Market Update by Solidecn.com

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USDJPY


The Japanese Yen remains in a strong downtrend. The USDJPY currency pair is rising to a level of 144.6 points, despite open statements from Japanese policymakers about the possibility of currency intervention in the event of excessive currency depreciation. The last intervention by the Bank of Japan (BoJ) took place at the end of last year when USDJPY rose to a level above 150 points.

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EURUSD Faces Solid Support


The EURUSD currency pair has recently experienced a clear upward bounce after it attacked the neckline of the double top pattern. This has resulted in the pair now testing the EMA50 level.





As a result, our overall outlook for the EURUSD pair remains bearish. Our targets for the pair begin with breaking through the 1.0860 – 1.0840 levels, which would open the way for further declines towards the 1.0795 and 1.0730 levels, which are considered to be key negative stations. However, it is important to keep in mind that if the pair breaches the 1.0940 level, this could halt the expected decline and instead lead to a rise in price.

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USDCHF Under the Negative Pressure


The USDCHF currency pair has recently experienced a significant amount of negative pressure. This has resulted in the pair breaking through the 0.8965 level and settling below it. This downward movement suggests that the pair may continue to decline, with potential targets being the 0.8900 and 0.8800 levels, which are considered to be key negative stations.





As a result of these developments, a bearish bias is suggested for the USDCHF pair in today’s trading. However, it is important to note that if the pair breaches the 0.8980 level, this could halt the expected decline and instead push the price towards a new bullish correction. In this scenario, the next target for the pair would be the 0.9055 level.

[Solid ECN]

USDCHF Under the Negative Pressure


The USDCHF currency pair has recently experienced a significant amount of negative pressure. This has resulted in the pair breaking through the 0.8965 level and settling below it. This downward movement suggests that the pair may continue to decline, with potential targets being the 0.8900 and 0.8800 levels, which are considered to be key negative stations.





As a result of these developments, a bearish bias is suggested for the USDCHF pair in today’s trading. However, it is important to note that if the pair breaches the 0.8980 level, this could halt the expected decline and instead push the price towards a new bullish correction. In this scenario, the next target for the pair would be the 0.9055 level.

[maxjp]

thank you for your good update market analysis, good job

[Solid ECN]

DE30


Risk-on moods can be spotted on the markets today. Equities in Europe and China traded higher earlier today and now solid gains can be spotted on Wall Street as well. Upbeat comments from the Chinese Prime Minister on additional stimulus measures being implemented starting from July as well as solid US data earlier today are supporting upbeat sentiment on the markets.





German DAX futures (DE30) found their way back above the 16,000 pts mark this afternoon. Index tested 15,850 pts support zone yesterday but failed to break below. Bulls managed to hold the index above the upper limit of the upward channel. Bullish candlestick patterns suggest that a recovery move may be on the cards now. In such a scenario, 16,090 pts area will be the first near-term resistance to watch.





US indices are trading higher today with S&P 500 futures (US500) breaking above 4,400 pts area. Taking a look at the index at H1 interval, we can see that price broke above the upper limit of the bearish channel and 50-period moving average (green line). Advance continued and bulls managed to break above the 4,400 pts resistance zone, where the upper limit of market geometry was located, flashing another sign that a short-term bullish trend reversal occurred. The next resistance zone to watch can be found in the 4,427 pts area and is marked with previous price reactions.

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EURUSD


During her inaugural speech at the ongoing central banking conference in Sintra, Portugal, President Lagarde announced that the ECB will raise interest rates at its next meeting in July. The banker indicated that inflationary pressures in the services sector would be a key theme for further rate hikes (a drop in sentiment in this sector/services inflationary pressures could encourage the ECB to ease monetary decisions).


Inflation in EMU remains high all the time, and the second inflationary wave is only now starting to materialise. The banker also sees a growing impact of higher wages on inflation.





The EURUSD pair has rallied during today's session and is approaching the resistance levels marked last week.

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NZDUSD


The NZDUSD currency pair is currently exhibiting positive trading patterns and is attempting to surpass the 50-day exponential moving average (EMA50), which has been providing significant resistance against price movements. We anticipate further upward movement in order to achieve our positive targets, which begin at 0.6220 and extend to 0.6290. Notably, we have observed two bullish engulfing candlestick patterns on the 4-hour time frame, which serve to confirm the strength of the current bullish trend.





Overall, we expect the bullish trend scenario to remain valid and active, provided that the price does not break below 0.6140 and hold with a daily close below this level.

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USDCHF


USDCHF pair returns to test the key resistance 0.8959 (fibo 0.236) after the decline that it witnessed yesterday, noticing that AO loses its positive momentum clearly, waiting to motivate the price to resume the expected bearish trend for the upcoming period, which targets 0.8909 followed by 0.8820 levels mainly.





The EMA50 supports the suggested bearish wave, which will remain valid conditioned by the price stability below 0.8965 – 0.8980 levels.

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GBPUSD


GBPUSD pair’s decline halted at the 1.2675 level, where it found solid support. It then began to rise and attempt to recover on an intraday basis, which suggests that it is heading towards building a new bullish wave. The targets of this wave begin with testing the broken support of the main bullish channel that has now turned into resistance at 1.2815. It is worth noting that breaching this level will push the price back to the mentioned channel and achieve additional gains that reach 1.2900 areas.





Therefore, we expect to witness more bullish bias in the upcoming sessions, supported by the technical indicators’ positivity. It is important to consider that breaking 1.2675 will stop the bullish wave and push the price to achieve bearish correction on an intraday and short-term basis.