Daily F.X. Analysis, October 16 – Top Trade Setups In Forex - U.K. & U.S. Events In Focus!
By Eaglefx On October 16, 2019 in Daily Market Analysis
Global markets are expecting movements on the release of retail sales and inflation figures from the U.S. and U.K. The major highlight of the day was the British pound which soared to its highest level since mid-May versus the dollar, following a statement that administrators were confined to a deal for Britain to withdrawal the European Union.
Sterling spiked after the report from Bloomberg about the Brexit deal on Tuesday. It was reported that the United Kingdom and the European Union have agreed on a legal draft of Brexit deal after the meeting of both parties.
Economic Calendar - U.K. & U.S. Events In Focus
BTC/USD - Daily Analysis
Securities and Exchange Commission (SEC) of the United States is repeatedly requesting remarks on a suggested exchange-traded fund (ETF) based nearby bitcoin and Treasury bonds.
Technically, Bitcoin is facing key resistance at $8,739. At the time of writing, bitcoin is exchanging hands at $8,310, drawing a 0.1% loss on Wednesday.
It's also worth marking that moving average crossovers are depending on past prices, and these tend to lag the price action. So we can't depend on these lagging indicators.
Anyways, the Bitcoin continues to trade within a tight trading range of 8,115 - 8,340 for another day. We need a breakout to determine further trends.
BTC/USD - Daily Technical Levels
Support Resistance
8,133.86 8,654.05
7,951.34 8,991.72
7,431.15 9,511.91
Pivot Point 8,471.53
BTC/USD – Daily Forecast
The BTC/USD may gain support above 8,115 levels with a resistance of 8,340 levels. On the hourly timeframe, bullish trendline supporting the BTC/USD above 8,115 level. Today, a bullish breakout of 8,340 resistance can lead the BTC/USD prices towards 8,500 level. While bearish breakout can lead Bitcoin towards 7,724.
EUR/USD – Resistance Become Support
EUR/USD was opened at 1.10252 and has placed a high of 1.10460 and a low of 1.09912 until now. The pair is currently trading at 1.10339 and has shown a Bullish trend.
At 11:45 GMT, the French Final Consumer Price Index (CPI) for September came as expected -0.3%. The German ZEW Economic Sentiment at 14:00 GMT came as -22.8 against -27.0 expectations. The ZEW Economic sentiment for Europe came as -23.5 against -26.7 expected.
EUR/USD showed a sudden drop in the beginning trade session on Tuesday before the release of French Final CPI, but after the report was published, the pair started to gain its losses and moved in an upward trend.
The release of European & German ZEW economic Sentiment came higher than expectations and supported the upward trend of EUR/USD.
Positive comments from E.U. officials relating to the Brexit deal also gave an uprise in the 10-year German Treasury Bond Yield and supported the upward trend of EUR/USD further to place a high of 1.10460.
EUR/USD - Daily Technical Levels
Support Resistance
1.1005 1.1067
1.0972 1.1096
1.091 1.1158
Pivot Point 1.1034
EUR/USD – Daily Forecast
On the 4 hour chart, the EUR/USD has formed a descending triangle pattern, which is supporting the Euro at 1.0999 along with resistance at 1.1045. The bullish trend seems to divert now as investors are in the phase of indecision. Break below 1.0999 level can extend sell-off until 1.0975.
GBP/USD - Sterling On Fire Amid Brexit Updates
The GBP/USD was opened at 1.26063 and has placed a high of 1.27989 and a low of 1.25984 until now. The pair is currently trading at 1.27857 and has shown a robust Bullish trend.
Sterling spiked after the report from Bloomberg about the Brexit deal on Tuesday. It was reported that the United Kingdom and the European Union have agreed on a legal draft of Brexit deal after the meeting of both parties.
Earlier this news, the E.U.'s top negotiator, named Michel Barnier, said that some possibilities deal could be secured at the end of Summit - which is due this week. This news gave hopes to an orderly Brexit on the stated deadline, October 31, and caused a sharp rise in the prices of GBP/USD.
There were also rumors about an emergency Summit to be held on the said Brexit deadline only hours before the ending of the U.K.'s membership of the European Union, which is scheduled on October 31. Such a summit could only take place when there would be reasonable chances for a deal.
The draft deal is now dependent on PM Boris Johnson getting support from the Northern Irish Democratic Unionist Party, which is still uncertain. Both parties are optimistic that the end would make an agreement of Tuesday because E.U. officials have demanded the details of Brexit deal within hours rather than days ahead E.U. Summit, which is to be held on Thursday.
Apart from Brexit news, the macroeconomic data from the United Kingdom was not supportive of Sterling, but due to Brexit sensitivity, the traders almost ignored the macroeconomic sentiment on Tuesday. At 13:30 GMT, the Average earnings Index of the U.K. came in against Sterling as 3.8% in comparison of expected 4.0%. The same was with the Unemployment Rate, which came as 3.9% against 3.8% expectations.
However, the Claimant Count Change came in as expected 21.1K and had no effect on GBP.
GBP/USD - Daily Technical Levels
Support Resistance
1.2469 1.2768
1.2289 1.2887
1.199 1.3185
Pivot Point 1.2588
GBP/USD – Daily Forecast
The GBPUSD is testing the triple top resistance level of 1.2788, and a strong bullish candle on the daily timeframe is signifying odds of the further bullish trend. The pair may show a slight correction until 1.2680 level before exhibiting further buying in the GBPUSD. A bullish breakout of 1.2788 can extend buying until 1.2835.
All the best for today.