Daily FX Brief, November 12 – Major Trade Setups – Trump’s Speech Ahead! 

The buck slipped along with the global stock, which plunged on Monday following the U.S. President Donald Trump’s comments during the weekend tore investor confidence that Washington and Beijing would immediately reach an agreement to settle their debilitating trade war.

At the Sino-US trade front, the United States and China trade tension flashing continuously, whereas the United States interference in the Hong Kong protests awaits China’s response fro fresh risk-off. The market’s risk-tone continues slowly, with the United States ten-year treasury yields being around 1.92%, with most Asian stocks flashing mixed signals. 

Economic Events to Watch Today

Let’s took at these fundamentals.

 

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EUR/USD – Daily Analysis

The EUR/USD currency pair consolidates in the narrow range of 1.1030 and 1.1050 due to the greenback continues its recovery rally. As of writing, the pair mostly trades near the 1.10 range during on the day, because of USD strength. As we all well aware, the uncertainty surrounding the United States and China trade deal and Hong Kong’s civil protest worries resurged the demand for safety, so that’s why the market was favoring the U.S. currency.

Whereas, on the EUR-side of the equation, the uncertain result of the Spanish general election combined with Eurozone economic growth worries continues to remain a bearish impact on the common currency.

Markets now traders keenly await the German macro news and some new transparency on the US-China trade front for fresh trading impulse, whereas Trump’s speech scheduled today at 1700 GMT will likely also direct the next moves in the spot.

Daily Support and Resistance  

S3 1.0953

S2 1.0992

S1 1.1006

Pivot Point 1.1031

R1 1.1045

R2 1.107

R3 1.1108

EUR/USD– Trading Tips

The EUR/USD is trading with a slightly bullish bias since it violated the resistance level of 1.1025. On the 4 hour timeframe, the EUR/USD has formed a bullish engulfing candle, which is signaling chances of further buying in the market. 

For the moment, the EUR/USD is concentrating on a critical trading level of 1.1060, which is probable to hold the EUR/USD bearish below this mark. Below this level, the EUR/USD may gain support at 1.1025 and 1.1000 level today. 

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GBP/USD– Daily Analysis

The GBP/USD currency pair got limited benefits from the United Kingdoms’ optimism because the pairs await fresh hints from the monthly employment figures whereas taking the buying to 1.2865. As of writing, the GBP/USD currency pair currently trading at 1.2865.

At the Sino-US trade front, the United States and China trade tension flashing continuously, whereas the United States interference in the Hong Kong protests awaits China’s response fro fresh risk-off. The market’s risk-tone continues slowly, with the United States ten-year treasury yields being around 1.92%, with most Asian stocks flashing mixed signals. 

There will likely be a moderate weakness in Claimant Count estimates amid no change in Unemployment Rate and Average Earnings. After the data, the speech from the United States President Donald Trump and Federal Reserve speech will be closely followed to decide the future of the United States and China trade relations and the U.S. Federal Reserve futures moves, respectively.

Daily Support and Resistance   

S3 1.2676

S2 1.2732

S1 1.2754

Pivot Point 1.2789

R1 1.281

R2 1.2845

R3 1.2901

GBP/USD– Trading Tips

The GBP/USD appears to have broken the bearish trendline resistance of 1.2825 upon the release of optimistic GDP figures. The MACD and RSI have crossed above 0 and 50, respectively, implying the odds of a bullish bias in the GBP/USD. 

On the lower side, the GBP/USD may find immediate support at 1.2845 level. But the closing of candles above 1.2845 area suggests strong chance of buying trend continuation. 

Consider taking buying positions above 1.2845 and selling below the same level today. 

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USD/JPY – Daily Analysis

The USD/JPY currency pair found on the bullish track and taking buying near the 109.20 on the day, despite the trade tension between the United States and China, and protest in Hong Kong. The greenback strength could be the reason behind the pair’s bullish trend. Notably, the recovery of U.S. bond trading, greenback sent higher.

However, investors broadly avoided the United States’ expectations regarding the tariff roll back from the European Union automobiles and positive comments from the Japanese Economy Minister Yasutoshi Nishimura as well.

Whereas the traders will keep their eyes on trade and Hong Kong worries, as well as the United States President Donald Trump comments from the Economic Club of New York, lunch will also keep under the eyes. The United States President is broadly expected to clarify the much needed United States and China trade relations and the U.S. tariff policy.

Looking forward, Focus will be on Trump’s speech and speeches by the Federal Reserve officials, which is scheduled to speak later on Friday, in the absence of relevant macro data out of the U.S. President is scheduled to speak at the Economic Club of New York around 1700 GMT.

Daily Support and Resistance   

S3 108.48

S2 108.88

S1 109.08

Pivot Point 109.28

R1 109.47

R2 109.68

R3 110.07

USD/JPY – Trading Tips

On the 4 hour chart, the USD/JPY pair is forming higher’s high and higher’s low pattern, which suggesting bullish bias among traders. The USD/JPY has immediate support at 108.900 and resistance at 109.400. 

The MACD is forming histograms in the bearish zone, but the recent histogram is likely to develop above 0, and it may drive more buying until 109.450 today. 

All the best!