Market Update by Solidecn.com

[Solid ECN]

EURJPY holds below the barrier

EURJPY pair approached 149.35 barrier yesterday, while the lack of the positive momentum forced it to provide new negative close to confirm its affection by the bearish bias for now, noticing its crawl towards 148.35.



We expect to renew the negative attempts to target the first station at 147.50, reminding you that breaking this level might force it to suffer additional losses that might extend towards 146.60 followed by reaching 145.65 support line.

[Solid ECN]

NZDUSD

NZDUSD pair shows more bullish bias to move away from 0.6290, which supports the continuation of the bullish wave for the rest of the day, and the way is open to achieve our next target at 0.6380, supported by the EMA50 that carries the price from below, noting that holding above 0.6290 is important to achieve these targets.



The expected trading range for today is between 0.6260 support and 0.6370 resistance

[Solid ECN]

EURUSD is Recovering

The EURUSD pair’s decline stopped at 1.0966 level, to rebound bullishly and settle above the EMA50, to head towards recovering and resume the main bullish wave again, on its way to test 1.1075 level as a first station, noting that breaching this level will extend the bullish wave to reach 1.1150 areas as a next target.



Therefore, we expect to witness more bullish bias in the upcoming sessions, and the price needs to consolidate above 1.1010 to continue the suggested rise, as breaking it will put the price under new negative pressure to head towards visiting 1.0945 level initially.

[Solid ECN]

EURJPY

Beginning of a new week on the markets has been calm so far. Worse than expected German industrial production reading for March did not have much impact on EUR or European indices. German industrial output dropped 3.4% MoM, missing -1.3% MoM estimate quite significantly. One more piece of data from Europe will be released today - Sentix index for May at 9:30 pm BST. However, it is unlikely to trigger major moves on the EUR market as well. Speech from ECB Lane at 3:00 pm BST may trigger some short-term volatility. We also had release of Bank of Japan minutes during the Asian session but it turned out to be a non-event as it related to early-March meeting which was still chaired by Kuroda.



Taking a look at EURJPY at D1 interval, we can see that the pair has managed to halt recent correction at 147.50 support zone and is now trying to recover back to recent highs in the 151.00 area. A move above 149.00 mark was made today. Should the upward move continue and the pair breaks above the 151.00 area, a test of the upper limit of the upward channel, currently in the 153.20 area, cannot be ruled out in the near-term.

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[Solid ECN]

EURUSD leans on the moving average

EURUSD pair tested the EMA50 that formed good support at 1.1010 and kept its stability above it, to start today positively and attempts to resume the main bullish trend, noticing that stochastic provides clear positive signals now, waiting to motive the price to provide more positive trades in the upcoming sessions, waiting to breach 1.1075 to confirm rallying towards 1.1150 as a next target.



Therefore, we will continue to suggest the bullish trend on the intraday and short term basis, noting that breaking 1.1010 will stop the positive scenario and put the price under additional negative pressure to head towards visiting 1.0945 level before any new attempt to rise.

[Solid ECN]

USDCAD

As is usually the case for the first Friday of a new month, traders will be offered jobs data from the United States and Canada. Both reports will be released at 1:30 pm BST today, meaning that USDCAD is likely to experience a jump in short-term volatility around that hour.

Of course, the US report will draw more attention. The NFP report for April is expected to show an employment gain of 180k as well as an uptick in the unemployment rate to 3.6%. Wages are expected to increase 0.3% MoM but on an annual basis wage growth is seen staying unchanged at 4.2% YoY. Labour market data has been quite solid as of late and yet it did not discourage Fed from hinting that a pause in rate hike cycle is coming at the next meeting in June. Having said that, the impact of potential NFP beat today may be more short-term and won't alter rate expectations. When it comes to Canadian data, employment is expected to have increased by 21.5k jobs in April while the unemployment rate also ticked higher, from 5.0 to 5.1%.



Taking a look at USDCAD chart at D1 interval, we can see that the pair has been trading sideways recently. An attempt to break above the 1.3675 resistance zone was made at the turn of April and May but bulls failed to push the pair above it. Pair started to pull back and is now testing and support zone ranging around 1.35 handle and marked with 200-session moving average (purple line), previous price reactions as well as 23.6% retracement of the upward move launched in June 2021.

[Solid ECN]

GBPUSD touches the target

The GBPUSD pair continued to rise yesterday to succeed touching 1.2580 level, noticing that the price begins today with new rise to attempt to confirm breaching this level, to continue suggesting the bullish trend for the upcoming period, reminding you that our next station is located at 1.2650.



The bullish channels continue to organize the suggested bullish wave, which gets continuous support by the EMA50, noting that holding above 1.2510 is important to achieve the waited targets, as breaking it will press on the price to achieve some intraday bearish correction before turning back to rise again.

[Solid ECN]

Gold

Gold prices rallied upwards sharply by today’s open, as the prices are affected by the FOMC rate hike, to surpass our waited target at 2048.70 and record new historical high at 2080, to hint the continuation of the bullish trend domination on the short term and medium term basis, but we notice that the price declines quickly to settle below 2048.70, which makes us prefer to stay aside until the price confirms its situation according to this level followed by detecting its next destination clearly.


The contradiction between the technical indicators provides another reason for neutrality, as stochastic shows clear negative signals now, while the EMA50 provides the continuous positive support to the price. Note that breaching 2048.7 and holding above it will lead the price to resume the bullish wave and achieve positive targets that reach 2098, while consolidating below it will press on the price to achieve intraday bearish corrections that target testing 2017 areas initially.

[Solid ECN]

USDCAD

Despite natural gas price sideways fluctuation between 1.950 support and 2.500 resistance, the major indicators provide the negative momentum again, to increase the chances of renewing the negative attempts in the near term and medium term period.



Succeeding to break 1.950 support line will open the way to form new bearish waves to target the historical support at 1.4800 followed by reaching the psychological support at 1.