Daily F.X. Analysis, October 24 – Top Trade Setups In Forex - ECB Rate Decision Up Next
By Eaglefx On October 24, 2019 in Daily Market Analysis
The Sterling and single currency Euro both gained momentum against the U.S. dollar on Wednesday as European Union administrators postponed a verdict on whether to grant Britain a three-month Brexit extension.
UK’s PM Boris Johnson presented a proposal to rush the timeline to pass legislation for an orderly Brexit on Tuesday. But the deadline got rejected through voting in UK Parliament, which means that the Brexit process would not be completed in time for UK exiting EU on 31st October.
German 10-year Bond yields at 14:34 GMT, dropped to weekly lows near -0.42% and weighed on the single currency – Euro and caused a drop in EUR/USD in early trade session on Wednesday.
At 18:15 GMT, the Consumer Confidence from Eurozone came in as -8 for the month of September against -7 expectations. The decline in confidence of consumers also weighed on EUR/USD on Wednesday.
Economic Calendar - ECB Rate Decision Up Next
BTC/USD - Daily Analysis
Facebook Inc CEO Mark Zuckerberg admitted on Wednesday that the company’s proposed digital currency Libra was a “risky project.” He merely tried to convince skeptical U.S. legislators that it could reduce the cost of electronic payments and extend the global financial system to more people.
The value of BTC/USD, the world’s best-known virtual currency, plunged over 7% on Wednesday to $7,412. This is the lowest level since May mid.
It was not instantly apparent why the price, which began its slide around 13:40 GMT, had dropped so sharply. Bitcoin’s price on the Luxembourg-based Bitstamp exchange was last down at $7,474.
BTC/USD - Daily Technical Levels
Support Resistance
7,156.7 7,864.28
6,876.63 8,291.79
6,169.05 8,999.37
Pivot Point 7,584.21
BTC/USD – Daily Forecast
The violation of the triple bottom support level of 7750 triggered a massive drop in the BTC/USD. Recently, the daily candle has closed below the $7750 area, which has opened further room for selling in the BTC/USD. At the moment, the leading crypto pair trading at 7430 levels and we may expect a slight bullish retrace until 7550 before noting further sell-off until 7200. Further, the violation of 7200 can lead the BTC/USD prices towards the $6850 area.
EUR/USD – ECB Rate Decision to Play
The EUR/USD was opened at 1.11242 and has placed a high of 1.11394 and low of 1.11061 until now. The pair is currently trading at 1.11331 as of writing and has shown a Bullish trend for the day.
On Wednesday, initially, Euro dipped during the trading session but managed to move in the opposite direction after touching the 1.1100 neighborhoods. At this point, the market looks very noisy and seems to continue its movement in the upper trend.
The movement of Euro has been derived by the headlines of Brexit and UK politics lately. The PM Boris Johnson said that if the European Union accepts the extension for Brexit from the end of October to the end of January 2020, he would call for early elections.
On the economic data front, the German 10-year Bond yields at 14:34 GMT, dropped to weekly lows near -0.42% and weighed on the single currency – Euro and caused a drop in EUR/USD in early trade session on Wednesday.
At 18:15 GMT, the Consumer Confidence from Eurozone came in as -8 for the month of September against -7 expectations. The decline in confidence of consumers also weighed on EUR/USD on Wednesday.
However, the Euro Traders will be focusing on various ECB events on Thursday, like ECB Conference, the release of France, Germany, and bloc’s PMIs.
EUR/USD - Daily Technical Levels
Support Resistance
1.1112 1.1146
1.1092 1.116
1.1058 1.1195
Pivot Point 1.1126
EUR/USD – Daily Forecast
The EUR/USD seems to have formed a bullish flag, which was extending support at 1.1140 along with resistance at 1.1135. Typically, the bullish flag patterns get violated on the upper side, and it may lead the EUR/USD pair towards 1.1170 with a bullish bias today.
GBP/USD - Sterling On Fire Amid Brexit Updates
The GBP/USD was opened at 1.28692 and has placed a high of 1.29202 and a low of 1.28410 until now. The pair is currently trading at 1.29195 as of writing and has shown a Bullish trend for the day.
UK’s PM Boris Johnson presented a proposal to rush the timeline to pass legislation for an orderly Brexit on Tuesday. But the deadline got rejected through voting in UK Parliament, which means that the Brexit process would not be completed in time for UK exiting EU on 31st October.
UK Parliament voted in favor of Brexit deal in the first session of voting. Still, in the second session of voting, it rejected the demanded timeline of processing the Brexit deal, which is almost 115 pages. Parliament said that to thoroughly examine the Brexit agreement, the mentioned time of 3 days was not enough, and that is why it was rejected.
With the Brexit deadline ahead a few days, Johnson has decided not to put any efforts on the bill until the European Union responds to the letter of extension. Johnson was so eager to leave the UK on 31st October that he promised so much, but his move for suspending the process seems to be contradictory. It looks like he wants the EU to be responsible for deciding.
The EU has now two options left; one is to grant the demanded extension of 31st January and second to push for a technical expansion by giving a short period to allow parliament to examine the deal.
However, Johnson said that if the EU grants an extension to 31st January, then he will push for general elections, which could result in the creation of all sorts of uncertainties.
But on Wednesday, Pound gained on expectations of Brexit delay and Weak US Dollar due to less than expected House Price Index from the United States for September.
GBP/USD - Daily Technical Levels
Support Resistance
1.2863 1.2943
1.2813 1.2974
1.2732 1.3054
Pivot Point 1.2893
GBP/USD – Daily Forecast
After the violation of a bullish channel, the GBP/USD is likely to follow a current trading range of 1.2990 - 1.2844. The RSI is mostly neutral as the GBP/USD is expected to develop the above-mentioned trading range. On the way to upside, the GBP/USD may also face resistance at 1.2925, and failed to break above this level may trigger sell-off in the GBP/USD until 1.2860. Conversely, the GBP/USD can extend buying above 1.2930 until 1.2960.
All the best for today.