Video | Market Technical | Solid ECN

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39

Crude Oil - the oil market continues to correct​

Brent Crude Oil quotes are correcting, trading just above 98, amid serious concerns about falling energy demand due to a new outbreak of coronavirus in China and, as a result, severe restrictions on the movement of citizens.

The market is awaiting the outcome of US President Joe Biden's visit to Saudi Arabia. John Kirby, National Security Council strategic communications Coordinator at the White House, said yesterday that Biden intends to hold meetings with King Salman bin Abdulaziz Al Saud, as well as with Crown Prince Mohammed bin Salman Al Saud. This visit has a specific goal of persuading Saudi Arabia to increase oil production levels, thereby reducing its quotes on the world market. However, experts are sure that it will not be successful for the United States, since the day before it became known that at a recent online summit of the BRICS organization, which includes the Russian Federation and China, the issue of Saudi Arabia's membership in the organization was discussed.

oil.png


On the global chart, the price is trading below the key level of 100.00. Technical indicators are holding a steady sell signal, which is still strengthening: fast EMAs of the Alligator indicator are moving away from the signal line, and the AO oscillator histogram, being in the sell zone, is forming new descending bars.

Support levels: 96.22, 88.63 | Resistance levels: 100.7, 106​
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
GBPUSD - consolidating at record lows

The British pound shows near-zero dynamics, testing 1.1820 for a breakdown, returning to active decline after an unsuccessful attempt at corrective growth, which was supported by optimistic macroeconomic statistics from the UK. On Wednesday, data on the dynamics of GDP and industrial production for May were released. The British economy strengthened by 0.5% after declining by 0.3% a month earlier, although analysts had expected zero dynamics. Industrial Production for the same period increased by 0.9% after falling by 0.1% in the previous month, with forecasts suggesting zero growth, and in annual terms, the figure corrected from 1.6% to 1.4%, while analysts assumed a sharp decline of 0.5%.

gbpusd-tech.png


Resistance levels: 1.1854, 1.1933, 1.2, 1.2074 | Support levels: 1.18, 1.1758, 1.17, 1.16
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39

AUDUSD: US dollar continues to trade at highs​


Thus, according to data for June, the unemployment rate in Australia fell to a record value of 3.5%, which was facilitated by a monthly increase in employment by 88.4K people after an increase of 60.6K in May. The share of the economically active population increased to 66.8% from 66.7% a month earlier. Also, the University of Melbourne unexpectedly lowered its inflation expectations, suggesting that in the next quarter, the figure will drop to 6.3% from 6.7% current.

audusd.png


Despite the decline, on the global chart of the asset, the price remains inside the Expanding formation pattern, holding around its support line. Technical indicators do not weaken the sell signal, and the downside potential is still high. Still, the possibility of an upward correction should not be ruled out: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms alternating bars in the sell zone.

Resistance levels: 0.6805, 0.6967 | Support levels: 0.668, 0.655​
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
NZDUSD technical analysis

H4

On the four-hour chart of the asset, at the level of 0.6107, there is a formation of a Hammer candlestick pattern, which signals a possible change in the trend to an upward one, as well as a "bullish" Engulfing pattern at the level of 0.6174, which means a reversal of quotes at the bottom. In the current situation, the priority scenario is an increase from the level of 0.6246 to the zone of 0.6559−0.6869. An alternative scenario is possible if the buyers fail to hold the key support level of 0.6107, then the price may drop even lower to the range of 0.5929–0.5755.

nzdusd-1.png


D1
On the daily chart, a Falling Wedge price pattern is observed, and at the moment, an upward exit from the "bearish" trend channel is being implemented. A positive signal for the asset is the appearance of a Hammer reversal pattern at the support level of 0.6107, which can act as a catalyst for the uptrend from the level of 0.6246 up to the level of 0.6869. If the price consolidates below the level of 0.6107, the trading instrument may show a decrease to the zone of 0.5929−0.5755.

nzdusd-2.png


Support levels: 0.6107, 0.5929, 0.5755 | Resistance levels: 0.6246, 0.6559, 0.6869​
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
EURUSD - the euro takes every opportunity to correct

