Daily FX Analysis, Aug 29 – Big Day Eurozone PMI & US Prelim GDP q/q In Highlights!
By Eaglefx On August 29, 2019 in Daily Market Analysis
On Wednesday, the dollar index, which measures the U.S. currency against a basket of six currencies, surged 0.19% to 98.186. The Chinese yuan trimmed lower to 7.1690 in foreign markets, not distant from the record low of 7.186 it placed on Monday.
Quite distinctly, the Greenback was building a mounting wedge pattern, pleasing the bears. Meantime, the USD Index continued to stay well above the red Ichimoku Clouds, aiming the 98.45 resistance handle. On the flip side, 97.16 stable support handle remained as an authoritative stoppage. The RSI stood muted near 55 levels, maintaining a neutral perspective on future actions.
Economic Calendar - Eurozone PMI & US Prelim GDP q/q
BTC/USD - Daily Forecast
During the previous session, Bitcoin’s price slid more than $600 in 30 minutes, falling back below $10,000.
Bitcoins opened the day at just under $10,200. Over the trading day, BTC broke over $10,250 a few of times. The action finished with a 30-minute sell-off. BTC observed a large pullback from $10,200 to $9,600, followed by a small bounce near $9,740, providing temporary support. At the time of writing, BTC is currently changing hands at $9,700.
BTC/USD - Daily Technical Levels
Support Resistance
9617 10805.92
9094.65 1472.49
7905.73 12661.41
Pivot Point 10283.57
BTC/USD – Daily Forecast
On the 4 hour chart, the BTC/USD was facing solid support around 9790 which has now been violated amid massive sell-off. For now, the BTC/USD has an open room for 9476 and 9300. Let's keep an eye on 9790 as BTC/USD can stay bearish below this level today.
EUR/USD – Eurozone PMI Figures Ready to Play
The EURUSD traded to close negative for the 3rd consecutive day this week to support the 2-month-old downtrend channel. Anyhow, a firm 1.1060 support level, was acting as a stoppage, preventing the downside. However, the moves haven't been big enough to change the technical side of the market.
The EUR/USD pair continues to trade sideways around the 1.1100 figure, concluding the day with moderate losses around 1.1090. The U.S. dollar bestowed an odd behavior over the board, as risk aversion drove the financial world.
Meanwhile, the Stochastic and Relative Strength Index (RSI) is indicating 19 and 10 levels, showing weak buyer interest. German September Gfk Consumer Confidence Survey rose 0.1 points reporting 9.7 points over the 9.6 points estimates.
On Thursday, the EUR/USD is likely to gain support around 1.1065 and 1.1050 while the resistance stays at 1.1115. Additionally, the EMA is also likely to keep EUR/USD lower below 1.1100.
EUR/USD - Daily Technical Levels
Support Resistance
1.108 1.111
1.1068 1.1128
1.1037 1.1159
Pivot Point 1.1098
EUR/USD – Daily Forecast
On Thursday, I will be looking to stay bearish below 1.1098 to target 1.1065 and 1.1050. Whereas, buy positions on bullish breakout of 1.1110 will be preferred.
GBP/USD – Bullish Channel Extend Support
The GBP/USD continues to be very volatile as we rushed lower. The 1.2250 level is an area of ground, and now it seems as if we will continue to see a lot of noise in this area.
On the 4 hourly charts, GBP/USD has formed a bullish channel which is extending support to sterling around 1.2175. At the same level, we also have an EMA line which is also keeping GBPUSD supported.
In case you are wondering what caused a massive slump in the GBP/USD area, well it was a result of headlines news intimating that UK PM Johnson desire to prorogue parliament until October 14th, a move meant to stop MPs opposing Brexit in the case no new deal would be reached by the end of October.
The Queen officially dissolved the Parliament and passed proroguing of Parliament as demanded by Johnson, “no earlier than Monday 9th September and no later than Thursday 12th September 2019 to Monday 14th October 2019.” Labour leader Jeremy Corbyn has proposed to meet the Queen to communicate his anxieties about the Parliament suspension, while some news indicated that Corbyn would try bill next week to block PM Johnson's plan.
On the technical front, the GBPUSD has formed a bullish channel which is keeping Sterling supported above 1.2170, whereas the violation of this level could send GBPUSD deeper towards 1.2115. On the upper side, resistance continues to stay at 1.2300. Overall sentiment remains bullish above 1.2170.
GBP/USD - Daily Technical Levels
Support Resistance
1.2151 1.2283
1.2088 1.2351
1.1956 1.2483
Pivot Point 1.2219
GBP/USD – Daily Forecast
Two ideas. First is to stay bearish below 1.2220 to target 1.2180. Second is to stay bullish above 1.2170 with a target of 1.2250.
All the best!