Market Update by Solidecn.com

[Solid ECN]

USD/JPY: Price Tests Ascending Trendline




Solid ECN—The USD/JPY currency pair has declined from $157.7 and is testing the ascending trendline at $154.7. This demand area is in conjunction with the Ichimoku cloud and the April 9 high.

The technical indicators signify a bearish profile.

• The RSI value is 45, below 50, and declining.
• The Awesome Oscillator value is 1.04, hovering above the signal line but declining.

From a technical standpoint, the primary trend is bullish. For the uptrend to resume, the bulls must maintain the price above the ascending trendline and the immediate support of $154.7. If this scenario unfolds, the USD/JPY will likely surge to retest the key resistance level at $157.7.

On the flip side, if the bears close the USD/JPY price below the ascending trendline and the immediate support, the next bearish target will likely be $151.9.

[Solid ECN]

USD/CNH Symmetrical Triangle: Key Levels


Solid ECN—The USD/CNH currency pair traded at about $7.25 in today's trading session. The currency pair has been moving sideways inside the symmetrical triangle, approaching the apex in the last three trading sessions. As of writing, the bears are testing the ascending trendline, a level supported by the Ichimoku cloud.

Moreover, the technical indicators signal that bearish momentum should escalate. Therefore, from a technical standpoint, if the USD/CNH slips below $7.255, the next resistance level should be set at $7.247. The Ichimoku cloud supports this demand area; therefore, the market might bounce from it.

Additionally, traders and investors should monitor the price action around the symmetrical triangle. If the selling pressure exceeds the critical support level at $7.245, the next bearish target will be $7.236.

On the flip side, the primary trend is bullish, and for it to resume, bulls must close above the immediate resistance at $7.26. If this scenario comes into play, the next bullish target should be set at the May all-time high of $7.275.

[Solid ECN]

NZD/USD Tests Key Resistance at $0.616




Solid ECN—The NZD/USD currency pair bounced from the $0.613 immediate support level, and as of this writing, it is testing the broken ascending trendline, the key resistance level at $0.616.

The technical indicators suggest a sideways market with a mild bullish trend.

• The RSI is above the median line with a value of 60. The indicator is not overbought, meaning it can hold the uptick momentum around the key resistance and aim for a breakout.
• The Awesome Oscillator is bearish with red bars, but they are above the zero line, indicating that the bullish momentum might lose its strength.

From a technical standpoint, the key resistance level that paused the primary trend is $0.616. For the uptrend to resume, the NZD/USD price must close and stabilize above this level. If this scenario comes into play, the next bullish target should be set at the $0.621 mark.
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Bearish Scenario

Conversely, if the bulls fail to cross the key resistance, the currency pair's price will likely decline again, aiming for immediate support at $0.613. If the selling pressure increases, the next target will be $0.6086.

[Solid ECN]

AUD/USD Tests Immediate Support


Solid ECN—The AUD/USD currency pair traded at $0.664 in today's trading session. As of this writing, it is testing immediate support at $0.663. The technical indicators in the 4-hour chart suggest the currency pair is trading sideways, and the market lacks significant momentum.

From a technical perspective, if the AUD/USD bulls maintain their position above the immediate support at $0.663, the price will likely aim for the key resistance level at $0.668. The next bullish target should be $0.671 if the buying pressure exceeds this.

Conversely, if the bears push the price below the $0.663 support and stabilize it below it, the new bearish momentum will likely head to the next support at $0.659.

[Solid ECN]

EURUSD Analysis


Solid ECN—The EUR/USD price declined from the $1.088 ceiling, and as of writing, the currency pair trades at about $1.084, testing the May 30 high. The technical indicators give mixed signals. The relative strength index clings to the median line, signaling a low momentum market. Furthermore, the awesome oscillator's recent bar turned red, indicating that bearish momentum may resume.

The immediate resistance is at $1.085. From a technical standpoint, if the EUR/USD price holds below this resistance, the downtrend will likely resume, with the next bearish target at the May 30 low of $1.078.

