official Market Update by Solidecn.com

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NZDUSD Outlook: Technical Indicators Suggest Ongoing Bullish Trend

Solid ECN – The NZDUSD currency pair formed a long-wick candlestick pattern in Friday's trading session, which suggests a possible trend reversal from an uptrend to a downtrend. The technical indicators still signal a bull market; as we know, all technical indicators are inherently lagging.

From a technical standpoint, if the price stabilizes below the 38.2% Fibonacci support following Friday's wick, it could extend to 23.6%. Otherwise, the bull market will continue, and the next target could be the 61.8% Fibonacci level.

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Navigating the USDJPY Oversold Market: Strategy for Professional Trader

Solid ECN – The RSI has been deep in the oversold area since March 8th. Despite the bulls resisting the extreme selling pressure, the uptick momentum seems weak, even with the RSI's position below 30.

Professional traders typically avoid short positions in an oversold market; therefore, waiting for the market to consolidate and stabilize itself is recommended. If the consolidation phase reaches the upper band of the bearish flag, this level, which coincides with the 23.6% Fibonacci retracement, can offer a better price for joining the bear market.

Fortunately, the Awesome Oscillator bars have turned green, which could be interpreted as the start of the consolidation phase. At the moment, wise traders are waiting for USDJPY to form new higher lows and are adjusting their next moves accordingly.

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EURUSD's Next Move: Navigating Above 1.091 Key Support

Solid ECN – The EURUSD formed a hammer candlestick pattern on the 4-hour chart, clinging to the 50% Fibonacci support level at the 1.0914 mark. As of writing, the pair is trading at about 1.093, slightly above the resistance. While the European currency gains ground against the U.S. dollar within the bullish channel, the technical indicators do not offer significant insights.

From a technical standpoint, the next target would be 1.1 if the price maintains its position above 50%.

Conversely, if the price dips below the 50% level, it will likely decline to the 38.2% level, coinciding with the lower band of the channel.

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GBPUSD's Potential Downshift and Support Levels

Solid ECN – The pound sterling has pulled back from a significant level, the 78.6% Fibonacci resistance against the U.S. Dollar, resulting in the pair trading below 1.2827. Concurrently, the RSI indicator has retreated from the overbought area and is heading toward the 50 level.

This downshift could extend to the EMA 50, which aligns with the rising trendline.

Traders should pay close attention to the 61.8% Fibonacci support, which could present buying opportunities. If this level holds, the GBPUSD price will likely rise and retest the 1.2893 resistance.

However, if the rising trendline breaks, it's a clear sign that the bullish scenario should be invalidated. In this case, the consolidation phase will likely extend to the 1.2599 mark, the 50% Fibonacci support.

Therefore, we suggest observing the market's behavior around the EMA 50.

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Bearish Signals: AUDUSD Technical Indicators Review

Solid ECN – The seller of the AUDUSD pair formed a long wick candlestick pattern on the 4-hour chart, close to the 50% Fibonacci resistance at the 0.666 mark. Consequently, the pair dipped below 38.2% and is testing the EMA 50 as of writing.

The technical indicators signal a bear market, with the RSI closing below 50 and the Awesome Oscillator bars being red and declining.

From a technical standpoint, the AUDUSD pair has created a new higher high since the beginning of the year, and this is the first time the value went as high as 0.666. Therefore, the Australian currency is bullish against the U.S. dollar. That said, if the EMA 50 can withstand today's selling pressure, the market will likely aim for the upper band of the rising flag, which is close to the 61.8% resistance level.

Conversely, if the AUDUSD dips below the EMA 50, the next support level is 23.6%. Traders should watch the EMA 50 closely and adjust their strategy accordingly.

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NZDUSD's Critical Levels: EMA 50 as the Decisive Barrier

Solid ECN – The NZDUSD currency pair failed to stabilize the price above the 38.2% Fibonacci support level, and consequently, it dipped below the descending trendline depicted in blue. The EMA 50 is currently preventing the price from dipping further. If this price breaches the 50-exponential moving average, the next target will likely be 0.6068, followed by the February low.

The 0.6215 mark is the pivotal point between a bull and bear market. If the New Zealand dollar breaks this resistance against the U.S. Dollar, the previously mentioned forecast should be invalidated, and traders must reevaluate the market accordingly.

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Canadian Dollar Dynamics: Economic Insights and Monetary Policy Updates

Solid ECN – The Canadian dollar is currently valued at around 1.35 per USD, returning from a one-month peak of 1.345 USD recorded on March 7. This drop is primarily due to the stability and strength of the US dollar. Meanwhile, the Federal Reserve is expected to hold interest rates steady at its upcoming March 19-20 meeting, with predictions leaning towards a rate cut in June. This decision comes after the consumer price index indicated a slight increase beyond expectations. Specifically, the overall inflation rate went up to 3.2%, surpassing forecasts, while the core inflation rate decreased slightly to 3.8% from 3.9%, still over the expected 3.7%.

