Market Update by Solidecn.com

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Gold Technical Analysis

Gold price resumes its negative trading to move away from the EMA50, reinforcing the expectations of continuing the bearish trend in the upcoming sessions, waiting for more decline to visit 1615.00 level that represents our next main target, reminding you that the continuation of the bearish wave depends on the price stability below 1660.



The expected trading range for today is between 1625 support and 1665 resistance, and the expected trend for today: Bearish.

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USDCHF begins with bearish gap

The USDCHF pair opened today’s trading with bearish gap that puts the price under the key support 0.9990, but it begins to cover this gap and attempts to return to the bullish channel again, to keep the chances valid to continue the expected main bullish trend for the upcoming period, which targets 1.0100 followed by 1.0170 levels mainly. Breaching 1 barrier will reinforce the positive overview, while consolidating below 0.999 will put the price under new correctional bearish pressure on the intraday basis.



The expected trading range for today is between 0.9940 support and 1.008 resistance. The expected trend for today: Bullish.

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USDCAD Tests the Support

The USDCAD pair shows negative trades to test the key support 1.3680, as it consolidates above it until now, to keep the bullish trend scenario active for the upcoming period, waiting to head towards 1.3830 initially. Breaching 1.3740 will ease the mission of achieving the expected rise, noting that breaking 1.3680 will stop the positive scenario and put the price under additional negative pressure on the intraday basis.



The expected trading range for today is between 1.3640 support and 1.3790 resistance. The expected trend for today: Bullish.

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USDJPY within tight track

The USDJPY pair didn’t show any strong move since yesterday, to fluctuate within tight track, settling above the bullish channel’s support line, thus, no change to the bullish trend scenario that depends on the price stability above 148.5, waiting to get positive motive that assists to push the price to head towards our positive targets that start at 150 and extend to 152.




The expected trading range for today is between 148.2 support and 149.9 resistance. The expected trend for today: Bullish.

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

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EURUSD - A fall is possible.

On the daily chart, the fifth downward wave of the higher level (5) of А forms, 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 has formed and a local correction is ending 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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USDJPY Technical Analysis

The USDJPY pair succeeded to achieve our waited target at 151.3 and approached 152 barrier, but it declined sharply to achieve bearish correction that stopped at 145.45, to rebound bullishly and start covering the losses that it suffered in the previous sessions, at it returns to the main bullish channel to support the continuation of the overall positive scenario.



Therefore, we expect to witness positive trades in the upcoming sessions supported by the positive signal provided by stochastic now, noting that breaking 148.10 followed by 147.15 levels will stop the expected rise and press on the price to achieve additional bearish correction.

The expected trading range for today is between 148 support and 150 resistances. The expected trend for today: Bullish.

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GBPUSD Technical Analysis

GBPUSD pair hovers around 1.1340 level since morning and keeps its stability below it until now, noticing that the price begins to provide negative trades motivated by stochastic negativity, waiting for more decline for the rest of the day as long as the mentioned level remains intact, reminding you that we are waiting to visit 1.1145 as a first target.



The expected trading range for today is between 1.1200 support and 1.1380 resistance. The expected trend for today: Bearish.

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BTCUSD -Market uncertainty persists

The situation remains uncertain: on the one hand, in the long term, the position of the cryptocurrency market continues to be pressured by an increase in the interest rate in the United States, which may accelerate since inflation cannot be slowed down, and the deterioration of the global economic situation, which can reduce the activity of miners due to an increase in electricity prices. On the other hand, the potential for a serious decline in quotes seems to be limited since investors who want to abandon digital assets have already done so. A short-term positive impact on the trading instrument is the addition of support for trading cryptocurrencies in the United States by one of the largest brokers, Oanda, which has entered into a partnership with Paxos itBit, a regulated cryptocurrency platform, which should support the interest of ordinary American investors in digital assets.



The trading instrument remains within the sideways range of 19550–19000, having unsuccessfully tested its upper limit today and started to decline. If the zone of 19000–18750 is broken down, the quotes can reach 18000 (Murrey [1/8]), 17500 (Murrey [0/8]), and if they consolidate above 19550, the growth will be able to resume to 20000 (Murrey [4/8]) and 20625 (Murrey [3/8]).

Resistance levels: 19550, 20000, 20625 | Support levels: 18750, 18000, 17500

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Euro hits three-week high ahead of major European data

Euro rose on Monday for the third straight session against dollar, hitting three-week highs on prospects Bank of Japan might intervene in the market, and ahead of major European data in October. The dollar index hit multi-week lows as US 10-year yields decline while risk appetite improves in the market.

EURUSD rose 0.3% to 0.9899, the highest since October 5, after rising 0.75% on Friday, the second profit in a row as investors buy up riskier assets.




Major Data

Investors await important European data later today, including the manufacturing and services PMIs in October for Europe. Such data will offer clues on the state of the European economy in the fourth quarter.


The Dollar

The dollar index fell 0.4% on Monday for the third session to three-week lows at 111.47 against a basket of major rivals. US 10-year treasury yields fell over 2% for the second session away from 15-year highs at 4.335%, improving risk appetite.

Such developments come on profit-taking and prospects Bank of Japan might intervene soon in the market to support yen against major rivals.