Daily F.X. Analysis, September 18 – Top Trade Setups In Forex - Fed Rate Decision In Focus! 

It's a big day, traders. The market has waited for this day since ECB cut the interest rate and now we have Federal Reserve monetary policy meeting. 

The U.S. dollar slipped in sideways trading on the verge of an anticipated cut in the U.S. interest rate by the Federal Reserve. Moreover, a drop in crude oil prices and stronger Euro are also weighing on the U.S. dollar. 

Lately, the crude oil prices slumped nearly 6% on Tuesday following Saudi Arabia's energy minister announced the Kingdom had wholly recovered its oil out. Consequently, the news managed to invert some of the dollar's gains. 

Economic Calendar - Fed Rate Decision

BTC/USD - Daily Analysis

Bitcoin hasn't changed much as investors continue to trade the crude oil fundamentals, ECB and now the focus shifts to Federal Reserve. 

The BTC/USD is trading in a tight trading range of 10,400 - 10,100 and still trying to determine the momentum, either bullish or bearish, above the $10,400 resistance area versus the Greenback. The latest wave was made around $10,280, but it's even below the previous swing high of around 10,480. 

On the technical front, the 50 periods moving average is showing the bearish bias of traders for the BTC/USD as its extending resistance at 10,250 area. Above this level, BTC may find strength at $10,437 level, the previous swing high. While support prevails around 10,170 and below this, it has a chance to fall further. 

BTC/USD - Daily Technical Levels

Support    Resistance 

10,138.49   10,399.33

  9,977.19    10,498.87

  9,716.35    10,759.71

Pivot Point 10,238.03

BTC/USD – Daily Forecast

BTC/USD is still trading in the Symmetric Triangle Pattern, which is supporting it around 10,000 level along with resistance at 10,400 level. A bearish breakout can drive sell-off until 99100 area, and the bullish breakout is likely to push BTC towards 10,500 and 10,700.

EUR/USD – Horizontal Resistance & Doji Pattern

The single currency Euro surged sharply to trade at 1.1070 area, as the U.S. dollar weakened ahead of FOMC meeting today. A day before, better than expected U.S. Industrial Production and Capacity Utilization disappointed to gratify the U.S. Dollar (USD) bulls. 

Moreover, the investors paid more attention to the better than anticipated data of the Germany ZEW Economic Sentiment, helping Eurozone gaining significant support. 

Technically, the pair is holding just below a solid resistance area of 1.1070, and closing of candles below this level are signaling to trigger a sell-off in the market. 

The Fibonacci retracement is suggesting odds of a bearish reversal below 1.1070 area, while the pair can go after 23.6% support area of around 1.1050 and below this 38.2%, Fibo level of 1.1040 will be on the radar. 

EUR/USD - Daily Technical Levels

Support Resistance 

1.1016     1.1101

1.0961     1.113

1.0876     1.1215

Pivot Point 1.1045

EUR/USD – Daily Forecast

The EUR/USD is trading sideways, testing the intraday resistance level of around 1.1075, having formed a Doji candle on the 4-hour timeframe. It's suggesting chances of a bearish reversal in EUR/USD. On the lower side, support stays at 1.1020 and 1.9998. Violation of 1.1090 can drive strong bullish moves in EUR/USD today.

GBP/USD - Bearish Retracement in Play

The GBP/USD is trading around 1.2485 area, mostly following the bullish trend as investors felt optimistic about the Brexit delay and no Brexit deal. Besides, the U.S. dollar is also under pressure due to FOMC and Fed rate cut sentiments. 

The Sterling traded lower a bit early during the early Asian session on Tuesday, but it continued to find support around 1.2400 is along with resistance at 1.2520. 

While the GBP/USD hold's around 1.2500 regions, investors are confused about buying it as it looks too expensive at the moment. So there's a chance that people will wait for the FOMC and Fed rate decision before taking further bullish positions in the GBP/USD. 

Short term trend seems bullish for GBPUSD with an immediate resistance at 1.2510 area. The bullish breakout can lead the Cable towards 1.2570 today. Most of the moment depends upon the Federal Reserve today. The rate cut may drive the bullish trend, while no rate cut can drive sharp bearish movements in the market.

The RSI is coming out of the bullish zone, suggesting chances of a bearish retracement. While the EMA has left far away around 1.2420, which is giving functional enough space for the retracement. 

GBP/USD - Daily Technical Levels

Support Resistance 

1.2392     1.2472

1.2355     1.2516

1.2274     1.2597

Pivot Point 1.2436

GBP/USD – Daily Forecast

I will be considering to stay bearish below 1.2500 area to target 1.2460 and 1.2425 levels. While buying can be seen above 1.2525 regions today. 

All the best for today.