Market Update by Solidecn.com

[Solid ECN]

GBPUSD Crawls Downwards


The GBPUSD pair approach 1.2000 barrier, showing tight sideways trades now, noticing that stochastic loses its positive momentum gradually, waiting to motivate the price to resume the bearish bias that targets testing 1.1940 level as a next station.





Therefore, the bearish trend scenario will remain valid and active conditioned by the price stability below 1.2115. The expected trading range for today is between 1.1950 support and 1.2100 resistance.

[Solid ECN]

USDCHF Hits the Target


The USDCHF pair succeeded to achieve our waited target at 0.6250, and surpassed the bearish channel’s resistance to head towards visiting 23.6% Fibonacci correction level at 0.9315 as a next target.





Therefore, the bullish trend will remain expected on the intraday basis, and breaching the last level will lead the price to achieve more bullish correction that its next target reaches 0.9475, while breaking 0.9230 will stop the expected rise and press on the price to decline again. The expected trading range for today is between 0.9170 support and 0.9330 resistance.

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AUDUSD Hits the Target


The AUDUSD pair managed to achieve our waited target at 0.6920 and settles around it now, settling below the bullish channel’s support line to fall under more correctional pressure in the upcoming sessions, targeting visiting 0.6780 areas as a next main station.





Therefore, the bearish bias will remain suggested in the upcoming sessions, taking into consideration that breaching 0.6945 will stop the expected decline and lead the price to return to the main bullish track again.


The expected trading range for today is between 0.6850 support and 0.6980 resistance

[Solid ECN]

EURUSD Heads Towards the Second Target


The EURUSD pair broke 1.0830 level strongly to open the way to achieve more decline on the intraday basis, targeting testing 1.0745 as a next negative station, to keep the bearish bias dominant in the upcoming sessions.





It is important to monitor the price when reaching the suggested target, as breaking it will push the price to achieve more decline that its next target reaches 1.0635, taking into consideration that breaching 1.0865 will stop the current negative pressure and lead the price to regain the main bullish trend again.


The expected trading range for today is between 1.0695 support and 1.0865 resistance.

[Solid ECN]

Morning Wrap - US500


S&P 500 (US500) failed to break above the 4,165 pts resistance zone last week and started to pull back. The move lower is being continued today. Tensions between China and the US are picking-up after the US Air Force shot down a Chinese spy balloon over the weekend.

[Solid ECN]

EURJPY Technical Analysis

The EURJPY pair started to form new correctional bullish wave to surpass the additional barrier 141.75 and notice recording some gains by touching 142.85 level.



Continuing to consolidate above the breached barrier reinforces the chances of renewing the correctional attempts for now, to expect targeting 143.60 and 144.00 levels, while gathering the additional negative momentum and crawling below 141.75 will activate the bearish track again, to increase the chances of crawling towards 141.10 followed by repeating the pressure on 140.25 obstacle.

The expected trading range for today is between 141.75 and 143.60.

[Solid ECN]

Gold Technical Analysis

Gold price ended yesterday below the bullish channel’s support line that appears on the chart, to start bearish correction for the rise measured from 1616.65 to 1959.75, on its way to visit 1878.8 as a first correctional target.



Therefore, we expect to witness more decline in the upcoming sessions, taking into consideration that breaching 1928.6 will stop the current negative pressure and lead the price to regain the main bullish trend again. The expected trading range for today is between 1890 support and 1930 resistance.