Tomorrow, market participants will follow the June macroeconomic data on consumer prices in the EU, which will determine the rhetoric of the European Central Bank (ECB) in terms of tightening monetary policy in the near future. Analysts expect inflation to remain at the May level of 8.6%, which is nonetheless unlikely given the sharp rise to 5.8% in France and 10.2% in Spain. If the experts' forecasts come true, one should expect more "dovish" signals from the financial authorities and an increase in the interest rate with a standard step of 0.25% or 0.50%.

eurusd.png


The trading instrument is within the global descending channel, near the support line. Technical indicators maintain the global sell signal: the fast EMAs of the Alligator indicator are significantly below the signal line, and the histogram of the AO oscillator is trading in the sell zone, forming new correction ascending bars.

Support levels: 1, 0.98 | Resistance levels: 1.0197, 1.037​
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
USDCHF - lateral channel correction

The strengthening of the franc was supported by data on Imports volumes, which in June reflected an increase of 0.3% compared with the previous month, while the Producer Price Index reached 109.8 points, adding 6.9% compared to the same period a year earlier. The real estate market is mixed, with Civil Construction Spending up 0.1% year-over-year and Construction Overall Spending reduced by 0.4%, resulting in a 0.1% decrease in Total Investment in the sector.

usdchf.png


On the global chart of the asset, the price is correcting within the side channel, preparing to continue the global growth. Technical indicators maintain a steady buy signal: the fast EMAs of the Alligator indicator are significantly above the signal line, and the histogram of the AO oscillator is held in the buy zone, forming local corrective bars.

Support levels: 0.9699, 0.9529 | Resistance levels: 0.9819, 1​
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
GBPUSD - waiting for the UK inflation data

According to analysts' forecasts, the overall Unemployment Rate in the UK will remain at around 3.8%, while May Employment Change data for the previous three-month period may reflect an increase of 170 thousand jobs from 177.0 thousand a month earlier. Average Earnings Including Bonus is also likely to correct upwards by 6.9%, slightly above the 6.8% shown in April. However, the key day to determine the further dynamics of the British pound this week will be Wednesday, when the data on the Consumer Price Index is released. Market experts are sure that inflation in the United Kingdom will set a new record at around 9.2%, and some experts spoke in favor of a possible excess of the 9.5% threshold.

gbpusd.png


GBPUSD continues to trade within the global downward channel, approaching the support line. Technical indicators maintain a sell signal: the range of the Alligator indicator EMAs fluctuations is expanding in the direction of decline, and the histogram of the AO oscillator forms descending bars.

Support levels: 1.1815, 1.1510 | Resistance levels: 1.1992, 1.2356​
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
NI 225 - Japanese stock market started the week with growth

Fast Retailing Co., Ltd., which posted a positive Q3 financial report, remains the leader on the Japanese stock market. The revenue of 546.13 billion yen was posted, higher than analysts' forecast of 508.8 billion yen, and earnings per share of 890.55 yen, the second-highest on record after 916.21 yen in Q4 2021. Moreover, according to preliminary estimates, at the end of this year, the holding's management expects to receive total revenue of 2.25 trillion yen and a net profit of 250 billion yen, having improved the previous figures by 5.5% and 47%, respectively.

nik.png


On the global chart, the index quotes remain within the local lateral channel, moving towards the resistance line. Technical indicators are about to reverse and give a buy signal: the histogram of the AO oscillator is decreasing in the sell zone, forming new ascending bars, and fast EMAs on the Alligator indicator continue to move away from the signal line.

Support levels: 26500, 25550 | Resistance levels: 27470, 28340​
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39

NI 225 - Japanese stock market started the week with growth​


Fast Retailing Co., Ltd., which posted a positive Q3 financial report, remains the leader on the Japanese stock market. The revenue of 546.13 billion yen was posted, higher than analysts' forecast of 508.8 billion yen, and earnings per share of 890.55 yen, the second-highest on record after 916.21 yen in Q4 2021. Moreover, according to preliminary estimates, at the end of this year, the holding's management expects to receive total revenue of 2.25 trillion yen and a net profit of 250 billion yen, having improved the previous figures by 5.5% and 47%, respectively.

nik.png


On the global chart, the index quotes remain within the local lateral channel, moving towards the resistance line. Technical indicators are about to reverse and give a buy signal: the histogram of the AO oscillator is decreasing in the sell zone, forming new ascending bars, and fast EMAs on the Alligator indicator continue to move away from the signal line.

