2023 Market Forecast by SolidECN

[SOLIDECN]

Powell's Testimony​

Fed Chair Powell started the second session of semi-annual testimonies before Congress. Below we will present some key takeaways from the Q&A session:​

• I stress that no decision has been made on the pace of rate hikes.​
• The terminal rate is likely to be higher than we expected.​
• The extraordinary strength of the jobs report and the inflation report both pointed in the same direction.​
• We have not made a decision about the March meeting and it is data dependent.​
• We have critical information before the March meeting.​

 

[SOLIDECN]

USDCAD - Growth is possible​

If the assumption is correct, the USDCAD pair will grow to the area of 1.3850 – 1.3977. In this scenario, critical stop loss level is 1.3554.

 

[SOLIDECN]

USDCHF -Growth is possible.​

If the assumption is correct, the USDCHF pair will grow to the area of 0.9600 – 0.9819. In this scenario, critical stop loss level is 0.9287.

 

[SOLIDECN]

EURUSD​

The EURUSD pair didn’t show any strong move yesterday, to settle near 1.0515, noticing that stochastic begins to lose the positive momentum gradually, while the EMA50 forms negative pressure against the price.

Therefore, we will continue to suggest the bearish trend for the upcoming period, and the targets begin by breaking the mentioned level to confirm heading towards 1.0440 as a next negative station, noting that breaching 1.0635 will stop the expected decline and lead the price to turn to rise.​

 

[SOLIDECN]

GBPUSD​

The GBPUSD pair fluctuates around 1.0840 level since yesterday, and continues to move within the correctional bearish channel, waiting to resume the bearish bias that its next main target located at 1.1625, supported by stochastic loss to the positive momentum clearly.

By taking a deeper look at the chart, we find that the price completed forming double top pattern that hast negative targets that surpass the above mentioned level to reach 1.1370 areas, to suggest the domination of the bearish trend on the longer term basis. Therefore, we are waiting for more decline in the upcoming sessions, supported by the negative pressure formed by the EMA50, reminding you that it is important to hold below 1.1940 to achieve the waited targets.

 

[SOLIDECN]

EURJPY​

The EURJPY pair didn’t succeed to exit the sideways range until this moment, to keep fluctuating between 145.5 resistance and 144 support.

The above chart shows that stochastic begins to provide the negative momentum, to increase the chances of forming new negative waves, and expect to crawl below the current support to reach many negative stations that might start at 143.25 followed by 142.2, to press on the moving average 55.​

 

[SOLIDECN]

USDCHF​

The USDCHF pair traded with clear negativity yesterday, and ended trades near 0.9316, noticing that the price begins today with additional negativity to attack this level and attempt to confirm breaking it, which makes us prefer to stay aside until we get clearer signal for the next trend, through monitoring the price behavior according to the mentioned level.

Note that confirming breaking the mentioned support will press on the price to achieve more decline and return to the main bearish track, to head towards achieving negative targets that start at 0.9220 and extend to 0.9135, while consolidating above it will lead the price to resume the correctional bullish track that its next main target located at 0.9475.​

 

[SOLIDECN]

NATGAS​

The US Energy Information Administration reported today that domestic supplies of natural gas decreased by-84 billion cubic feet for the week ended February 24 from -81 bcf in the previous week, while analysts’ expected drop of -80 billion cubic feet.

Still, it is much less than a decrease of 126 bcf in the same week last year and a five-year (2018-2022) average decline of 101 bcf as mild weather kept heating demand for the fuel low. Last week's decrease cut stockpiles to 2.030 trillion cubic feet (tcf), 493 bcf higher than last year at this time and 359 bcf above the five-year average of 1.671 tcf.​

 

[SOLIDECN]

EURUSD​

The EURUSD pair begins today with additional positivity to surpass 1.0645 level and settles above it, which pushes the price to achieve more intraday gains, targeting testing 1.0745 as a next station, noting that breaching this level will push the price to continue rising and head towards 1.0800 followed by 1.0925 levels as next main targets.

Moving above the EMA50 supports the continuation of the expected bullish trend, while stochastic might cause some temporary sideways fluctuation before resuming the bullish bias. On the other hand, we should note that breaking 1.0645 and holding below it will stop the suggested bullish wave and press on the price to decline again.​

 

[SOLIDECN]

GBPUSD​

The GBPUSD pair rallied upwards to confirm breaching the correctional bearish channel’s resistance, which stops the correctional bearish trend and lead the price to attempt to regain the main bullish trend again, on its way to achieve positive targets that start at 1.2260 and extend to 1.2440.

Therefore, the bullish bias will be suggested for today, it might be preceded by some temporary sideways fluctuation affected by stochastic negativity, waiting to gather positive momentum that assists to push the price to achieve the expected targets. Note that breaking 1.2050 will put the price under intraday negative pressure that targets testing the most important support at 1.1940 before any new attempt to rise.​

 

[SOLIDECN]

USDJPY​

The USDJPY pair continued to decline strongly to reach the thresholds of the negative target mentioned in our last technical update at 133.30, starting today with additional negativity to support the chances of continuing the bearish bias in the upcoming sessions, noting that breaking the mentioned level will extend the bearish wave to reach 131.75 areas as a next main station.

