official Market Update by Solidecn.com

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The EURGBP tests the resistance
The EURGBP pair formed correctional bullish rally to test the major resistance at 0.8720 followed by bouncing negatively towards 0.8580, to confirm keeping the domination of the bearish bias for the upcoming trading.

We notice the price attempt to crawl below the moving average 55, also, stochastic begins to provide the negative momentum to assist to renew the negative attempts, to expect reaching 0.8510 followed by targeting 38.2% Fibonacci correction level near 0.8410.

 

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EURJPY gets new negative momentum

The EURJPY pair kept its negative stability below 144.25 resistance, to reinforce the chances of forming correctional bearish trades in the near term and medium term period, while stochastic exit from the overbought areas allows us to gather the negative momentum to ease the mission breaking 141.5 obstacle and attempt to reach the first main target at 140.

The expected trading range for today is between 143.1 and 140.9.
 

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The NZDUSD pair tested the intraday bearish channel’s resistance that appears on the chart and started to rebound bearishly from there, to keep the bearish trend scenario active, supported by stochastic negativity, waiting to visit 0.6210 mainly.

Breaking 0.6290 will ease the mission of achieving the waited target, noting that it is important to hold below 0.6325 to continue the expected decline. The expected trading range for today is between 0.6240 support and 0.6340 resistance.

 

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The EURJPY repeats the negative closings
The EURJPY pair repeated the negative closings below 144.25 recorded high, which forms strong obstacle against the attempt to resume the bullish attack for now, which allows us to keep the correctional bearish overview for the near term and medium term period.

The above chart shows stochastic continuous negative waves, to increase the chances of gathering the negative momentum, to keep waiting to touch the negative stations at 142.20 followed by reaching 140.90.

The expected trading range for today is between 143.70 and 142.20

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The USDCHF resumes the decline.
The USDCHF pair achieved temporary gains yesterday and approached 0.9630 level, but it bounced bearishly to reach the thresholds of 0.9525 level, to keep the bearish trend scenario valid and active, waiting to break the last level to confirm rallying towards 0.9400 as a next station.

We remind you that the continuation of the bearish wave depends on the price stability below 0.9630.

The expected trading range for today is between 0.9500 support and 0.9600 resistance.

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The GBPJPY is slow. 
The GBPJPY pair formed slow trades recently, affected by the contradiction of the moving average 55 positivity against stochastic negative momentum signals, to consolidate near 166.40 level today.

Note that the stability of the mentioned barrier will increase the chances of renewing the correctional bearish attempts that might target 164.80 and 164.10 levels, while breaching the barrier and holding above it will allow it to renew the positive attempts to move towards 167.30 direct, followed by reaching 168.70 recorded high.

The expected trading range for today is between 166.40 and 164.90
 

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The USDCHF pair reached few pips away from our waited target at 0.9525, and continues to move inside the intraday bearish channel that appears on the chart, which supports the chances of surpassing the mentioned level and open the way to achieve negative targets that extend to 0.9400.

Therefore, we will continue to suggest the bearish trend for the upcoming period unless breaching 0.9630 and hold above it.

The expected trading range for today is between 0.9500 support and 0.9600 resistance.

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The EURJPY settles below the high

No change to the EURJPY pair’s correctional bearish track, fluctuating below 144.25 recorded high, to notice crawling towards 142.80 to reinforce the chances of resuming the previously suggested correctional bearish attack.

We remind you that breaking the initial support at 142.20 will force it to suffer more losses that reach 140.90 followed by 140. The expected trading range for today is between 143.70 and 142.20
 

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USDCAD, H4

On the four-hour chart, at the support level of 1.2838, a Morning Star candlestick analysis pattern is forming, signaling a possible reversal of quotes towards resistance at 1.3039, and now there is a Rising Three Methods pattern. In the current situation, a possible scenario is the uptrend of quotations to 1.3039, consolidation above which will allow the "bulls" to head higher to the range of 1.3200–1.3411. An alternative scenario is likely if the "bears" overcome the key support level for buyers at 1.2838; then the price may go lower, to the area of 1.2640–1.2404.

 

 

USDCAD, D1

On the daily chart, a Bull Flag price pattern is forming, which is currently probably in the process of completing the formation of the Flag itself, from which an impulse upward movement should follow. The downward consolidation of the asset is accompanied by the construction of the Falling Three Methods trend continuation pattern at the level of 1.2979. In addition, the previous candle below 1.2898 formed a Long-Legged Doji pattern, which is a sign of pressure from both "bears" and "bulls", but its appearance at the top still indicates the supremacy of the sellers. A likely reversal point in this situation is the support level at 1.2838, from where the price can recover with an impulse movement up to 1.3039, the overcoming of which will allow buyers to move higher to the resistance zone of 1.3200–1.3411.

