official Market Update by Solidecn.com

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GBPSEK 

The GBPSEK currency pair is trading below the bearish trendline on the daily chart. In terms of the technical indicator, the GBPSEK price is hovering below the 13.384 pivot, the Kernel channel, and the RSI indicator is below the level of 50. According to the data we received from the chart, the market is bearish on GBPSEK. The bears’ first target is the 13.3 support, and if this level breaks, the next target would be around the 13.0 area.

The bearish scenario will be invalidated if the GBPSEK price breaks and stabilizes above the bearish trendline. (Source)

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EURUSD Technical Analysis 

The EURUSD has rebounded from the 1.06 pivot point, as anticipated. As long as the pair trades above this pivot, it's plausible for the EURUSD bulls to target the 1.081 resistance level. 

 

 

However, if the pivot is broken and the bears close below it in the 4H chart, the bullish outlook will be invalidated, shifting the bearish target to S1.

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USILS

FxNews — The decline of the USDIL currency pair continued to the 50% level of the Fibonacci retracement. The Israeli Shekel is currently testing the Ichimoku cloud while the RSI indicator is nearing the oversold area. Please note that the current military operation and the conflict situation in Gaza have made this currency very unstable and hard to predict. We would like to take the opportunity to express our condolences to the people of Israel who lost their loved ones, children, and soldiers during the fight against the Palestinian terrorists, Hamas.

To have a comprehensive outlook of the USDILS price action, we zoom into the 4H chart. The bears have aggressively bet on the Israeli Shekel currency, which has led the RSI indicator to hover in the oversold area for a week now. Since the pair is extremely oversold, we don’t suggest bidding on buying. Analysts at FxNews suggest waiting for the price to make a correction. If the price can break out of the bearish channel in the 4H chart, it would probably rise to test the pivot.

The pivot can provide a decent demand zone for the bears to add another pressure. Please watch these levels closely and look for candlestick patterns such as doji, bearish engulfing, or long wick candlestick patterns before initiating a trade.
 

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GBPUSD

 

The GBPUSD pair experienced a decline after reaching the significant 1.24 mark. Currently, the pair is delicately poised below the pivot point, testing the resilience of the bullish channel’s median line.

 

 

In the short-term, if the GBPUSD price manages to maintain above the crucial 1.225 support level, we could witness a bullish trend. This scenario presents an optimistic outlook for traders who are bullish on the GBPUSD.

 

However, a break below the 1.225 level could signal a potential downturn, extending the decline to the 1.21 mark, which represents the lower boundary of the bullish channel. This development would be significant for those keeping a close eye on this currency pair.

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USDMXN

FxNews - The USDMXN downtrend eased at the 61.8% level of Fibonacci retracement. This level coincides with the Ichimoku cloud, which makes this resistance level powerful. Moreover, the RSI indicator shows divergence, which can be a signal for a range market or trend reversal.

 

 

To gain better insight and find triggers, we zoom into the USDMXN 4H chart. The pair is currently trading in a narrow range, shown with the blue box on the 4-hour chart. The pivot plays the role of resistance. If the price holds below this level, another fall is expected, targeting S1 (16.998).

 

 

On the other hand, if the USDMXN price can stabilize above the pivot, we can expect the pair to see some upward momentum toward R1 (17.8 resistance).

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GBPJPY Forex Analysis: Bullish Trend and Key Resistance Levels

The GBPJPY currency pair is currently trading above the trend line and the significant resistance level of 184.5. The market trend is bullish, as indicated by the Relative Strength Index (RSI), which is consistently above the 50 level. Given the current trend, we anticipate the pair to break the R1 resistance level and aim for R2 as its next target.

The pivot point is providing substantial support to the bullish scenario. However, if this level is breached and the GBPJPY price stabilizes below it, the bullish scenario may no longer hold. 

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Yen's Fall: Impact of Divergent Monetary Policies

The Japanese yen has once again fallen below 151 per dollar, potentially heading towards its lowest value since 1990. This is largely due to the contrasting stances of the US Federal Reserve and the Bank of Japan (BOJ) on monetary policy. Earlier this week, Jerome Powell, the Chair of the Fed, suggested that additional interest rate increases might be necessary to control inflation.

 

Diverging Monetary Policies

On the other hand, Kazuo Ueda, the Governor of the BOJ, has advised caution given the current uncertainties. He recognized that the divergence in policies has contributed to the yen's depreciation but did not explicitly express support for the currency. Earlier this month, the BOJ held its policy rate steady at -0.1% and kept the 10-year JGB yield target at approximately 0%. It also made minor modifications to its yield curve control policy, loosely defining 1% as an "upper bound" rather than a strict limit and removed a commitment to uphold this level by offering to purchase an unlimited quantity of bonds.

In terms of the economy, a weaker yen can be both beneficial and detrimental. On one hand, it can boost exports by making Japanese goods cheaper for foreign buyers, which can stimulate economic growth. On the other hand, it can increase the cost of imports and potentially lead to inflation. Therefore, whether it's good or bad for the economy depends on a variety of factors, including the balance of trade, the rate of inflation, and the overall health of the global economy.