Support levels: 26500, 25550 | Resistance levels: 27470, 28340​
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
USDCHF - technical analysis

H4

A Double Top price pattern is forming on the four-hour chart, and the USD/CHF quotes are currently near the Neck line, overcoming which will mean the continuation of the active phase of decline. The negative dynamics is intensified by the appearance at the resistance level of 0.9840 of the Shooting Star and Hanging Man figures following each other. In addition, the downward movement is due to the formation of the Three Black Crows trend continuation pattern in the range of 0.9840–0.9790. Currently, the asset has formed another Shooting Star candlestick analysis pattern at 0.9790, which signals growing "bearish" sentiment in the market. In the current situation, the scenario with a decrease in the trading instrument to the support level of 0.9697 seems more likely, overcoming which will allow quotes to fall to the area of 0.9548−0.9421. An alternative scenario is possible if the price consolidates above the resistance level of 0.9840 and then moves up to the level of 1.0117.

usdchf-1.png


D1
On the daily chart, at the level of 0.9840, there is the formation of a Hanging Man reversal pattern, which indicates that the quotes have consolidated the top and met with strong resistance. This was confirmed by the formation of a classic Shooting Star candlestick analysis pattern, which similarly illustrates the completion of a "bullish" trend. At the moment, probably, there is a formation of the Falling Three Methods figure, which is a signal for the continuation of the downtrend. If the sellers overcome the support level of 0.9697, one should expect further continuation of the negative dynamics in USDCHF currency pair to the area of 0.9548−0.9421.

Support levels: 0.9697, 0.9548, 0.9421 | Resistance levels: 0.984, 1.0033, 1.0117

usdchf-2.png
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
Shares of PayPal Holdings, a debit payment processor, are correcting at 74.

On the daily chart of the asset, the price is in a wide global channel with dynamic boundaries of 50–81, declining towards the support line, from which it moved away the day before. On the four-hour time frame, it is clearly seen that the quotes are increasingly clamped within the framework of the local Triangle pattern, before the implementation of which there is not much time left. The figure support line coincides with the annual low of 68.5, which can be updated as early as this week.

pypl.png


Technical indicators signal the presence of a weak corrective buy signal: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram is still in the sell zone, forming ascending bars.​
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
Shares of the largest financial conglomerate in the USA, Bank of America adjusted around 32.

On the daily chart of the asset, the price continues to trade within the global downward channel with dynamic boundaries at 25–32, being at the moment near the resistance line, an unsuccessful attempt to overcome which the day before may have given a new impetus to the decline.

bac.png


On a four-hour time frame, it is clearly seen that in order to continue the "bearish" trend, the trading instrument needs to consolidate below the annual low of 30.60, and this is indirectly confirmed by technical indicators that continue to hold a sell signal, completing the technical correction. The range of EMA fluctuations on the Alligator indicator remains quite wide, and fast EMAs have begun to reverse downwards again, and the AO oscillator histogram is forming ascending bars, being in the sell zone, slightly approaching the transition level.​
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
USDJPY - the epidemiological situation in Japan is rapidly deteriorating

The trading instrument is under pressure from reports of a sharp deterioration in the epidemiological situation in Japan, as a number of prefectures recorded record levels of COVID-19 infection. The day before, the number of detected cases reached 110.670K, which is the absolute daily maximum since the beginning of the pandemic. The main focus of the spread continues to be Tokyo, where the statistics reflected 17.709K cases. As for the economic component, already on Thursday the Bank of Japan will publish its decision on the interest rate, and analysts suggest that the rate will be kept at a negative level of –0.10%, as the country's financial authorities prefer to fight the unprecedented inflation by buying assets, rather than tightening monetary conditions.

usdjpy.png


The trading instrument is in the global uptrend, dropping below the annual high of 139. Technical indicators maintain a steady buy signal: the range of EMA fluctuations on the Alligator indicator is still wide, and the histogram of the AO oscillator is forming new multi-directional bars, being high in the purchase area.

