official Market Update by Solidecn.com

[Solid ECN ✔️]

EURUSD

EURUSD has been trading lower since the beginning of February. The main currency pair pulled back almost 4% off the daily high reached on February 2, 2023. Outperformance of USD over EUR can be reasoned with monetary policy. Both ECB and Fed are committed to continuing tightening their policies. However, while it is widely believed that the ECB will continue to tighten, it was not so sure for the Fed. The Fed has slowed the pace of rate hikes to 25 basis points at the latest meeting. However, the message sent by Powell during the press conference was hawkish and a streak of better-than-expected US data since the latest FOMC meeting has further boosted expectations that Fed is not done yet. Moreover, FOMC minutes released yesterday showed that a number of Fed members saw a need for another 50 bp rate hike. Having said that, the outlook for ECB policy has not changed while the outlook for Fed policy got more hawkish and this is driving declines in EURUSD.

Taking a look at EURUSD chart at D1 interval, we can see that the main currency pair broke below the lower limit of the Overbalance structure at 1.0660 earlier this week. In theory, this mean that EURUSD trend has reversed bearish. Should we see declines deepen, the nearest support level to watch on the pair are 1.0575 (100-day EMA) and 1.0470 (38.2%  retracement of the upward move launched in September 2022. On the other hand, should we see buyers regain control, it would be prudent  for traders to wait to see whether EURUSD breaks back above the 1.0660-1.0702 zone before taking action.
 

[Solid ECN ✔️]

Nvidia Shares Surges after Beating Expenctations 

Nvidia (NVDA.US) is gaining nearly 8% ahead of the Wall Street open as revenue and earnings beat analysts' expectations. Wall Street's hopes are being ignited by the data center segment, which could be the beneficiary of increased demand for high-performance graphics chips to drive AI development. Since the beginning of the year, Nvidia's stock price has already risen nearly 45%:

• Revenue: $6.05 billion vs. $6 billion expectations ($7.64 billion in Q4 2021)
• EPS: $0.88 vs. $0.81 expectations ($1.32 in Q4 2021)
• Data centers: $3.62 billion vs. $3.87 billion expectations (up 11% y/y)
• Gaming: $1.83 billion vs. $1.6 billion expectations (down 46% y/y)
• Professional visualizaion: $226 million vs. $195 million expectations (down 65% y/y)
• Automation and robotics (automotive): $294 million vs. $267 million expectations (up 135% y/y)

Nvidia is beginning to be seen by Wall Street as a chipmaker that can more gently withstand a possible economic downturn thanks to its advanced technology. This is due, among other things, to the production of high-performance graphics chips used to 'train' artificial intelligence (machine learning). AI has enjoyed a surge in investor interest since ChatGPT's debut in November 2022. Nvidia CEO Jensen Huang indicated that the trend is now at a 'tipping point' and the opportunities offered by generative AI are awaiting wide adoption among companies around the world.

• The company reported that growth in data centers has fueled higher demand from U.S. cloud providers - a segment that can benefit from generative AI, which requires powerful computing power;
• Gaming revenue fell as expected, as the market saturated in recent years when sales were sharply elevated (the effect of a high base from the pandemic era) - it is now correcting this unsustainable jump in demand, but still gained nearly 100% from Q4 2019;
• Nvidia indicated that, it is taking fewer orders for chips for gaming consoles (Nintendo, among others) - orders are still dragged down by high inventory of trading partners.

Nvidia shares (NVDA.US), D1 interval. The SMA100 (black line) crosses the SMA200 (red line) from downside, forming a bullish 'golden cross' formation, the last time this happened in August 2019. The nearest levels of resistance and support are marked by 61.8 and 38.2 Fibonacci abolition, respectively, of the downward wave started in 2021. Pre-opening trading indicates a start to today's session near $221 per share.
 

[Solid ECN ✔️]

Oil

This week marks the first anniversary of the Russian invasion of Ukraine. While the conflict was expected to be short-lived, the reality turned out to be quite different. Ukraine defends itself thanks to its determination, support from the West and numerous sanctions imposed on Russia. Meanwhile, the invader is still not willing to retreat despite several defeats. Financial markets, meanwhile, have changed markedly over the last 12 months, although some of the price movements were rather surprising. Price movements on many markets reached several dozen or even several hundred percent in the past few months. However, currently the situation stabilized and earlier moves are being reversed on several markets.

