Market Update by Solidecn.com

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GBPNZD
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The bulls on GBPUSD are testing the upper line of the bearish channel. This level coincides with the Ichimoku cloud. Therefore, this is a strong barrier for the GBPNZD bulls to overcome. The trend is bearish as long as the price trades inside the bearish channel.



If the GBPNZD bulls can break out of the bearish channel, the next resistance is at 2.1. The overall trend is bearish. Let's zoom into the 4H chart to find triggers for the bearish trend.

The pair formed a long-wick candlestick pattern in today's trading session near R1 (2.08 resistance). If the pair falls below the Kernel line of the Lorentzian Classification indicator, the downtrend will continue with bears targeting the lower line of the bearish channel. (Source)

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EURUSD Forex Trading Analysis: Key Levels and Indicators

The EURUSD forex pair is currently undergoing a critical test at the 1.07 pivot point. With the Relative Strength Index (RSI) inching closer to the mid-point of 50, traders are keeping a close eye on the market dynamics.





Should the bears manage to push the price below this level on the 4-hour chart, the next target on the downside is expected to be 1.058. This potential move could signal a shift in market sentiment and a possible strengthening of the USD against the Euro.

However, as long as the EURUSD pair maintains its position above the pivot, the market trend remains bullish. This suggests that the Euro is still holding its ground against the USD. (Source)

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GBPAUD

The GBPAUD currency pair bounced from S1 (1.895 support) and is currently testing the upper line of the bullish channel. The market is bullish with the RSI indicator flipping above the 50 line. However, will the GBPAUD bulls be able to break out of the bearish channel?




Let's zoom into the 4-hour chart to gain a better insight into the currency pair. The GBPAUD situation on the 4H chart is almost the same as on the daily chart, with one difference. The RSI indicator is showing divergence, which means the market might go into a correction or trend reversal.





With the price holding below R1 (1.919 resistance), it is likely that the downtrend will continue, targeting the 1.905 pivot followed by 1.889 (S1). On the flip side, if the bulls break out of the bearish channel and manage to close above R1 and hold steady, the road to R2 will be paved. (source)

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Bank of England Rate Cuts: Huw Pill Predicts Delay

Huw Pill, the Bank of England’s (BoE) Chief Economist, hinted on Monday that the bank might delay reducing interest rates from their current 15-year high until mid-2024. He found the financial market’s prediction of the first-rate cut to the Bank Rate in August 2024 reasonable.


Balancing Inflation and Economic Growth

During a BoE online presentation, Pill suggested reassessing this timeline if no new developments occur. However, he acknowledged the probability of changes over the next nine months. Last week, the BoE kept its benchmark rate at a 15-year high of 5.25%, stating it had no plans for a reduction as it continues to tackle inflation, which stood at 6.7% in September. This rate is lower than the 11.1% peak in October 2022 but still significantly above the 2% target.



Pill emphasized the BoE’s dedication to mitigating the risk of high inflation. However, he warned that a prolonged restrictive policy could trigger a recession or excessive economic slowdown. The BoE’s latest forecasts predict that the UK’s economy will remain stagnant over the next two years and grow by less than 1% in 2026. Many analysts believe the economy is already entering a recession.

Pill admitted that slowing the economy to combat inflation is challenging and assured that the Monetary Policy Committee is fully aware of the impact of its decisions, especially on individuals with lower incomes. (source)

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EURSEK

The EURSEK pair closed below the pivot point on Friday, which is also beneath the Kernel line. This suggests a potential continuation of the price decline for EURSEK. The immediate target is the S1 support level at 11.6, followed by the lower line of the existing bullish channel. Stay tuned for more updates on the EURSEK forecast and potential trading opportunities. (source)

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EURHKD Forecast

The EURHKD currency has broken out of the bearish channel. The pair is currently testing the 38.2% level of Fibonacci retracement, while the RSI indicator is approaching the overbought area and signaling divergence. This suggests that there might be a correction, or the continuation of the bearish trend is likely. Therefore, we should be cautious about going long on the currency pair.





Zooming into the EURHKD 4H chart provides a better insight into the price action. The trend is bullish in the 4H chart, and the price has broken out of the bullish channel and is trading in the overbought area. The RSI indicator is also in the overbought area. Please note that the pair has room to rise and test R1 (8.46). The Kernel line and the 8.3 pivot support the bullish scenario. If these levels are breached, the bullish scenario will be invalidated. (source)

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Market Response to Federal Reserve Policy

Currencies around the world held steady early in the week. People were waiting to see if the U.S. dollar would keep falling. This comes after the Federal Reserve seemed less strict than before. The dollar measure fell a little to 104.99. The euro was up a bit at $1.0738. Last week, the dollar fell over 1%, its biggest drop since mid-July, hitting a six-week low. Stocks around the world did well too, having their best week in a year. This is because people think the Federal Reserve won’t raise interest rates anymore.


Other Economic Signs

Weak job numbers in the U.S., not-so-strong manufacturing globally, and lower interest rates for long-term U.S. government bonds also made the dollar weaker. At the same time, the British pound, the Australian dollar, and the Japanese yen got stronger. A market analyst named Tina Teng mentioned that usually, when there’s bad news, it ends up being good for the markets. She thinks this could mean the Federal Reserve and other central banks might stop raising interest rates sooner.
Teng believes the dollar could stay weak throughout November.


