Market Update by Solidecn.com

[Solid ECN]

EURUSD


The EURUSD pair faced negative pressure yesterday to attack 1.0580 level but it keeps its stability above it, and begins today with new bullish bias motivated by stochastic positivity, waiting to head towards our main expected target at 1.0745. Therefore, the bullish trend scenario will remain active as long as 1.0580 level remains intact.





The expected trading range for today is between 1.0550 support and 1.0710 resistance.

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GBPUSD Technical Analysis

The GBPUSD pair tests 1.2135 level and still below it, and the contradiction between the technical indicators still valid, to continue with our neutrality until the price confirms its situation according to the mentioned level followed by detecting its next destination clearly.



The expected trading range for today is between 1.2050 support and 1.2230 resistance.

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NZDUSD Faces Solid Support

The NZDUSD pair touched 0.6275 level and found solid support there, to show some bullish bias and retest the broken neckline of the head and shoulders’ pattern that appears on the chart, waiting to resume the negative trades to break the mentioned level and head towards 0.6130 as a next target. Therefore, the bearish trend scenario will remain valid for the upcoming period unless breaching 0.6385 and holding above it.



The expected trading range for today is between 0.6250 support and 0.6365 resistance

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EURUSD breaches the minor resistance

The EURUSD pair begins today with new positivity to breach the resistance that appears on the chart and attempts to hold above it, reinforcing the expectations of continuing the bullish trend, opening the way to head towards our waited target at 1.0745. The EMA50 and stochastic provide positive signals that support the expected rise, which will remain valid conditioned by the price stability above 1.0580.



The expected trading range for today is between 1.0570 support and 1.0745 resistance.

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NZDUSD - The price is in a correction, a fall is possible.

On the daily chart, the upward wave of the higher level (А) formed, a downward correction ended as the wave (B), and the wave (C) develops. Now, the first entry wave of the lower level i of 1 of (C) has formed and a local correction has started to develop as the second wave ii of 1 of (C).

If the assumption is correct, the NZDUSD pair will fall to the area of 0.6008 – 0.5890. In this scenario, critical stop loss level is 0.6515.

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AUDUSD - Growth is possible.

On the daily chart, the first wave of the higher level (1) formed, a downward correction ended as the second wave (2), and the third wave (3) develops, within which the first entry wave of the lower level i of 1 of (3) forms. Now, the wave (iii) of i has formed, and a local correction has ended as the wave (iv) of i.

If the assumption is correct, the AUDUSD pair will grow within the wave (v) of i to the area of 0.7040 – 0.7142. In this scenario, critical stop loss level is 0.6584.

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EURUSD - Low gas price in the EU supports the euro

Thus, according to data from the TTF exchange, the price for gas contracts with delivery in February is now 1120.0 dollars per 1.0K cubic meters, which was last observed in June, when the Nord Stream gas pipeline maintained maximum pumping levels. The current low quotations provide an opportunity for countries in the region to conclude long-term deals for supplies in the spring, as the storage facilities are almost full now. Meanwhile, in November, the German producer price index lost 3.9%, which led to a slowdown in growth to 28.2% YoY from 34.5% earlier.



On the daily chart, the trading instrument continues its corrective growth and confidently holds in the local ascending corridor. Technical indicators point to continued growth.

Resistance levels: 1.0675, 1.09 | Support levels: 1.0525, 1.032

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USDCAD - The price is in a correction and may grow.


On the daily chart, the fifth upward wave of the higher level 5 develops, within which the wave (3) of 5 forms. Now, the third wave of the lower level 3 of (3) has formed, a downward correction has ended as the fourth wave 4 of (3), and the wave 5 of (5) is developing, within which the wave i of 5 has ended, and the local correction ii of 5 is forming.


If the assumption is correct, USDCAD pair will grow to the area of 1.3978 – 1.45. In this scenario, critical stop loss level is 1.3380.

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USDCHF - Growth is possible.


On the daily chart, the third wave of the higher level 3 develops, within which the upward first wave (1) of 3 formed, and a downward correction ended as the second wave (2) of 3. Now, the wave C of (2) has ended, and the development of the upward wave (3) of 3 is starting.


If the assumption is correct, the USDCHF pair will grow to the area of 0.99 – 1.0151. In this scenario, critical stop loss level is 0.9085.

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NZDUSD - economic activity slows down in New Zealand


In recent weeks, macroeconomic data from New Zealand suggest a significant slowdown in economic activity, with Westpac's Q4 domestic consumer sentiment index at 75.6 points, down from Q3 87.6. Business confidence from Australia and New Zealand banking group ANZ fell in December to –70.2 points from –57.1 points a month earlier, which was the lowest on record since 1998, while the business activity indicator from the National Bank of New Zealand (NBNZ) accelerated the fall to –25.6% from –13.7% before.





The trading instrument is moving within a corrective uptrend with a local decline.


Resistance levels: 0.639, 0.651 | Support levels: 0.626, 0.613