Market Update by Solidecn.com

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XAUUSD - The "bulls" reduce positions in the asset

The situation on the gold market is still ambiguous: historically, the precious metal has always been a refuge in case of geopolitical tensions, but at the moment, its quotes are under pressure from high interest rates and, as a result, a growing dollar. The hawkish monetary policy provokes an increase in government bonds yield, which are more reliable than gold, and high rates (4% on 10-year bonds) additionally attract investor capital into bonds. Also, since the price of gold is denominated in dollars, the latter's growth will always make the metal cheaper, which is now observed.



On the daily chart of the asset, the price is moving in a downward channel, approaching the support line.

Resistance levels: 1672, 1730 | Support levels: 1620, 1570

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AUDUSD - A fall is possible.

On the daily chart, the first wave of the higher level (1) formed, and a downward correction develops as the second wave (2), within which the wave C of (2) forms. Now, the third wave of the lower level iii of C is developing, within which the wave (iii) of iii is forming, and a local correction is developing as the wave (iv) of iii.

If the assumption is correct, the AUDUSD pair will fall to the area of 0.6091–0.5900. In this scenario, critical stop loss level is 0.6551.

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ETHUSD - Murray analysis

This week, the quotes have overcome the mark of 1321 (Fibo retracement 61.8%, the middle line of the Bollinger Bands) and can continue to grow to the upper limit of the lateral range of 1375, which will allow them to leave the descending channel and rise to the levels of 1450 (Fibo retracement 50.0%), 1500 (Murray [4/8]) and 1575 (Fibo retracement 38.2%). The reverse consolidation of the price below the level of 1321.00 will give the prospect of a return to the lower limit of the trading range of 1250, however, the resumption of serious downward dynamics is possible only in case of its breakdown. In this case, the targets will be 1125 (Murray [1/8]) and 1000 (Murray [0/8]).



Resistance levels: 1375, 1450, 1500, 1575 | Support levels: 1250, 1125, 1000

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BTCUSD - Market Uncertainty Persists

The BTCUSD pair had a rather volatile week, dropping to four-week lows around 18190 but then returned to 19940. However, quotes generally remain in the range of 19000–19400.

The sharp decline in prices was due to the release of September data on inflation in the US, which remained at very high levels: the consumer price index reached 8.2%, and Core CPI – 6.6%, which forced the US Federal Reserve to adopt “hawkish” rhetoric, strengthening the position of the American currency against the main competitors. However, the downward dynamics were short-term, and soon the trading instrument regained lost positions.



The price chart is probably forming a Downwards Triangle, and the trading instrument is close to exiting it. If it consolidates below the 19000–18750 zone, the decline will continue to 18000 (Murrey [–1/8]), 16900 (Fibonacci extension 100), and if 19531.25 (Murrey [1/8], the middle line of Bollinger Bands) is broken up resume by 20312.5 (Murrey [2/8]) and 21093.7 (Murrey [3/8]).

Resistance levels: 19531.2, 20312.5, 21093.7, 21875 | Support levels: 18750, 18000, 16900

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AUDUSD resumes the decline

The AUDUSD pair bounced downwards clearly after approaching the horizontal resistance at 0.6360, to head towards resuming the main bearish trend within the bearish channel that appears on the chart, on its way to visit 0.6165 followed by 0.6090 levels as main negative targets. Note that breaching 0.6270 might push the price to attempt to recover again, to head towards testing 0.6385 areas initially.



The expected trading range for today is between 0.6165 support and 0.6280 resistance. The expected trend for today: Bearish.

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Netflix - Technical Analysis

Shares of Netflix, an American entertainment company, are on a corrective trend at 230. On the daily chart, the price is showing a poor upward momentum, trying to reach the initial Fibonacci 23.6% retracement at 288. The four-hour chart shows that the potential for upward and downward movement is approximately equal since the quotes are moving in a narrow sideways corridor of 212–250 Soon, the price may test the upper limit of the channel at 250, consolidation above which will open the way to 288.

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GBPUSD - A fall is possible.

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

If the assumption is correct, the GBPUSD pair will fall to the area of 1.02 – 1. In this scenario, critical stop loss level is 1.1501.

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Dollar climbs after a batch of US data

Dollar rose against major currencies on Friday, bolstering the gains following a batch of new data.

• The data showed retail sales were flat last month, while analysts expected a 0.2% rise.
• Core sales rose 0.1% last month, beating estimates of a 0.1% dip.
• Michigan\Reuters consumer confidence index rose to 59.8 in October from 58.6 in September.
• Recent data this week showed consumer prices rose 8.2% in September, while analysts expected 8.1%, and compared to 8.3% in August.
• Such data bolsters the case for aggressive policy tightening and rate hikes by the Fed, which threatens a global recession.

The dollar index rose 0.8% to 113.2 as of 17:56 GMT, with a session-high at 113.4, and a low at 112.1.

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EURUSD - A fall is possible.

On the daily chart, the fifth downward wave of the higher level (5) of А develops, within which the wave 5 of (5) forms. Now, the fifth wave of the lower level v of 5 of (5) is developing, within which the wave (i) of v of 5 formed, and a local correction is developing as the wave (ii) of v of 5.

If the assumption is correct, the EURUSD pair will fall to the area of 0.947 – 0.93. In this scenario, critical stop loss level is 0.9997.

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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.