 

Energy commodities

Russia was one of the largest suppliers of energy resources not only for Europe, but also for many nations around the world. Global community feared that outbreak of the conflict at the end of February 2022 would halt exports of key commodities from Russia. The Kremlin itself decided to use gas as a tool to blackmail Europe. However, after initial price shock on gas, oil and coal markets, prices fell and stabilized as Europe found other suppliers of these key commodities. Putin wanted Europe to freeze over the winter but reduced consumption, supplier diversification and warmer than expected weather pushed the prices below pre-war levels.

• TTF natural gas: -42% y/y
• US natural gas: -57% y/y
• Brent: -17% y/y
• ARA coal: +8% y/y

This week marks the first anniversary of the Russian invasion of Ukraine. While the conflict was expected to be short-lived, the reality turned out to be quite different. Ukraine defends itself thanks to its determination, support from the West and numerous sanctions imposed on Russia. Meanwhile, the invader is still not willing to retreat despite several defeats. Financial markets, meanwhile, have changed markedly over the last 12 months, although some of the price movements were rather surprising. Price movements on many markets reached several dozen or even several hundred percent in the past few months. However, currently the situation stabilized and earlier moves are being reversed on several markets.

 

Energy commodities

Russia was one of the largest suppliers of energy resources not only for Europe, but also for many nations around the world. Global community feared that outbreak of the conflict at the end of February 2022 would halt exports of key commodities from Russia. The Kremlin itself decided to use gas as a tool to blackmail Europe. However, after initial price shock on gas, oil and coal markets, prices fell and stabilized as Europe found other suppliers of these key commodities. Putin wanted Europe to freeze over the winter but reduced consumption, supplier diversification and warmer than expected weather pushed the prices below pre-war levels.

• TTF natural gas: -42% y/y
• US natural gas: -57% y/y
• Brent: -17% y/y
• ARA coal: +8% y/y

Lockheed Martin and BP gained following the outbreak of the Russia-Ukraine war. Lockheed gained over 20% while shares of BP rallied over 40%. 

 

Sanctions, economy, inflation and China

Conflict between Russia and Ukraine is still ongoing. The West is providing massive support for Ukraine, by providing it with weapons, training for its military personnel as well as economic relief. Apart from that, a number of sanctions have been levied on the Russian finance sector and key export commodities. The Russian economy has benefited from sky-high energy commodity prices and it has allowed it to experience a smaller hit than the Ukrainian economy.

Commodity price increases and shutdown of some communications lines boosted inflation around the world. However, it should be said that inflation was on an uncontrolled, upward trajectory even before the outbreak of war. It seems that central banks have achieved at least a partial success but it should be said that a bulk of current deceleration in price growth is driven by a drop in commodity prices.

One should not also forget about China, whose ambition it is to change the direction of dependence on Russia. Current Russian commodity sales revenue is generated mostly via sales to Asia. On the other hand, China has not decided on a similar move as the Russian and refrained from invading Taiwan as it could be a massive disruption to global supply chains.

 

Will the end of war trigger a market bull run?

Investors have been hoping for months for any signals suggesting a potential cease fire or peace negotiations. Currently, such a scenario seems neither quick, nor likely. Markets got used to war. One cannot rule out the possibility of Russia further restricting flows of energy commodities given that numerous countries embrace price caps that Russia opposes. On the other hand, it does not seem to be the base case scenario. The end of the war would be good news primarily for Ukraine but would unlikely be a breakthrough from a market point of view. However, it could pave the way for a quicker solution to issues like inflation or risk of economic recession. On the other hand, financial markets have been flooded with negative news as of late and such good news like the end of the Russia-Ukraine war could be a trigger for the return of the bull market.
 

[Solid ECN ✔️]

EURTRY: CBRT Cuts Rates by 50 bp, TRY Weakens

Central Bank of Republic of Turkey announced its latest rate decision today at 11:00 am GMT. Median expectation among economists surveyed by Bloomberg was for a 100 basis point rate cut while median expectation in Reuters poll was for 50 basis point rate hike. CBRT decided to go with a 50 basis point rate cut, slashing the one-week repo rate from 9.00 to 8.50%. The Bank said that decision was allowed by improvement in inflation trends and that scale of rate cut is adequate to support recovery. Central bank said that it is assessing the economic impact and damage of recent earthquakes that hit Turkey and Syria.

