Daily F.X. Analysis, Sep. 23 – Top Trade Setups In Forex - ECB Draghi In Highlights!
By Eaglefx On September 23, 2019 in Daily Market Analysis
On Monday, the U.S. dollar is supported as the market's appetite for risk cautiously restored following discussions in Washington between U.S. and China. Investors feel more confident about the market, primarily because the trade talks are described as "productive."
The greenback overtook against the safe-haven yen but trimmed lower against the trade-exposed forex currencies, for instance, the Australian and New Zealand dollars, which surged on the wary risk-on mood.
Today's one of the major highlights includes the ECB President Draghi Speech which may help us drive some movements in the market.
Economic Calendar - ECB Draghi Speech
BTC/USD - Daily Analysis
During the previous week, there were big moves in BTC/USD which finally fell below the $10,400 resistance area against the U.S. Dollar.
The BTC/USD dipped distinctly beneath the $10,000 support level to test the $9,650 point.
Lately, the leading crypto pair bounced off over the $10,000 and $10,200 trading zones. Nevertheless, the price fought to shatter the $10,400 resistance zone and the 100 SMA.
Consequently, the BTC/USD formed a double top pattern of around $10,083 area and closed candles below this. Now the same level is driving the bearish trend in the BTC/USD.
BTC/USD - Daily Technical Levels
Support Resistance
10,054.17 10,218.93
9,977.28 10,306.8
9,812.52 10,471.56
Pivot Point 10,142.04
BTC/USD – Daily Forecast
Despite volatile session, the BTC/USD continues to trade in the same trading range of 9297 - 10250. BTC/USD is trading at 9957 right now, with immediate support at 9816. A bearish breakout of 9816 can extend bearish rally until 9565. While on the upper side, 10250 remains the key resistance level.
EUR/USD – Manufacturing Data & ECB Ahead!
On Friday, EUR/USD closed on $1.10187 after placing a low of $1.09962. The overall trend of this pair remained bearish on the closing day of the week. This pair showed many ups and downs during last week and had no consistent movement.
On Friday, September 20 at 11:00 GMT, there was a release of German Producer Price Index (PPI) which came in negative as -0.5% as compared to the forecast 0.0%. It caused the pair movement towards downward making it short sell at closing day.
Another reason for EUR/USD Pair to move downward was the rise of U.S. Dollar Index on Friday due to the hopes given by Fed Chairman Powell about no guarantee over further rate cuts. Fed cut interest rates by 0.25% on Wednesday last week but provided mixed signals over any future rate cuts.
EUR/USD - Daily Technical Levels
Support Resistance
1.0988 1.106
1.0956 1.1016
1.0885 1.1171
Pivot Point: 1.1028
EUR/USD – Daily Forecast
The EUR/USD is forming a bearish setup below 1.1025 resistance area. We may see a bearish trend in EUR/USD if the pair manages to hold below 1.1025 area, with a bearish target of 1.0995. Whereas, the bullish bias can be seen over 1.1025 zones with an immediate goal of 1.1045.
GBP/USD - Weaker Inflation Weights
On Friday, The GBP/USD pair closed on $1.24670 after placing a low of $1.24590. The overall trend of pair for that day remained downward.
Last week on Thursday, Jean Claude Junker, European Commissioner President said in an interview that there was still hope that U.K. and E.U. could make a deal to avoid a disorderly Brexit by the end of October.
He also mentioned about the latest proposal from the U.K. to break the deadlock over "Irish Backstop."
According to that proposal in future, Northern Ireland, a UK Province, would be likely to stay aligned with E.U. Regulations. This made the GBP currency to move upward on Thursday and created a bullish trend for the pair GBP/USD.
In response to which on Friday, Simon Coveney, an Irish Foreign Minister called the progress mentioned by the U.K. as "spin" and said that there was still a "large gap" between E.U. and U.K. to make a deal. The latest proposals by the U.K. mentioned by Juncker were not legally binding, yet they do not meet the .. E.U.'s legal guarantee protocols.
GBP/USD - Daily Technical Levels
Support Resistance
1.2540 1.2544
1.2539 1.2547
1.2536 1 .2548
Pivot Point 1.2543
GBP/USD – Daily Forecast
Sterling is facing a hard time crossing over 1.2570 area as it marks the double top pattern here. Whereas, the GBP/USD has also formed a tweezers top pattern which is adding further hurdles in for bulls. Below 1.2570, the GBP/USD may continue to trade bearish with immediate support at 1.2465 and 1.2435 areas.
All the best for today.