Market Update by Solidecn.com

[Solid ECN]

USDJPY Loses Momentum

The USDJPY pair shows some slight bullish bias to fluctuate around 135.50 level, noticing that stochastic loses its positive momentum clearly, waiting to motivate the price to resume the expected bearish trend for the upcoming period, which its next targets located at 134.25 followed by 133. The EMA50 supports the expected decline, reminding you that it is important to hold below 136.50 to achieve the suggested targets.





The expected trading range for today is between 134.50 support and 136.30 resistance.

[Solid ECN]

GBPUSD Awaits more Rise


The GBPUSD pair fluctuates with slight negativity now, affected by stochastic negativity, while the EMA50 continues to support the bullish wave, organized inside the bullish channels that appear on the chart, waiting to resume the bullish bias to visit 1.2550 as a next target. Therefore, we should note that breaking 1.2325 will stop the positive scenario and press on the price to start intraday bearish correction.





The expected trading range for today is between 1.2300 support and 1.2490 resistance.

[Solid ECN]

EURUSD continues to achieve gains

The EURUSD pair provided more bullish bias to approach 1.0700 barrier, waiting for more rise to test 1.0745 level that represents our next main target, organized inside the bullish channel that supports the chances of surpassing the mentioned level and achieve more gains on the intraday and short term basis. Therefore, we will continue to suggest the bullish trend for the upcoming period supported by the EMA50, noting that breaking 1.0595 might press on the price to test the key support 1.0515 before any new attempt to rise.





The expected trading range for today is between 1.0590 support and 1.0750 resistance.

[Solid ECN]

S&P 500 - Index strengthens ahead of Fed meeting


Last week, analysts at JPMorgan Chase & Co. predicted growth of quotations within 10.0% if inflation in the US is lower than the forecast, but the asset was able to strengthen only by 2.2%. However, consumer prices increased in November by 7.1%, lower than October's growth of 7.7%, virtually guaranteeing a softening of the “hawkish” rhetoric of the US Federal Reserve. The meeting will take place this evening, and analysts expect the regulator to raise interest rates by 50.0 basis points to 4.50%: this signals that the agency is interested in a sharp tightening of monetary policy, and companies that are highly dependent on the cost borrowing, learn that their debt load will not be sharply increased once again.





The trading instrument continues the local corrective trend and forms an ascending corridor on the daily chart, rising toward the resistance line, and the technical indicators keep a buy signal.


Resistance levels: 4090, 4310 | Support levels: 3990, 3830

[Solid ECN]

Crude oil price faces solid resistance


Crude oil price’s rally stopped at 75.63, which formed solid resistance against the price, accompanied by witnessing overbought signals through stochastic that might press on the price to rebound bearishly, while the EMA50 supports the price positively.





Therefore, the contradiction between the technical factors makes us prefer to stay aside until we get clearer signal for the next trend, noting that breaching 75.63 will lead the price to achieve additional bullish correction that its next target reaches 78.93, while breaking 74.85 will put the price under negative pressure that its targets begin by testing 74.05 followed by 72.60 levels.


The expected trading range for today is between 73.80 support and 77.30 resistance.

[Solid ECN]

Gold price resumes the bullish trend


Gold price ended yesterday above 1810 level, to open the way to achieve more gains in the upcoming sessions, as it resumes the main bullish trend within the bullish channel that has positive targets that start at 1838.1 and extend to 1900. Therefore, we expect to witness more rise on the intraday and short term basis, noting that breaking 1810 will stop the positive scenario and press on the price to test the bullish channel’s support line around 1784.50 before any new attempt to rise.





The expected trading range for today is between 1795 support and 1835 resistance.

[Solid ECN]

Chart of the day - GBPUSD


GBPUSD pair pulled back slightly today as traders digested latest economic data from Great Britain. Yesterday’s UK jobs report showed the unemployment rate rose slightly to 3.7% in the August-to-October period, while average earnings rose by a stronger-than-expected 6.1%, however it also did indicate a slowdown in hiring as businesses brace for a difficult start of 2023. Monday's data had shown the UK economy grew more than anticipated in October, however UK Chancellor Hunt warned that the situation could get worse before it gets better. Today's figures showed that UK inflation fell more than expected in November, cementing expectations of a 50 bps move from BoE tomorrow. Also comments from Governor Bailey may provide more details as to the way forward and cause some market movements on Thursday.


Of course the pair may face a spike in volatility in the evening, following Fed interest rate decision. The US central bank is expected to moderate its aggressive tightening campaign but point to a higher peak for rates. Traders will be closely monitoring Fed Chair Powell’s press conference which will take place after the rates announcement for guidance on futures rate hikes.





From a technical point of view, the GBPUSD pair continues to oscillate around local support at 1.2355 waiting for a catalyst for another big move. Should break lower occur, downward move may deepen towards next support at 1.2150 which is marked with previous price reactions and 100 EMA (purple line). In case of a morendovish FED, the pair may retest recent high at 1.2450.

[Solid ECN]

NZDUSD - Growth is possible.


On the daily chart, the upward wave of the higher level (А) formed, a downward correction ended as the wave (B), and the development of the wave (C) started. Now, the first entry wave of the lower level i of 1 of (C) is forming, within which the wave (iii) of i has formed, a local correction has ended as the wave (iv) of i, and the wave (v) of i is developing.


If the assumption is correct, the NZDUSD pair will grow to the area of 0.66 – 0.67. In this scenario, critical stop loss level is 0.6359.

[Solid ECN]

Gold price resumes the bullish trend


Gold price ended yesterday above 1810 level, to open the way to achieve more gains in the upcoming sessions, as it resumes the main bullish trend within the bullish channel that has positive targets that start at 1838.1 and extend to 1900. Therefore, we expect to witness more rise on the intraday and short term basis, noting that breaking 1810 will stop the positive scenario and press on the price to test the bullish channel’s support line around 1784.50 before any new attempt to rise.





The expected trading range for today is between 1795 support and 1835 resistance.

[Solid ECN]

AUDUSD - Growth is possible.


On the daily chart, the first wave of the higher level (1) formed, a downward correction ended as the second wave (2), and the third wave (3) develops, within which the first entry wave of the lower level i of 1 of (3) forms. Now, the wave (iii) of i is developing, within which the wave v of (iii) is developing.


If the assumption is correct, the AUDUSD pair will grow to the area of 0.7040 – 0.7142. In this scenario, critical stop loss level is 0.6584.