Conversely, if the bulls cross above the $1.085 immediate resistance, the uptrend that began on May 30 will likely aim to exceed the $1.088 key resistance.

[Solid ECN]

Will GBP/USD Break Above $1.276?


Solid ECN—The GBP/USD currency pair trades at about $1.273 in today's trading session, which is below the descending trendline and the $1.276 resistance. The RSI indicator signals a sideways market, but the Awesome Oscillator value is on the rise and about to close above the signal level.

From a technical standpoint, for the uptrend to resume, the bulls must cross above the $1.276 level. If this scenario plays out, the next bullish target will be the $1.280 resistance.

On the flip side, if the price remains below the descending trendline, the price will likely target $1.2681, followed by the lower line of the bearish flag.

[Solid ECN]

USD/JPY Faces Critical $156.5 Resistance



Solid ECN—The USD/JPY currency pair is testing the $156.5 resistance level. This level is backed by the Ichimoku Cloud and the 50 SMA. Interestingly, the 4-hour chart has formed a hammer candlestick pattern, indicating that the price might bounce from this level. Meanwhile, the technical indicators show a sideways market.

From a technical perspective, USD/JPY is in a bull market. If the price holds above the immediate support at $156.5, it will likely rise to test the immediate resistance at $157.7.

Conversely, if the USD/JPY price dips below the immediate support, the next bearish target could be $155.6.

[Solid ECN]

GBP/USD Testing Key Resistance Levels


Solid ECN—The GBP/USD price bounced from the $1.267 support and is testing the $1.274 resistance. The RSI value is 53, above the median line, and the awesome oscillator bars are below zero, but the colors have turned green, and the value is on the rise. These developments in the technical indicators suggest that the trend might resume its bullish momentum.

Immediate resistance is at $1.274. For the bull market to resume, the GBP/USD must cross above this barrier. If this scenario comes into play, the road to retest the $1.280 resistance will be paved.

On the flip side, a failure to overcome the $1.274 barrier will likely result in the price declining, testing the immediate support at $1.267. If the selling pressure exceeds this level, the next bearish target could be $1.263.

[Solid ECN]

EUR/USD Outlook - May-29-2024




Solid ECN—The EUR/USD pair is trading in an uptrend at approximately 1.084 in today's session. The pair bounced from the 38.2% Fibonacci retracement level at 1.083, a support reinforced by the ascending trendline.

• The Relative Strength Index (RSI) is at 47, hovering below the median line, indicating that bearish momentum may resume.
• The Awesome Oscillator is also declining toward the zero line, currently reading 0.0006, further suggesting a strengthening bearish momentum.

From a technical perspective, the primary trend remains bullish, with the current bounce from 1.088 potentially representing a consolidation phase. The uptrend is likely to continue if the EUR/USD price remains above the ascending trendline and the 38.2% Fibonacci retracement level at 1.083. In this case, the next resistance levels are the 78.6% Fibonacci retracement at 1.087, followed by the May all-time high at 1.089.

Conversely, the bullish scenario would be invalidated if the pair dips below the ascending trendline and the 23.6% Fibonacci level. Should this occur, the next support level would be at 1.080, corresponding to the May 24 low.

[Solid ECN]

GBP/USD Tests Key Support Amid Divergence Signals



The GBP/USD currency pair dipped from the 1.280 high today and is currently testing the $1.275 immediate support. This support level is reinforced by the middle band of the Bollinger Bands and the May 22 high.

• The Awesome Oscillator signals divergence, indicating a potential trend reversal or consolidation.
• The RSI indicator reads 56, approaching the 50 line, suggesting that the upward momentum is weakening.

From a technical standpoint, while indicators suggest a bearish trend might be imminent, the price remains above the ascending trendline. For the primary bullish trend to continue, the price must maintain its position above this trendline. If this occurs, the bulls' first target is 1.280, and with increased buying pressure, the price could move towards $1.289.

Conversely, if the GBP/USD price falls below the immediate support at 1.274, it will likely test the 1.267 support, followed by the $1.263 level.