Solid ECN | Daily Technical | Video | Major Products

[SOLID ECN LLC]

The EURUSD pair resumes its negative trades to surpass 1.0250 level and settles below it, reinforcing the expectations of continuing the bearish trend for the rest of the day, reminding you that our next main target is located at 1.0100, while holding below 1.0355 represents key condition to continue the suggested decline. The expected trading range for today is between 1.0170 support and 1.0320 resistance.

The expected trend for today: Bearish.​

 

[SOLID ECN LLC]

USDJPY - growth was stopped by the resistance level of 136.70

Last week, negative data from the US was published, which investors attach more importance to in anticipation of the next meeting of the regulator on the interest rate, which will be held on July 27. Any deviation from the trend of sustainable development of the economy is perceived negatively by experts, as they expect an increase in interest rates by 75 basis points. If the statistics deteriorate, the issue of such a significant tightening of monetary policy may be reconsidered. Thus, the base price index of personal consumption expenditures decreased by 0.2% YoY compared to the previous month and amounted to 4.7%, which was lower than the forecast of 4.8%, and personal spending increased by 0.2% in May, despite the forecast of 0.4%, and the Initial Jobless Claims exceeded the forecast of 228.0K and amounted to 231.0K.

The long-term trend is upwards. The trading instrument failed to break the resistance level of 136.70 and started a correction with the target at the support level of 134.55. If it is held, the asset will continue to grow and renew the June high, and in case of a breakdown, the correction will continue to 131.40.

The medium-term trend remains upwards. After reaching the target zone 3 (137.09–136.72), the price is in correction with the target at the key trend support 132.99–132.60.

Resistance levels: 136.70, 139 | Support levels: 134.55, 131.4

 

[SOLID ECN LLC]

EURUSD - the probability of continuation of the downward dynamics is high

The EURUSD pair is actively declining ahead of today's publication of the minutes of the last meeting of the European Central Bank (ECB) on monetary policy, trading in the 1.0201 area. Although the goals of the regulator are long-awaited and known, investors hope to hear new signals from officials for making long-term decisions on opening trade deals.

The trading instrument is moving within the global downward channel, slowly approaching the parity level. Technical indicators maintain a global sell signal: indicator Alligator's EMA oscillation range expands downwards, and the AO oscillator histogram has formed another downwards bar in the sell zone.

Resistance levels: 1.035, 1.062 | Support levels: 1.016, 1​

 

[SOLID ECN LLC]

USDCAD - the market is preparing for a sharp rate hike by the Bank of Canada

The Canadian currency continues to give way to the US dollar, despite the rather active attempts of the Bank of Canada to prevent the growth of inflation, which reached 7.7% in May. According to the updated forecasts of the Canadian regulator, in the near future the indicator may exceed 8.0% for the first time in 40 years, and therefore the likelihood that the interest rate will be raised immediately by 0.75% on July 13 is very high. In addition, the management of the Bank of Canada publicly acknowledged their mistakes, which led to a sharp rise in prices, promising that from July the analysis of macroeconomic data and forecasts will become more transparent. Canada's business activity data for July is expected to be published today, and data on the state of the labor market, which, according to forecasts, has begun to slow down, will be published tomorrow.

On the global chart of the asset, the price is trading within a wide ascending channel with dynamic boundaries of 1.2500–1.3100, having reached the resistance line for the second time since the beginning of summer. The fluctuation range of the Alligator indicator EMAs is holding a buy signal, and the histogram of the AO oscillator is forming new ascending bars, actively rising in the sell zone.

Support levels: 1.2939, 1.2754 | Resistance levels: 1.3075, 1.33​

 

[george_m]

eurusd - going to 1:1 ? =)

 

[SOLID ECN LLC]

USDCAD - the market is preparing for a sharp rate hike by the Bank of Canada​

The Canadian currency continues to give way to the US dollar, despite the rather active attempts of the Bank of Canada to prevent the growth of inflation, which reached 7.7% in May. According to the updated forecasts of the Canadian regulator, in the near future the indicator may exceed 8.0% for the first time in 40 years, and therefore the likelihood that the interest rate will be raised immediately by 0.75% on July 13 is very high. In addition, the management of the Bank of Canada publicly acknowledged their mistakes, which led to a sharp rise in prices, promising that from July the analysis of macroeconomic data and forecasts will become more transparent. Canada's business activity data for July is expected to be published today, and data on the state of the labor market, which, according to forecasts, has begun to slow down, will be published tomorrow.

