Daily F.X. Analysis, Oct 11 – Top Trade Setups In Forex - Canadian Labor Report Ahead! 

On Friday, most of the investor's focus stays on the U.S. - China trade talks. The United States and China started its top-level negotiations in Washington. After the meeting, it was reported in South China Morning Post that there was no progress in deputy-level trade-talks and that Liu would cut his visit short. 

The last month's Federal Reserve meeting minutes were issued on Wednesday, which showed increasing concern about the market expectations on further rate cuts this year. The U.S. Consumer Price Index (CPI) showed a drop in September and increased the possibility of further rate cuts by fed and made U.S. Dollar weaker on Thursday. 

The ECB lowered its deposit rates by ten basis points and introduced a new bond-buying program that would schedule in November. Bank's officials highly criticized this decision as it would lead to less growth and lower productivity.

Economic Calendar - Canadian Labor Report Ahead

BTC/USD - Daily Analysis

Lately, there was a definite surge in bitcoin over the $8,602 and $8,652 resistance areas versus the US Dollar. Besides, the price fastened over the $8,800 resistance zone and endured well over the 100 hourly simple moving average. 

The price traded near to the $8,950 level and made a fresh weekly high at $8,934. Nevertheless, the price attempted to stay more elevated, and there was a definite drop under $8,800.

In addition to this, the price breached the 61.8% Fib retracement point of the current rally from the $8,457 low to $8,934 peak. There is a big red candle closing on the hourly graph with the body beneath $8,600.

The price of Bitcoin even traded under the last swing low at $8,457. However, the $8,400 support area is acting as a support. More importantly, there is a primary bullish trend line setting with support near $8,400 on the hourly graph of the BTC/USD.

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

On Friday, the BTC/USD continues to trade with the same technical analysis as before. BTC violated the bearish trendline like resistance at 8140 levels to place a high around 8,700 resistance levels on Thursday. 

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 –  Ascending Triangle Breakout 

The EUR/USD was opened at 1.09704 and has placed a high of 1.10338 until now. The pair is currently trading at 1.10109.

At 11:00 GMT, the German Trade Balance was released, which dropped in September to 18.1B against 19.4B expectations. The French Industrial Production at 11:45 GMT also shows a drop to -0.9% against 0.2% forecast. However, the Italian Industrial Production at 13:00 GMT showed growth to 0.3% against 0.2% expectations.

In the early session on Thursday, EUR/USD showed a sharp rise in its prices due to weaker USD, but in the late session, the pair started to fall after the release of European Central Banks’ Monetary Policy Meeting Accounts. The meeting accounts suggested that there was strong opposition to the monetary easing package by Mario Draghi last month. It weighed on single currency I,e Euro and caused a downfall in EUR/USD prices.

ECB lowered its deposit rates by ten basis points and introduced a new bond-buying program that would schedule in November. Bank’s officials highly criticized this decision as it would lead to less growth and lower productivity.

The last month’s Federal Reserve meeting minutes were issued on Wednesday, which showed increasing concern about the market expectations on further rate cuts this year. The US Consumer Price Index (CPI) showed a drop in September and increased the possibility of further rate cuts by fed and made US Dollar weaker on Thursday.

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 EUR/USD has violated the ascending triangle pattern at 1.0996, and now the same level is working as a support. On the upper side, the EUR/USD may find resistance at 1.1025. A bullish breakout of this level can extend bullish bias until 1.1069

GBP/USD - Sterling On Fire Amid Brexit Updates 

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's been three long 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. For now, it's up to judges to determine 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

1.2177       1.2285

1.2133       1.2348

1.2025      1.2455

Pivot Point 1.224

GBP/USD – Daily Forecast

The GBP/USD is challenging the 1.2450 handles while spanning the entire October range. The bullish Marobuzo candle on the daily timeframe seems risky for sellers as it suggests further buying in the GBP/USD. On the upper side, the GBP/USD may find resistance at 1.2350 today, while support remains at 1.2370.

All the best for today.