Daily F.X. Analysis, October 31– Top Trade Setups In Forex - Fed Rate Cut Plays
By Eaglefx On October 31, 2019 in Daily Market Analysis
In FOMC held on Wednesday, fed decided to cut its interest rates by 25 basis points and keep them till a significant move up in inflation.
It weighed on U.S. Dollar and reversed the EUR/USD movement towards the upside.
Fed made a 25 basis point cuts in its interest rates and said that it would pause for further easing until inflation goals are met. The U.S. Dollar suffered amid the Fed Rate cut against its peer currencies.
Economic Calendar - Fed Rate Cut Plays
BTC/USD - Daily Analysis
The Bitcoin drops lower from Tuesday's high of $9,512 to trade at $9,170 by news time. The BTC/USD has fallen 2% both on a day-to-day basis and since the inception of the day, moving inside the short-term bearish trend amid growing volatility.
This momentum was undeniably bullish. Nonetheless, not everyone is convinced that the bounce places Bitcoin in the decisively bullish area, as there prevails some evidence to suggest that the trend is quite negative.
The BTC/USD mostly traded the same technical levels due to a lack of volatility in the leading crypto pair. It's primarily due to the Federal Reserve rate cut decision, which drove most of the trading volume in the gold, stock market, and the U.S. competitor currencies.
BTC/USD - Daily Technical Levels
Support Resistance
9,157.11 9,627.45
8,889.01 9,829.69
8,418.67 10,300.03
Key Trading Level: 9,359.35
BTC/USD – Daily Forecast
The BTC/USD lately violated the 23.6% Fibonacci support level of 9,345, and now its gaining support above 38.2% Fibonacci support level. The BTC/USD may find an immediate resistance at 9,220 and 9,460 along with support at 8,975, and below this, the BTC/USD can go after 8,670.
EUR/USD – 1.1100 Stays In Eyes
TheEUR/USD closed at 1.11516 after placing a high of 1.11533 and low of 1.10800. The overall movement for this pair remained Bullish that day.
At 11:30 GMT, the French Flash GDP came at 0.3% and surpassed the expectations of 0.2%. The German Prelim CPI also showed growth to 0.1% against the expected 0.0%. However, the French Consumer Spending at 12:45 GMT dropped to -0.4% from the expectations of 0.0%. The Spanish Flash CPI at 13:00 GMT remained flat at 0.1%. At 13:55 GMT, the German Unemployment Change came against Euro currency as 6K against the expectations of 2K.
With mixed data from Eurozone, the pair continued to show mixed movements during the early session according to macroeconomic releases.
However, after 23:00 GMT, the pair EUR/USD is holding a steady Bullish Position after the announcement of 3rd rate cut by Federal Reserve of U.S. In the FOMC held on Wednesday, FED decided to cut its interest rates by 25 basis points and keep them till a significant move up in inflation.
It weighed on U.S. Dollar and reversed the EUR/USD movement towards the upside. From a 20-day moving average, EUR/USD bounced sharply at 1.1075 and raised almost more than 50 pips on Wednesday. Euro broke above 1.1130 range and reached 1.1149, where it is holding a top position as of writing.
EUR/USD - Daily Technical Levels
Support Resistance
1.1104 1.1178
1.1055 1.1203
1.0981 1.1277
Key Trading Level: 1.1129
EUR/USD – Daily Forecast
On the 4 hour chart, the EUR/USD is likely to test and form a double top level at 1.1175 area. Closing of candles below this is expected to keep the EUR/USD bearish below 1.1175 level. The EMA is left far behind around 1.1125, and this can offer bearish retracement of up to 38.2% (1.1135) today. Besides, the bullish breakout of this level will open further room for buying until 1.1230.
GBP/USD - Sideways Range In-Play
The GBP/USD closed at 1.28994 after placing a high of 1.29073 and a low of 1.28450. The overall movement for this pair remained Bullish that day.
At 5:01 GMT, the BRC Shop Price Index from the United Kingdom came as -0.4%. On Brexit front, the U.K. Parliament agreed to have general elections on December 12, and the U.K. opinions polls clearly suggested that the chances for Conservative Party to win in general election are more. After the news, GBP/USD moved in an upward direction on Wednesday.
The pound has gained over 6% in the current month on the ground of No-deal Brexit, which is now off the table after accepting the grant of extension of 3 months from E.U. However, if Parliament manages to pass Johnson's Brexit deal into law, then the rise in Pound can be extended further.
On the other hand, the Bullish trend of GBP/USD was highly supported by the U.S. Federal Reserve decision to cut its rates for 3rd time this year on Wednesday. Fed made a 25 basis point cuts in its interest rates and said that it would pause for further easing until inflation goals are met. The U.S. Dollar suffered amid the Fed Rate Cut and supported the GBP/USD to move in a bullish direction to place a high of 1.29073.
GBP/USD - Daily Technical Levels
Support Resistance
1.2862 1.2926
1.2822 1.2949
1.2758 1.3013
Key Trading Level: 1.2885
GBP/USD – Daily Forecast
The GBP/USD continues to trade bullish, and on the hourly chart, it has violated the upward channel. The bullish trend line was extending its resistance around 1.2950, but that level has already been violated. The GBP/USD may find an immediate resistance at 1.2950 level, and above this, 1.2985 will be in focus. On the lower side, 1.2906 is likely to keep the GBP/USD supported today.
All the best for today.