EURTRY gained following a 50 bp rate cut from CBRT.
 

[Solid ECN ✔️]

US500 Reverses Early Gains!

US equities at new session lows, while 💲 strengthens amid broad risk off sentiment.

Major Wall Street indices launched Thursday's session higher, however upbeat sentiment faded away later on and stock resumed recent downward correction, while the dollar index firmed up near 104.7, hovering near its strongest levels in seven weeks.  

Investors remained cautious as recent US economic data pointed to a still-tight labor market. At the same time, minutes of the Federal Reserve’s last meeting showed that US policymakers largely agreed to keep fighting inflation with more interest rate hikes.  Also rising geopolitical tensions weigh on market sentiment. Ahead of  the first anniversary of the Russian invasion of Ukraine, NATO Chief Stoltenberg said that the alliance has observed indications that China is perhaps considering sending weapons to Russia. Meanwhile Germany’s Chancellor Scholz informed Chinese representatives that sending weapons to Russia is not acceptable. 

US500 fell below psychological support  at 4000 pts and is trading at its lowest level since the end of January. If current sentiment prevails, next support to watch can be found at 3920 pts, which is marked with previous price reactions and 200 SMA (red line).

EURUSUD pair extends downward move and is currently testing crucial support at 1.0570, which coincides with 38.2% Fibonacci retracement of downward wave launched in May 2021. Break lower may provide additional  fuel for the bears. 
 

[Solid ECN ✔️]

USDJPY

• Wall Street indices had a volatile session yesterday but have ultimately finished trading with decent gains. S&P 500 gained 0.53%, Dow Jones added 0.33%, Nasdaq moved 0.72% higher and Russell 2000 jumped 0.71%
• Indices from Asia-Pacific traded mixed today. Nikkei gained 1.3%, S&P/ASX 200 moved 0.3% higher, Kospi dropped 0.6% and Nifty 50 traded flat. Indices from China traded 0.5-1.4% lower
• DAX futures point to a slightly higher opening of the European cash session
• Ueda, nominee to succeed Kuroda as BoJ chief, said that he sees inflation as peaking but warned that inflation trends do not improve, yield curve control will need to be maintained.
• Speaking of tweaking BoJ yield curve control tool, Ueda said that targeting shorter-dated yields is one of the options on the table (BoJ currently targets 10-year yield)
• Ueda did not make any specific comments on FX rates apart from saying that discussion on a specific JPY levels should be avoided  
• According to a Reuters poll, almost half of Japanese companies want the Bank of Japan to exit the negative rate policy. 47% of respondents think that new BoJ governor should change policy
• China made a cease-fire proposal to Russia and Ukraine. However, it is said that proposal gives too much concessions to Russia and is unlikely to win backing in Kyiv
• According to Der Spiegel report, Russia is holding talks with China over supply of  Chinese combat drones as well as know-how needed to manufacture them in Russia
• French finance minister Le Maire said that a new sanctions package on Russia is being prepared 
• Japanese CPI accelerated from 4.0 to 4.3% YoY in January (exp. 4.5% YoY). Core CPI accelerated from 4.0 to 4.2% YoY (exp. 4.2% YoY)
• Cryptocurrencies trade mixed but scale of moves is really small. Bitcoin drops 0.1%, Ethereum gains 0.1% and Dogecoin adds 0.2%
• Brent and WTI trade around 0.6% higher each while US natural gas prices drop 0.7%
• Gold gains 0.2%, platinum adds 0.1% and silver trades flat. Palladium rallies over 1%
• NZD and JPY are the best performing major currencies while CHF and USD lag the most

USDJPY experienced some volatility during Ueda confirmation hearings, but is ultimately trading little changed compared to pre-hearing levels. The pair is trading in a short-term 134-135 range.

[Solid ECN ✔️]

NZDCAD

The NZDCAD pair continued to provide correctional bearish tracs due to facing strong negative pressures caused by stochastic crawl below 50 level, to suffer additional losses and settle near 0.8360 level.

