Daily F.X. Analysis, Oct 10 – Top Trade Setups In Forex - GDP and CPI Figures In Focus! 

On Thursday, the financial market's focus stays on the range of high impact economic events such as the U.S. CPI and U.K. GDP, which are due to come out during the day. 

There was no macroeconomic release from the European side, and as of the American side, the Final Wholesale Inventories at 19:00 GMT, came in favor of Dollar as 0.2% against expected 0.4%. 

However, the JOLTS Job Openings with 7.05M against 7.35M expectations weighed U.S. dollars. So, the data release from the United States had almost null-effect on EUR/USD.

Economic Calendar -    U.S. CPI and U.K. GDP Ahead

 BTC/USD - Daily Analysis

Bitcoin (BTC) soared 5.1% to trade at the highest price in three weeks following the Federal Reserve (Fed) remarks it would issue money to grow the volume of bank reserves – seen as a move by the U.S. central bank that could trigger inflation.

Moreover, the speculation that SEC might allow ETF employment by Bitwise is feeding confidence that more investors could allot funds to the cryptocurrency.

Lately, the Bitcoin has undergone an abrupt drop in late September, dropping from over $10,000. While the monthly futures contracts of BTC's first week of trading, it succeeded in earning just $5 million of cumulative volume, frustrating industry watchers who had expected a higher uptake from large institutional traders.

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 has also violated the bearish trendline like resistance at 8140 levels to place a high around 8,700 resistance levels. Now, the BTC/USD can exhibit bearish retracement until 38.2% Fibo levels at 8,400. On the upper side, resistance continues to stay at 8,650 and 8,710.

EUR/USD –  ECB Monetary Policy Meeting Accounts 

The EUR/USD was closed at 1.09710 after placing a high of 1.09901 and a low of 1.09514. The overall movement remained Bullish that day.

From the Eurogroup meeting, so far, only the following comment was reported: The head of Eurozone Finance Ministers, Mario Centeno, said that the Eurozone countries with fiscal space should invest in boosting economic growth.  

There was no macroeconomic release from the European side, and as of the American side, the Final Wholesale Inventories at 19:00 GMT, came in favor of Dollar as 0.2% against expected 0.4%. But the JOLTS Job Openings with 7.05M against 7.35M expectations weighed U.S. Dollar. So, the data release from the United States had almost null-effect on EUR/USD.

But on the news front, U.S. Dollar was under headlines on Wednesday because of US-china Trade talks and Jerome Powell's speech. In a statement on Tuesday, Fed Chairman Jerome Powell gave a hint on the possibility of further action before the end of the year, which weighed on U.S. Dollar and caused an upward trend of EUR/USD.

As for the trade talks are concerned, China stated that they were willing to open a partial trade deal despite the blacklisting of Chinese firms by the United States. China has even offered to increase the purchase of Soybeans from American farmers as a measure of goodwill before trade talks. This also weighed on U.S. Dollar and supported the Bullish trend of EUR/USD on Wednesday.

Despite weak U.S. Dollar, the rise in the prices of EUR/USD was not that high as it should be; this was because of the uncertainty prevailing in the market related to deal settlement between European Union and the United Kingdom regarding the Brexit agreement with a deadline ahead this month.

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

As discussed previously, the EUR/USD gained support at 1.0949 area and bounced off above this level after forming a Doji pattern. For now, the same level is working as a support for the EUR/USD pair. While the significant resistance can be seen at 1.0997. Just like the GBP/USD, the EUR/USD may also trade choppy within a range of 1.0997 - 1.0949, until this range is violated. By the way, the bullish break seems more likely, and it may lead to EUR/USD towards1.10250.

GBP/USD - UK GDP Figure In Focus 

A day before, GBP/USD was closed at 1.22039 after placing a high of 1.22909 and a low of 1.21974. The overall movement remained Bearish that day.

In the early session of Wednesday, a report stated that European Union was ready to make a significant concession on Brexit Deal by offering a mechanism for Northern Irish assembly to leave a new so-called backstop after several years. After the release of this news, there was a sharp rise in the prices of GBP/USD. But later, the E.U. denied and called this news as fake and made the movement of pair in the previous trend.

Later, on Wednesday, Scotland's high court said that it would wait to decide any action on Prime Minister Boris Johnson to ask for Brexit Delay on the failure of securing a deal by Oct 19 with the European Union.

It has been three years since the U.K. voted to leave the European Union and to work out this departure, a deal has not yet been secured between both parties due to conflict of interests. U.K. Prime Minister, Boris Johnson, has vowed that he would not seek an extension and make Brexit happen on said deadline I,e Oct 31 and without breaking any law. But the law compels him to ask for a delay in case of failure to reach a deal.

Some opponents fear that he might have found a loophole while others think he is bluffing. It is now up to judges to decide whether to delay Brexit or not. 

And judges have now announced that they would take a decision after E.U. Summit, which has increased uncertainty in the market and weighed on Sterling?

Sterling showed a sharp fall in the prices on Wednesday and placed a low of 1.21974 that day.

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 hard Brexit sentiments are keeping the Sterling on knees. Therefore, the GBP/USD is exhibiting a sharp bearish movement. The cable is trading at 1.2221 after gaining support around 1.2198. The overall trend seems choppy as the GBP/USD can continue to trade in between 1.2280 - 1.2108 range. However, the bearish breakout may extend the GBP/USD selling until 1.2170 after exhibiting slight retracements.

All the best for today.