In February, the unemployment rate in Canada increased to 5.8%, aligning with analysts' predictions. The country also witnessed an addition of 42,000 jobs, exceeding the anticipated numbers and showcasing a solid job market. Consequently, this strength allows the Bank of Canada to keep its monetary policy tight, helping curb further drops in the value of the Canadian dollar, also known as the loonie.

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Significant Silver Price Dip from Three-Year High

Solid ECN – Silver's price fell to approximately $24 per ounce, a slight decrease from the three-year peak of $24.4 per ounce in the prior session. This change occurred as investors closely monitored the possibility of the Federal Reserve lowering interest rates following the latest U.S. CPI (Consumer Price Index) figures.

These figures, which showed that the annual and core consumer inflation rates were slightly higher than expected, have significantly influenced the market's anticipation of the Federal Reserve cutting interest rates by June. Earlier, officials from the Federal Reserve and the European Central Bank hinted at potential rate decreases in 2024, which further increased the attractiveness of safe-haven assets like silver.

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EURUSD's Bullish Momentum: Indicators and Support Levels

The EURUSD currency pair consolidates its recent gains above the 50% Fibonacci support level, the 1.091 mark, where it formed a hammer candlestick pattern.

As of writing, the Euro trades at about 1.092, with the RSI indicator hovering above 50, which can be interpreted as a signal for the continuation of the uptrend. The EMA 50 and the lower band of the bullish channel support the current uptick momentum. That said, the bull market is likely to extend and test 1.098 as its first barrier.

Conversely, the 38.2% level divides the bull market from the bear market. Therefore, if the price dips below this level, the bull market should be invalidated.

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GBPUSD Uptrend Signals: RSI Indicator's Positive Shift

Solid ECN – The pound sterling is coming back from the 50 EMA, and as of writing, it is trading at about 1.279. The ascending trendline depicted in red provides support alongside the EMA 50. Interestingly, The RSI indicator has returned above the signal line, indicating that the uptrend will likely resume.

From a technical standpoint, as long as GBPUSD trades above the 1.2745 mark, the bull market will remain valid and will likely aim for the 50% Fibonacci resistance, followed by the 61.8%.

Conversely, a dip below the EMA 50 would invalidate the bullish market.

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Mixed Indicators for the USDJPY

The U.S. Dollar has recovered from 146.4 and tested the 38.2% Fibonacci resistance at the 148.1 mark. The EMA 50 and the Ichimoku cloud reinforce this resistance level, making it more robust.

The RSI and the AO indicators signal a bull market; however, the ADX indicates a slowdown in market momentum, which could be interpreted as a halt in the recent uptick bias.

From a technical standpoint, we are in a bear market, and the current bullish wave could be a consolidation phase. Therefore, the market will likely decline if the price remains below the EMA 50. A break below the ascending trendline, depicted in red, can trigger selling pressures.

Conversely, if the USDJPY bulls can cross the EMA 50 and stabilize the price above it, the bear market should be invalidated, and traders should reevaluate the market.

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EURUSD Bulls Await Consolidation

Solid ECN – As expected, the Euro rose in the last day's trading session against the U.S. Dollar. The EMA 50 and the Ichimoku cloud maintained the bull market. However, we noticed a long wick candlestick pattern formed in today's trading session, which could be construed as the beginning of a consolidation phase since it is a higher low.

From a technical standpoint, the market is bullish, but it is best to wait for the consolidation phase to be over. Please note that the EURUSD price should exceed the trendline in black for the uptrend to resume. In this scenario, the bullish market will be triggered and will likely aim for the 1.1 mark.

The lower band of the channel plays a pivotal role between the bull and bear markets. For the uptrend to be invalidated, the price must dip below the 38.2% Fibonacci support.

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GBPUSD's Next Move: A Crucial Phase Beyond Fibonacci Resistance

Solid ECN – As anticipated, the pound sterling is on an upward trajectory against the U.S. Dollar, and this uptrend persists. The RSI indicator remains above 50, while the ADX signal, hovering around the 20 level, does not indicate significant volatility. Apparently, the market awaits for the price to surpass 50% Fibonacci resistance before adding new bets on the current trend.

From a technical perspective, the bulls have already disregarded the previous day's high, and momentum is likely to continue rising after a minor struggle with the aforementioned Fibonacci level. If this scenario comes into play, the 78.6% level would be the next target.

Please note, dear traders, the bull market is robust, and for it to be invalidated, the price must dip below the Ichimoku cloud.

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Australian Dollar Outlook: Bullish Trends and EMA 50 Support

Solid ECN – The Australian dollar has stabilized above the 38.2% Fibonacci support level and the previously broken descending channel. Interestingly, the ADX indicator is making a return above the 25 level, interpreted as a sign that a new trend is on the horizon. This signal from the ADX aligns with the RSI, where it hovers above the 50 level.

From a technical standpoint, the EMA 50 supports the bullish bias on the currency pair. If the price stays above it, the next target for buyers would be the upper band of the bullish channel, which coincides with the 61.8% Fibonacci resistance level.

Conversely, the EMA 50 acts as the critical pivot between the bull and bear markets. The uptrend should be considered invalidated if the U.S. Dollar pushes the Australian dollar below the mentioned moving average.

