Daily F.X. Analysis, September 12 – Top Trade Setups In Forex - ECB Rate Decision Day!
By Eaglefx On September 12, 2019 in Daily Market Analysis
Finally, the wait is over, and the European Central Bank is likely to reveal it's interest rate later in the day. On Wednesday, the U.S. dollar index climbed on as U.S. security yields extended its bullish run on inflation data. Whereas, the reversal in the loonie amid sinking WTI crude oil prices also boosted the Greenback.
Overall, the dollar index that estimates the Greenback strength against a trade-weighted basket of six major currencies increased by 0.33% to 98.65. Most of the bullish trend in the dollar was triggered on the back of the producer price index, which increased by 0.1% last month, in line with economists' estimates.
Economic Calendar - ECB Monetary Policy Decision
BTC/USD - Daily Forecast
The BTC/USD hasn't changed so far after it gradually decreasing and broke above the $10,000 resistance area versus the U.S. Dollar. The price is experiencing challenges to cross over the bearish trendline resistance areas. It might extend to struggle around $10,450 and $10,800.
Looks like, we don't have much demand for the leading cryptocurrency as investors are eyeing the ECB and stock markets amid risk-on sentiments.
Speaking about the technical side of the market, the BTCUSD has not changed much. It continues to trade sideways trade below 50 periods exponential moving average, which is extending strong resistance at 10,400. Below 10,400 trading level, the Bitcoin is likely to go after 9,820. The RSI and Stochastics have entered the selling zone, crossing below 50 regions.
BTC/USD - Daily Technical Levels
Support Resistance
10,055.76 10,785.19
9,768.66 11,227.52
9,039.23 11,956.95
Pivot Point 10,498.09
BTC/USD – Daily Forecast
On the daily timeframe, the BTCUSD is getting strong support above the triple bottom level of 9920. Resistance is likely to stay at the same level of around 10250. Sentiment will remain mixed until we have a bullish breakout above 10250 as it may open further room for buying until 10,355 and 10,402. Whereas, below 10,250 BTC can remain bearish until 9985.
EUR/USD – ECB Rate Decision In Highlights
On Thursday, the market is all about ECB monetary policy decision which is due later in the European session today. The single currency Euro suffered dramatically to fall from 1.1066 area to 1.0980 zones on the back of rate cut sentiments.
The European Central Bank (ECB) will declare its verdict at 11:45 GMT, which is also followed by a press conference with ECB President Mario Draghi at 12:30 GMT.
Most of the measures are likely to be released at 11:45 GMT via minimum bid rate and monetary policy statement. However, if ECB decides to keep the rate unchanged, then the Press Conference will be worth monitoring for forwarding guidance.
EUR/USD - Daily Technical Levels
Support Resistance
1.1012 1.1049
1.0997 1.1072
1.096 1.111
Pivot Point 1.1035
EUR/USD – Daily Forecast
The ECB is due to release it's monetary policy decision today, and the market is expecting a rate cut or a dovish statement from ECB. Which is why we see a sharp bearish trend in the EUR/USD. Today is a momentous day and EUR/USD trading heavily depends upon the rate decision.
The rate cut by ECB can trigger sell-off until 1.0925 while no rate and neutral policy can drive sharp buying in the EUR/USD until 1.1064 and 1.1155.
GBP/USD - Breakout Setup In Highlights
GBP/USD has been trading sideways within a narrow trading range of 1.2380 - 1.2330 as investors didn't find any significant reason to trade the Cable.
Overall, the fundamentals impacting the Sterling is related to Brexit theme. Since the Parliament is closed, the market is expecting one thing: NEWS!
The higher number of news will drive a significant amount of volatility in the market, and it's good for us to capture a breakout in GBP/USD. Wait for headlines, concerning the Irish border, hard Brexit, soft landing Brexit, and the identical to drive further trends in the GBP/USD.
BP/USD - Daily Technical Levels
Support Resistance
1.2264 1.233
1.2238 1.237
1.2171 1.2436
Pivot Point 1.2304
GBP/USD – Daily Forecast
Sterling hasn't moved much, and technical levels are almost the same. Sterling still has strong support at 1.2300, and the bearish breakout can trigger a sell-off until 1.2255. While the continuation of a bullish trend and breakout of 1.2370 resistance can lead GBP/USD towards 1.2400 and 1.2424.
All the best for today.