Market Update by Solidecn.com

[Solid ECN]

CAC 40 - Decline in the bond market supports the position of the index


One of the leading indexes of the European economy, CAC 40, is trading at 6727, continuing the upward correction, which is supported by macroeconomic statistics and the situation on the bond market.


In November, inflation in France was fixed at 0.4%, which had almost no effect on the dynamics of the annual rate, which remained at the level of 6.2%. The Harmonized Consumer Price Index was 7.1%, which also coincides with the data of the previous month. The economic growth, which, contrary to expectations, has not yet slowed down, amounting to 0.2%, as in the previous assessment, and the Manufacturing PMI, which rose to 48.3 points from 47.2 points a month earlier for the first time since the beginning of autumn, should also be noted.





On the daily chart of the asset, quotes are trading above the resistance line of the descending corridor, and the technical indicators hold the buy signal.


Support levels: 6620, 6340 | Resistance levels: 6820, 7020

[Solid ECN]

AUDUSD - Key parameters of the Australian economy are declining

Thus, the index of manufacturing activity from AIG in November fell to 44.7 points from 49.6 points earlier, and the Manufacturing PMI amounted to 51.3 points, which is lower than 52.7 points earlier. The volume of investments also continues to decline: investments in production equipment in the third quarter lost 1.6%, and capital investments of individuals decreased by 0.6%. Even more critical is the 0.2% decline in retail sales in November after a positive 0.6% trend in October, which reflects a drop in buying activity due to rising prices.



On the daily chart of the asset, the trading instrument is moving within a downward channel and is preparing to break the range resistance line, and the technical indicators keep a buy signal.

Resistance levels: 0.6855, 0.705 | Support levels: 0.671, 0.653

[Solid ECN]

Crude Oil - A fall is possible.


On the daily chart, a downward correction forms as the second wave of the higher level 2, within which the wave c of 2 develops. Now, the development of the fifth wave (v) of c has started, the wave i of (v) is developing, and the local correction is forming as the wave ii of (v).


If the assumption is correct, the price of the asset will fall to the area of 72.50 – 62.55. In this scenario, critical stop loss level is 100.87.

[Solid ECN]

GBPUSD - Statistics on the US labor market again disappointed investors


The GBPUSD pair demonstrates neutral dynamics amid the depreciation of the American currency and a break in the publication of macroeconomic statistics, trading around 1.2088.


Investors are still debating tax incentives proposed by Rishi Sunak's government and have drawn attention to a new tax on energy revenues that, if approved in the House of Commons on second reading, could virtually wipe out all small oil exploration companies in the North Sea. In particular, a fee of 75.0% is provided for windfall profits, including income from developing new small deposits. The cluster companies account for about 70.0% of all production in the North Sea; if they are forced to leave the market, this could result in serious losses for the UK economy.





The trading instrument moves within the local ascending channel on the daily chart, holding near the resistance line, and the technical indicators maintain a buy signal.


Resistance levels: 1.218, 1.265 | Support levels: 1.194, 1.149

[Solid ECN]

NZDUSD Surpasses the Target


The NZDUSD pair rallied upwards strongly to succeed breaching 0.6240 and achieve our waited positive target at 0.6300, waiting for more expected rise in the upcoming period, and the way is open to head towards 0.6400 barrier as a next positive station. Therefore, the bullish wave will remain dominant in the upcoming sessions unless breaking 0.6240 and holding below it.





The expected trading range for today is between 0.6280 support and 0.6400 resistance, and the expected trend for today is Bullish.

[Solid ECN]

Gold price surpasses the first target

Gold price succeeded to surpass our first positive target at 1765 to confirm the continuation of the bullish wave on the intraday and short term basis, and the way is open to achieve our next target at 1786.5, and we suggest the continuation of the bullish bias to breach this level and achieve additional gains that reach 1812 areas.



Therefore, the bullish trend will remain valid for the upcoming period, supported by the EMA50 that carries the price from below, noting that the continuation of the bullish wave requires holding above 1765 and the most important above 1746.4.



The expected trading range for today is between 1760 support and 1795 resistance, and the expected trend for today is Bullish.

[Solid ECN]

USDCHF - Growth is possible.


On the daily chart, the first upward wave of the higher level (1) of 3 develops, within which the wave 3 of (1) formed, a local correction ended as the fourth wave 4 of (1), and the formation of the fifth wave 5 of (1) started. Now, the first entry wave of the lower level i of 5 is developing, within which the wave (iii) of i has started to form.





If the assumption is correct, the USDCHF pair will grow to the area of 1.0054–1.0200. In this scenario, critical stop loss level is 0.9385.

[Solid ECN]

USDCAD - Growth is possible.


On the daily chart, the upward fifth wave of the higher level 5 develops, within which the wave (3) of 5 forms. Now, the third wave of the lower level 3 of (3) has formed, a local correction ha ended as the fourth wave 4 of (3), and the wave 5 of (5) is developing, within which the wave i of 5 is forming.





If the assumption is correct, the USDCAD pair will grow to the area of 1.3820–1.3978. In this scenario, critical stop loss level is 1.3314.

[Solid ECN]

GBPUSD awaits the breach


The GBPUSD pair trades within minor bearish channel that appears on the chart, and we believe it forms bullish flag pattern, as the price needs to breach 1.1995 to activate the positive effect of this pattern followed by rallying to resume the main bullish trend, which targets 1.2080 followed by 1.2200 levels as next main stations. Therefore, we will continue to suggest the bullish trend for the upcoming period unless breaking 1.1950 and holding below it.





The expected trading range for today is between 1.1920 support and 1.2090 resistance, and the expected trend for today is Bullish.

[Solid ECN]

EURUSD needs strong positive motive


The EURUSD pair shows some slight bearish bias to test the EMA50, while stochastic continues to move within the oversold areas, waiting to motivate the price to resume the expected bullish trend for the upcoming period, which targets testing 1.0515 as a next main station. On the other hand, we should note that breaking 1.0285 and holding below it will stop the expected rise and press on the price to turn to decline and achieve negative targets that start at 1.02 and extend to 1.0.





The expected trading range for today is between 1.0285 support and 1.0450 resistance, and the expected trend for today is Bullish.