Market Update by Solidecn.com

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Netflix - Technical Analysis

Shares of Netflix, an American entertainment company, are on a corrective trend at 230. On the daily chart, the price is showing a poor upward momentum, trying to reach the initial Fibonacci 23.6% retracement at 288. The four-hour chart shows that the potential for upward and downward movement is approximately equal since the quotes are moving in a narrow sideways corridor of 212–250 Soon, the price may test the upper limit of the channel at 250, consolidation above which will open the way to 288.

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GBPUSD - A fall is possible.

On the daily chart, the downward fifth wave of the higher level V of (V) develops, within which the wave (5) of V forms. Now, the third wave of the lower level 3 of (5) has formed, a local correction has ended as the fourth wave 4 of (5), and the development of the wave 5 of (5) has started, within which the wave iii of 5 is forming.

If the assumption is correct, the GBPUSD pair will fall to the area of 1.02 – 1. In this scenario, critical stop loss level is 1.1501.

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Dollar climbs after a batch of US data

Dollar rose against major currencies on Friday, bolstering the gains following a batch of new data.

• The data showed retail sales were flat last month, while analysts expected a 0.2% rise.
• Core sales rose 0.1% last month, beating estimates of a 0.1% dip.
• Michigan\Reuters consumer confidence index rose to 59.8 in October from 58.6 in September.
• Recent data this week showed consumer prices rose 8.2% in September, while analysts expected 8.1%, and compared to 8.3% in August.
• Such data bolsters the case for aggressive policy tightening and rate hikes by the Fed, which threatens a global recession.

The dollar index rose 0.8% to 113.2 as of 17:56 GMT, with a session-high at 113.4, and a low at 112.1.

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EURUSD - A fall is possible.

On the daily chart, the fifth downward wave of the higher level (5) of А develops, within which the wave 5 of (5) forms. Now, the fifth wave of the lower level v of 5 of (5) is developing, within which the wave (i) of v of 5 formed, and a local correction is developing as the wave (ii) of v of 5.

If the assumption is correct, the EURUSD pair will fall to the area of 0.947 – 0.93. In this scenario, critical stop loss level is 0.9997.

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Wall Street declines after inflation data

US stock indices declined on Thursday amid concerns about a tighter monetary policy by the Federal Reserve following inflation data. US consumer prices rose 8.2% in September, beating estimates of 8.1%, and less than 8.3% in the previous reading. Core prices, excluding food and energy, rose 6.6%, also above estimates of 6.5%, and above the previous reading's 6.3%.

• Core consumer prices rose 0.6% on a monthly basis, up from 0.4% in August.
• US unemployment claims jumped to 228 thousand in the week ending October 8 from 219 thousand in the previous reading, while analysts expected 225 thousand.
• Dow Jones fell 0.7%, or 206 points to 29,004, while S&P 500 shed 1%, or 36 points to 3,540, as NASDAQ declined 1.4%, or 145 points to 10,275.

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AUDUSD heads towards the resistance

The AUDUSD pair approached few pips away from our waited target at 0.6160, and bounced upwards strongly to head towards expected test to the bearish channel’s resistance around 0.6410, making the bullish bias suggested in the upcoming sessions. Surpassing 0.6350 is required to reinforce the expectations of continuing the rise, noting that breaking 0.6275 will stop the suggested bullish bias and press on the price to resume the main bearish trend again.


The expected trading range for today is between 0.6275 support and 0.6410 resistance. The expected trend for today: Bullish.

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USDCHF Hits the Target

The USDCHF pair succeeded to touch our main waited target at 1.0064 and found solid resistance there, to rebound bearishly and head towards achieving expected decline in the upcoming sessions, targeting testing 0.9910 followed by 0.9860 levels mainly. Therefore, the bearish bias will be suggested for today, noting that breaching 1.0064 will stop the expected decline and lead the price to achieve more gains on the short term and medium-term basis.



The expected trading range for today is between 0.9900 support and 1.0064 resistance. The expected trend for today: Bearish.

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USDJPY - Growth is possible.

On the daily chart, the third wave of the higher level 3 develops, within which the third wave of the lower level iii of 3 formed, and a downward correction ended as the fourth wave iv of 3. Now, the fifth wave v of 3 is forming, within which a local correction has ended as the wave (iv) of v, and the wave (v) of v is forming.

If the assumption is correct, the USDJPY pair will grow to the area of 150 – 152. In this scenario, critical stop loss level is 143.31.

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USDCAD Within Positive Pattern

The USDCAD pair’s recent trades are confined within bullish pennant pattern, thus, breaching 1.3855 will activate the positive effect of this pattern and push the price to resume the main bullish wave, to open the way to rally towards our next main target at 1.3900.


Therefore, the bullish trend scenario will remain valid and active for the upcoming period, supported by the EMA50 (BB Middle band), taking into consideration that the continuation of the bullish wave requires holding above 1.3700. The expected trading range for today is between 1.3760 support and 1.3900 resistance.

The expected trend for today: Bullish.

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NZDUSD Awaits New Declines

The NZDUSD pair provided slight positive trades yesterday to test 0.56 barrier, noticing that stochastic begins to provide negative signals now, waiting to motivate the price to resume the bearish wave that its targets begin by breaking 0.5564 to open the way to visit 0.55.



The EMA50 (BB middle line) supports the expected decline, which will remain valid unless the price rallied to breach 0.564 followed by 0.5705 levels and hold above them. The expected trading range for today is between 0.553 support and 0.5640 resistance. The expected trend for today: Bearish.