Note that the continuation of the bearish wave depends on the price stability below 135.40, as breaching it will push the price to recover and head towards achieving gains that start by testing 137.70 areas.​

 

[SOLIDECN]

USDCHF​

The USDCHF pair broke 0.9316 level strongly to complete forming double top pattern that its signs appear on the chart, to surpass the negative target mentioned in our last report at 0.9220 and opens the way to continue the decline towards 0.9135 areas, waiting for more bearish bias in the upcoming sessions.

Note that surpassing the last level will push the price to visit the recently recorded low at 0.9060, while breaching 0.9220 will stop the negative scenario and push the price to start recovery attempts that target testing 0.9316 level initially.​

 

[SOLIDECN]

Gold​

Gold price tested 1878.80 level and rebounds bullishly from there now, reinforcing the expectations of continuing the bullish trend for the rest of the day, which targets 1928.60 followed by 1960 levels as next main stations.

Therefore, the positive scenario will remain active for the upcoming period, supported by the EMA50 that carries the price from below, reminding you that holding above 1878.80 represents key condition to achieve the waited targets.​

 

[SOLIDECN]

EURUSD​

The EURUSD pair found solid resistance at 1.0745 and couldn’t manage to breach it, to start providing negative trades by today’s open, noticing that stochastic shows negative signals that press on the price to decline.

Therefore, we expect to witness bearish bias in the upcoming sessions, and the targets begin at 1.0620 and extend to 1.0515 after surpassing the previous level, noting that breaking 1.0690 will ease the mission of achieving the waited targets. Note that breaching 1.0745 will stop the suggested negative scenario and lead the price to achieve new gains that reach 1.0800 followed by 1.0925.​

 

[SOLIDECN]

GBPUSD​

The GBPUSD pair resumed its positive trades to test 1.2200 barrier, reinforcing the expectations of continuing the bullish trend, waiting for more rise to visit 1.2260 level that represents our next target.

The EMA50 supports the price from below, and surpassing the targeted level will push the price to 1.2440 as a next main station, while stochastic negativity might cause some temporary sideways fluctuation before rising again. Holding above 1.2070 represents the first condition to continue the bullish wave, as breaking it represents negative factor that will press on the price to visit 1.1940 initially.​

 

[SOLIDECN]

USDJPY​

The USDJPY pair surpassed 133.30 level and approached 132.00 barrier, but it bounced bullishly to settle around the first level, noticing that the price begins today positively to move away from this level, which hints heading to start bullish wave that we expect to target 135.40 areas initially.

Therefore, the bullish bias will be suggested for today, supported by stochastic positivity that appears on the four hours’ time frame, being aware that breaking 133.30 will stop the expected rise and press on the price to suffer additional losses that reach 131.75 as a next negative target.​

 

[SOLIDECN]

USDCHF​

The USDCHF pair continued to decline to surpass our waited target at 0.9135 and reach few pips away from the recently recorded low at 0.9060, noticing that the price begins to rebound bullishly to build bullish wave that we expect to target 0.9220 followed by 0.9316 levels as next positive stations.

Therefore, the bullish bias will be expected for today, supported by stochastic positivity, noting that breaking 0.9060 will stop the expected rise and press on the price to resume the main bearish wave.​

 

[SOLIDECN]

EURUSD​

The EURUSD pair begins today with clear positivity to attack 1.0745 level and attempts to breach it, which hints heading to achieve new gains in the upcoming sessions, while it faces negative pressure by stochastic that might hinder the mission to rise.

Therefore, we prefer to stay aside until the price confirms its situation according to the mentioned level followed by detecting its next destination clearly, noting that the contradiction between the technical factors provides another reason for neutrality. Note that confirming breaching 1.0745 will push the price to achieve positive targets that start at 1.0800 and extend to 1.0925, while consolidating below it will press on the price to resume the bearish wave that targets 1.0620 followed by 1.0515 as next main stations.​

 

[SOLIDECN]

GBPUSD​

The GBPUSD pair continues to fluctuate within sideways and tight track since yesterday, noticing that stochastic gets rid of its negative momentum to approach the oversold areas, waiting to motive the price to resume the bullish trend that its next targets located at 1.2260 followed by 1.2440.

The EMA50 continues to support the suggested bullish wave, which will remain valid unless breaking 1.2070 and holding below it.​

 

[SOLIDECN]

USDJPY​

The USDJPY pair settles around 134.00 level since yesterday, affected by stochastic negativity that slows the intraday bullish wave, waiting to resume the rise and achieve our positive targets that start at 135.40 and extend to 137.70 after surpassing the previous level.

Therefore, we will keep our bullish overview conditioned by the price stability above 133.30, as breaking it will put the price under the negative pressure again, to head towards visiting 131.75 areas initially.​