Support levels: 136.73, 132.1 | Resistance levels: 139, 142​
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
NZDUSD - New Zealand inflation hits 32-year high

The New Zealand authorities announced the extension of the preferential excise tax on motor fuel due to a decrease in the cost of living of citizens due to record inflation, which reached an annualized rate of 7.3%, the highest value in 32 years. According to the Stats NZ data, published the day before, cost of construction materials increased the most in June, adding 18%, utilities added 7.3% and food products gained 6.5%, while the cost of gasoline increased by 32% in annual terms, and diesel fuel added 74%. Experts believe that against the backdrop of continuing negative dynamics, the Reserve Bank of New Zealand will tighten its monetary policy, raising the interest rate by 0.75 percentage points already at the August meeting. Last week, the regulator already adjusted the figure to 2.50% and announced plans to bring the value to 4.0% by the middle of next year.

nzdusd.png


Quotes of the trading instrument are within the global downtrend, having retreated from the annual low of 0.6096. Technical indicators hold a stable sell signal, but do not exclude local correction: fast EMAs on the Alligator indicator slowly narrow down the range of fluctuations, and the AO oscillator histogram is forming local upward bars.

Support levels: 0.6096, 0.5954 | Resistance levels: 0.6225, 0.6397​
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
Silver - H4

On the four-hour chart of the asset at the level of 18.22, there is a formation of a Long-Legged Doji candlestick analysis pattern, signaling uncertainty in the market or a possible reversal, which is also confirmed by the formation of the Morning Star pattern, after which the trading instrument showed a price recovery to the level of 19.07. At the moment, the quotes are moving in the sideways range of 18.62–19.07, where the Hammer and Bullish Belt Hold patterns have already appeared. Their combination signals that the asset has probably reached a low and is reversing. At the moment, the uptrend to the resistance level of 19.50 is seen as a priority, consolidation above which will allow the "bulls" to head to the zone of 20.95–24.19. An alternative scenario may be realized if the price breaks the key support level at 18.22, then the decline may intensify up to the level of 14.77.

silver-1.png


D1

On the daily chart, there is the formation of a Falling Wedge price pattern, which may end at the support level of 18.22, and a Hammer, the appearance of which indicates that the price has reached the bottom. In the current situation, the scenario with an upward movement from the level of 18.22 is seen as a priority. Overcoming the upper border of the Falling Wedge and consolidation of the quotes above 19.50 will mean a final upward reversal and will allow the "bulls" to restore their positions in the range of 20.95–24.19.

Support levels: 18.22, 16.74, 14.77 | Resistance levels: 19.50, 20.95, 24.19

silver-2.png
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
The European currency received a positive impetus

The euro continues to strengthen locally in tandem with the US dollar after the publication of a positive report on the dynamics of consumer prices. According to statistics, in June the indicator added 0.8% and the annual value reached 8.6%, which is fully consistent with the preliminary estimates of the market and representatives of the European Central Bank (ECB). These macroeconomic data will influence the decision of the members of the regulator during tomorrow's meeting on monetary policy, and the fact that inflation in the eurozone remains in line with expectations may signal an increase in interest rates in a standard 25 basis point increment, which will be enough to contain price increases. In this case, euro quotes will receive short-term support.

eurusd.png


Despite the quite expected achievement of the absolute low of the year, EURUSD remained within the global downward channel and is now forming another wave of growth. Technical indicators hurried to give a signal for the beginning of the correction: fast EMAs on the Alligator indicator are actively approaching the signal line, and the AO oscillator histogram is forming upward bars.