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USDSGD

 

FxNews - The USDSGD bounced from the November low (1.3489) and currently, the bulls are testing the 1.3607 resistance. The RSI indicator is nearing the level of 50. The market outlook for the USDSGD is bullish. However, to gain a better insight into the USDSGD price action and trigger points, we zoom into the 4-hour chart.

 

 

There is no sign of bear intervention in the 4H chart in terms of the candlestick pattern. Given the current situation, it is likely for the bulls to break the 1.3707 and aim for the 1.376 area as their next target.

 

 

 

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USDCAD Analysis

 

FxNews - The USDCAD pair is trading within a bullish channel. This week, the bulls in USDCAD closed above the pivot, and currently, the price is struggling to break out above the median line of the bullish channel.

 

 

The RSI indicator is hovering above the 50 level. The trend is bullish and is likely to aim for R1 (1.399 resistance). S1 and the lower line of the bearish channel support the bullish scenario. As long as the pair is trading within the channel, the overall outlook of the trend is bullish.

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Bitcoin Technical Analysis

FxNews - Bitcoin has successfully broken out of the bullish channel on the 4-hour chart. The BTCUSD pair is currently testing the R2 support level at $36,983, with the Relative Strength Index (RSI) nearing the overbought territory. On this chart, we observe an inverted hammer pattern, which may indicate potential bearish momentum. Nevertheless, the overall bitcoin market remains bullish, and analysts at FxNews recommend waiting for a breakout above the bearish trendline (illustrated in red) before initiating long positions.

 

 

Conversely, while the price trades below the weak bearish trendline (in red), there exists a possibility of the BTCUSD price declining to the R1 support level at $36,009, especially if the bears manage to close below R2. These levels could also provide substantial supply, enabling the bulls to initiate new bullish trades.

 

In summary, with the bitcoin market maintaining a bullish outlook, it appears more prudent to seek buying opportunities rather than placing sell orders.

 

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EURUSD Market Outlook: Bullish Trend Amid Bearish Flags

 

The EURUSD currency pair is currently navigating within a bearish flag pattern, yet it remains above the Ichimoku Cloud, signaling a potential bullish market. As the pair tests the resistance at 1.06988, the market anticipates a possible upward trend.

 

EURUSD bulls face the challenge of the bearish flag, which stands as an obstacle to driving the price towards the next resistance level at 1.07353. However, as long as the EURUSD continues to trade within the confines of the bearish flag, the primary target remains at testing Support 1 (S1).

 

 

Conversely, should the bulls manage to break out of the bearish channel, it could pave the way towards Resistance 3 (R3). This scenario would indicate a significant shift in market dynamics, potentially triggering a new wave of bullish momentum for the EURUSD pair.

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A Closer Look at the Positive Turnaround for Spanish Stocks

FxNews- The Spanish stock market has recently experienced a significant upswing, with the IBEX 35 index climbing to 9,440. This rise brings the index near its two-month peak, outpacing the majority of its European counterparts. The banking sector appears to be the driving force behind this surge, as it has seen substantial gains.

The Banking Sector Spearheads the Rally

Among the banks, Banco Sabadell emerged as the top performer with a 3% increase, followed closely by Bankinter with a 2.6% rise. CaixaBank and BBVA also contributed to the rally with gains of 1.9% and 1.4% respectively. This upward trend in the banking sector has played a pivotal role in the overall performance of the Spanish stock market.

Other Sectors Join the Upward Trend

The telecommunications and real estate sectors have also seen considerable advances, following the lead of the banking sector. However, not all sectors shared in the prosperity. Acciona and Acciona Energia, for instance, experienced a slight downturn, with their stocks falling by 0.8% and 0.7% respectively.

A Broader Perspective

On a larger scale, investors seem to have brushed aside the recent downgrade of the US debt outlook to negative by Moody’s. Instead, the focus has shifted to key inflation releases due this week. The impact of these releases on the global and Spanish economy will be something to watch closely.

In conclusion, the rebound of the Spanish stocks, led by the banking sector, paints a positive picture for the country’s economy. However, it’s important to keep an eye on the broader economic landscape, including inflation rates and international credit ratings, to fully understand the potential implications for the economy.

 

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EURJPY

 

The EURJPY currency pair has recently experienced a bounce from the upper line of the bullish flag, as observed in the 4-hour chart. This significant movement has caused the Relative Strength Index (RSI) to flip below the overbought zone. Despite the bullish trend, there's a possibility that the pair might correct the recent gains to the 160.7 support level, also known as S1. 

 

 

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EURGBP

FxNews - The EURGBP trend is bullish, with trading in the upward flag. However, the uptick momentum eased this week after the EURGBP price hit the middle line of the bullish flag in the daily chart.

To have a better insight into the price action, we shall zoom into the EURGBP 4H chart. The pair broke the bullish trend line in the 4H chart (shown in red), and currently, it is testing the 0.872 pivot. If the price closes below the pivot, the correction would likely continue to the lower levels, starting with the 0.868 support (S1).

