Market Update by Solidecn.com

[Solid ECN]

Understanding Bitcoin’s Recent Price Recovery


Solid ECN — Bitcoin's price has rebounded from the $60,600 resistance, coinciding with the lows of April 5 and 20. This recovery was anticipated as the RSI indicator was previously in oversold territory. As of this writing, the indicator is showing bullish signs, having flipped above the 50 level.

Consequently, the BTCUSD pair remains bullish, although it is currently trading below the Ichimoku cloud. The next bullish target is likely the upper band of the flag around $72,000.

However, the bulls face the EMA 50 as a barrier, suggesting that there might be a consolidation phase or a minor pullback to the 38.2% Fibonacci support level before the uptrend resumes. This is particularly likely, considering the standard deviation indicator is losing momentum.

The $60,600 mark is critical to keeping the market bullish. Should the Bitcoin price dip below this level, the bullish scenario would need to be reevaluated.

[Solid ECN]

EURUSD Trading Tips Amid Market Volatility


Solid ECN – The EURUSD currency pair dipped to as low as 1.062 during Friday's trading session and traded at about 1.066, with an increase in today's trading session.

The RSI indicator signals that the market is oversold, while the Standard Deviation indicator hovers at a peak of around 0.0079 and is declining. This can be interpreted as the market being oversold and market volatility slowing down.

From a technical perspective, joining the bears in an oversold market condition is not recommended. Therefore, waiting patiently for the EURUSD to correct some of its losses is logical and wise. However, we don't see signals from the Awesome Oscillator indicating the start of a consolidation phase. Regardless of the AO, if the price reaches the 23.6% Fibonacci level, this resistance area can provide a decent entry point for retail traders to join the bear market.

Please be aware that the Ichimoku cloud stands between bear and bull markets. The market remains bearish as long as the price hovers below the cloud.

[Solid ECN]

EUR/USD Exchange Rate Forecast: Navigating Through Global Market Signals


Solid ECN—The EUR/USD exchange rate might see some interesting moves this week, influenced by different factors in Europe and the United States.

The mood in Europe is somewhat positive as the stock markets, particularly the STOXX 50 index, increased by 0.6% on Monday. This increase happened because tensions in the Middle East seemed to calm down after Israel successfully defended itself against a major air attack from Iran. Additionally, the US has reassured everyone that it wants to avoid any more significant conflict in that region. These developments have made investors feel more secure, which is suitable for the markets.

On the business side in Europe, there were some mixed signals. Portugal’s GALP Energia saw its oil and gas production drop by 9% from the previous quarter, which might raise some concerns about energy supplies. However, there were also some big deals, like France's BNP Paribas buying a significant stake in Belgian insurer Ageas and Italy’s Prysmian acquiring Encore Wire for $4.2 billion. These moves could show confidence in European companies and might support the euro.

In the United States, investors are very focused on what the Federal Reserve will do next. Fed officials are planning speeches this week, and everyone wants to know how the central bank will deal with the tight job market and high inflation. If the Fed signals that it might raise interest rates to control inflation, it could strengthen the US dollar.

Overall, the EUR/USD exchange rate will likely react to how these situations develop. If the European economy shows more positive signs and the US Fed suggests strong measures against inflation, we could see some volatility and essential shifts in the exchange rate. It's a week where traders will need to keep a close eye on news from both sides of the Atlantic.

[Solid ECN]

Monitoring Yen's Rally Against Sterling


Solid ECN – The Japanese yen is making a comeback against the pound sterling from 192.9 and is increasing its pace toward the 23.6% Fibonacci level.

The pair trades in the bullish flag depicted in red, as shown on the daily chart. The current downward momentum occurs while the RSI indicator closes on the 50 levels and the Awesome Oscillator signals divergence. This could be interpreted as a trend reversal or the beginning of a new consolidation phase, which appears stronger.

From a technical standpoint, the primary trend is bullish. Still, due to the divergence signal, the consolidation phase might extend to the 23.6% Fibonacci support, followed by the lower band of the bearish flag in blue.

Therefore, we suggest monitoring the aforementioned levels closely for a hammer stick pattern since these levels provide a decent price point for joining the bull market.

