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Gold market analysis by Solid ECN Securities
Trading participants reduce positions in gold

The development of the global sideways range of 1850–1730 in the gold continues, and the quotes are once again holding slightly above the key level of $1,800 per ounce.

There are no serious prerequisites for the growth of the asset yet, but there are not so many pressure factors either. The situation may change only in March during the meeting of the US Federal Reserve when the regulator's decision to raise the interest rate will be announced. To this point, traders should focus on the US dollar index and investment demand. Currently, the USD Index consolidates at the level of 95.5 after one of the most dynamic falls in recent years, which led to the current upward correction in gold. However, the observed dynamics have little prospects for further development in light of Friday's positive employment report in the US.

Support and resistance
On the daily chart, the price moves within the global sideways channel, correcting towards the resistance line. Technical indicators maintain a sell signal.

Fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram has moved into the sell zone and is forming local rising bars.

Resistance levels: 1830, 1870.
Support levels: 1790, 1720.​

 

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BTCUSD Technical Analysis by Solid ECN Securities

Current trend
The BTCUSD pair attempted to rise last week and is currently testing the level of 42000 (Fibonacci retracement 38.2%), but for the “bullish” momentum to develop, the quotes will have to break the resistance zone of 42000–43750. In this case, the trading instrument may reach the level of 50000.

The key “bearish” level is the middle line of Bollinger bands around 38500. The consolidation below it allows a decrease to the levels of 34375 and 31250. In general, despite the correction, the downside potential does not look exhausted, which is confirmed by technical indicators.

Bollinger bands are directed downwards, and Stochastic has entered the overbought zone, which may mean the end of the corrective growth.

Resistance levels: 42000, 43750, 46875, 50000.
Support levels: 38500, 34375, 31250.

 

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NZDUSD Market Update by Solid ECN Securities
Upward correction is likely to continue

Current trend
After the January decline to the levels of 0.654, the NZDUSD is being corrected with the target at 0.67 due to the emergence of investor interest in risky assets.

Reserve Bank of New Zealand governor Adrian Orr is likely to revert to a plan to tighten monetary policy by scaling back quantitative stimulus and raising interest rates to keep inflation from rising. The next meeting of the board of governors of the regulator will be held on February 23. Until then, the instrument will probably trade in a correction.

If there is information about a possible increase in the interest rate closer to the meeting, then the level of 0.67 may be broken upwards, which allows quotes to continue moving towards the key resistance level of 0.6864. Otherwise, the NZDUSD pair will remain under pressure.

Support and resistance
The long-term trend is downwards. At the end of January, the rate of the NZDUSD pair reached the support level of 0.654, which was held by the "bulls," which led to the development of a correctional model with the target at the level of 0.67. An additional factor indicating the continuation of the upward correction is the readings of the RSI indicator, which formed the Convergence signal.

The medium-term trend remains downward. Last week, the key resistance 0.6683–0.6669 was tested. If it is held, the decline will continue with the target at the low of January.

Resistance levels: 0.67, 0.6864, 0.7055.​

 

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GBPUSD
The pair is dominated by a "bearish" sentiment

Current trend
The British pound traded down against the US currency during the morning session, preparing to test 1.35 for a breakdown despite the "hawkish" stance of the Bank of England. The British regulator adjusted its monetary policy by increasing the interest rate; however, the growth of the national currency quotes turned out to be short-lived, and was leveled off at the end of last week.

The day before, the pound had already made attempts to consolidate on new local lows from February 1, but closer to the end of the afternoon session, GBPUSD managed to fully win back its losses. Today, the pound is reacting positively to the data released in the UK, but this has little effect on the trading dynamics.

Insignificant pressure on the positions of the US currency was exerted by not the most confident data from the US. The Consumer Credit Change in December showed a sharp slowdown from 39.99B to 18.9B dollars, which turned out to be worse than analysts' forecasts at 20.9B dollars.

Resistance levels: 1.355, 1.36, 1.365, 1.37.
Support levels: 1.35, 1.346, 1.3435, 1.34.​

 

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USDCAD market update by Solid ECN Securities
The pair is testing 1.2700 for a breakout

Current trend
The US dollar demonstrates active growth in pair with the Canadian currency during the trading in Asia, once again testing the level of 1.27 for a breakout.

The US currency received short-term support on Friday after the publication of a strong report on the labor market for January, which turned out to be much better than investors' forecasts. Strong data reinforced the belief of market participants that the US Fed may act more aggressively in choosing the vector of monetary policy. In particular, it is possible that at the March meeting of the regulator, the rate will be raised immediately by 50 basis points.

In turn, the Canadian report on the labor market, also released last Friday, was extremely disappointing.

Resistance levels: 1.27, 1.275, 1.2786, 1.2812.
Support levels: 1.265, 1.26, 1.2558, 1.25.​

 

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USDCHF Market Analysis by Solid ECN Securities
Consolidation in anticipation of new drivers

Yesterday, the quotes were supported by the publication of data on unemployment. At the end of January, the indicator fell from 2.4% to 2.3%, better than the market's neutral forecasts. The report on the labor market for January also surpassed the preliminary estimates of experts. In particular, Nonfarm Payrolls amounted to 467K, which was more than three times better than market expectations. Wage data also added optimism: hourly wages rose by 0.7% MoM and 5.7% YoY for January, which was better than analysts' forecasts of 0.5% and 5.2%.