 

Support levels: 1.2838, 1.2640, 1.2404 | Resistance levels: 1.3039, 1.3200, 1.3411.

 

 

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EURUSD Confirms the Break
The EURUSD pair ended yesterday below 1.0550 level, which puts the price under more expected negative pressure in the upcoming period, on its way to head towards 1.0440 followed by 1.0355 as main negative targets.

Moving below the EMA50 supports the expected decline, which will remain valid unless breaching 1.0550 and holding above it again.

The expected trading range for today is between 1.0450 support and 1.0590 resistance.
 

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The USDJPY pair rallied upwards clearly yesterday to breach 135.30 and approach the recently recorded top at 136.70, to head towards regaining the main bullish trend and stop the bearish correction that dominated the recent trades, and it needs to breach the mentioned top to open the way to achieve additional gains that reach 137.50.

The EMA50 supports the expected rise for the upcoming period, taking into consideration that failing to achieve the required breach will press on the price to decline again and head towards 134.70 followed by 134.30 levels initially.

The expected trading range for today is between 135.60 support and 137.00 resistance

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The USDTRY pair faced strong negative pressures recently, which pushed it to exit the bullish track by crawling below 16.86 support line, suffering some losses by declining towards 16.02 that forms 50% Fibonacci correction level.

The current positive rebound hints the attempts to gather the additional negative momentum, to expect consolidating below the broken support and start forming new negative trades to target 16.3 followed by repeating the pressure on 16 barrier.

The expected trading range for today is between 16.725 and 16.3. The expected trend for today: Bearish

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The EURJPY pair confirmed its affection by the domination of the correctional bearish bias by providing frequent negative closings below 144.25 barrier, to start getting the negative momentum coming by stochastic.

These factors allow us to continue suggesting the negative attempts, to expect targeting 142.2 level soon, while breaking this obstacle will push the price to reach additional stations that might start at 140.9 and 140.

The expected trading range for today is between 143.30 and 142.2. The expected trend for today: Bearish.
 

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NZDUSD, H4

On the four-hour chart, under the resistance level of 0.6312, there is the formation of the Three Black Crows candlestick analysis pattern, which is a downtrend continuation pattern, as well as the Evening Star pattern, which formed at the level of 0.6252 after a short-term upward correction. The combination of these patterns indicates systematic pressure from sellers. A likely scenario is a decrease in the asset to the support level of 0.6122, overcoming which will become a catalyst for the movement of quotes to the zone of 0.5933–0.5621; however, there is a risk that the "bulls" will withstand the blow and, if the price rebounds from the level of 0.6122, the asset may reverse and head to the resistance range of 0.6312–0.6870.

 

 

NZDUSD, D1

On the daily chart, a Descending Triangle price pattern is forming, the exit from which can be carried out downwards, which is confirmed by falling highs and a horizontal support level. In addition, there is the formation of Falling Three Methods patterns, signaling the continuation of the downtrend. If the price consolidates below the support level of 0.6122, the "bears" will be able to increase pressure up to the level of 0.5621.

 

 

Support levels: 0.6122, 0.5933, 0.5621 | Resistance levels: 0.6312, 0.6563, 0.687

 

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USDCHF, D1
On the daily chart, the USD/CHF pair has been trading within the sideways range of 1.0025–0.9565 for more than two months (correction of 0.0% and 50.0%) and is currently trying to consolidate under its lower border again, after which the downward dynamics may develop to the levels 0.9460 (correction 61.8%) and 0.9400 (correction upward fan line 50.0%). The key “bullish” level is the resistance zone 0.9675–0.9710 (correction 38.2%, the middle line of Bollinger bands), upon breakout of which, growth can resume to 0.9810 (correction 23.6%), 1.0025 (correction 0.0%).

Technical indicators do not give a single signal: Bollinger bands are horizontal, the MACD histogram is increasing in the negative zone, and Stochastic reverses upwards.

USDCHF, W1
On the weekly chart, the USD/CHF pair fell to 0.9550 (38.2% correction), supported by the middle line of Bollinger Bands, consolidation below which will allow the asset to decline to 0.9400 (50.0% correction) and 0.9275 (61.8% correction) but it will have to overcome the rising counter fan. After the breakout of 0.9715 (correction 23.6%), the price will be able to return to 1.0000 (correction 0.0%).

Technical indicators do not give a single signal: Bollinger bands are directed upwards, confirming the continuation of the upward trend, but the MACD histogram is decreasing in the positive zone, and Stochastic is directed downwards.

