Market Update by Solidecn.com

[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.

[Solid ECN]

NZD/USD Bullish Momentum Faces Critical Test




Solid ECN – The NZD/USD 4-hour chart shows the pair experiencing a recent uptrend. The price moves between key support and resistance levels, indicating potential future movements.


RSI (14)

The Relative Strength Index (RSI) is at 57.82, suggesting moderate bullish momentum without being overbought.


Awesome Oscillator (AO)

The Awesome Oscillator displays positive bars, indicating bullish momentum. However, the decreasing size of the bars suggests weakening momentum.


Bollinger Bands

The price recently touched the upper Bollinger Band and is now pulling back toward the middle band, indicating a potential consolidation phase.


Resistance Levels

0.613: Immediate resistance level.
0.6215: Key resistance level marking a recent high.


Support Levels

0.609: Immediate support level.
0.604: Further support level.
0.598: Key support level indicating a strong foundation for the price.


Bullish Scenario

If the price maintains above the immediate support at 0.609 and rebounds, it could test the resistance at 0.613. A breakout above this level could target the next resistance at 0.621. Sustained bullish momentum could drive the pair towards 0.6250.


Bearish Scenario

If the price falls below the immediate support at 0.609, it could decline towards the next support at 0.604. A breakdown below this level could target the key support at 0.598. Further bearish momentum could push the price to 0.5950.

[Solid ECN]

GBP/USD Bullish Momentum: Key Levels to Watch



Solid ECN – The GBP/USD daily chart reveals a recent uptrend within a well-defined ascending channel, indicating bullish momentum. Currently, the price is testing a key resistance level (1.27), which will be critical in determining the next direction.


RSI (14)

The Relative Strength Index (RSI) is at 64.99, suggesting bullish momentum. Although it is approaching overbought territory, it still has room to rise before a potential reversal.


Awesome Oscillator (AO)

The Awesome Oscillator shows increasing green bars, indicating strengthening bullish momentum. This positive momentum supports the potential for further upward movement.


Resistance Levels

1.270: The immediate resistance level, which the price is currently testing.
1.280: Next significant resistance level.


Support Levels

1.264: Immediate support level within the ascending channel.
1.259: Lower boundary of the ascending channel and a previous support level.


Bullish Scenario

If the pair breaks above the immediate resistance at 1.270, the next target would be the resistance 1.280. Sustained bullish momentum could see the pair aiming for 1.28 and potentially higher levels towards 1.289. The ascending channel supports this outlook, indicating the trend may continue upward if the price remains within the channel.


Bearish Scenario

If the pair fails to break the resistance at 1.2708 and falls below the immediate support at 1.264, we could see a decline towards the lower boundary of the ascending channel at 1.259. A breakdown below this level could target further support of around 1.2400.

[Solid ECN]

UK Labour Data Fuels Rate Cut Expectations



Solid ECN – The British pound edged slightly lower to $1.25 as traders digested recent labor data and the monetary policy outlook. The UK’s unemployment rate rose for the third month, while wage growth remained steady at 6%. This data aligns with the Bank of England’s (BoE) forecast and suggests that a rate cut could be on the horizon.

The probability of a BoE rate cut by June has increased slightly to 50%. Traders are betting that the central bank will deliver two quarter-point cuts by the end of the year. During its May meeting, the BoE maintained interest rates, but two members advocated for a rate cut, indicating a possible shift towards lower borrowing costs.

Governor Andrew Bailey hinted at potential future rate cuts, suggesting a more accommodative monetary policy ahead. This aligns with market expectations and reinforces the view that the BoE might soon reduce interest rates to support the economy.

[Solid ECN]

EUR/USD Analysis



Solid ECN—The EUR/USD 4-hour chart reveals a strong uptrend within a well-defined ascending channel. The price is currently trading near the upper boundary of this channel, suggesting that upward momentum is being maintained.


Bullish Scenario:

If the pair continues to respect the ascending channel and the bullish indicators hold, the next immediate target could be the recent high around 1.089. A breakout above this level could see the pair testing the psychological resistance at 1.0900 and potentially extending towards 1.0930.


Bearish Scenario:

Should the pair fail to maintain the current momentum and break below the lower boundary of the ascending channel, immediate support is expected around the 38.2% Fibonacci retracement level at 1.08. A further decline could be seen in the pair testing the 50% retracement level at approximately 1.07.