On the global chart of the asset, the price is trading within a wide ascending channel with dynamic boundaries of 1.2500–1.3100, having reached the resistance line for the second time since the beginning of summer. The fluctuation range of the Alligator indicator EMAs is holding a buy signal, and the histogram of the AO oscillator is forming new ascending bars, actively rising in the sell zone.

Support levels: 1.2939, 1.2754 | Resistance levels: 1.3075, 1.33​

 

[SOLID ECN LLC]

USDJPY: market uncertainty persists

The long-term uptrend in the pair will continue, despite the slowdown in price growth in the last few weeks. The key for the "bulls" is the resistance zone 136.70-137.50, the breakout of which will give the prospect of further upward dynamics to 139.06, 140.62. If the price consolidates below the middle line of the Bollinger Bands around 135, the decline will continue to the levels of 132.8 and 131.25.

Resistance levels: 137.50, 140.62, 143.75 | Support levels: 135.00, 132.80, 131.25​

 

[SOLID ECN LLC]

USDJPY Technical Analysis

The currency pair is trading sideways below 137. Bears are struggling with breaking the 50 MA which supports the continuation of the bullish trend. Considering the MACD divergence breaking the 134.74 will add pressure on the price to decline toward 131.49 before any new attempt to rise.

Support: 134.74 - 131.49 | Resistance: 137



Trading idea:
Sell targeting 134.7 - 134.26 | SL: 137​

 

[SOLID ECN LLC]

USDCAD - Technical analysis​

H4
On the 4-hour chart, there is a downtrend in a short-term "bearish" trend, which is confirmed by a series of Three Black Crows patterns at the level of 1.3036. Currently, an Engulfing pattern has formed at 1.2932, which includes a Shooting Star candlestick. The combination of these figures signals the systematic pressure of sellers. The most likely scenario is a decline to the support level of 1.2932, overcoming which will allow the "bears" to strengthen the downtrend up to the level of 1.2534, while fixing the price above the resistance level of 1.3036 will allow the "bulls" to continue moving towards the area of 1.3118–1.3323.

D1
A Double Top price pattern has formed on the daily chart. In addition, an Evening Star reversal pattern formed at the resistance level of 1.3036, after which a Shooting Star pattern appeared, which strengthens the "bearish" mood in the market. In the current situation, the scenario with the decline of the asset to the support zone of 1.2932–1.2534 seems more likely. If the "bulls" still manage to hold the key support level of 1.2857, where the Neck line of the Double Top price pattern passes, buyers will have the opportunity to restore quotes back to the range of 1.3036–1.3323.

Support levels: 1.2932, 1.2857, 1.2737, 1.2534 | Resistance levels: 1.3036, 1.3118, 1.3323

 

[SOLID ECN LLC]

USDCHF - the US dollar holds on to yearly highs​

The Swiss currency is slightly weakening, and the current trend may last until the middle of the week, as there are no macroeconomic publications that could affect its dynamics. Now the pair USDCHF is trading within an uptrend around 0.9785.

The franc is losing value after the publication of the report of the Swiss State Secretariat for Economic Affairs (SECO) on employment, according to which the unemployment rate in the country in June fell to 2.0% from 2.1% a month earlier, and compared to the same month last year, the reduction in the number of unemployed amounted to 39.310K or 29.8%. Thus, the stabilization of the indicator continues for the sixth consecutive month, acting as a driver for strengthening the national currency, weakened by the recent tightening of monetary policy by the Swiss National Bank.

On the global chart of the asset, the price is correcting within the sideways channel, heading towards its upper border. The technical indicators reversed and issued a renewed buy signal: fast EMAs on the Alligator indicator crossed the signal line upwards, and the AO oscillator histogram formed the first bar above the transition level.

Resistance levels: 0.9820, 1 | Support levels: 0.9695, 0.954​