The decline will remain relevant if the consolidation below 0.9500 (the middle line of Bollinger bands, W1) with the targets at 0.9400 (correction 50.0%, W1, ascending fan line 50.0%, D1), 0.9275 (correction 61.8%, W1). After the asset consolidates above 0.9715 (the middle line of Bollinger bands, D1, correction 23.6%, W1), positive dynamics can resume to 0.9810 (correction 23.6%, D1) and 1.0000 (correction 0.0%, W1).

Resistance levels: 0.9715, 0.9810, 1 | Support levels: 0.9500, 0.9400, 0.9275

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eBay - technical analysis

On the daily chart of the asset, the price is falling within the narrow downwards channel of 40–46, approaching its lower border. The key support of the trading instrument is the annual level of 41; after its breakdown, the current trend will intensify.

On the four-hour chart, the quotes are in the middle of a downwards channel, attempting to consolidate below the low of the last week at 41, after which the lower limit of the range of 35 will become the target level. The movement in the direction of which is confirmed by the signals of technical indicators: fast EMAs on the Alligator indicator are far away from the signal line, and the histogram of the AO oscillator forms downward bars in the sell zone.

 

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EURUSD - market uncertainty remains

The European currency started the new week with a local decline, as investors still cannot fully appreciate the impact of Friday's data on consumer prices on the long-term exchange rate. According to the June report, the indicator added 0.8%, thereby ensuring the growth of the annual inflation rate to a record 8.6%, which exceeded the analysts' forecast, which suggested an increase to 8.4%. The core consumer price index, which excludes fuel and food prices, rose 3.7%, down from 3.8% a month earlier, suggesting that the European Central bank (ECB) cannot solve the energy market situation. Today, several regulator officials will comment on further plans to reduce inflation, and investors expect to hear about possible new measures that will allow them to determine the direction of future transactions.

 

 

The trading instrument is moving within the global downward channel, clamping within the Triangle pattern. Technical indicators maintain a global sell signal: indicator Alligator's fast EMA oscillation range expands downwards, and the AO oscillator histogram has formed another downward bar, being in the sell zone.

 

Resistance levels: 1.0585, 1.0775 | Support levels: 1.0366, 1.02

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The NZDUSD pair managed to achieve our extended target at 0.6150, and bounced bullishly to breach 0.6210 that forms key resistance now, as it keeps its stability below it until now, to support the continuation of the expected negative scenario on the intraday and short term basis, waiting to get negative motive that assist to push the price to surpass 0.6150 and head towards 0.6100 as a next target.

Therefore, the bearish trend scenario will remain valid unless breaching 0.6210 followed by 0.6280 levels and holding above them. The expected trading range for today is between 0.6150 support and 0.6250 resistance.

The expected trend for today: Bearish.
 

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DAX 30: European stock markets continue to decline
According to Deutsche Bank AG, the index lost 17.0% in Q2 2022, the worst performance since 2008. The downtrend in the stock markets of Europe is largely caused by analysts' fears about a possible recession as a result of the continued rise in inflation both in Germany and in the EU as a whole. Consumer prices in the euro area in June rose to 8.6% from 8.1% a month earlier.

On the global chart of the asset, the price is trading close to the level of the annual low at around 12500.0, preparing to make another attempt to overcome it. Technical indicators maintain a steady sell signal: fast EMAs on the Alligator indicator are actively moving away from the signal line, expanding the range of fluctuations, and the AO oscillator histogram, having moved into the sell zone, forms descending bars.

Support levels: 12600, 12000 | Resistance levels: 13255, 14260
 

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USDCAD - downward correction continues
The growth of quotations of WTI Crude Oil to the level of 100, as well as negative macroeconomic statistics from the USA, support the Canadian dollar, being the catalyst for the movement of the USDCAD pair to the area of 1.2835.

Thus, the gross domestic product in Q1 2022 lost 1.6%, the consumer confidence indicator from the Conference Board dropped below 100.0 points for the first time since February 2021, amounting to 98.7 points, while the June index of business activity in the manufacturing sector (PMI) from ISM turned out to be worse than analysts' expectations of 54.9 points and fixed at the mark of 53.0 points.

Nevertheless, the long-term trend in the USDCAD pair remains upward, due to the continuation of the "hawkish" monetary policy on the part of the US Fed aimed at raising the interest rate. At the moment, a downward correction is developing, the goal of which is the 1.2835–1.2798 area. If it is subsequently held by buyers, the growth will continue with a target at the June high of 1.3065.

The mid-term trend is upward. Last week, a correction developed, within which the key support of the 1.2856–1.2835 trend was tested. The zone was held, as a result of which there was an increase in quotations, the goal of which is the June maximum of 1.3065. If the key support of the 1.2856–1.2835 trend is broken down, then the target for short positions will be the 1.2642–1.2621 zone.

Resistance levels: 1.3065, 1.3157, 1.336 | Support levels: 1.2835, 1.2798, 1.2525