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Morning Wrap

• US indices finished yesterday's trading higher. S&P 500 gained 1.47%, Russell 2000 added 2.06% and Nasdaq rallied over 3%. Dow Jones was a laggard with 0.11% drop
• US index futures dropped in the after-hours trading following earnings releases from Apple, Amazon and Alphabet
• Apple dropped 3.2% in the after-hours trading. Company reported a 5% sales drop to $117.15 billion (exp. $121.10 billion) and almost 11% YoY drop in EPS, to $1.88 (exp. $1.94). CEO Tim Cook said that strong dollar, production problems in China as well as the overall macroeconomic environment were to blame for poor results
• Amazon traded 5% lower in the after-hours trading. Company reported Q4 revenue at $149.2 billion (exp. $145.4 billion) and EPS at $0.03 per share. Sales growth in cloud business slowed from 27.5 to 20% YoY in Q4 2022. Company provided a rather light guidance pointing to a 4-8% sales growth in Q1 2023
• Alphabet dropped 4.6% in the after-hours trading. Company missed sales and earnings expectations with revenue coming in at $76.05 billion (exp. $76.5 billion) and EPS reaching $1.05 (exp. $1.18). Alphabet's sales grew at a pace of just 1% YoY in Q4 2022, marking the slowest growth since Q2 2020
• Indices from Asia Pacific traded mixed. Nikkei, S&P/ASX 200, Kospi and Nifty 50 gained while indices from China and Vietnam traded lower
• DAX futures point to a slightly higher opening of the European cash session today
• US and Canadian militaries are monitoring a Chinese spy balloon that is currently flying above continental United States. It was decided not to shoot it down to prevent collateral damage from falling debris
• Chinese Caixin services PMI came in at 52.9 in January (exp. 51.6)
• BoJ Governor Kuroda said that Bank of Japan has a 8.8 trillion JPY unrealized loss from bonds it bought as part of yield curve control mechanism
• Cryptocurrencies are trading mixed today. Dogecoin gains 0.2%, BitcoinCash adds 0.8%, Bitcoin drops 0.1% and Ethereum trades 0.8% down
• Energy commodities trade lower - oil drops 0.2% while US natural gas prices traded 0.9% lower
• Precious metals trade higher - gold gains 0.2%, silver trades 0.3% higher and platinum adds 0.5%
• NZD and JPY are the best performing major currencies while EUR and CAD lag the most

Nasdaq-100 (US100) had another solid session yesterday. However, things turned sour after the close of the Wall Street cash session as Apple, Amazon and Alphabet disappointed with earnings reports. US100 took a hit and pulled back around 2.5% off yesterday's highs.

[Solid ECN]

EURJPY Fluctuates Below the Barrier

The EURJPY pair repeated the weak sideways trades to settle below the additional barrier 142, which allows us to keep the bearish overview, reminding you that it is important to gather the negative momentum to ease the mission of declining towards the initial negative stations represented by 140.80 and 140.25.



The expected trading range for today is between 142.00 and 140.25.

[Solid ECN]

Bitcoin is Fighting for 24,000 USD Level

Cryptocurrencies gained on the wave of Jerome Powell's comments and the double-dip of the previous 25bp US rate hike. Although the Fed is far from declaring victory over inflation, and Powell hinted at a possible return of inflation if the central bank does 'too little,' markets particularly liked the comments regarding the 'global disinflation' process that has begun. As a result, the largest cryptocurrency is struggling to rise near its summer 2022 highs.

• Bitcoin soared above $24,000 but was quickly knocked off these levels by supply and is now struggling to return to levels near the summer 2022 peaks. The strongest gainers are again altcoins including Binancecoin, Algorand, Sushi and Avalanche;
• The volume of the cryptocurrency market rose by nearly 30% yesterday on a daily basis, to about $61 billion. The capitalization of the entire market is now around $1.1 trillion;
• Meta Platforms' successful report supported sentiment on U.S. index contracts primarily the NASDAQ, with which Bitcoin correlates;
• Wall Street is approaching a key day of earnings season, with today's post-session shows from Apple, Alphabet and Amazon likely to affect volatility and investor activity in the evening hours in the cryptocurrency market as well;
• If positive sentiment continues traders may increase speculative exposure around Elon Musk's 'favorite cryptocurrency,' Dogecoin in view of recent comments by Tesla's CEO, who suggested integrating Twitter with both traditional finance and cryptocurrencies.

The sudden surge of interest in Bitcoin in 2023 caused a massive increase in the average daily number of transactions on the network. Their number has grown exponentially from less than 200,000 to nearly 350,000 in a month, the largest increase in the history of a major cryptocurrency.



Bitcoin chart, H4 interval. The largest cryptocurrency remains above the SMA200 (red band) and SMA100 (black band), which is also the lower limit of the upward formation. Bitcoin has also reached the vicinity of the summer 2022 maxima, although this is the second time it has been pushed back by supply from levels above $24,000. The 50 SMA average (blue band) is approaching the cross with the SMA200, which in the past has most often heralded a prolonged price rebound, and has also crossed the SMA100 for the first time in nearly 10 months, which was a resistance even during summer of 2022.