Daily F.X. Analysis, November 6– Top Trade Setups In Forex - Dollar Strengthens Over Trade Deal Sentiments!

The U.S. dollar gained traction on Tuesday, as data suggested that U.S. service sector growth in October was stronger than expected. The Dollar Index rose 0.4% on the day to 97.91. Media reported that the Chinese government is asking the U.S. to remove the tariffs imposed on 110 billion dollars of goods imports in September and to lower the 25% duty on 250 billion dollar imports imposed last year.

The ISM non-manufacturing area index expanded to 54.7 from 52.6 in September, exceeding the market forecast. The rebound is a welcome token for greenback buyers as a reduction in the index would have advised that pain in trade war-hit companies was spoiling the service sector, along with the manufacturing sector. 

On top of Sino-U.S. trade concerns, the market is responding to signs of U.S. economic health at the time.

Economic Calendar - Eurozone's Data Ahead 

BTC/USD - Daily Analysis

The Bitcoin price (BTC) finished the week around $9,207, under 3.66%. Despite surprisingly weak volatility during the weekend, the bulls assisted in holding Bitcoin price over $9,000. At the moment, the BTC/USD continues to consolidate above $9,000 mark.

The BTC/USD hasn't changed much since yesterday as it continues to trade with in the same technical ranges. The BTC/USD has crossed above 23.6% Fibonacci resistance area of 9,345 level. Closing of candles above this level is suggesting a new trading range, which is likely to keep the BTC/USD in between 9,340 - 9,545 trading range. 

BTC/USD - Daily Technical Levels

Support      Resistance 

9,157.11        9,627.45

8,889.01      9,829.69

8,418.67     10,300.03

Key Trading Level: 9,359.35

BTC/USD – Daily Forecast

The BTC/USD has crossed above 23.6% Fibonacci resistance area of 9,345 level. Bullish bias seems strong today, and the BTC/USD may go after 9,700 on the violation of 9,500 resistance today.

EUR/USD – Bullish Trendline Extend Support 

The euro dropped 0.5% to $1.1075. Later today, the eurozone retail sales for September will be reported (flat on month expected).

The factory orders which is released by the Deutsche Bundesbank indicate many things, including shipment, inventories, and new unfiled orders. An increase in the factory order total will likely indicate an expansion in the Germany economy and could be an inflationary factor. 

It should be noted that the German Factory barely influences, either positively or negatively, the total Eurozone GDP. An influential figure is positive (or bullish) for the EUR, while a low figure is negative(bearish).

As discussed yesterday, the EUR/USD has violated the support level of 1.1120, which was extended by a bullish trendline on the 4-hour chart. The EUR/USD has already tested the previously suggested target level of 1.1075, and now it's holding around this level. Bearish bias seems pretty solid today, but the 1.1065 level is extending support and keeping the pair on hold. 

EUR/USD - Daily Technical Levels

Support Resistance 

1.1105     1.1158

1.1087     1.1194

1.1033     1.1247

Pivot Point 1.114

EUR/USD – Daily Forecast

Traders may keep an eye on 1.1065 to stay bullish above and bearish below this level. On the upper side, resistance remains at 1.1101, while bearish breakout of 1.1065 can extend sell-off until 1.1025 level.

GBP/USD - U.K. Services PMI In Focus 

The GBP/USD was little changed at $1.2881. The Markit Services PMI bounced to 50.0 in October (49.7 expected) from 49.5 in September.

At the Brexit front, the United Kingdom political situation is supportive to Prime Minister Boris Johnson because Brexit party leader is finally discussing a deal with the Tories to pull back some from his 600 voters to support the ruling party win in the December snap election. So eased doubts regarding not support the Tory leaders Brexit deal in the parliament.

On the other hand, the diplomats from the Europan Union (E.U.) like Chief Brexit legislators Michael Barnier and the European Commission President Jean-Claude Junker keep intensifying worrying regarding the British departure.

The Cable continues to consolidate within a narrow trading range of 1.2810 - 1.2970. The GBP/USD slipped lower as investors sentiment was bearish below 1.2950 resistance level. Recalling the candlestick pattern three black crows on 4-hour chart, it's still in play and keeping the Sterling in a bearish mode. 

GBP/USD - Daily Technical Levels

Support Resistance 

1.2862     1.2926

1.2822     1.2949

1.2758     1.3013

Key Trading Level: 1.2885

GBP/USD – Daily Forecast

The 50 periods EMA is also extending resistance at 1.2900 and suggesting chances of bearish trend below this level today. On the lower side, the GBP/USD may find immediate support at 1.2850, and violation of this level can extend selling until 1.2810.

All the best for today.