On the daily chart, Bollinger bands are steadily growing.
The price range narrows slightly, remaining quite spacious for the current level of activity in the market. The MACD indicator reverses upwards, keeping a relatively strong buy signal. Stochastic shows a more confident upward trend but is rapidly approaching its highs, indicating that the US dollar may become overbought in the ultra-short term.

Resistance levels: 0.926, 0.9276, 0.93, 0.9341.
Support levels: 0.922, 0.92, 0.9177, 0.9157.​

 

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ETHUSD Market Analysis by Solid ECN Securities
upward correction may end

Current trend
This week, the ETHUSD pair continues to add value and has now risen to the area of 3235.00, which corresponds to four-week highs.

Experts do not have a consensus on the drivers of the current upward dynamics, but many of them believe that the growth is caused by the enthusiasm of investors against the background of the release of January data from the American labor market. The indicators turned out to be significantly better than preliminary estimates and confirmed the overall resilience of the American economy to the consequences of the pandemic caused by the COVID-19 Omicron strain. This, in turn, aroused interest in risky assets, including digital ones, on the part of bidders.

As for the ETH positions, in the long term they continue to be supported by the expectation of the merger of the Ethereum and Ethereum 2.0 networks and the transition to the Proof-of-Stake (PoS) algorithm. The main operating network is still experiencing significant problems due to high fees and limited bandwidth, which specialists cannot solve in any way. The other day, Ethereum founder Vitalik Buterin and lead developer Tim Beiko proposed a new improvement option – to use transactions with a large amount of binary data ("blob-carrying transactions"). This measure is seen as temporary, for a period until the Ethereum 2.0 network becomes fully functional. The launch of the new function may take place after the next hard fork.

Resistance levels: 3125, 3437.5, 3750.
Support levels: 3000, 2700, 2500.​

 

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EURUSD Market Analysis by Solid ECN Securities

Recovery attempts after a "bearish" start to the week

The European currency shows weak growth against the US dollar during the Asian trading session, trying to recover from the "bearish" start of the week. The instrument is testing 1.1430 for a breakout, waiting for additional growth drivers to appear.

Meanwhile, macroeconomic statistics from Europe, released at the beginning of the week, does not provide any support to the single currency. In particular, on Monday, investors were disappointed by the data from Germany.

The instrument was also influenced by the results of the speech of the head of the European Central Bank (ECB), Christine Lagarde. The official again noted that inflation in the region does not yet threaten economic stability, and therefore does not require an immediate response in the form of tightening monetary policy. So far, the European regulator is following the path of the US Federal Reserve, which for quite a long time refused to recognize systemic inflationary risks, preferring to call the rapid rise in prices only a temporary phenomenon.

Conclusion & signal
> The economic data is against the Euro.
> The pair roams in the ichimoko cloud.
> The pair broke the trendline and the level 23.6 of the Fibonacci level
> Sideway warket for the day.

@sell area 1.151 targeting @1.135​

 

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XAUUSD by Solid ECN Securities
Gold renews local highs

During the Asian session, gold prices are rising moderately, developing the "bullish" momentum since the beginning of the month and recovering from a sharp decline at the end of January. Supported by relatively poor positions in the American currency, the instrument approached testing the level of 1830 for a breakout upwards. Also, the "bulls" on the dollar are waiting for the data on consumer inflation in the US for January, hoping that they will become another signal in favor of a faster tightening of monetary policy by the US Federal Reserve. In turn, a further increase in gold quotes is hindered by a noticeable increase in the yield of treasury bonds both in the US and in Europe.

The US macroeconomic statistics released yesterday did not provide any noticeable support to the dollar. Thus, the business optimism index from the NFIB for January fell from 98.9 to 97.1 points. The index of economic optimism from IBD/TIPP retreated from 44.7 to 44.0 points in February, while the forecasts suggested that the indicator would increase to 47.2 points.

Support and resistance
Resistance levels: 1831, 1840, 1847, 1853.
Support levels: 1823, 1814, 1805.5, 1800.​

 

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GBPUSD by Solid ECN Securities
The market is waiting for US inflation data

Current trend
The GBPUSD pair is trading around 1.355, waiting for new serious drivers for the movement, which may appear on Thursday after the publication of January inflation data in the USA and comments by the head of the Bank of England Andrew Bailey.

Investors expect the official to hint at further actions of the regulator in relation to the current price increase, exerting increasing pressure on local households. It should be noted that the National Institute of Economic and Social Research of Great Britain (NIESR) has recognized that the cycle of rate increases in the country does not keep pace with the rate of inflation, and the government should support the actions of the Bank of England by postponing tax increases and expanding public spending. Also, the strengthening of the pound's position is hindered by the situation around Prime Minister Boris Johnson, whose resignation is still likely.

Resistance levels: 1.361, 1.3732, 1.3793.
Support levels: 1.3488, 1.3366, 1.33.​