Market Update by Solidecn.com

[Solid ECN]

Crude Oil Price Under the Negative Pressure

Crude oil price tested 75.65 resistance line and bounced bearishly to settle at the key intraday support line that rises now to 74.30, to keep the price stuck between these levels, which keeps our neutrality valid until now, waiting to breach one of the mentioned levels to detect the next targets clearly.



Note that breaking the mentioned support will press on the price to resume the main bearish trend that its targets begin at 72.4 and extend to 70.3, while breaching the resistance will lead the price to achieve new gains that target 76.75 followed by 78.90 as next main stations. The expected trading range for today is between 72.5 support and 76 resistance.

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Gold Completes the Bullish Pattern

Gold price managed to breach the bullish flag’s resistance and settled above it, to get positive motive that we are waiting to push the price to provide new positive trading that its targets begin at 1900 and extend to 1928.6.



The EMA50 continues to support the price from below, to keep the bullish trend scenario valid and active in the upcoming sessions unless breaking 1865.00 and holding below it. The expected trading range for today is between 1860 support and 1900 resistance.

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Gold Technical Analysis

Gold price attempts to breach the bullish flag’s resistance mentioned this morning, accompanied by witnessing positive overlapping signal through stochastic, waiting to resume the bullish wave that targets 1900 followed by 1928.6 levels as next main stations, reminding you that the expected rise depends on the price stability above 1862.



The expected trading range for today is between 1860 support and 1895 resistance.

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USDCHF hits the second target

The USDCHF pair managed to achieve our second waited target at 0.9215 and attempts to confirm breaking it, reinforcing the expectations of continuing the domination of the bearish trend, reminding you that our next target reaches 0.9100.



Holding below 0.9265 represents key condition to continue the expected decline, as breaching it will push the price to start recovery attempts and head towards 0.9340 followed by 0.9435 areas as main positive targets. The expected trading range for today is between 0.9140 support and 0.9265 resistance.

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Gold Technical Analysis

Gold price shows weak trades since morning, affected by stochastic negativity to show some slight bearish bias, and as long as the price is above 1835, our bullish overview will remain valid for today, supported by the EMA50 that keeps carrying the price from below, reminding you that our waited targets begin at 1900 and extend to 1928.6.



The expected trading range for today is between 1860 support and 1900 resistance.

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Chart of the Day - Crude Oil

Oil has launched a new week's trading on a positive note with Brent and WTI trading almost 3% higher on the day each. Chinese reopening is the main driver of the move. Starting from January 8, 2023 China no longer requires people arriving in the country to undergo a quarantine. Negative Covid test result is enough to enter China now. Moreover, Chinese authorities expect traffic during the upcoming Chinese New Year holiday to double from 2022 levels and amount to over 2 billion passengers. Those news boosted hopes for a pick-up in Chinese oil demand and it is pushing crude prices higher.



Taking a look at WTI (OIL.WTI) at H4 interval, we can see that the price is attempting to make a break above the resistance zone in the $76 per barrel area, marked with 23.6% retracement and previous price reactions. Break above would pave a way for a move towards $77.50 swing level and potentially to resistance zone in the $79 area, marked with 38.2% retracement.

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GBPJPY Tends Towards the Positivity

Despite the GBPJPY pair’s recent weak trades, its frequent positive consolidation above 158.7 increases the chances of renewing the bullish attempts, to keep waiting to react to stochastic positivity by targeting many positive stations near 161 and 162.9.



On the other hand, facing new negative pressures and crawling below 158.70 support line will force it to renew the negative trades, to expect targeting the negative stations at 158 followed by 156.6. The expected trading range for today is between 159 and 161.

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GBPUSD - Growth is possible.

If the assumption is correct, the GBP/USD pair will grow to the area of 1.2900 – 1.3500. In this scenario, critical stop loss level is 1.1833.

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EURUSD - Growth is possible.

If the assumption is correct, the EURUSD pair will grow to the area of 1.1000 – 1.1196. In this scenario, critical stop loss level is 1.0485.

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Crude Oil Price Attempts to Recover

Crude oil price returns to rise and surpass the minor resistance 74.20, to hint new recovery attempts and head towards potential test to 75.63 as a first positive station, making the bullish trend expected for today, being aware that it is important to monitor the price when reaching the targeted level, as breaching it will lead the price to achieve more gains on the intraday and short term basis.



On the other hand, we should note that breaking 73.50 will stop the expected rise and press on the price to resume the bearish trend that its next main target located at 70.30. The expected trading range for today is between 73.00 support and 76.50 resistance.