Daily FX Analysis, Sep 04 – Top Trade Setups In Forex - BOC In Highlights!
By Eaglefx On September 04, 2019 in Daily Market Analysis
During the early Asian session, the U.S. dollar gave up a two-year high reached on Wednesday versus a basket of six major currencies to trade at 98.915. Besides, the index also gave up ground to the yuan and steady against the euro, with one euro buying $1.0975.
The British pound slipped dramatically on Wednesday in the wake of a parliamentary vote removing the door for another Brexit delay, while the dollar drifted lower after soft manufacturing data generated sentiments of aggressive U.S. policy easing.
Economic Calendar - BOC Policy Rate In Highlights
On the technical side, the focus stays on a series of high impact economic events such as monetary policy decisions from the Bank of Canada, U.K's Inflation Report Hearings and Trade Balance figure from Canada.
BTC/USD - Daily Forecast
On Wednesday, the leading cryptocurrency Bitcoin (BTC) continues to eye $11,000, with mostly registering minor gains on the day. The price of Bitcoin (BTC) has surged over the past few days and has again passed the $10,500, the triple top level.
Bitcoin continues to display extraordinary price movement after trading close to $10,300 for the better part of the day. At the time of writing this setup, the leading cryptocurrency is trading at $10,718 — up 2.9% on the day,
The BTCUSD has already violated the immediate resistance area of 10,500 after violating the psychological area of 10,000. On the upper side, the BTCUSD is likely to go after 11000 levels, but before this, we may experience a slight bearish retracement in Bitcoin.
The RSI and Stochastics, both are trading in the overbought zone, suggesting investors may do profit takings before making further bullish moves.
BTC/USD - Daily Technical Levels
Support Resistance
10401.74 10885.72
10104.25 11072.21
9620.27 11556.19
Pivot Point 10588.23
BTC/USD – Daily Forecast
BTC/USD violated the resistance level of 10,450 to reach below the next target level of 10,850. For the moment, the BTCUSD is trading at 10550 and is likely to gain support around 10440. Above this, BTCUSD is likely to trade bullish until 10850, and below 10440, the BTC can slip further until 10285.
EUR/USD – Oversold RSI & Fibonacci Retracement
The EUR/USD currency pair remained its 6-day losing streak, which was the longest in 5 months and the pair may increase above 1.10 during the European session.
The EUR/USD currency pair formed a Dragonfly Doji candle yesterday, which is leaving hints of indecision and potential trend reversal. When the candle forms at the bottom of a downtrend, as is the case with EUR/USD currency pair, that is considered an indication of a bullish reversal. Therefore, the chances o the EUR/USD pair returning the former support-turned-resistance of 1.10 is high.
The European Central Banks approved President Lagarde is scheduled to deliver a speech at 07:00 GMT. The next Europan Central Bank President Christine Lagarde will be questioned by European Parliament lawmakers about how she plans to control the monetary policy.
However, the break above 1.10 will likely continue to elusive if President Christine Lagarde will repeat his point that monetary policy needs to remain highly accommodative and also shows aggressiveness to use all ways to counter the economic recession and weaker inflation.
EUR/USD - Daily Technical Levels
Support Resistance
1.0938 1.0991
1.0905 1.1012
1.0852 1.1065
Pivot Point 1.0959
EUR/USD – Daily Forecast
The EUR/USD has reversed as investors seem to do profit-taking ahead of big news today. The EUR/USD is now likely to face resistance at 1.0982, and the violation of this level can extend bullish rally until 1.1020. On the lower side, the immediate support prevails around 1.0965 and 1.0935.
GBP/USD – Hopes for Brexit Delay Rally Sterling
Today in the early Asian session, the GBP/USD currency pair stepped on the recovery track and took the buying to 1.2110 ahead of having seen the United Kingdom parliaments support to avoid a no-Brexit deal.
During the Asian session, the British lawmakers gave the vote in favor of the motion that the UK Prime Minister Boris Johson will push to seek the Brexit deadline reprieve from 31 October to end of January, Besides this also leaving the chances open for the further delay until making a deal with the bloc.
Between all supporters of the moton, twenty-one Tory Rebels including ex-Chancellor Philip Hammond they all have wasted their interest. As well as PRime Minister Brosi Johnson has declared that he will call for a motion in the order of support early election which is due in mid-October.
On the other hand, Monthly Services Purchasing Managers Index numbers for August will also be the key to direct near-term the pair moves.
Therefore, on the flip side the United States and China trade war news and Federal Reserve policymaker's comments, including the Federal Reserve Bank of St. Louis President James Bullard and Federal Reserve of Chicago President Charles Evans, will be important to watch.
GBP/USD - Daily Technical Levels
Support Resistance
1.1992 1.2147
1.1897 1.2209
1.1742 1.2364
Pivot Point 1.2053
GBP/USD – Daily Forecast
The GBP/USD pair plunged to 1.1957 its lowest since October 2016, solely to reach about 150 pips and settle in the 1.2080 price region. The Sterling is all about the armed fight between UK PM Johnson and the Parliament these days.
The GBP/USD pair is hanging just above the 1.2100 level, and the 4 hours chart shows that the recovery stalled below all of its moving averages, with the 50 EMA maintaining its bearish slope below the larger ones. Technical indicators have recovered from extremely oversold scenario but have entered the oversold region now
The pair would likely respond distinctly to Brexit-related headlines, with a break beyond 1.2140 now expected to confirm a technical extension toward 1.2200.