Daily F.X. Analysis, November 27 – Top Trade Setups In Forex - U.S. Prelim GDP Under the Spotlight!
By Eaglefx On November 27, 2019 in Daily Market Analysis
The market proceeds to trade the risk-on sentiment in the wake of optimistic news from the U.S. China trade war. The latest trade talks between Chinese Vice President Liu He and U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin over the phone on Tuesday remained in headlines.
After the talks, it was reported by Chinese media that both sides discussed resolving core issues and has reached consensus on how to solve related problems. They also have agreed to say in contact over issues remaining for the phase-one trade deal agreement. Today, the U.S. Prelim GDP remains in the highlights.
Economic Calendar - Prelim GDP q/q & Chicago PMI In Focus
BTC/USD - Daily Analysis
Recalling the previous forecast, the BTC/USD gained support above the 6500 levels, which let its prices towards 7230 resistance level and even higher to 7370 levels.
Today, the BTC/USD is likely to find a hard time breaking above 7400 levels as it's extended by the 50 periods EMA and a bearish trendline on the hourly timeframe. Below this, the BTC/USD may find support around 7150 and 6770.
During the last week, the BTC/USD closed the week at $6,900, having lost nearly $1,400 or 18.72%. Monday went off to a calamitous start for the buys, with a selloff in the Asian trading session, dropping further 5.5%, gaining lows of $6,500 where the bulls returned with a 13% swing back above $7,300.
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
The BTC/USD hasn't changed much since yesterday in the wake of thin volatility. The BTC/USD is now gaining support above 7,000 level below which the BTC/USD can take a further bearish turn until 6700 and 6535. Conversely, the bullish breakout of 7200 can lead the BTC/USD towards the 7665 area. Overall, the bitcoin trades with a bearish sentiment today.
EUR/USD – Eyes on Prelim GDP q/q
The EUR/USD closed at 1.10194 after placing a high of 1.10255 and low of 1.10072. Overall the trend for the pair remained Bullish that day.
At 12:00 GMT, the German Gfk Consumer Confidence came in as expected 9.7 in November but showed growth from October's 9.6.
The Euro moved back and forth in the trading session on Tuesday and stuck to 1.10 level. The improved German Consumer Confidence gave the impression that the slowdown in the domestic economy could have been paused or decreased, which gave EUR/USD support and helped it to move in an upward direction on Tuesday.
On the American front, the C.B. consumer Confidence from the United States was dropped to 125.5 from expected 126.9 and weighed on U.S. Dollar, which also supported the Bullish trend of EUR/USD.
The latest trade talks between Chinese Vice President Liu He and U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin over the phone on Tuesday remained in headlines.
After the talks, it was reported by Chinese media that both sides discussed resolving core issues and has reached consensus on how to solve related problems. They also have agreed to say in contact over issues remaining for the phase-one trade deal agreement.
Though the EUR/USD pair closed its market on Tuesday with Bullish Trend, the upward movement was very consolidated and pressurized.
EUR/USD - Daily Technical Levels
Support Resistance
1.1012 1.1031
1.1 1.1038
1.0981 1.1057
Pivot Point 1.1019
EUR/USD – Daily Forecast
The EUR/USD is consolidating in a tight range due to a lack of market-moving economic indicators. The EUR/USD may stick with the same technical levels today. Thus it may find next support around 1.0990 level along with resistance at 1.1040. Overall, the EUR/USD is likely to continue trading in a bearish tone today.
GBP/USD - Brexit Updates Dominates
The GBP/USD closed at 1.28639 after placing a high of 1.29034 and a low of 1.28348. The overall trend for the GBP/USD pair remained Bearish that day.
At 14:30, the High Street Lending from the United Kingdom showed a drop to 41.2K from the expectations of 43.1K and weighed on Sterling on Tuesday and gave bearish trend to GBP/USD.
On the other hand, the increased New Home Sales from the United States at 733K along with Goods Trade Balance at -66.5B and increased Housing Price Index at 0.6%, gave support to U.S. Dollar, which in turn added in the downward trend for GBP/USD pair.
Adding in the Bearish trend for pair was the latest trade talks between Chinese Vice President Liu He and U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin over the phone on Tuesday.
After the talks, it was reported by Chinese media that both sides discussed resolving core issues and has reached consensus on how to solve related problems. They also have agreed to say in contact over remaining issues for the phase-one trade deal agreement.
This boosted the chances for the completion of a phase-one deal in the near future and added in raised trade optimism of the market.
As per the latest survey of voting, after the release of Labour Party manifest last week, the opposition has started to hold its ground in upcoming elections against the Conservative Party. For Pound, the best results would be the voting in favor of the Conservative Party In general elections. But, the rising followers of opposition has raised concerns over it.
The chief currency strategist at Royal Bank of Canada said that "the currency's drop highlights somewhat complacent pricing of political risk in the U.K. It is hard to reconcile this degree of confidence with current polling results."
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 is consolidating below its pivot point level of 1.2866 as the market hasn't traded much this week. The cable is now facing resistance below 50 periods EMA around 1.2880. Moreover, the bearish marabou candle on the 4-hour chart is suggesting chances of further selling in the GBP/USD pair.
At the moment, the GBP/USD can proceed to trade with a bearish bias beneath 1.2866, with the subsequent resistance bear 1.2900 and 1.2970. Alternatively, the bearish trend is likely to target 1.2822 and 1.2790.
All the best for today.