Market Update by Solidecn.com

[Solid ECN]

EURUSD resumes the rise

The EURUSD pair’s rise stopped near 1.0100 level, to show tight fluctuation in attempt to gain some new positive momentum, waiting to resume the bullish wave that targets 1.0180 as a next station.



Until now, the bullish trend scenario still valid for the upcoming period as long as 1 level remains intact, noting that the EMA50 continues to support the suggested bullish wave, which its targets extend to reach 1.0285 after surpassing the above mentioned level.

The expected trading range for today is between 1.0000 support and 1.0170 resistance, and the expected trend for today is Bullish.

[Solid ECN]

USDCHF hits the negative target

The USDCHF pair managed to touch the waited negative target at 0.990 and achieved negative close below it, to support the chances of continuing the bearish bias in the upcoming sessions, paving the way to head towards 0.9815 as a next target. Therefore, we expect to witness more decline today, noting that failing to consolidate below 0.9890 will lead the price to start intraday bullish wave that targets testing 0.9990 areas initially.



The expected trading range for today is between 0.9830 support and 0.9970 resistance, and the expected trend for today is Bearish.

[Solid ECN]

Dollar widens losses ahead of mid-term elections

Dollar fell against most major rivals on Monday as risk appetite oscillates, losses mount ahead of Congressional elections. Tomorrow, the mid-term elections for both houses of Congress will be launched, with the Republican Party expected to remove Democrats from their current majorities.

• Important US inflation data will be released later this week, and will help investors predict future Fed steps.
• Recent US data released last week showed the economy added 261 thousand jobs in October, while analysts expected an addition of 220 thousand.
• US unemployment rose to 3.7% last month from 3.5% in September, while analysts expected 3.6%.
• The Fed decided last week to raise interest rates by 75 basis points as expected.
• The dollar index fell 0.6% to 110.2 as of 18:25 GMT, with a session-high at 111.2, and a low at 110.1.

[Solid ECN]

GBPJPY Records Some Targets

The GBPJPY pair succeeded to breach 166.80 level, to form strong bullish rally and notice achieving many positive targets by touching 169.10 level, while the price might form sideways fluctuation until gathering the additional positive momentum that will assist to resume the rise and reach the additional targets near 169.65 and 170.50.



The above chart shows that stochastic begins to form bullish waves to approach 50 level, to increase the chances of gaining the required positive momentum to achieve the suggested targets.

The expected trading range for today is between 167.80 and 169.65, and the expected trend for today is Bullish.

[Solid ECN]

USDCAD Completes Negative Pattern

USDCAD pair ended last Friday below 1.3500 level after the sharp decline that it witnessed in the previous sessions, affected by the strong positive employment data from the Canadian economy, and by taking a deeper look at the chart, we find that the price completed forming head and shoulders’ pattern that its confirmation line located at the mentioned level.




Therefore, we expect to face additional negative pressures in the upcoming period, and the targets begin by surpassing 1.3500 support line to open the way to head towards 1.3350 followed by 1.3205 levels, taking into consideration that the consolidation of the mentioned support against the current negative pressure will lead the price to start recovery attempts that target testing 1.3680 areas initially.

The expected trading range for today is between 1.3440 support and 1.3590 resistance, and the expected trend for today is Bearish.

[Solid ECN]

USDJPY Under the Negative Pressure

The USDJPY pair faced negative pressure in the previous sessions to break 147.17 level and close the daily candlestick below it, which puts the price under more expected negative pressure in the upcoming sessions, as it returns to the correctional bearish channel to head towards visiting 146 followed by 144.20 levels as next main targets.



Therefore, the bearish trend will be suggested for today, noting that consolidating above 147.17 will stop the expected negative scenario and lead the price to recover again. The expected trading range for today is between 146.40 support and 147.90 resistance, and the expected trend for today is Bearish.

[Solid ECN]

The EURUSD Achieves Strong Gains

The EURUSD pair ended last Friday with strong positivity, settling above 0.9900 barrier, to reinforce the chances of continuing the rise in the upcoming period, waiting to test 1 level as a next station, noting that breaching this level will lead the price to achieve additional gains that reach 1.0165. Therefore, the bullish bias will be suggested for today, noting that breaking 0.9870 will stop the positive scenario and press on the price to decline again, to head towards visiting 0.9755 initially.



The expected trading range for today is between 0.9870 support and 1.0030 resistance, and the expected trend for today is Bullish.

[Solid ECN]

Euro Declines on Profit-taking after Biggest Daily Profit Since 2015

Euro fell in European trade against a basket of major rivals on profit-taking after marking the biggest profit since late 2015 against dollar, however risks continue to surround the common currency. The dollar was boosted as well amid risk-averse sentiment with China asserting its commitment to strict Covid 19 restrictions, dashing hopes of reopening the world's second largest economy.

EURUSD fell lover 0.5% to 0.9902, after closing up 2.2% on Friday, the first profit in five days, and the largest since December 2015.




Standing Risks

The divergent levels of European and US interest rates are ongoing risks that continue hurting euro's standing, in addition to high energy costs and natural gas shortages. A historic increase in energy prices sent inflation considerably higher and hurt economic growth and the trade flow.


Lagarde

ECB President Christine Lagarde is preparing to present a speech organized by the European Commission in Belgium, which might offer fresh clues on the future of interest rates in the euro zone. Lagarde also noted the extremely higher inflation rates all over the euro zone, which remain far from the 2% targets.





The Dollar

The dollar index rose over 0.4% on Monday, recouping some of its hefty losses on Friday against a basket of major rivals. The dollar swooned on Friday after four Fed policymakers said they're considering raising interest rates at the next December meeting by a lower amount compared to the previous meeting.

[Solid ECN]

USDJPY Breaches the Resistance

USDJPY pair traded positively yesterday to breach the bearish channel’s resistance and settles above it, to hint the attempt to regain the main bullish trend again, but we notice that stochastic lost its positive momentum clearly, to put the price under negative pressure by today’s open.



Therefore, the contradiction between the technical factors makes us prefer to stay aside until we get clearer signal for the next trend, noting that breaching 148.45 will lead the price to achieve more gains and head towards 150 areas initially, while breaking 147.17 will put the price under the correctional bearish pressure again, to target 146 followed by 144.20 levels as next negative stations.

The expected trading range for today is between 147.10 support and 148.90 resistance, and the expected trend for today is Neutral.

[Solid ECN]

AUDUSD Begins Positively

The AUDUSD pair opens today’s trading with clear positivity to head towards potential test to the broken neckline of the double top pattern that appears on the chart, waiting to resume the bearish wave that targets 0.6265 followed by 0.6170 levels as next main stations.



Until now, the bearish trend scenario still valid and active unless the price rallied to breach 0.6397 and hold above it, noting that the EMA50 supports the suggested decline. The expected trading range for today is between 0.6260 support and 0.6370 resistance, the expected trend for today is Bearish.