 

 

We notice the price consolidation within the bullish track that depends on 0.8390 level forming strong support line that allows us to wait to gather the additional positive momentum to manage to start activating the bullish track and expect to rally towards 0.8430, followed by attempting to breach 0.8485 obstacle in order to ease the mission of reaching additional stations in the upcoming period.

 

[Solid ECN ✔️]

Economic calendar: Second-tier US data, central bankers' speeches

• European indices set for slightly higher opening
• Second-tier data from the United States
• UK PM Sunak meets EC President von der Leyen to discuss Northern Ireland protocol

European index futures point to a slightly higher opening of the cash session on the Old Continent today. This comes after a rather downbeat Asian session during which most of the regional indices traded lower. 

 

Economic calendar for the day ahead is light. Traders will be offered some second-tier data from the United States, like durable goods orders or pending home sales. UK Prime Minister Sunak is set for a meeting with EC President von der Leyen to discuss Northern Ireland protocol. UK Deputy PM Raab said that great progress has been made and that the deal is close so GBP may see some moves today if some kind of statement is released after the meeting.

 

While today's calendar is light, things get more interesting later into the week with the release of February CPI data from Europe, ECB minutes or US ISM indices for February.

 

1:30 pm GMT - US, durable goods orders for January.

• Headline. Expected: -3.9% MoM. Previous: 5.6% MoM
• Ex-transport. Expected: 0.1% MoM. Previous: -0.2% MoM

3:00 pm GMT - US, pending home sales for January. Expected: 0.9% MoM. Previous: 2.5% MoM

 

Central bankers' speeches

• 9:00 am GMT - BoE Broadbent
• 11:00 am GMT - BoE Saporta
• 3:30 pm GMT - Fed Jefferson
• 3:45 pm GMT - ECB De Cos
• 5:00 pm GMT - ECB Lane

 

Key reports in the later part of the week

 

Tuesday

• China PMIs for February
• French CPI for February
• Canadian GDP report for Q4
• US Conference Board consumer confidence index for February

Wednesday

• Final manufacturing PMIs for February from Europe and the United States
• German CPI for February
• US ISM manufacturing index for February

Thursday

• Euro area CPI for February
• ECB minutes

Friday

• Final services PMIs for February from Europe and the United States
• US non-manufacturing ISM index for February

 

[Solid ECN ✔️]

US100

• Indices from Asia-Pacific traded lower at the beginning of a new week. Nikkei dropped 0.1%, S&P/ASX 200 traded 1.1% lower, Kospi slumped 0.9% and Nifty 50 moved 0.8% lower. Indices from China traded 0.2-0.8% lower
• DAX futures point to a slightly higher opening of the European cash session
• US index futures little changed compared to Friday closing prices
• UK prime minister Sunak is set to meet with EC President von der Leyen today to discuss the Brexit deal (Northern Ireland protocol). UK deputy PM Raab said that great progress has been made and that long-standing issue is close to be solved
• ECB President Lagarde said that a 50 bp rate hike at the March meeting is not certain and remains data-dependent. ECB Visco said that peak rate could be 3.75% but it remains data-dependant
• BoJ Governor nominee Ueda said that CPI growth will slow below 2% in fiscal-2023 but it will take time for the 2% target to be met sustainably and stably. He also said that current monetary easing conducted by Bank of Japan is appropriate
• Conway, RBNZ chief economist, expects New Zealand official cash rate to peak around 5.5% around the middle of the year (4.75% currently)
• Russia halted pipeline oil deliveries to Polish refiner PKN Orlen over the weekend
• New Zealand retail sales dropped 0.6% QoQ in Q4 2022
• Australian business inventories dropped 0.2% QoQ in Q4 2022 (exp. 0.0% QoQ)
• Cryptocurrencies trade lower - Bitcoin drops 0.3%, Dogecoin trades 0.7% lower while Litecoin pulls back 0.4%. Ethereum gains 0.1%
• Energy commodities trade mixed at the beginning of a new week - oil drops 0.9% while US natural gas prices jump 1.4%
• Precious metals pull back slightly amid USD strengthening - gold trades 0.1% lower, silver drops 0.2% and platinum pulls back 0.5%
• USD and EUR are the best performing major currencies while NZD and AUD lag the most

Nasdaq-100 futures (US100) climbed back above the 12,000 pts mark but some selling pressure appeared as the European trading drew close and another pull back cannot be ruled out. 
 