Please note, the market is bullish. Therefore, going short on the currency pair is not suggested. The 0.868 deck provides a decent supply zone to increase bullish bids on the pair.

 

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GBPUSD Technical Analysis

 

News Solid ECN - The GBPUSD currency pair is declining after encountering resistance at the upper band of the channel, as anticipated. Currently, the pair is showing downward momentum, trading below the 1.228 pivot point. Notably, the RSI indicator has risen above the 50 level, indicating that bulls are attempting to retest the pivot.

 

 

As long as the pair stays below the pivot, the outlook remains bearish, with 1.213 (S1) as the target.

 

Conversely, if bulls manage to close above the pivot and stabilize the price, the GBPUSD could potentially rise, retesting the R1 level again. However, please note that the trend is still bearish; even if the pair rises to test R1, going long is not recommended. The R1 level or the upper band of the bullish flag may provide a strong resistance zone, offering bears an opportunity to exert additional pressure.

 

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Analyzing Cardano's Market Trends

 

FxNews - Cardano's market value has recently seen a significant decline, falling from the resistance level of 0.653. At present, the ADAUSD pair is hovering around the pivot point of 0.6351. Interestingly, a hammer candlestick pattern has appeared on the daily chart right at this pivot, suggesting a possible end to the current downward trend.

 

 

A Deeper Dive into the Numbers

 

For a more detailed analysis, we look at the 4-hour chart. Here, it's evident that the ADAUSD pair has broken through the 61.8% Fibonacci retracement level. Given that the pair is currently in a bearish flag pattern, it seems likely that the next downward target could be the 78.6% Fibonacci level.

 

 

A Potential Turnaround?

 

However, the market is unpredictable and there's a twist in the tale. If the bulls manage to escape from this bearish flag and push the price above the 50% Fibonacci mark, we could see Cardano start to climb again. The initial targets for this potential rise? A jump to 0.646, with the ultimate goal being the November high of 0.652.

 

Stay connected for more updates on the ever-changing journey of ADAUSD.

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The Euro’s Stagnation: Awaiting a Catalyst

Solid ECN - The Euro, Europe’s single currency, has been hovering around the 1.07 mark, seemingly stuck in a narrow band of fluctuation. This pattern has been observed for nearly a week, with the trading range not exceeding 50 to 60 basis points. The market appears to have fully absorbed the 1.07 price level and is now on the lookout for a catalyst that could trigger a significant shift.

In this uncertain climate, investors have understandably been hesitant to make substantial bets, resulting in the exchange rate being confined to a tight range for over a week. This prolonged stagnation carries the risk of a sudden decompression, potentially triggered by the execution of significant stop-loss orders that investors have gradually placed to capitalize on the limited fluctuation range.

Central Banks and Interest Rates: The Unanswered Questions

The future actions of central banks, particularly the Federal Reserve Bank of the United States, remain a topic of speculation. The key question is whether the Federal Reserve has definitively ended its cycle of interest rate hikes. Currently, there is a slim chance of another 25 basis point hike. However, today’s announcement regarding the trajectory of US Consumer Inflation could drastically alter these odds, leading to significant exchange rate volatility.

The European Economy: A Mild Recession on the Horizon?

The development path of the European economy is not expected to hold any surprises. Most scenarios predict a mild recession in the European economy, which undoubtedly hampers the Euro’s attempts to gain strong upward momentum.

Despite these challenges, I would advise maintaining the same strategy and attempting to purchase the Euro following significant dips. The Euro’s resilience and ability to bounce back remain promising.

In conclusion, adopting a wait-and-see approach in anticipation of important announcements is often one of the best strategies. The impact of these economic factors on the economy is a complex issue, with both potential benefits and drawbacks. Understanding these dynamics is crucial for making informed decisions.

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EURUSD

 

Solid ECN - The EURUSD currency pair is currently trading within a bullish flag pattern. This suggests a potential rise to the 50% Fibonacci retracement level. The pivot, or the lower line of the flag, reinforces this bullish outlook. As long as this level remains intact, we can anticipate an upward trajectory for the EURUSD price.

 

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GBPUSD Technical Analysis

 

During today's trading sessions, the GBPUSD pair made a significant jump, breaking out from the bullish flag pattern. Currently, the pair is testing the 38.2% Fibonacci retracement level. If it manages to stabilize above this level, the bulls are likely to set their sights on 1.259, followed by a potential rise to 1.272.

 

 

The pivot point at 1.218 lends support to this bullish scenario. As long as the pair continues trading above this level, the bullish outlook remains valid and intact.

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EURUSD

 

The EURUSD pair has soared, reaching the 50% Fibonacci level on the daily chart. Market saturation from buying pressures is evident, as shown by the RSI indicator on the 4-hour chart. Interestingly, the upper line of the previously broken bullish flag now serves as a key support, fueling the uptrend's momentum. This resistance level presents an excellent opportunity for bulls to intensify their pressure on the USD.