A Cautious Note from Analysts

But, some analysts, like those at J.P.Morgan, say people should not get too excited about the dollar getting weaker. They think the reasons why the dollar was strong are less now, but they haven’t gone away completely. They might come back and make the dollar strong again. They also say that for the dollar to keep getting weaker, other places like Europe and China need to show they are doing better, which is not quite certain yet.


Interest Rates and Predictions

Interest rates the government pays for borrowing money fell last week. This was after the job and manufacturing data weren’t great, and the head of the Federal Reserve talked about ‘balanced’ risks. The interest rates for 2-year notes have gone down a lot in two weeks, while 10-year rates are near a five-week low. Betting markets now really think the Federal Reserve is done with raising rates. They also think the Federal Reserve might start to lower rates as soon as June.


Global Central Bank Movements

People think that the European Central Bank will lower rates by April, and the Bank of England will do so by August. The Japanese yen went down a little to 149.48 per dollar. Tina Teng thinks that with the dollar’s direction changing and the yen getting stronger from last week, Japan might not need to step in to help its currency.

The British pound is stable at $1.2373. There is important information about Britain’s economy coming this week. Even though the pound went up last week, it’s still lost about 6% in four months.


Gold and Cryptocurrency

The weaker dollar and interest rates have helped gold prices stay high, close to a five-month high. In cryptocurrencies, Bitcoin stayed at $34,847. The end of the Federal Reserve raising rates has helped it. People are also watching to see if new types of Bitcoin funds for investors will come out. No new funds have been approved yet, but several companies have asked to start them. (source)

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SEC Crypto Regulation Challenged by Senator Lummis' Stand

Senator Cynthia Lummis from Wyoming is standing up to the Securities and Exchange Commission (SEC), which is really cracking down on crypto companies. Talking to Yahoo Finance, she made it clear she's not happy with how the SEC is handling things. She's especially against a new rule the SEC wants to make official without asking Congress first.


SEC's Tough Actions

Recently, the SEC has been really tough, taking legal action against big crypto companies like Coinbase and Binance. A rule from the SEC, made in March 2022, is getting a lot of attention from Senator Lummis. It says companies that look after crypto for customers have to show these in their financial reports and tell investors about the risks.

But, the Government Accountability Office (GAO) said the SEC should've asked Congress before making this rule. Senator Lummis is now working hard to stop this rule from being set in stone. She believes it's just too much and could be bad for people if a crypto company goes under.


Pushing for Clearer Rules

Senator Lummis is not just talking; she's doing things. With Senator Kirsten Gillibrand from New York, she's pushing a big crypto law to make things clearer. They're trying to sort out small differences between the Senate and House versions, mainly about stablecoins, which are a type of crypto. She's hopeful that by early 2024, they'll pass the law. They even got a part of it into a big defense spending bill to address terrorist groups using crypto.


Concerns Over SEC's Bulletin

Last week, a Democrat, Representative Wiley Nickel, called out the SEC for how it's managing the new rule. He's worried it could make digital assets less safe. Others in Congress are also worried. Representative Patrick McHenry thinks the rule could scare financial companies away from crypto.
In short, there's a lot of back and forth about the SEC's role in regulating crypto, and Senator Lummis is at the center, fighting for a balance that keeps everyone's interests in mind. (Source)

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MetaTrader 5: The Smart Choice for Serious Traders

If you're into trading stocks, CFDs, or futures, you might want to check out MetaTrader 5 (MT5). It's the new kid on the block and not just an update of the old MT4. It's made for people who really know their stuff when it comes to trading.

Lots of traders, both newbies and old hands, are switching to MT5, and here's why: It lets you look at the market in 21 different ways, while MT4 only gives you 9. You get more choices for setting up trades that aren't happening yet, with 6 options instead of MT4's 4 options. Plus, MT5 shows you how thick or thin the market is right on the chart, has a handy economic calendar built-in, and lets you choose if you want to hedge or net when you're setting up your trades.

MT5 also wins with lots of cool tools for analyzing the market and as many charts as you want to open. It's smarter about how it fills orders, and it can handle a bunch of tests on your trading strategies at the same time.

Since the company behind MT4 says they're not going to update it anymore, it makes sense to start using MT5. It's packed with features for people who take their trading seriously.

What's your go-to trading platform? And why do you like it? Drop a comment and let us know!
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SOLUSD

In October, Solana (SOLUSD) experienced a significant price surge, reaching a high of $47.5 before settling at $34.5. Currently, Solana is trading around $42.5. Our Solana Technical Analysis indicates that the RSI indicator has been in the overbought area since October 20. Despite this overbought condition, SOLUSD hasn't started correction yet, indicating a strong bullish bias and high volatility in the Solana market.


For a more detailed view of SOLUSD price action, let's zoom into the 4-hour chart. The crypto pair is trading within a bullish channel, appearing more organized than on the daily chart. At present, SOLUSD is testing the middle line of the bullish channel and is above the Kernel line of the Lorentzian Classification indicator. This supports the bullish scenario, suggesting that SOLUSD price may rise and test the October high of around $46.2.


The R2 level at 36.98 supports the bullish scenario in our Solana Technical Analysis. If SOLUSD closes below this level, the bullish scenario becomes invalid, and the next bearish target is the pivot.