Market Update by Solidecn.com

[Solid ECN]

Crude Oil Price Hits the Extended Target

Crude oil price succeeded to achieve our main waited target at 73.30 and fluctuates near it, and we believe that the way is open to achieve more decline in the upcoming sessions, to head towards visiting the recently recorded low at 70.30 as a next main target. Therefore, the bearish trend scenario will remain suggested on the intraday and short term basis, supported by the negative pressure formed by the EMA50, noting that breaching 74.20 will push the price to achieve intraday gains that target testing 75.63 before any new attempt to decline.



The expected trading range for today is between 71.50 support and 75 resistance.

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Chart of the day - US500

FOMC minutes released yesterday have been rather hawkish with the document noting that US central bankers do not expect rate cuts in 2023. It also noted that while progress has been made in bringing inflation back under control, more rate hikes are needed although a slower pace may be adequate. Release can be seen as hawkish but no major long-lasting market reaction occurred in the aftermath. This can be reasoned with the fact that FOMC minutes have only repeated what the market has already known and has already been pricing in.



Taking a look at US500 chart at H4 interval, we can see that the index has been struggling to launch a larger move in either direction as of late. US500 has been trading in a 3,800 - 3,920 pts range since mid-December, awaiting catalyst for the next bigger move. While today's ADP employment report at 1:15 pm GMT is unlikely to be such a catalyst, tomorrow's NFP data may be source of elevated volatility.

[Solid ECN]

Gold Price Gathers Positive Momentum

Gold price continues to rise, organized inside new bullish channel that appears on the chart, noticing that stochastic gets rid of its negative momentum gradually, waiting to motivate the price to resume the bullish wave that its next target located at 1900. Therefore, our bullish overview will remain valid and active unless breaking 1820.50 and holding below it.



The expected trading range for today is between 1840 support and 1875 resistance.

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NZDUSD - The price is in a correction, a fall 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) has formed, and a local correction is developing as the second wave ii of 1 of (C), within which the wave (c) of ii is forming.

If the assumption is correct, the NZDUSD pair will fall to the area of 0.6008 – 0.5890. In this scenario, critical stop loss level is 0.6383.

[Solid ECN]

ETHUSD - Technical analysis

This week, the price has attempted to grow and is currently actively testing the level of 1250 (Murray level [2/8]), consolidation above which will allow the cryptocurrency to return to the mark of 1325 and try to leave the long-term descending channel to rise to the area of 1500 (Murray level [4/8]). Otherwise, the downward dynamics will increase to the levels of 1090, 1000 (Murray level [0/8]) and 875 (Murray level [-1/8]).



Technical indicators allow for the resumption of a smooth decline: the Bollinger Bands are reversing downwards, the MACD histogram is stable in the negative zone, and the Stochastic is approaching the overbought zone, which can become a catalyst for the reversal of the trading instrument down.

Resistance levels: 1250, 1325, 1500 | Support levels: 1090, 1000, 875

[Solid ECN]

EURJPY Takes Breath

The EURJPY pair started to form intraday sideways trades by consolidating near 138.2 level, attempting to take a breath after suffering additional losses yesterday and touching 137.40 target.



We remind you that forming continuous barrier at 138.8 and getting negative momentum by the major indicators will reinforce the domination of the bearish bias for the upcoming period, to keep waiting to resume the negative attack and attempt to reach 136.55 that forms the next target for the negative trades.

The expected trading range for today is between 138.80 and 137.

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USDCHF - The possibility of growth remains.

On the daily chart, the third wave of the higher level 3 is developing, in which the ascending first wave (1) of 3 appeared and the downward correction ended as the second wave (2) of 3. At the moment, wave C of (2) has ended and wave (3) of 3 is developing.

If the assumption is correct, the upward dynamics of the USDCHF pair will continue to the area of 0.9900 – 1.0151. The level of 0.9195 is critical and stop-loss for this scenario.

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GBPJPY Under the Negative Pressure

The GBPJPY pair ended yesterday by touching 155.35 level, to approach the previously waited target followed by bouncing temporarily towards 157, noting that the bearish track will remain valid depending on 158.70 level forming additional barrier, to expect gathering the additional negative momentum by reaching 155 level followed by attempting to press on the historical support at 154.55.



Any attempt to rally above the mentioned barrier might lead to postpone the negative attack and start the correctional bullish track again, to target 160 as a first correctional station. The expected trading range for today is between 157.6 and 154.6.

[Solid ECN]

EURUSD - The possibility of growth remains.

On the daily chart, the downward wave of the higher level A has completed, in which the fifth wave (5) of A has appeared and the upward wave B is developing. At the moment, the construction of the first wave 1 of (A) of B continues, in which the third wave of the lower level iii of 1 has formed and the development of a local correction as the fourth wave iv of 1 is observed.

If the assumption is correct, the EURUSD pair will rise to the area of 1.1 – 1.1196. The level of 1.0485 is critical and stop-loss for this scenario.

[Solid ECN]

Gold Technical Analysis

Gold price faces negative pressure now, to head towards potential test to the key support 1824.50, affected by stochastic negativity, while the EMA50 continues to provide the positive support to the price, to keep the bullish trend scenario valid conditioned by the price stability above the mentioned support and the most important above 1812.25, reminding you that our waited targets begin at 1850 and extend to 1900.



The expected trading range for today is between 1830 support and 1865 resistance.