Market Update by Solidecn.com

[Solid ECN]

Crude Oil - Growth is possible.


On the daily chart, the first wave of the higher level (1) formed, and a downward correction develops as the second wave (2), within which the wave А of (2) formed. Now, the development of wave B of (2) has started, within which the wave of the lower level a of B is developing.


If the assumption is correct, the asset will grow to the area of 93.25 – 100.5. In this scenario, critical stop loss level is 70.05.

[Solid ECN]

XAGUSD - The price is in a correction and may grow.

On the daily chart, a downward correction of the higher level ended as the second wave (2), and the third wave (3) develops, within which the first entry wave of the lower level 1 of (3) forms. Now, the wave iii of 1 has formed, and a local correction is developing as the wave iv of 1.

If the assumption is correct, the XAGUSD pair will grow to the area of 25 – 26. In this scenario, critical stop loss level is 21.82.

[Solid ECN]

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


On the daily chart, a downward correction ended as the fourth wave of the higher level (4), within which the wave C of (4) formed as a momentum, and the development of the fifth wave (5) started. Now, the first entry wave of the lower level 1 of (5) has formed, within which the wave v of 1 has developed, and a local correction has started as the second wave 2 of (5).


If the assumption is correct, the price of the asset will fall to the area of 1719.7 – 1695.85. In this scenario, critical stop loss level is 1824.

[Solid ECN]

USDCAD - Growth within the local ascending corridor


The quotations were practically not affected by the report of Statistics Canada: in October, the volume of production grew by 2.8% to 72.6B Canadian dollars, and the oil industry (12.7%) and the food industry (2.9%) stand out among the leaders of the sector and the chemical industry (4.9%), while in the automotive industry (–3.2%) and mechanical engineering (–1.7%), a negative trend is observed. According to experts, growth in these sectors should not be expected soon, as there is a serious shortage of materials and microchips, which also reduced production and decreased exports of cars and spare parts by 1.8%.





On the daily chart of the asset, the trading instrument moves within the local ascending corridor. Technical indicators signal further growth.


Resistance levels: 1.37, 1.39 | Support levels: 1.354, 1.338

[Solid ECN]

Chart of the Day - EURGBP


Swiss National Bank has already announced a 50 bp rate hike but there are 2 more major central banks, who are also scheduled to make rate decision today and who are also expected to deliver 50 bp rate hikes - Bank of England (12:00 pm GMT) and European Central Bank (1:15 pm GMT). As both economists and money markets see 50 bp rate hike to be a done deal, market reaction will depend on the communications of the central bank a lot. This was the case with yesterday's FOMC decision and will be the case with BoE and ECB today as well. However, recent data suggests that there is a chance that ECB will deliver hawkish surprises and hiked by 75 basis points instead of 50 bp. On the other hand, cost of living crisis in the United Kingdom boosts odds for a softer stance from BoE.





Taking a look at EURGBP at D1 interval, we can see that the pair attempted to break below the 0.8580 support zone, marked with a 200-session moving average (purple line), but failed to do so. Pair is bouncing off the zone today and is expected to become much more volatile in the early afternoon when BoE and ECB announce their rate decisions. Should we see a hawkish surprise from ECB, the pair could spike towards the resistance zone in the 0.8700 area, especially if BoE delivers dovish surprise as well.

[Solid ECN]

USDJPY Loses Momentum

The USDJPY pair shows some slight bullish bias to fluctuate around 135.50 level, noticing that stochastic loses its positive momentum clearly, waiting to motivate the price to resume the expected bearish trend for the upcoming period, which its next targets located at 134.25 followed by 133. The EMA50 supports the expected decline, reminding you that it is important to hold below 136.50 to achieve the suggested targets.





The expected trading range for today is between 134.50 support and 136.30 resistance.

[Solid ECN]

GBPUSD Awaits more Rise


The GBPUSD pair fluctuates with slight negativity now, affected by stochastic negativity, while the EMA50 continues to support the bullish wave, organized inside the bullish channels that appear on the chart, waiting to resume the bullish bias to visit 1.2550 as a next target. Therefore, we should note that breaking 1.2325 will stop the positive scenario and press on the price to start intraday bearish correction.





The expected trading range for today is between 1.2300 support and 1.2490 resistance.

[Solid ECN]

EURUSD continues to achieve gains

The EURUSD pair provided more bullish bias to approach 1.0700 barrier, waiting for more rise to test 1.0745 level that represents our next main target, organized inside the bullish channel that supports the chances of surpassing the mentioned level and achieve more gains on the intraday and short term basis. Therefore, we will continue to suggest the bullish trend for the upcoming period supported by the EMA50, noting that breaking 1.0595 might press on the price to test the key support 1.0515 before any new attempt to rise.





The expected trading range for today is between 1.0590 support and 1.0750 resistance.

[Solid ECN]

S&P 500 - Index strengthens ahead of Fed meeting


Last week, analysts at JPMorgan Chase & Co. predicted growth of quotations within 10.0% if inflation in the US is lower than the forecast, but the asset was able to strengthen only by 2.2%. However, consumer prices increased in November by 7.1%, lower than October's growth of 7.7%, virtually guaranteeing a softening of the “hawkish” rhetoric of the US Federal Reserve. The meeting will take place this evening, and analysts expect the regulator to raise interest rates by 50.0 basis points to 4.50%: this signals that the agency is interested in a sharp tightening of monetary policy, and companies that are highly dependent on the cost borrowing, learn that their debt load will not be sharply increased once again.





The trading instrument continues the local corrective trend and forms an ascending corridor on the daily chart, rising toward the resistance line, and the technical indicators keep a buy signal.


Resistance levels: 4090, 4310 | Support levels: 3990, 3830

[Solid ECN]

Crude oil price faces solid resistance


Crude oil price’s rally stopped at 75.63, which formed solid resistance against the price, accompanied by witnessing overbought signals through stochastic that might press on the price to rebound bearishly, while the EMA50 supports the price positively.





Therefore, the contradiction between the technical factors makes us prefer to stay aside until we get clearer signal for the next trend, noting that breaching 75.63 will lead the price to achieve additional bullish correction that its next target reaches 78.93, while breaking 74.85 will put the price under negative pressure that its targets begin by testing 74.05 followed by 72.60 levels.


The expected trading range for today is between 73.80 support and 77.30 resistance.