2023 Market Forecast by Solid ECN

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Silver Analysis

The silver price became overbought after the bulls hit the $31 high. Subsequently, the chart formed a long-wick bearish candlestick pattern, which led to the price entering a consolidation phase. As of writing, the pair is testing the Ichimoku cloud as support, maintaining its position above the 25-day simple moving average.

From a technical standpoint, the primary trend is bullish, and the 23.6% Fibonacci level offers a decent opportunity to join the bull market. Another option to join the bullish market is to wait for a breakout above the immediate resistance at $31.8. If this scenario continues, the next bullish target will be $32.5.

Conversely, the bullish outlook should be canceled if the silver price dips below the 25-day SMA. In this case, the dip that began today could extend to the 38.2% Fibonacci level at $30.​

 

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Pound Sterling Soars: Technical Analysis of GBP/USD​

Solid ECN—The GBP/USD currency pair broke above the 1.276 immediate resistance in today's trading session. This development in the pound sterling drove the relative strength index indicator into the overbought area, signifying that the market might reverse or initiate a consolidation phase.

From a technical standpoint, the road to 1.28 is paved, but for the bulls to achieve this target, the price must maintain its position above the ascending trendline.

The bullish outlook will be invalidated if the GBP/USD price drops below the ascending trendline. 1.267 is the next support level in this scenario, followed by 1.263.​

 

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NZD/USD - Entry Points and Bullish Targets​

Solid ECN—The NZD/USD currency pair broke above the immediate support at 0.6139; as of writing, it is trading at approximately 0.616. The RSI indicator is becoming overbought, indicating that the uptrend might ease, and the market will likely experience a consolidation phase.

From a technical standpoint, the overbought RSI could lead the U.S. Dollar to erase some of its recent losses. Hence, if the price dips to the ascending trendline, this level around 0.613 can provide a decent entry point to join the bullish momentum. In this scenario, the next bullish target should be set at 0.621.

Conversely, if the NZD/USD dips below the ascending trendline, the initial support level will be 0.608, followed by the secondary support level at 0.603.​

 

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USD/CHF Eyes Bullish Reversal Above Key Resistance​

Solid ECN—The USD/CHF currency pair bounced from the 38.2% Fibonacci support level at $0.909. As of writing, the pair is targeting the 23.6% Fibonacci level at $0.911. The RSI value is increasing and moving away from the oversold area, indicating that the market trend could shift from a bearish to a bullish market. However, the bulls must overcome the $0.911 barrier.

From a technical standpoint, for the trend to reverse, the price must close and stabilize above $0.911. If this scenario unfolds, the next bullish target will be the middle band of the Bollinger.

On the flip side, if the price fails to close above the immediate resistance, the downtrend that began on May 23 will likely resume, initially testing the $0.909 level.​

 

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GBP/USD Tests Key Support Amid Divergence Signals​

Solid ECN—The GBP/USD currency pair dipped from the $1.280 high today and is currently testing the $1.275 immediate support. The middle band of the Bollinger Bands and the May 22 high reinforce this support level.​

• The Awesome Oscillator signals divergence, indicating a potential trend reversal or consolidation.​
• The RSI indicator reads 56, approaching the 50 line, suggesting that the upward momentum is weakening.​

From a technical standpoint, while indicators suggest a bearish trend might be imminent, the price remains above the ascending trendline. The pair must stay above this trendline for the primary bullish trend to continue. If this occurs, the bulls' first target is $1.280, and with increased buying pressure, the price could move towards $1.289.

Conversely, if the GBP/USD price falls below the immediate support at 1.274, it will likely test the 1.267 support, followed by the $1.263 level.​

 

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EUR/USD Outlook - May-29-2024​

Solid ECN—The EUR/USD pair is trading in an uptrend at approximately 1.084 in today's session. The pair bounced from the 38.2% Fibonacci retracement level at 1.083, a support reinforced by the ascending trendline.​

• The Relative Strength Index (RSI) is at 47, hovering below the median line, indicating that bearish momentum may resume.​
• The Awesome Oscillator is also declining toward the zero line, currently reading 0.0006, further suggesting a strengthening bearish momentum.​

From a technical perspective, the primary trend remains bullish, with the current bounce from 1.088 potentially representing a consolidation phase. The uptrend is likely to continue if the EUR/USD price remains above the ascending trendline and the 38.2% Fibonacci retracement level at 1.083. In this case, the next resistance levels are the 78.6% Fibonacci retracement at 1.087, followed by the May all-time high at 1.089.

Conversely, the bullish scenario would be invalidated if the pair dips below the ascending trendline and the 23.6% Fibonacci level. Should this occur, the next support level would be at 1.080, corresponding to the May 24 low.​

 

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GBP/USD Testing Key Resistance Levels​

Solid ECN—The GBP/USD price bounced from the $1.267 support and is testing the $1.274 resistance. The RSI value is 53, above the median line, and the awesome oscillator bars are below zero, but the colors have turned green, and the value is on the rise. These developments in the technical indicators suggest that the trend might resume its bullish momentum.

Immediate resistance is at $1.274. For the bull market to resume, the GBP/USD must cross above this barrier. If this scenario comes into play, the road to retest the $1.280 resistance will be paved.

On the flip side, a failure to overcome the $1.274 barrier will likely result in the price declining, testing the immediate support at $1.267. If the selling pressure exceeds this level, the next bearish target could be $1.263.​

 

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USD/JPY Faces Critical $156.5 Resistance​

Solid ECN—The USD/JPY currency pair is testing the $156.5 resistance level. This level is backed by the Ichimoku Cloud and the 50 SMA. Interestingly, the 4-hour chart has formed a hammer candlestick pattern, indicating that the price might bounce from this level. Meanwhile, the technical indicators show a sideways market.

From a technical perspective, USD/JPY is in a bull market. If the price holds above the immediate support at $156.5, it will likely rise to test the immediate resistance at $157.7.

Conversely, if the USD/JPY price dips below the immediate support, the next bearish target could be $155.6.​