[Solid ECN]

Frankfurt's DAX 40 Dips as ECB Holds Rates, US Inflation Data Surprises


Solid ECN – On Thursday, the DAX 40 index of Frankfurt saw a slight decrease of 0.2%, closing at 18,090 points. This happened right after the European Central Bank decided to keep its primary interest rates the same. The bank also mentioned it might lower rates if it looks like inflation is going to drop based on future projections. However, President Lagarde was clear that the ECB hasn't promised to follow a set path for interest rates, stating that any decisions will be based on upcoming data.

In the US, the situation looked a bit different. Reports showed that the growth in producer prices wasn't as strong as people thought it would be. However, the core index for the year was a bit higher than what was predicted. The day before, on Wednesday, unexpected high US CPI figures made people question if the Federal Reserve could reduce interest rates over the summer. This uncertainty makes it harder for the world's other big central banks to plan for easing.

[Solid ECN]

USDCAD Breaks April High: What's Next?


Solid ECN — In this evening's trading session, The U.S. Dollar surpassed April's highest price point, the 1.3647 mark against the Canadian dollar. This uptick in momentum has led the RSI indicator to step into the overbought zone, indicating that the USDCAD pair might enter a short-term consolidation.

From a technical standpoint, this breakout paved the road to the 78.6% Fibonacci resistance. However, entering the bull market is not recommended when the market is saturated from buying pressure. That said, if the price returns to the 1.364 area followed by the 61.8%, it provides a decent entry point to join the buyers.

[Solid ECN]

USDJPY Breakthrough: Bullish Uptrend Resumes, Ichimoku Cloud Watch


Solid ECN – In the current trading session, the bulls of USDJPY have finally broken through the 159.9 barrier. This suggests that the uptrend is likely to continue. However, the next bullish target remains uncertain as there are no significant obstacles for the bulls.

It’s important to note that the Ichimoku cloud is the dividing line between bull and bear markets. We should consider pausing the bullish scenario if the price falls below this level.

[Solid ECN]

EURUSD Trends: A Shift Below Key Levels This Week



Solid ECN – In the 4-hour chart, the EURUSD currency pair trades under the descending trendline, shown in black. This position came about after the pair developed a bearish engulfing pattern right around the 61.8% Fibonacci support level, suggesting the possibility of a trend change. At the same time, the awesome oscillator gives off a divergence signal, matching what the candlestick pattern indicates.

The pair must end below the 50 EMA for the downtrend to press on. If this happens, we could see the price heading towards the 23.6% Fibonacci support level, marking it as the initial goal for this week.

However, should the EURUSD pair's price climb above the 61.8% Fibonacci resistance level, the current bearish market analysis might no longer be applicable.

[Solid ECN]

EURUSD Steady at $1.08 as ECB Meeting Nears, Rate Cut Hints Awaited



Solid ECN – The euro remained steady at about $1.08, with investors taking a careful stance as they awaited Thursday's European Central Bank (ECB) announcement.

It's widely anticipated that ECB officials will keep interest rates at their current record highs for the sixth time in a row. The focus is now on how the statement is worded and what ECB President Lagarde might say in her press conference to hint at when the first interest rate decrease of the year could happen.

Recent documents from the ECB show that the officials are more confident about inflation moving towards their goal of 2%, which makes a strong argument for a reduction in interest rates. On the other hand, the US dollar kept getting support because the latest data showed the American job market is still doing well, indicating that the Federal Reserve might not hurry to lower interest rates soon.

[Solid ECN]

EURUSD Market Update


Solid ECN – In Monday's trading session, the Euro trades at about 1.083 against the U.S. Dollar, which is slightly above the EMA 50 and the 38.2% Fibonacci support level. It seems the pair is trying to stabilize itself above the aforementioned level after pulling back from the 23.6% Fibonacci level in Friday's late trading session.

The technical indicators give mixed signals, but the Standard Deviation indicates low activity and sideways momentum in the EURUSD market. That said, with the RSI (Relative Strength Index) hovering above 50, the price of the EURUSD might grow higher to test the 50% Fibonacci level followed by the 1.088 strong resistance area.

However, entering the market with a bullish outlook is risky since the primary trend is bearish. Therefore, it is recommended to wait and monitor the price action closely near the key levels mentioned above and seek opportunities to join the bear market.

From a technical standpoint, if the price rises to the 1.088 resistance, it would offer a decent price to go short on the EURUSD pair if the 4-hour chart forms a bearish candlestick pattern.

On the other hand, if the Euro dips below the EMA 50, this could signal a continuation in the downtrend, and retail traders can adjust their strategies accordingly and join the primary trend, which is bearish.