[Solid ECN ✔️]

 

NATGAS

US natural gas prices once again launch a new week with an upward move. NATGAS continues upward movement launched on Friday. This move was triggered by forecasts for colder weather in key US heating regions over the next two weeks and therefore higher demand for natural gas.

US natural gas prices dropped around 70% between mid-December 2022 and mid-February 2023. While there were some upward corrections during this downward impulse, the one we are observing currently deserves a note. Taking a look at NATGAS chart at H4 interval, we can see that price broke above the 50-period Exponential Moving Average at the end of the previous week and it was the first such breakout since mid-December. This may hint that a large upward correction may be on the cards. A break above the upper limit of a market geometry at 2.816 would confirm bullish momentum.
 

[Solid ECN ✔️]

GBPUSD

UK Prime Minister Rishi Sunak met at Windsor with European Commission President Ursula von der Leyen today to discuss Brexit. more precisely, to discuss the so-called Northern Ireland protocol. This is one of the final outstanding issues preventing the Brexit chapter from closing. Rishi Sunak is set to deliver a statement on discussions to the UK Chamber of Commons at 6:30 pm GMT. However, there is a lot of confusion around the outcome of talks.

Steve Baker, British Minister of State for Northern Ireland and a Brexit hardliner, asked by reporters as he left Downing Street 10 said that Prime Minister Sunak was at a cusp of securing a fantastic deal. Later, the media reported that Democratic Unionist Party (DUP) of Northern Ireland liked the deal and is ready to accept it soon. However, this optimism was put under question later on when DUP leader Donaldson told reporters that he is neither positive, nor negative on the outcome of talks and that his party will need to take time to analyze the proposal and how it answers DUP's concerns.

Having said that, there is a lot of uncertainty and the statement from Sunak at 8:30 pm GMT today may be simply an update rather than an announcement. Nevertheless, GBP has traded higher throughout the day and is the best performing G10 currency at press time. Taking a look at GBPUSD chart at D1 interval, we can see that the pair bounced off the support zone marked with 38.2% retracement of the downward move launched in mid-2021. However, it should be said that a bulk of this move was driven by USD weakening following disappointing durable orders data for January at 1:30 pm GMT.
 

[Solid ECN ✔️]

Bitcoin

Cryptocurrencies at the start of the week are trying to make up for declines from the weekend, when Bitcoin retreated below $23,000 on a wave of disappointing  for bulls PCE US inflation data. But today Wall Street indices rise again.

Despite media reports of a possible global ban on cryptocurrencies being analyzed by the International Monetary Fund and the Financial Stability Board, former World Bank president and IMF chief Georgieva indicated that rather than resorting to a global ban, regulators will work to create an appropriate regulatory framework, taking into account the popularity of cryptocurrencies in emerging economies. In the wake of a softening extreme regulatory spectrum and a rebound on exchange floors, with Bitcoin trading near $23,800, other cryptocurrencies are also trying to rebound.

List of the most gaining cryptocurrencies. Leading the way are the intensely oversold NEO, DYDX and Maker on Friday.

Cryptocurrency-based investment products saw outflows last week, after investors moved funds into funds betting on Bitcoin declines. 

• Positive U.S. economic data and the prospect of more Fed rate hikes dampened risk demand, weighing on cryptocurrencies. Funds betting on BTC declines saw inflows totaling $10 million in the week ended February 24, according to CoinShares, compared to an outflow of $12 million from funds betting on a rise in the BTC price (the third weekly decline in a row). Positive fund inflows were registered by CoinShares for Polygon, Solana and Cardano with slightly negative ones for Ethereum.

The CoinShares report highlighted the most important short-term risks for the industry are the controversy over regulations planned for implementation in 2023, the position of the SEC - whose head Gary Gensler says that of all cryptocurrencies, only Bitcoin is a 'digital commodity' and may not fall under its jurisdiction, and investor sensitivity to macroeconomic data. , which have recently disappointed bulls by casting doubt on the disinflationary trend.

itcoin, M30 interval. The major cryptocurrency has broken above the SMA200 average and is struggling for a sustained breakout above the 38.2 Fibonacci retracement at $23,800, which could reopen the way to $25,000. 
 

[Solid ECN ✔️]

EURUSD

EUR appreciated strongly against USD during the European session, however bullish momentum lost its steam in the evening as markets digested fresh comments from ECB's Vujcic.