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Analyzing NZDUSD: The Battle within the Bearish Channel

In this evening's trading session, the U.S. Dollar is pushing the price in its favor against New Zealand's currency. The technical indicators give mixed signals; therefore, we rely on the price action and the support and resistance areas.

From a technical standpoint, the pair trades within a narrow, bearish channel, which can be interpreted as a sideways market. The level at 0.613 acts as support; if this level is breached, the NZDUSD will likely dip to the next support, which is located at about 0.6111.

Conversely, the price must surpass 0.6182 for the uptrend to continue. In this case, March's higher high would be retested.

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Analyzing the Potential Reversal in EURUSD Trends

The U.S. Dollar has returned from the 1.096 resistance level against the European currency. This ceiling is supported by the 61.8% Fibonacci retracement level. As indicated in the 4-hour chart, the pair failed to surpass it on March 8.

As of writing, the EURUSD pair trades at about 1.088, close to the 1.086 support and slightly below the lower band of the bullish channel. Interestingly, this price is below the Ichimoku cloud and the EMA 50, which could be interpreted as a potential trend reversal.

From a technical standpoint, the bullish trend is invalidated since the price dipped below the cloud. However, the bears are required to close below the 38.2% Fibonacci level to trigger the main selling pressure. Failure to push the price below this level will likely lead to the price returning above the EMA 50, indicating that the uptrend may continue.

Conclusion:
For the bearish trend to resume, the price must close below the 1.086 level. Going short in the current market situation is risky because the bearish breakout lacks valid confirmation.

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Indicators Point to a New Bearish Trend in GBPUSD

Solid ECN – The Pound sterling lost ground against the U.S. Dollar in yesterday's trading session. As depicted in the GBPUSD 4-hour chart, the pair dipped below the EMA 50 and is currently testing it as a resistance level. Interestingly, technical indicators signal a bearish outlook, with the RSI hovering below 50 and the Awesome Oscillator showing red bars. Notably, the ADX currently hovers above the 25 level, which can be interpreted as the beginning of a new trend.

From a technical standpoint, the bears have broken below the bullish channel in red and are currently stabilizing the price at about 1.276. Therefore, as long as the price trades below the cloud, the secondary trend would be bearish, with the bears aiming for the 1.270 resistance, followed by 1.266.

The bearish technical analysis should be invalidated if the Pound sterling rises higher than the March 14 high, the 1.282 mark.

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Gold Price Stability Amid Federal Reserve Rate Cut Speculation

On Friday, the price of gold remained stable, hovering around $2,160 per ounce. This marks its first decrease after three weeks of gains. The change comes amid uncertainties surrounding the Federal Reserve's interest rate cuts. This uncertainty is due to unexpectedly high Consumer Price Index (CPI) and Producer Price Index (PPI) data, coupled with a decrease in initial jobless claims. 

These factors led investors to rethink their previous expectations for easier monetary policies. Consequently, the likelihood of the Fed reducing rates in June has fallen to about 60% from the 74% estimated just last week. This shift has made gold, which does not yield interest, less attractive to investors.

However, gold's price is still near record highs, as it serves as a protective investment against inflation and increasing geopolitical tensions, especially after Russia's decision to position its tactical nuclear weapons closer to NATO territories.

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Analyzing GBPUSD's Bullish Sentiments Amid Recent Downtrend

Solid ECN – Pound Sterling demonstrated its resilience at the start of the Monday trading session. It opened with a slight gap against the U.S. Dollar but quickly recovered. It is currently holding strong at around 1.273.

The pair trades above the bullish trend line, as indicated in blue on the GBPUSD chart. Therefore, the primary trend remains bullish. However, the price has fallen from the 1.289 high and is now experiencing a downtrend within the bearish channel, marked in red.

The data from the chart suggests that the current downward momentum may represent a consolidation phase, setting the stage for a potential bullish comeback. The EMA 50, aligning with the trend line and the resistance level supported by the Ichimoku cloud, could provide a solid support for buyers to initiate this optimistic turn of events.

Please note that the price must break out of the bearish channel for the uptrend to resume. In this scenario, the rise could continue and target the high from February as its first significant milestone.

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Oil Prices Surge Amid Geopolitical Tensions and Economic Indicators

Solid ECN – WTI crude futures increased to over $81 per barrel on Monday, building on the previous week's growth as ongoing geopolitical tensions fuel worries about oil supply. In the past week, Ukraine intensified its drone attacks on Russian oil facilities, causing a shutdown of approximately 7% of Russia's refining capabilities in the first quarter, as per a Reuters report.

Furthermore, Israeli Prime Minister Benjamin Netanyahu announced intentions to expand into the Gaza Strip's Rafah region, diminishing the likelihood of reaching a peace deal. Additionally, this week, investors are keenly observing the decisions on monetary policy by leading central banks for signs that might indicate when interest rate reductions will occur. Last week saw a near 4% rise in oil prices following an optimistic demand forecast by the International Energy Agency, which also anticipates a minor shortfall in supply for the year.