Daily F.X. Analysis, October 28 – Top Trade Setups In Forex - NFP Week Ahead!
By Eaglefx On October 28, 2019 in Daily Market Analysis
The dollar remained weak due to the possibility of the third rate cut by the Fed this month. In addition to the downward movement of EUR/USD, the possibility of the German Economy falling into recession is still on board, and it has given a continuous downward pressure to Euro currency.
PM Boris Johnson wants to leave on the said deadline of 31st October but has failed to achieve it due to the UK Parliament rejection over his provided timetable, which was very short for reviewing the proposed agreement of Brexit by Johnson.
Economic Calendar - Parliament Brexit Vote
BTC/USD - Daily Analysis
Lately, there were massive swing movements in BTC from the $7,500 support versus the US Dollar. The BTC/USD pair returned more than 20% and slashed much resistance near $8,500 and $9,000. Furthermore, the BTC/USD candles closed above the $8,500 hurdle area and the 100 simple moving average (4-hours). Lastly, the price increased over the $10,000 resistance and traded near to the $10,600 resistance zone.
The BTC/USD exhibited dramatic buying on Friday and during the weekend. The leading crypto pair surged to trade below 10,000 psychological trading levels. On the 4 hourly charts, the BTC/USD is forming a Doji candle, but it's still not concluded yet.
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
We need to keep an eye on it as the closing Doji or Spinning Top candle below 10,000 level can bring bearish retracement until 8,900 and 8,600. That's the same level where bearish trendline got violated, and that may extend support to the BTC/USD in the short run. On the upper side, 10,350 and 10,750 remain strong resistance.
EUR/USD – Retracement Completed
The EUR/USD was closed at 1.10794 after placing a high of 1.11228 and low of 1.10729. Overall the trend of EUR/USD remained Bearish that day. At 11:00 GMT, the German Gfk Consumer climate declined to 9.6 against the expectations if 9.8 and weighed on single currency Euro.
However, at 13:00 GMT, the German Ifo Business Climate came more than expected for this month as 94.6 against 94.5 expectations.
The mixed macroeconomic data from Eurozone made it difficult for EUR/USD to set a direction. The pair gave gains in early sessions on Friday but failed to move in the same direction later because of weakness in US dollars.
The dollar remained weak due to the possibility of the third rate cut by the Fed this month. In addition to the downward movement of EUR/USD, the possibility of a recession affecting the German Economy is still likey, adding downward pressure to Euro currency. On Monday, the German Import Prices, Money Supply, and Private Loans will be released and further decide the movement of this pair.
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 has violated the 1.1100 support level, and now it's holding right above the bullish trendline, which is extending support at the 1.1065 area. At the same time, the 50 periods EMA is also extending support around 1.1065 zone, which also marks 38.2% Fibonacci retracement level. On the upper side, the immediate resistance stays at 1.1092/1.1100; hence, the EUR/USD may remain bearish and bullish above these levels.
GBP/USD - Sideways Range In Play
The GBP/USD was closed at 1.28309 after placing a high of 1.28629 and a low of 1.28039. Overall it showed a Bearish trend for that day.
British Pound continued to drift a little during the trading session on Friday. This is the market that has been overbought and is still showing a Bullish capability.
On Friday, the Pound showed a drop because of the confusion prevailing in the market about the departure of the United Kingdom from the European Union. Whether the UK will leave next week from the EU or not is a big question in the market. The confusion is raised because of no-progress from both sides this week.
PM Boris Johnson wants to leave on the said deadline of 31st October but has failed to achieve it due to the UK Parliament rejection over his provided timetable, which was very short for reviewing the proposed agreement of Brexit by Johnson. However, Parliament did accept the agreement itself but rejected the given time to process the Brexit deal in 3 days.
Johnson has asked the EU for a grant of extension, and the EU is postponing its decision, which has put more pressure on Pound due to increased confusion. Because in case the EU grant the extension, the PM Boris Johnson has said that he would call for general elections. So the decision is somehow dependant on the EU.
Though the Pound dropped at the ending days of the week on Friday, it showed a soft downward trend as compared to the Thursday’s drop.
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
The GBP/USD currency pair entered into the overbought zone, with the RSI value crossing above 80 levels. Consequently, we observed bearish correction in the Cable from 1.3035 to 1.28175, the 23.6% Fibonacci retracement level.
Today, 1.2832 remains the fundamental trading level as below this; the GBP/USD pair can continue to trade lower until 1.2750. Alternatively, the bullish breakout of 1.2835 can lead the Cable towards 1.2920.
All the best for today.