Market Update by Solidecn.com

[Solid ECN]

Euro Declines on Profit-taking after Biggest Daily Profit Since 2015

Euro fell in European trade against a basket of major rivals on profit-taking after marking the biggest profit since late 2015 against dollar, however risks continue to surround the common currency. The dollar was boosted as well amid risk-averse sentiment with China asserting its commitment to strict Covid 19 restrictions, dashing hopes of reopening the world's second largest economy.

EURUSD fell lover 0.5% to 0.9902, after closing up 2.2% on Friday, the first profit in five days, and the largest since December 2015.




Standing Risks

The divergent levels of European and US interest rates are ongoing risks that continue hurting euro's standing, in addition to high energy costs and natural gas shortages. A historic increase in energy prices sent inflation considerably higher and hurt economic growth and the trade flow.


Lagarde

ECB President Christine Lagarde is preparing to present a speech organized by the European Commission in Belgium, which might offer fresh clues on the future of interest rates in the euro zone. Lagarde also noted the extremely higher inflation rates all over the euro zone, which remain far from the 2% targets.





The Dollar

The dollar index rose over 0.4% on Monday, recouping some of its hefty losses on Friday against a basket of major rivals. The dollar swooned on Friday after four Fed policymakers said they're considering raising interest rates at the next December meeting by a lower amount compared to the previous meeting.

[Solid ECN]

USDJPY Breaches the Resistance

USDJPY pair traded positively yesterday to breach the bearish channel’s resistance and settles above it, to hint the attempt to regain the main bullish trend again, but we notice that stochastic lost its positive momentum clearly, to put the price under negative pressure by today’s open.



Therefore, the contradiction between the technical factors makes us prefer to stay aside until we get clearer signal for the next trend, noting that breaching 148.45 will lead the price to achieve more gains and head towards 150 areas initially, while breaking 147.17 will put the price under the correctional bearish pressure again, to target 146 followed by 144.20 levels as next negative stations.

The expected trading range for today is between 147.10 support and 148.90 resistance, and the expected trend for today is Neutral.

[Solid ECN]

AUDUSD Begins Positively

The AUDUSD pair opens today’s trading with clear positivity to head towards potential test to the broken neckline of the double top pattern that appears on the chart, waiting to resume the bearish wave that targets 0.6265 followed by 0.6170 levels as next main stations.



Until now, the bearish trend scenario still valid and active unless the price rallied to breach 0.6397 and hold above it, noting that the EMA50 supports the suggested decline. The expected trading range for today is between 0.6260 support and 0.6370 resistance, the expected trend for today is Bearish.

[Solid ECN]

Euro tries to recover as eyes fixed on Christine Lagarde

Euro rose in European trade above two-week lows against dollar ahead of ECB President Christine Lagarde's speech later, which might offer clues on the future of European interest rates. The greenback gave up two-week highs on transient profit-taking ahead of US payrolls data, crucial for deciding the future path of US monetary policies.

EURUSD rose 0.5% to 0.9796, after closing down 0.7% yesterday, the fourth loss in a row, plumbing two-week lows at 0.9730 on bullish remarks from Fed Chair Jerome Powell.

[Solid ECN]

USDCHF Hits the Target

The USDCHF pair succeeded to achieve our waited target at 1.0145 and found solid resistance there, to show some bearish bias now, facing contradiction between the technical factors that makes us prefer to stay aside until we get clearer signal for the next trend.



Note that breaching the above mentioned level will lead the price to achieve additional gains that reach 1.0200 direct, while breaking 1.0090 support will press on the price to continue the decline and head to test 0.9990 areas before any new attempt to rise.

The expected trading range for today is between 1.0040 support and 1.0190 resistance, and the expected trend for today is Neutral.

[Solid ECN]

Gold price forecast

The gold short-term downtrend continued yesterday after the test of the Intermediary Zone 1662 – 1659. The price has broken through the low of November 1. The gold sell trades reached the first target. The next downside target is the lower Target Zone 1618 – 1612. The market should reach the second target within the next two days.

I recommend entering new short trades on the corrections to strong resistance levels. The Additional Zone is now in 1645 – 1643. The trend border is the zone of 1661 – 1658. Once any of these zones is tested by the price, I suggest selling gold according to a sell pattern with the first target at today’s low.



XAUUSD trading ideas for today:

> Sell according to the pattern in Additional Zone 1645 - 1643. Take Profit: 1630. Stop Loss: according to the pattern rules.
> Sell according to the pattern in Intermediary Zone 1661 - 1658. Take Profit: 1630. Stop Loss: according to the pattern rules.

[Solid ECN]

Oil price forecast

Oil short-term uptrend continued. The high of October 27 was broken through. Oil traders tried to break out the upper Target Zone 89.51 – 88.76, but failed. The oil price is now being corrected down with a potential target to test Additional Zone 87.80 – 87.61. After the AZ zone test, I suggest entering new purchases according to the pattern with a target at yesterday’s high.

If the price breaks out the Additional Zone downside within the correction, the oil price should reach the Intermediary Zone 85.92 – 85.55, which is the border of the short-term uptrend. In this scenario, one could also enter purchases after the price reaches the IZ.



US Crude trading ideas for today:

> Buy according to the pattern in Additional Zone 87.80 - 87.61. Take Profit: 89.61 - Stop Loss: according to the pattern rules.
> Buy according to the pattern in Intermediary Zone 85.92 - 85.55. Take Profit: 89.61 - Stop Loss: according to the pattern rules.

[Solid ECN]

GBPUSD Technical Analysis

The GBPUSD pair broke the bullish channel’s support line strongly to confirm the continuation of the bearish trend domination on the intraday basis, opening the way to achieve bearish correction that its next target reaches 1.1130, making the bearish bias suggested for the rest of the day unless the price rallied to breach 1.1325 followed by 1.1400 levels and hold above them.



The expected trading range for today is between 1.1200 support and 1.1325 resistance, and the expected trend for today is Bearish.

[Solid ECN]

GBPCHF Hits the Resistance

The GBPCHF pair ended the correctional bullish attack by hitting key resistance at 1.1575, to increase the chances of its affect by the negative trades for the near term and medium-term period, and notice crawling towards 1.1410.



Stochastic attempts to provide the negative momentum will provide the price with new negative momentum, to reinforce the chances of declining and target 1.1285 followed by repeating the pressure on 1.1120 obstacle.

The expected trading range for today is between 1.1530 and 1.1300, and the expected trend for today is Bearish.

[Solid ECN]

EURUSD Technical Analysis

The EURUSD pair fluctuates at the intraday bearish channel’s resistance now, and the EMA50 meets this resistance to add more strength to it, to support the continuation of the expected bearish trend for today, which its next targets located at 0.9840 followed by 0.9700, while holding below 1 represents major condition to continue the expected decline.



The expected trading range for today is between 0.9800 support and 0.9970 resistance, and expected trend for today is Bearish.