Market Update by Solidecn.com

[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.

[Solid ECN]

USDCAD Begins Bearish Wave


The USDCAD pair touched the key resistance 1.3500 and consolidated below it, to start providing negative trades by today’s open, which encourages us to suggest building bearish wave on the intraday basis, targeting testing 1.3350 initially.





Therefore, the bearish bias will be suggested for today unless breaching 1.3500 and holding above it, noting that breaking the targeted level will extend the bearish wave to reach 1.3205 areas as a next main station.


The expected trading range for today is between 1.3360 support and 1.3500 resistance, and the expected trend for today is Bearish.

[Solid ECN]

Euro resumes gains on European interest rate prospects


Euro rose in European trade today, resuming the gains against dollar after a two-day hiatus on profit-taking from five-month highs back then, with current gains coming amid estimates of a 0.75% rate hike by the ECB next month. The greenback fell amid improving risk appetite in the market while demand on safe havens slow down, with investors expecting China to control the ongoing protest in China quickly.


EURUSD rose over 0.5% to 1.0394, after falling 0.55% yesterday, the second loss in a row on profit-taking, after hitting five-month highs earlier at 1.0496.





European Rates


Now markets almost fully expect the ECB to increase interest rates by 75 basis points in December instead of 50 basis points, following bullish remarks by ECB President Christine Lagarde. Investors await important European inflation data tomorrow for November to gauge final chances for a 0.75% rate hike by the ECB.



The Dollar


The dollar index fell 0.5% on Tuesday, resuming losses after a two-day advance from three-month lows back then at 105.22 against a basket of major rivals. The greenback recouped recently following some bullish remarks by a few Fed officials that showed the Fed might still be aggressive in its policy tightening efforts. Fed Saint Louis President James Bullard said the ECB needs to raise interest rates by a bit more, while New York Fed President John Williams said the Fed needs to carry on its path of rate hikes.


The dollar fell today as risk appetite improved in the markets, while Asian stocks advanced, led by Chinese stocks, hurting demand on safe haven. Investors now mostly expect Chinese authorities to control ongoing protests and alleviate some of the strict Covid 19 restrictions.

[Solid ECN]

XAGUSD - The price is in a correction, a fall is possible.


On the daily chart, a downward correction of the higher level ended as the second wave (2), within which the wave C of (2) formed, and the development of the third wave (3) started. Now, the first entry wave of the lower level i of 1 of (3) has formed, and the correctional wave ii of 1 of (3) is developing, within which the wave (a) of ii has ended, the wave (b) of ii has formed, and the wave (c) of ii is developing.





If the assumption is correct, the XAGUSD pair will fall to the area of 19.88 – 19.32. In this scenario, critical stop loss level is 21.70.

[Solid ECN]

USDJPY - The price is in a correction, a fall is possible.

On the daily chart, the third wave of the higher level 3 ended, and a downward correction started to develop as the fourth wave 4. Now, the wave of the lower level a of 4 has formed, and a local correction has started to develop as the wave b of 4.



If the assumption is correct, the USDJPY pair will fall to the area of 133.2 – 127.36. In this scenario, critical stop loss level is 146.42.

[Solid ECN]

NZDUSD Breaks the Support

The NZDUSD pair faced negative pressure to break 0.6240 and settles below it, which pushes the price to achieve more expected decline in the upcoming sessions, targeting visiting 0.6100 areas mainly.



Therefore, the bearish bias will be suggested for today, noting that breaching 0.6240 and holding above it again will reactivate the positive scenario that its first target located at 0.6315.



The expected trading range for today is between 0.6150 support and 0.6260 resistance, and the expected trend for today is Bearish.

[Solid ECN]

Crude Oil Price Suffers Strong Losses

Crude oil price ended last Friday with strong negativity to settle at 76.05 level, starting today with additional strong decline to break the mentioned level and reach 74 areas now, which pushes the price to suffer more expected losses in the upcoming period, opening the way to head towards 72.60 areas as a next main station.



Therefore, the bearish bias will be expected for today, supported by the negative pressure formed by the EMA50, taking into consideration that breaching 76.05 will stop the suggested decline and lead the price to attempt to recover again.



The expected trading range for today is between 72 support and 75.7 resistance, and the expected trend for today is Bearish.