Market Update by Solidecn.com

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USDCHF

The USDCHF pair broke 0.9316 level strongly to complete forming double top pattern that its signs appear on the chart, to surpass the negative target mentioned in our last report at 0.9220 and opens the way to continue the decline towards 0.9135 areas, waiting for more bearish bias in the upcoming sessions.



Note that surpassing the last level will push the price to visit the recently recorded low at 0.9060, while breaching 0.9220 will stop the negative scenario and push the price to start recovery attempts that target testing 0.9316 level initially.

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US30

US index futures traded significantly higher this morning after the Fed and US Treasury stepped in to limit contagion risk from SVB collapse. Emergency lending program was announced that will allow banks to access liquidity needed to service deposits. US Treasury Secretary Janet Yellen approved necessary decisions assuring that bank deposits are protected and announced that all depositors will be able to access. While broad market performance on Monday morning showed that the situation has calmed, problems may not be over yet. SVB collapsed and FDIC took control over it while Signature Bank was shut down by regulators due to systemic risk following SVB collapse. However, another bank is rumored to be close to collapsing - First Republic Bank. Shares of this bank are trading 60% lower in premarket today and it is said to be the next in-line should the domino effect continue. Slump in First Republic Bank shares are dragging down the whole market with DAX and other European blue chips indices trading 2-3% lower on the day. US equity futures erased all of the gains and are now trading flat or slightly lower compared to Friday's closing prices.



Taking a look at Dow Jones futures chart (US30) at D1 interval, we can see that all of the gains made earlier today were erased already and now the index is trading lower. The index tested resistance zone marked with 38.2% retracement and 200-session moving average this morning but has pulled back since and is now testing support zone ranging around 31,750 pts area.

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USDJPY

The USDJPY pair continued to decline strongly to reach the thresholds of the negative target mentioned in our last technical update at 133.30, starting today with additional negativity to support the chances of continuing the bearish bias in the upcoming sessions, noting that breaking the mentioned level will extend the bearish wave to reach 131.75 areas as a next main station.



Note that the continuation of the bearish wave depends on the price stability below 135.40, as breaching it will push the price to recover and head towards achieving gains that start by testing 137.70 areas.

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DE30

European indices launched today's trading little changed after Fed and US Treasury stepped in to limit contagion risk from SVB collapse. However, issues may not be over as SVB is not the only bank with problems. Signature Bank has been shut down by regulators over the weekend due to systemic risk concerns. Meanwhile, another US bank may be facing collapse - First Republic Bank. This bank is trading 60% lower in US premarket session right now and it has dented moods on the markets following European cash session open.



German DAX slumped around 200 points during the first hour of the cash trading session. Index erased all of the overnight gains, dropped to the lowest level since March 2, 2023 and is now attempting to break below the 15,230 pts support zone at press time.

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GBPUSD

The GBPUSD pair rallied upwards to confirm breaching the correctional bearish channel’s resistance, which stops the correctional bearish trend and lead the price to attempt to regain the main bullish trend again, on its way to achieve positive targets that start at 1.2260 and extend to 1.2440.



Therefore, the bullish bias will be suggested for today, it might be preceded by some temporary sideways fluctuation affected by stochastic negativity, waiting to gather positive momentum that assists to push the price to achieve the expected targets. Note that breaking 1.2050 will put the price under intraday negative pressure that targets testing the most important support at 1.1940 before any new attempt to rise.

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EURUSD

The EURUSD pair begins today with additional positivity to surpass 1.0645 level and settles above it, which pushes the price to achieve more intraday gains, targeting testing 1.0745 as a next station, noting that breaching this level will push the price to continue rising and head towards 1.0800 followed by 1.0925 levels as next main targets.



Moving above the EMA50 supports the continuation of the expected bullish trend, while stochastic might cause some temporary sideways fluctuation before resuming the bullish bias. On the other hand, we should note that breaking 1.0645 and holding below it will stop the suggested bullish wave and press on the price to decline again.

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USDCHF

The USDCHF pair traded with clear negativity yesterday, and ended trades near 0.9316, noticing that the price begins today with additional negativity to attack this level and attempt to confirm breaking it, which makes us prefer to stay aside until we get clearer signal for the next trend, through monitoring the price behavior according to the mentioned level.



Note that confirming breaking the mentioned support will press on the price to achieve more decline and return to the main bearish track, to head towards achieving negative targets that start at 0.9220 and extend to 0.9135, while consolidating above it will lead the price to resume the correctional bullish track that its next main target located at 0.9475.

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DE30

he German leading index is facing an important decision.

W1 chart

The DAX / DE30 reached a new high for the year this week at 15,718 points. However, the break above resistance at 15,698 points was not sustainable. The index was set back slightly, so that it currently has a small weekly loss.




D1 chart

Today's setback was seen as a buying opportunity - this is shown by the lower shadow. The recovery attempt is not yet convincing. However, the DAX / DE30 can hold at a high level, so that a second test of the above-mentioned hurdle is possible.

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EURJPY

The EURJPY pair didn’t succeed to exit the sideways range until this moment, to keep fluctuating between 145.5 resistance and 144 support.



The above chart shows that stochastic begins to provide the negative momentum, to increase the chances of forming new negative waves, and expect to crawl below the current support to reach many negative stations that might start at 143.25 followed by 142.2, to press on the moving average 55.

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GBPUSD

The GBPUSD pair fluctuates around 1.0840 level since yesterday, and continues to move within the correctional bearish channel, waiting to resume the bearish bias that its next main target located at 1.1625, supported by stochastic loss to the positive momentum clearly.



By taking a deeper look at the chart, we find that the price completed forming double top pattern that hast negative targets that surpass the above mentioned level to reach 1.1370 areas, to suggest the domination of the bearish trend on the longer term basis. Therefore, we are waiting for more decline in the upcoming sessions, supported by the negative pressure formed by the EMA50, reminding you that it is important to hold below 1.1940 to achieve the waited targets.