Market Update by Solidecn.com

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GBPUSD Technical Analysis

The GBPUSD pair trades with clear positivity to start attacking 1.2190 level, to hint the attempt to return to rise and stop the bearish correction that dominated the recent trades, and we prefer to stay neutral until the price confirms its situation according to the mentioned level followed by detecting its next destination clearly.



Note that confirming the beach will push the price to achieve gains that start at 1.2300 and extend to 1.2440, while consolidating below it will press on the price to decline again and test 1.1940 level as a first main station. The expected trading range for today is between 1.2100 support and 1.2250 resistance.

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EURGBP is Forced to Decline

The EURGBP price suffered strong negative pressures, which forces it to delay the bullish attack by reaching the extra support at 0.8875 to notice forming some of the negative waves by reaching 0.8825.



in spite of the main stability within the bullish channel’s levels but the continuation of providing negative closes below the broken support confirms its surrender to the bearish correctional bias domination, to expect reaching 0.8805 and surpassing this obstacle might extend the losses towards 0.8730, to face the moving average 55.

The expected trading range for today is between 0.8865 and 0.8805.

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EURUSD Approaches the Target

The EURUSD pair resumed its negative trading to move away from 1.0745 level, as it falls under continuous negative pressure coming by the EMA50, to approach our waited target at 1.0635, reinforcing the expectations of continuing the bearish trend in the upcoming sessions. Surpassing the mentioned level will push the price to achieve more decline and head towards 1.0515 as a next main target, while the price might witness some temporary sideways fluctuation affected by stochastic positivity until getting negative motive that assists to resume the negative trades to achieve the mentioned target.



On the other hand, we notice that the price completes forming negative pattern that adds more confirmation to the continuation of the expected bearish wave, which has negative targets that surpass 1.0515 to reach 1.0400 areas. Therefore, we will continue suggest the bearish trend for the upcoming period, noting that breaching 1.0745 will stop the negative scenario and lead the price to start new recovery attempts on the intraday basis.

The expected trading range for today is between 1.0575 support and 1.0745 resistance.

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Chart of the Day - USDCHF

Swiss franc strengthened on Monday after the annual inflation rate in Switzerland jumped to 3.3% YoY in January, the highest reading since September 2022, from 2.8% in the prior month and above analysts' estimates of 2.9%, which should support the case for further SNB policy tightening. Pair may experience increased volatility ahead of tomorrow’s US inflation data that could reinforce the case for more Federal Reserve interest rate hikes.



From technical point of view, the pair broke below the local support at 0.9235, which is marked with previous price reactions, 23.6% Fibonacci retracement of the latest upward wave and 200 SMA (red line). As long as price sits below, downward move may deepen towards next major support at 0.9200, which coincides with the lower limit of the triangle formation, 50 SMA (green line) and 38.2% retracement.

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NZDUSD Within Sideways Track


The NZDUSD pair still stuck between the next trend keys represented by 0.6290 support and 0.6360 resistance, which makes us continue with our neutrality until now, waiting to breach one of these levels to detect the next destination clearly.





We remind you that breaking the support will press on the price to achieve negative targets that start at 0.6210 followed by 0.6140, while breaching the resistance will lead the price to attempt to regain the main bullish trend and head towards 0.6465 followed by 0.6530 levels as main positive stations. The expected trading range for today is between 0.6270 support and 0.6400 resistance.

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EURUSD Technical Analysis

The EURUSD pair declined clearly yesterday to approach our waited target at 1.0635, but it bounced bullishly to test 1.0745 again, and it keeps its stability below it until now, to keep the bearish trend scenario valid for the upcoming period, noting that surpassing the mentioned target will push the price to 1.0515 as a next negative station.



On the other hand, we should note that breaching 1.0745 will stop the expected decline and lead the price to attempt to regain the main bullish trend again. The expected trading range for today is between 1.0640 support and 1.0800 resistance.

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GBPJPY Repeats the Negative Closings


The GBPJPY pair confirmed keeping the domination of the bearish bias by providing new negative close below the additional barrier 159.90, to notice forming bearish waves and achieve some negative targets by reaching 157.45.





We expect to gather the additional negative momentum to resume the bearish attack and succeed to crawl below 157.30 obstacle to target 156.65 followed by 155.70 levels direct. The expected trading range for today is between 159.00 and 157.3.

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Chart of the Day - USDDIX

The dollar index fell below 103 on Wednesday, extending yesterday's losses sparked by Powell’s latest comments. Head of the Fed said that more rate hikes will likely be needed and that the terminal rate could peak higher if the jobs market remains strong, however underlined that disinflation has begun. Traders now look ahead to more Fed commentary on Wednesday for further guidance.





From a technical point of view, USDIDX bounced off key resistance at 103.40, which is marked with upper limit of the local 1:1 structure, previous price reactions,50 SMA (green line) and upper limit of the descending channel. As long as price sits below the aforementioned level, the main sentiment remains bearish. Nearest major support to watch is located around recent lows at 100.60. On the other hand, if buyers manage to regain control, upward correction may be launched towards resistance at 105.30, which coincides with 38.2% Fibonacci retracement of the upward move launched in January 2021.

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GBPAUD Prepares for New Decline

The GBPAUD pair repeated the strong negative trades affected by the negative momentum coming by the major indicators, to consolidate below 61.8% Fibonacci correction level at 1.7500.





We expect to crawl towards 1.7190 to form the first target for the bearish track, noting that breaking this obstacle will allow the price to continue the decline and target more negative stations that might start at 1.7110 and 1.7055. The expected trading range for today is between 1.7360 and 1.7110.

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USDCHF Crawls Upwards


The USDCHF pair shows calm positive trades to gradually approach our waited target at 0.9315, to keep the bullish trend scenario valid and active as long as 0.9220 level remains intact.





Note that breaching the targeted level will extend the bullish wave to reach 0.9475 areas on the near term basis, while breaking 0.9220 represents negative factor that will push the price to the main bearish track again.


The expected trading range for today is between 0.9200 support and 0.9360 resistance.