• Markets are right to price in 50 bps for the March meeting.
• Rates are about to enter restrictive territory.
• Labor markets are likely to remain strong.
• We must persevere as long as core inflation remains high.
• We must consider both headline and core inflation
• Headline inflation is set to fall.
• The role of the ECB is not to determine where the terminal rate should be.

The market is pricing in a 44% chance of 75 bps at the ECB March meeting.

EURUSD retreated sharply from session high at 1.0620, erasing a large chunk of today's gains. Nevertheless as long as the pair sits above local support at 1.0580 another upward move may be launched. 
 

[Solid ECN ✔️]

USDCHF Rebounds from the Resistance

USDCHF pair bounced downwards clearly after testing the bullish channel’s resistance that appears on the chart, to approach the key support 0.9316, noticing that stochastic got rid of its negative momentum to show oversold signals now, while the EMA50 provides positive support to the price.

Therefore, we believe that the chances valid to resume the correctional bullish trend, which targets 0.9475 as a next station, reminding you that the continuation of the bullish wave requires holding above 0.9316.
 

[Solid ECN ✔️]

GBPUSD - A fall is possible.

If the assumption is correct, the GBPUSD pair will fall to the area of 1.1400 – 1.1155. In this scenario, critical stop loss level is 1.2437.

 

 

 

[Solid ECN ✔️]

EURUSD - The price is in a correction and a fall is possible.

If the assumption is correct, the EURUSD pair will fall to the area of 1.0325 – 1.0163. In this scenario, critical stop loss level is 1.0809.

 

 

[Solid ECN ✔️]

EURUSD

Flash CPI reports for February from France and Spain were released today at 7:45 am GMT and 8:00 am GMT, respectively. Expectations were for a slight acceleration in French headline price growth and a slight slowdown in Spanish price growth. French data turned out to be higher-than-expected and provided some support for EUR while pushing European indices, like DE30, slightly lower.  Spanish reading further magnified those moves as it showed price growth accelerating in spite of an expected slowdown.

France

• Annual: 6.2% YoY vs 6.1% YoY expected (6.0% YoY previously)
• Monthly: +0.9% MoM vs +0.7% MoM expected (+0.4% MoM previously)

Spain

• Annual: 6.1% YoY vs 5.7% YoY expected (5.9% YoY previously)
• Monthly: +1.0% MoM vs +0.9% MoM expected (-0.4% MoM previously)

Those releases offer an important insight but, as far as market reaction is concerned, the best is yet to come. German CPI reading for February, the most closely watched one in Europe, will be released tomorrow at 1:00 pm GMT and is expected to show a slowdown from 8.7 to 8.5% YoY. Release of ECB minutes scheduled for Thursday, 12:30 pm GMT also has a scope to move EUR.

EURUSD

EURUSD caught a bid following French and Spanish CPI data and retested the 1.06 mark. However, no decisive break higher was made yet.

DE30

Equities, including German DE30, took after today's CPI data. DE30 is making a test of the lower limit of the ongoing short-term trading range in the 15,300 pts area. 
 

[Solid ECN ✔️]

Gold

During today's session gold price bounced off recent lows above the $1,800 an ounce mark, a level not seen since December 2022. Upward move gained steam after publication of latest Conference Board consumer confidence figures.  Price is currently approaching crucial support at $1830, which is marked with previous price reactions, upper limit of local 1:1 structure and 38.2% Fibonacci retracement of the upward wave started in March 2020.  Should break lower occur, upward move may accelerate towards the key resistance zone between $1868 - 1875 an ounce. On the  other hand, if sellers manage to halt declines around $1830 level, another downward impulse may be launched towards psychological support at $1800. 

 

[Solid ECN ✔️]

AUDCAD

The AUDCAD pair ended the correctional bearish rebound by testing the key support 0.9105, to form solid obstacle against the negative trades, noticing the activation of the bullish track by reaching 0.9200.

 

 

Note that the frequent consolidation above the EMA50 and stochastic attempt to provide the positive momentum allow us to keep the bullish overview, to expect targeting 0.9240 followed by attempting to press on the initial barrier at 0.9310 in order to find a way to resume the bullish trades.

[Solid ECN ✔️]

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 1.3440.