Market Update by Solidecn.com

[Solid ECN]

Wall Street declines after inflation data

US stock indices declined on Thursday amid concerns about a tighter monetary policy by the Federal Reserve following inflation data. US consumer prices rose 8.2% in September, beating estimates of 8.1%, and less than 8.3% in the previous reading. Core prices, excluding food and energy, rose 6.6%, also above estimates of 6.5%, and above the previous reading's 6.3%.

• Core consumer prices rose 0.6% on a monthly basis, up from 0.4% in August.
• US unemployment claims jumped to 228 thousand in the week ending October 8 from 219 thousand in the previous reading, while analysts expected 225 thousand.
• Dow Jones fell 0.7%, or 206 points to 29,004, while S&P 500 shed 1%, or 36 points to 3,540, as NASDAQ declined 1.4%, or 145 points to 10,275.

[Solid ECN]

AUDUSD heads towards the resistance

The AUDUSD pair approached few pips away from our waited target at 0.6160, and bounced upwards strongly to head towards expected test to the bearish channel’s resistance around 0.6410, making the bullish bias suggested in the upcoming sessions. Surpassing 0.6350 is required to reinforce the expectations of continuing the rise, noting that breaking 0.6275 will stop the suggested bullish bias and press on the price to resume the main bearish trend again.


The expected trading range for today is between 0.6275 support and 0.6410 resistance. The expected trend for today: Bullish.

[Solid ECN]

USDCHF Hits the Target

The USDCHF pair succeeded to touch our main waited target at 1.0064 and found solid resistance there, to rebound bearishly and head towards achieving expected decline in the upcoming sessions, targeting testing 0.9910 followed by 0.9860 levels mainly. Therefore, the bearish bias will be suggested for today, noting that breaching 1.0064 will stop the expected decline and lead the price to achieve more gains on the short term and medium-term basis.



The expected trading range for today is between 0.9900 support and 1.0064 resistance. The expected trend for today: Bearish.

[Solid ECN]

USDJPY - Growth is possible.

On the daily chart, the third wave of the higher level 3 develops, within which the third wave of the lower level iii of 3 formed, and a downward correction ended as the fourth wave iv of 3. Now, the fifth wave v of 3 is forming, within which a local correction has ended as the wave (iv) of v, and the wave (v) of v is forming.

If the assumption is correct, the USDJPY pair will grow to the area of 150 – 152. In this scenario, critical stop loss level is 143.31.

[Solid ECN]

USDCAD Within Positive Pattern

The USDCAD pair’s recent trades are confined within bullish pennant pattern, thus, breaching 1.3855 will activate the positive effect of this pattern and push the price to resume the main bullish wave, to open the way to rally towards our next main target at 1.3900.


Therefore, the bullish trend scenario will remain valid and active for the upcoming period, supported by the EMA50 (BB Middle band), taking into consideration that the continuation of the bullish wave requires holding above 1.3700. The expected trading range for today is between 1.3760 support and 1.3900 resistance.

The expected trend for today: Bullish.

[Solid ECN]

NZDUSD Awaits New Declines

The NZDUSD pair provided slight positive trades yesterday to test 0.56 barrier, noticing that stochastic begins to provide negative signals now, waiting to motivate the price to resume the bearish wave that its targets begin by breaking 0.5564 to open the way to visit 0.55.



The EMA50 (BB middle line) supports the expected decline, which will remain valid unless the price rallied to breach 0.564 followed by 0.5705 levels and hold above them. The expected trading range for today is between 0.553 support and 0.5640 resistance. The expected trend for today: Bearish.

[Solid ECN]

EURUSD builds bearish channel

The EURUSD pair continues to fluctuate around 0.97 level, and finds difficulty to confirm breaking it, noticing that the price moves inside intraday bearish channel that supports the chances of continuing the expected bearish wave for the upcoming period, which targets 0.963 followed by 0.955 levels as next main stations.



In general, we will continue to suggest the bearish trend unless breaching 0.9790 level and holding above it, noting that stochastic loses its positive momentum now to support the chances of resuming the suggested decline.

The expected trading range for today is between 0.96 support and 0.976 resistance. The expected trend for today: Bearish.

[Solid ECN]

Sterling climbs nearly 1% despite GDP contraction data

Sterling rose against most major currencies on Wednesday despite some negative UK data. Earlier UK data showed GDP contracted 0.3% m/m in September while analysts expected no change in the growth rate.



The Greenback

The dollar index rose 0.2% to 113.4 as of 17:05 GMT, with a session-high at 113.5, and a low at 113.05. Tomorrow, market await consumer prices data for September. Such data will give a clue about the future directions for the Federal Reserve on monetary policies and rate decisions. Earlier US data showed producer prices rose 0.4% m/m in September, above estimates of 0.2%.

The Federal Reserve will release minutes of the September meeting, at which it decided to hike rates by 75 basis points, the third such hike in a row to 3.25%, the highest since 2008.

[Solid ECN]

Crude oil price approaches the extended target

Crude oil price shows positive trades to approach testing the key resistance 88.65, which represents one of the next trend keys besides 86.65 support line, as the price needs to surpass one of these levels to detect its destination clearly, which makes us continue with our neutrality until now.



To review the details of the expected targets of the beach, the expected trading range for today is between 85.50 support and 89.50 resistance. The expected trend for today: Neutral

[Solid ECN]

​IBM gives in to negative pressures

IBM's stock skidded in the intraday levels after the company announced an investment of $20 million in New York in PC devices, hybrid cloud services, AI, and quantum computers, with the stock sliding 2.79%, and settling at 122.23, with trading volumes surpassing 5 million shares, above 10-day averages of 4.4 million shares.





Technically, the stock is hurt by negative pressure from the 50-day SMA, while hurt by piercing the upward trend line recently in the short term, as the RSI reached overbought levels. Therefore, we expect more losses for the stock, targeting the first resistance at 118.80, provided the resistance of 126.30 held on.


Expected trend for today: Bearish