Daily F.X. Analysis, Oct 07 – Top Trade Setups In Forex - Trading Post NFP Shocks!
By Eaglefx On October 07, 2019 in Daily Market Analysis
The greenback slid on Friday following the U.S. labor market report that underperformed forecasts though was stable overall, as traders prevailed careful about political uncertainty in the United States and continuing trade talks with China.
The greenback settled session peak versus the yen and Euro following the job announcement, after trading weaker for most of the session.
The Unemployment rate of the U.S. came as 3.5% - a 50-Years lowest; it put some pressure over EUR/USD prices on the last day of the week. However, the U.S. Nonfarm Payrolls came as 136000 against 145000 expected.
Economic Calendar - Post NFP Shocks
BTC/USD - Daily Analysis
After undergoing a long time of sideways trading below $8,000 regions, Bitcoin (BTC) has once again prolonged its bearish momentum and has started moving with a selling bias today. It has violated the 8,000 support areas to trade below this level on most major exchanges.
At the time of review, the BTC/USD is trading in a bearish tone, falling around 1% at its aggregated price of $7,825. The 50 periods EMA is suggesting bearish bias as the Bitcoin is holding below 8,100, the resistance extended by EMA.
The RSI and Stochastics hold in the selling zone. Therefore, the bearish breakout at 7,700 may drive further sell-off in the market today.
BTC/USD - Daily Technical Levels
Support Resistance
7,671.27 8,489.78
7,281.7 8,918.72
6,463.19 9,737.23
Pivot Point 8,100.21
BTC/USD – Daily Forecast
It looks like long holidays in China are causing a slump in trading volume. Consequently, we are also seeing the trading volume lowering from the BTC/USD. Earlier today, the BTCUSD fell below a strong resistance area of 8200. The market, in fact, opened with a bearish gap, suggesting strong bearish bias among traders. On the 4 hour chart, 7650 is a double bottom area, which may keep the BTCUSD supported today.
EUR/USD – Ascending Triangle Pattern
A day before, the EUR/USD was closed at 1.09772 after placing a high of 1.09983 and a low of 1.09569. The overall movement of EUR/USD remained Bullish that day.
The pair EUR/USD has shown a Bullish trend throughout the last week due to Weak U.S. macroeconomic data. After the release of U.S. Manufacturing PMI, it was confirmed that the economic growth of the U.S. has also been affected by the US-China Trade war.
When the data from the Labour Market of the U.S. was released last week, it showed that there was no satisfactory hiring from Private Sector in the U.S. in the previous month. It drove the pair to move further upward.
When the Unemployment rate of the U.S. came as 3.5% - a 50-Years lowest, it put some pressure over EUR/USD prices on the last day of the week. However, the U.S. Nonfarm Payrolls came as 136000 against 145000 expected.
These figures indicated a slowdown in the economic growth of the USA. Still, the job creation, even in weak economic growth, made it evident that the conditions were not so adverse.
The Pair EUR/USD was under pressure when the World Trade Organization approved the tariffs on European Goods by the United States as a punishment against Illegal Aircraft Subsidies.
EUR/USD - Daily Technical Levels
Support Resistance
1.0921 1.0981
1.0883 1.1002
1.0823 1.1062
Pivot Point 1.0943
EUR/USD – Daily Forecast
On the hourly timeframe, the EUR/USD has formed an ascending triangle pattern which is supporting the direct pair at 1.0970 along with resistance at 1.0995. Almost it's a range of 25 pips, and the breakout of this range may help us predict which way traders are likely to take the pair.
Typically, the ascending triangle pattern breaks on the upper side, and if that happens, the EUR/USD may lead towards 1.1030 today.
GBP/USD - Services PMI Weights
Lately, the GBP/USD was closed at 1.23323 after placing a high of 1.23567 and a low of 1.22759. The overall movement remained Bullish that day. The Housing Equity Withdrawal from the United Kingdom was released on Friday at 13:30 GMT, as -6.9B against -6.5 B weighed the Great Britain Pound.
Like other currencies, GBP/USD was also affected by the U.S. Dollar's movement last week. The weak economic data from the U.S. made this pair GBP/USD go upward and place a high of 1.24129 previous week.
The latest proposal related to the post-Brexit management of Border between E.U. member Ireland and British Province Northern Ireland was submitted by Boris Johnson, UK Prime Minister, to European Union on Wednesday.
E.U. rejected this proposal, and a reworked plan was asked within limited days to work out a deal between U.K. & E.U.
Johnson, despite been told by Law to ask for a new Brexit deadline in case of a no-deal settlement, said that he would make Brexit happen on the stated deadline Oct 31 with or without any deal.
He hopes that the threat of no-deal Brexit could force the European Union to compromise. So, at the weekend, on Sunday, he began to phone European Leaders to sell his proposal. He urged European Leaders to intensify talks over Latest Brexit Proposal.
GBP/USD - Daily Technical Levels
Support Resistance
1.2291 1.2367
1.2245 1.2398
1.2169 1.2474
Pivot Point 1.2322
GBP/USD – Daily Forecast
The GBPUSD is trading sideways above the 1.2310 area. The bullish trendline on the 4-hour chart is extended support at 1.2290. Whereas, the resistance stays at 1.2415. The trading bias remains neutral to slightly bearish today.
All the best for today.