Market Update by Solidecn.com

[Solid ECN]

Bearish Momentum in EUR/USD Gains Strength



Solid ECN—The EUR/USD currency pair is in an overbought state, trading at about 1.093 and testing the immediate resistance at 1.0922. The stochastic oscillator is above 80 and declining, indicating that bearish momentum is gaining strength.

It is likely for the bears to dip the price to test the ascending trendline before the uptrend resumes. If the price dips below the trendline, the next support level will be 1.0870.

[Solid ECN]

Gold Price Dips: Will Bulls Hold $2,439?




Solid ECN—Gold prices dipped from $2,483, while the stochastic oscillator warned of an overbought market. The current bearish momentum should be considered a consolidation phase, which could extend to testing the July 15 low at $2,439. Consequently, for the uptrend to resume, the bulls must maintain the XAU/USD price above the immediate resistance at $2,439.

Traders should note that the immediate resistance is in conjunction with the 25-period simple moving average, a supply level that could offer a decent bid price for the bull market.

Furthermore, if the gold price falls below the immediate resistance, the consolidation phase can extend to $2,420, followed by $2,392, a supply zone backed by the Ichimoku cloud.

[Solid ECN]

Ethereum Tests 61.8% Fibonacci Level


Solid ECN—Ethereum trades in a bullish flag pattern, testing the 61.8% Fibonacci level. The momentum indicators suggest the ETH/USD market is overbought. Therefore, we expect the price to consolidate near the lower line of the ascending trendline.

Retail traders can find new, low-risk opportunities to join the bull market if the price dips to near the middle line of the Donchian channel, at approximately $3,345. Consequently, we suggest waiting patiently for the market to consolidate and monitor the key support levels for bullish signals.

However, the bull market should be invalidated if the price dips below the ascending trendline.

[Solid ECN]

USD/JPY Analysis: Bearish Target Set at 155.6


Solid ECN—The USD/JPY price has fallen below the ascending trendline and the 157.6 resistance level, currently trading around 157.0 in today's session.

Technical indicators on the daily chart suggest that the downtrend will likely resume following this breakout. From a technical standpoint, the immediate resistance is at 158.8. With the price remaining below this level, the next bearish target is anticipated at the 155.6 resistance.

However, should the USD/JPY price rise above the immediate resistance, the bearish scenario will be invalidated, potentially paving the way for a bullish advance toward the 160.3 resistance.

[Solid ECN]

EUR/USD Consolidation and Bearish Signals


Solid ECN—The EUR/USD currency pair shows signs of consolidation after the price peaked at 1.092 and formed a shooting star candlestick pattern on the 4-hour chart.

Moreover, the Awesome Oscillator and the momentum indicators also show signs of a short-term bearish trend that might result in the price testing the 1.086 resistance level, followed by the 38.2% Fibonacci at 1.082. These levels could provide a decent bid price for retail traders to join the bull market.

If the bears (sellers) push the price below the ascending trendline, the bull market will be invalidated.

[Solid ECN]

Bitcoin Price Correction Expected Soon


Solid ECN—Bitcoin's uptrend eased near the 61.8% Fibonacci retracement level at $64,923. The technical indicators suggest the price might consolidate before the uptrend continues. The stochastic oscillator is in the overbought territory, indicating that Bitcoin is overpriced in the long term. Additionally, the RSI aligns with the stochastic signal.

Therefore, we anticipate the BTC/USD pair to dip and test the 38.2% Fibonacci level before the uptrend resumes. It is worth noting that going long at the current price is risky due to the market being in an overbought state.

[Solid ECN]

WTI Crude Oil Nears Crucial Resistance at $80.6


Solid ECN—WTI Crude Oil is currently oversold, testing a critical resistance level at $80.1. The Awesome Oscillator indicates a prevailing bear market; however, the RSI 14 and Stochastic Oscillator signal an oversold market, suggesting a consolidation phase may be imminent.

Traders and investors are advised to wait for the oil price to recover some of its recent losses, as shorting a market with intense selling pressure is not advisable.

Nonetheless, the oil price may rebound to test the immediate resistance at the 23.6% Fibonacci level of $80.6, a level reinforced by the low on July 15. It is essential to monitor the $80.6 demand area for bearish candlestick signals.

Please note that if the bulls (buyers) close and stabilize the price above the 23.6% Fibonacci level, the next key resistance will be $81.

[Solid ECN]

DAX 30 Index Tests Key Fibonacci Level


Solid ECN—The DAX 30 Index experienced a decline during today's trading session, reaching the 38.2% Fibonacci retracement level at $18,429. Technical indicators suggest a bearish market trend, with potential signs of being oversold.

From a technical perspective, entering short positions in an oversold market is inadvisable. Consequently, traders and investors are encouraged to await a correction near the 61.8% Fibonacci retracement level. At this point, a bearish engulfing pattern should be observed before considering joining the bear market.

Alternatively, should the price stabilize above the 61.8% Fibonacci retracement level, an upward movement towards the 78.6% Fibonacci retracement level at $18,661 is anticipated.

[Solid ECN]

Unpredictable Market Keeps Silver Prices in Limbo


Solid ECN—Silver trades between the $30.5 immediate support and the $30.9 immediate resistance. The technical indicators give mixed signals, which adds to the uncertainty in the market direction in the short term. That said, the price has crossed the 50-period moving average several times, which could confuse retail traders.

In such a situation, traders and investors should wait patiently for the market to break out from one of the immediate barriers. The primary trend should be considered bullish since the silver price is still above the 38.2% Fibonacci. In this scenario, if the bulls close and stabilize the price above $30.98, the bull market will likely resume, and the initial target could be retesting the $31.48 resistance.

Conversely, if the price dips below the immediate support at $30.5, the value of silver could drop to the next supply zone at the 50% Fibonacci level, marked at $30.1, which is backed by the 100-period simple moving average.

[Solid ECN]

USD/CHF Update: Bears Eyeing Key Resistance Levels


Solid ECN—The USD/CHF pair trades within a bearish flag pattern and is aligned with the 50-period simple moving average, highlighting a pronounced downtrend. Despite the Awesome Oscillator bars turning green, they remain below the signal line, indicating a weakening of the bearish trend.

From a technical perspective, the primary trend remains bearish as long as the pair stays below the descending trendline. In this scenario, sellers will likely test the 0.891 resistance level again. Should the selling pressure surpass 0.891, the next resistance area would be at 0.888.

On the other hand, if buyers manage to close and stabilize the price above the descending trendline, the bearish trend would be invalidated. This would signify a reversal from a bear market to a bull market.