Market Update by Solidecn.com

[Solid ECN]

Ethereum Price Correction After Bullish Breakout


Solid ECN – Ethereum experienced a significant price surge after breaking out from $3,141. The robust bullish momentum eased when the ETH/USD price reached the 78.6% target of $3,813. This surge pushed the RSI into oversold territory, and it currently hovers around the 70 line, indicating a potential correction.

From a technical perspective, entering long positions in an overbought market is not advisable. Traders should wait for the crypto pair to consolidate, which may lead to a dip to the 61.8% Fibonacci support at $3,598, followed by secondary support at $3,446.

[Solid ECN]

Bitcoin Stability Above $62,918 Signals Bullish Trend



Solid ECN – Bitcoin's price has stabilized above the 78.6% Fibonacci retracement level at $62,918, aligning with the middle line of the Bollinger Band indicator. The Awesome Oscillator shows red bars, indicating bearish momentum. Meanwhile, the RSI has moved down from the overbought territory, staying above 50, which suggests continued strength.

From a technical standpoint, the primary trend remains bullish. Immediate resistance is found at $70,346. If Bitcoin breaks through the current support, the upward trend could resume, possibly reaching a new target of $73,720.

Conversely, a drop below the immediate support of $69,218 might extend today's consolidation phase toward the 61.8% Fibonacci level at $64,466.

[Solid ECN]

Silver Prices Hold Steady Amid Fed Policy Evaluations



Solid ECN – Silver prices have settled at around $31.7 per ounce, maintaining the peak levels not seen since December 2012. This stability comes as investors reevaluate the U.S. Federal Reserve's future actions based on recent statements from the officials.

Fed Vice Chair Michael Barr highlighted the need for patience in assessing the impact of current policies. At the same time, Atlanta Fed President Raphael Bostic projected only a single interest rate reduction this year. Although higher interest rates generally reduce the attractiveness of non-yield-bearing assets like silver, its demand continues due to widespread industrial use.

Furthermore, silver supply shortages persist, entering the fourth year of deficits. Stock levels at the London Bullion Market Association have dropped to near-record lows in April, with similar trends observed in New York and Shanghai's exchanges.

[Solid ECN]

Gold Stable Amid Tensions and Fed Talks
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Solid ECN—Gold prices are steady at around $2,410 per ounce this Wednesday. The price calmed a bit after reaching new peaks. As investors ponder comments from Federal Reserve officials, caution remains a theme.

Many Fed leaders suggest waiting a few more months to be sure inflation targets are being met before cutting interest rates. Later today, details from the Fed's recent meeting will be shared, and additional insights are expected from Fed speeches.

Meanwhile, tensions between the U.S. and China, alongside worries about increased conflicts in the Middle East following the death of Iran's President Ebrahim Raisi, are preventing a significant drop in gold prices. Also, efforts in China to address troubles in its real estate sector are helping to support gold prices.

[Solid ECN]

Unexpected Rise in US Crude Inventories Amid Rate Concerns


Solid ECN – On Wednesday, TWTI crude futures dropped to about $78 per barrel, marking a downward trend for the third consecutive day. The slide is primarily due to concerns about when the US Federal Reserve will start reducing interest rates.

This week, Fed officials advocated for prudence and a solid indication that inflation would stabilize at 2% before any rate cuts occur. Contrary to expectations of a decrease, US crude stockpiles rose by 2.48 million barrels last week. Additionally, tension in the Middle East, which typically increases oil prices, has eased without impacting oil supplies.

The upcoming OPEC+ meeting on June 1 is now in focus. Key oil producers are expected to continue limiting production to avoid a surplus and support higher prices.

[Solid ECN]

USD/JPY Eyes Key Resistance Levels!


Solid ECN – The USD/JPY pair trades within a bullish channel and above the EMA 50 and Ichimoku cloud. The pair trades around 156.4 when writing, facing immediate resistance at 156.56.

The primary trend is bullish. If the bulls break out from the immediate resistance at 156.56, the uptrend that began at 153.6 could target 157.9, which aligns with the flag's upper line.

Conversely, 155.26 is the immediate support. If the USD/JPY price dips below this support, the downtrend could likely extend to the ascending trendline.

[Solid ECN]

NZD/USD Testing Key Support at 0.609



Solid ECN – The NZD/USD is testing immediate support at 0.609 today, aligning with the lower band of the Bollinger Bands. The RSI hovers around the middle line, and the Awesome Oscillator approaches the zero line with red bars, indicating a lack of momentum for the currency pair.

From a technical standpoint, NZD/USD could dip to the 50 EMA, followed by the ascending trendline if bears maintain their position below the immediate resistance at 0.611.

Conversely, if bulls push above 0.611, the bullish trend will likely resume, with the immediate target being the 0.613 mark.

[Solid ECN]

Consolidation Phase for AUD/USD


Solid ECN – The AUD/USD currency pair bounced from the EMA 50, trading around $0.666, while the Awesome Oscillator shows a divergence signal. This suggests the trend might reverse or enter a consolidation phase.

The bullish channel supports the uptrend, and as long as AUD/USD stays within this range, the primary trend remains intact.

From a technical standpoint, the consolidation phase that began last week might extend to the immediate support at 0.662 if the price remains below the immediate resistance level of 0.668.

Conversely, the bulls must close and stabilize the price above the 0.668 resistance for the uptrend to resume. If this scenario occurs, the next target could be the 0.671 high.

[Solid ECN]

GBP/USD Bullish Trend Faces Overbought Signals



Solid ECN – The GBP/USD pair is trading at about 1.27, above the 61.8% Fibonacci retracement level in today's session. The RSI indicator is at 67.2, suggesting strong bullish momentum and approaching overbought territory. On the other hand, the recent bars of the Awesome Oscillator are smaller, indicating the uptrend is weakening.

From a technical standpoint, the primary trend is bullish, but the RSI signals that the pair might be overbought. Therefore, waiting for the GBP/USD to consolidate near the 50-day EMA would provide a better entry point than going long on the pair at the current price.

Conversely, the bullish trend would be invalidated if the price dips below the 50-day EMA at 1.263.

[Solid ECN]

USCHF Technical Analysis



Solid ECN – The USD/CHF pair bounced from the 0.9 resistance and is trading at around 0.91 at the time of writing. The American currency is closing above the middle line of the Bollinger Band, a development that could lead to further growth against the Swiss Franc.

From a technical standpoint, the primary trend remains intact if the price exceeds the immediate support at 0.9. If the bulls cross above the immediate resistance at 0.91, the exchange rate could extend to 0.922.

Conversely, if the USD/CHF price dips below the immediate support of 0.9, the decline that began on May 1 will likely escalate and target the 0.88 mark.