $6,600 during the Asian session. It's the first time since May that Bitcoin traded beneath the crucial $7,000 psychological mark.
BTC/USD - Daily Technical Levels
Support Resistance
6,776.81 7,691.46
6,329.26 8,158.56
5,414.61 9,073.21
Pivot Point 7,243.91
BTC/USD – Daily Forecast
There has been a massive drop in Bitcoin prices as it has violated the descending triangle pattern, which supported the pair around 7300. On Monday, the markets have opened a with a bearish gap, leading BTC/USD prices towards 6,650.
For now, the Bitcoin may find an immediate resistance at 7,230 and support at 6500. A light bullish retracement can be seen until the 6900 levels before we see a further bearish trend.
EUR/USD – ECB President Lagarde & PMI In Highlights
The EUR/USD closed at 1.10182 after placing a high of 1.10875 and a low of 1.10144. Overall the trend for EUR/USD remained Bearish that day.
At 12:00 GMT, the German Final GDP for quarter remain flat at 0.1%. At 13:15 GMT, the French Flash Services PMI remained flat for November at 52.9 but came in less than expectations of 53.0. However, the French Flash Manufacturing PMI came in as 51.6, which was higher than the expectations of 50.9.
At 13:30 GMT, the German Flash Manufacturing PMI also came in favor of Euro as 43.8 against the expectations of 42.9. But the German Flash Services PMI did not support Euro because it decreased to 51.3 in November against the expectations of 52.0 from the October's 51.6.
The Manufacturing PMI for the whole Eurozone increased to 46.6 in November from October's 45.9 and the expectations of 46.4 and supported the single currency Euro on Friday. However, the Services PMI for zone decreased to 51.5 from the October's 52.2 and expectations of 52.4 and came in against Euro.
Euro on Friday raised in the beginning session with the robust PMI data from France, but after the release of mixed data from Germany and the Eurozone, Euro traders got confused with setting the trend for EUR/USD.
The weaker than expected and drop in the services sector from Eurozone was alarming. However, the Manufacturing sector's performance was satisfactory.
EUR/USD - Daily Technical Levels
Support Resistance
1.1067 1.1087
1.1056 1.1095
1.1036 1.1115
Pivot Point 1.1076
EUR/USD – Daily Forecast
The EUR/USD has formed bearish engulfing candle on the daily timeframe, which is suggesting strong bearish bias. The pair may find next support around 1.0990 level along with resistance at 1.1040.
The movement in the EUR/USD mostly depends upon the German Ifo Business Climate, which is due to come out during the European session today.
GBP/USD - CBI Realized Sales Ahead
The GBP/USD closed at 1.28271 after placing a high of 1.29280 and a low of 1.28226. Overall the trend for GBP/USD remained Bearish that day.
At 14:30 GMT, the Flash Manufacturing PMI from the United Kingdom was released against a single currency – Pound and came in as 48.3 weaker than expected 48.8 for November. The Flash Services PMI also dropped to 48.6 in November from the October's 50.0 and the expectations of 50.1 and weighed on Pound.
The weak PMI data from the United Kingdom on Friday put pressure on GBP/USD and set a Bearish trend for pair at the ending day of the week.
Strong PMI of the United States then supported the Bearish trend of GBP/USD. At 19:45 GMT, the Flash Manufacturing PMI of the United States showed growth to 52.2 from the expectations of 51.5 for November.
The Flash Services PMI was also increased to 51.6 for November from October's 50.6. More than expected, PMI gave strength to U.S. dollars on Friday and further added in the downward movement of GBP/USD.
On the news front, Trump's denial to sign Hong Kong Human Rights & Democracy Act to maintain a phase-one trade deal with China remained under headlines on Friday.
The Pound, however, was not that affected by stronger U.S. Dollar as Euro was affected due to the upcoming U.K. General Elections in December. The Sterling was backed by the UK PM Boris Johnson's standing in the election polls. Johnson retains a strong lead over the Labour's Jeremy Corbyn. If Johnsons in the coming three weeks lose his number of followers and Corbyn gets the lead in polls near December 12, then it would alarm Sterling buyers to re-evaluate their positions. Till then, Pound's movement will remain limited.
GBP/USD - Daily Technical Levels
Support Resistance
1.2794 1.29
1.2756 1.2967
1.2651 1.3073
Pivot Point 1.2862
GBP/USD – Daily Forecast
The GBP/USD continues to trade above previously held support level of 1.2827 level. The 50 periods EMA is now resisting the pair around 1.2890, and besides that, the three black crows candlestick pattern on the 4-hour chart is suggesting chances of a further selling in the cable.
The GBP/USD can continue to trade with a bearish bias below 1.2860, with the next resistance around 1.2900 and 1.2970. Conversely, the bearish breakout below 1.2850 can lead to GBP/USD towards 1.2790.
All the best for today. </span