Support levels: 1.0185, 1 | Resistance levels: 1.035, 1.0624​
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
The Australian currency continues its upward correction

The Australian currency is taking a lead from the positive momentum received the day before after the publication of the minutes of the meeting of the Reserve Bank of Australia (RBA) on monetary policy. In particular, the document reflects the opinions of officials of the regulator, as well as full-fledged justifications for the recent increase in the interest rate by 50 basis points, and not by 25, as previously expected. The committee members decided to tighten monetary conditions more rapidly, taking into account the situation in the United States. The fact is that the US Federal Reserve clearly missed the moment when it was necessary to take tough measures regarding the adjustment of monetary parameters, and now, because of this, it is becoming increasingly difficult for officials to contain record inflation rates. Against this background, the RBA considered that a sharp increase in rates is the best option in these conditions, which will not allow them to face a recession in the future. Investors and analysts took the rhetoric of the financial authorities very positively and supported the Australian currency with purchases.



On the global chart, the price continues to remain inside the Expanding Formation pattern and, having rebounded from the support line, forms a new wave of corrective growth. Technical indicators signal the presence of a correction: fast EMAs on the Alligator indicator began to approach the signal line, and the AO oscillator histogram is trading in the sell zone, forming ascending bars.

Support levels: 0.6857, 0.668 | Resistance levels: 0.699, 0.712​
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
XRPUSD -Technical analysis

Currently, the price is testing its upper limit, consolidation above which will allow the cryptocurrency to continue moving to the area of 0.4150 (Fibo retracement 23.6%). Otherwise, the price will remain within the sideways range and resume its decline to the levels of 0.2930 and 0.2441.

xrp.png


Technical indicators confirm the high probability of the development of downward dynamics: the Bollinger Bands are horizontal, the MACD histogram is at the zero line, its volumes are insignificant, and the Stochastic has reached the oversold zone and is trying to reverse downwards. In general, further movement within the established lateral range is seen as the most priority scenario at the moment.

Resistance levels: 0.3660, 0.4150, 0.4395 | Support levels: 0.2930, 0.2441, 0.1953​
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39

USDCAD - Technical analysis​


H4
On the four-hour chart of the asset, at the level of 1.2971, there is a formation of the Three Black Crows candlestick analysis pattern, which signals the continuation of the negative dynamics of the quotations of the trading instrument, and at the level of 1.2921, the Tweezer Top pattern has been fixed, indicating another local resistance for buyers. In the current situation, a scenario with a downward movement to the support level of 1.2814 is more likely, overcoming which will allow the "bears" to continue the decline to the area of 1.2626−1.2458. An alternative scenario is possible if buyers manage to hold positions at 1.2814 and reverse the situation in their favor, and then the asset will be able to recover in the range of 1.2971–1.3243.

usdcad-1.png


D1
On the daily chart, there is a Three Mountain Tops candlestick analysis pattern with the appearance of formed Tops, which, in turn, emphasizes the overbought asset and the fact that above these levels the "bulls" meet strong resistance. The sellers' activity confirms the appearance of the Hanging Man reversal pattern at the level of 1.2971. A further decline in quotations to the area of 1.2814 is expected, after which the "bears" will be able to continue moving upwards to the level of 1.2458.

Support levels: 1.2814, 1.2626, 1.2458 | Resistance levels: 1.2971, 1.3177, 1.3443

usdcad-2.png
 

SOLIDECN

Master Trader
Nov 16, 2021
3,116
22
54
39
GBPUSD - UK inflation reaches new highs

According to the June report, consumer prices rose by 0.8% compared to the previous month, and the annual rate rose to 9.4%, which was an absolute record among the world's leading economies. In turn, the Producer Price Index in just a month increased by 1.8%, and the annual value was 24.0% compared to 22.4%, shown in May. It is already becoming clear that any measures taken by the Bank of England are not able to contain the negative dynamics and, most likely, by the end of the year inflation will indeed exceed the 10.0% barrier, as some experts have previously anticipated. Investors were also disappointed with the report on the dynamics of changes in DCLG House Price Index, where now the annual value is 12.8%, which was not the case in the entire history of observations.

gbpusd.png


GBPUSD is trading within the global downtrend channel, reversing towards growth. Technical indicators hold a sell signal, but do not exclude an upward correction: the range of the Alligator indicator EMAs fluctuations started to narrow down and the histogram of the AO oscillator forms ascending bars.

Support levels: 1.1815, 1.154 | Resistance levels: 1.2150, 1.2627​