Daily F.X. Analysis, Oct 09 – Top Trade Setups In Forex - FOMC Meeting Minutes In Focus!
By Eaglefx On October 09, 2019 in Daily Market Analysis
The greenback slipped against the safe-haven Japanese yen on Tuesday, urged by repeated worries about trade. Still, the dollar rose against other currencies as Federal Reserve Chair Jerome Powell abstained from performing to more rate reductions even following data revealed an astonishing decline in U.S. producer inflation.
The European Commissioner President Jean Claude Juncker said that the U.K. was Blaming the failure of negotiations on the European Union, but the explanation should be given by British camp because the original sin was on Island and not on the continent. He further said that in a scenario of No-Deal Brexit, nobody would come out as the winner, and the U.K., along with E.U., would face a decline in economic growth. Today, the focus stays in the FOMC meeting minutes from the U.S. Federal Reserve.
Economic Calendar - FOMC Meeting Minutes In Focus
BTC/USD - Daily Analysis
The leading cryptocurrency Bitcoin has slightly traded lower from $8,183 to $8,178 so far. The sellers succeeded in edging out the buying trades this Tuesday. Bitcoin price dropped from $8,215.70 to $8,180.
The Bitcoin is also trading under pressure due to the U.S. government opposition to Bitcoin. The resistance of the U.S. on Cryptocurrencies have become evident since Donald Trump joined the White House.
At the beginning this year, U.S. President Trump discussed shockwaves during the bitcoin and cryptocurrency business while he tweeted a cruel attack on Facebook's bitcoin rival projects, marking it and bitcoin "unregulated crypto assets."
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
The BTC/USD is staying bearish below an immediate resistance level of 8,206. Lately, it has formed Doji and Spinning top patterns below this level on the hourly timeframe, signaling a lack of bullish power in the BTC/USD. On the downside, the support prevails at 8000, and below this, the bitcoin has the potential to go after 7785.
EUR/USD – Eurogroup Meetings Ahead
The EUR/USD was opened at 1.09703 and has shown a robust Bearish trend yesterday. At 11:00 GMT, the German Industrial Production came as 0.3% against -0.2% expectations, showed that the possible recession fear of the German economy might not be that bad. The French Trade Balance at 11:45 GMT came -5.02B against -4.23B expected, weighed on Euro. The Italian Retail Sales at 13:00 GMT, came -0.6% against -0.1%.
After the release of German Industrial Production, EUR/USD moved in an upward direction and placed a high of 1.09959. Still, the releases from France & Italy about Trade balance & Retail Sales moved in the reverse direction.
The Dollar was weaker on Tuesday due to low inflation data as -0.3%, but it could not lift the movement of EUR/USD amid the increased tensions related to the possibility of no-deal Brexit in the coming weeks.
The European Commissioner President Jean Claude Juncker said that the U.K. was Blaming the failure of negotiations on the European Union, but the explanation should be given by British camp because the original sin was on Island and not on the continent. He further said that in a scenario of No-Deal Brexit, nobody would come out as the winner, and U.K. with E.U. would face a decline in economic growth.
EUR/USD - Daily Technical Levels
Support Resistance
1.0932 1.0988
1.0909 1.102
1.0854 1.1075
Pivot Point 1.0964
EUR/USD – Daily Forecast
The single currency Euro slipped against the U.S. dollar due to strengthening greenback, and weaker than expected economic events from the Eurozone. However, the EUR/USD pair has gained support at 1.0945 level. Today this level will help us determine further trends of the EUR/USD. Above this, the EUR/USD can stay bullish until 1.0999, whereas bearish breakout of this level can extend bearish rally until 1.0907.
GBP/USD - Sentiments of Hard Brexit Dominates
A day before, the GBP/USD was opened at 1.22899 and has shown a robust Bearish trend. On Tuesday, the Government of Boris Johnson, UK Prime Minister, reacted to a call between Angela Merkel, German Chancellor & Johnson. The officials said that Merkel told Prime Minister that Northern Ireland must remain part of the European Union's customs union. Otherwise, the deal looked "essentially impossible, not just now but ever."
In reply, Johnson said that the European Union's unwillingness to make any deal based on his latest proposal gave way to a No-Deal Brexit. In response to this, European Council President Donald Tusk said that the U.K. was playing the blame game and that future of Europe was at stake. He also said that the U.K. did not want an extension nor a deal or to revoke. He added that he would not accept that blame game of pinning the failure of negotiation on E.U.
He concluded that in a scenario of No-Deal Brexit, nobody would come out as the winner, and the U.K., along with E.U., would face a decline in economic growth.
The situation is moving forward to a no-deal before the next week's summit. Without that, Johnson has vowed to take Britain out of E.U. by the month's end. However, if he doesn't have a deal secured by Oct 19, he is required by English law to seek an extension.
The E.U. Officials have acknowledged that it is the strategy of the British Government to blame the responsibility of delay or no-deal Brexit onto them. E.U. has shown that they are willing to permit an extension.
Since the start of the Brexit negotiations, European Union has cleared its position that they need to keep Northern Ireland in European Custom Union unless the U.K. finds another suitable way to control the flow of goods across the Irish border without additional checking.
This chaos moved the prices of Pound to the lowest level on Tuesday and caused the Pair GBP/USD to move in the Bearish trend.
GBP/USD - Daily Technical Levels
Support Resistance
106.77 107.41
106.47 107.75
105.83 108.39
Pivot Point 107.11
GBP/USD – Daily Forecast
The GBP/USD slipped lower dramatically from 1.2280 to 1,2217 area on hard Brexit chances. The cable has violated the double bottom level at 1.2225 and has closed series of neutral candles below this, which are confirming the bearish breakout. With that being said, the GBP/USD may continue trading lower towards 1.2170 after exhibiting slight retracements.
All the best for today.