Solid ECN | Daily Technical | Video | Major Products

[SOLID ECN LLC]

AUDUSD - Strong labor market data supported the USD​

Currently, quotes are declining again, as the US currency is supported by positive June data on the national labor market: the unemployment rate remained at the same level of 3.6%, and employment increased by 372K, which is significantly higher than the projected 268K. At the same time, the average hourly wage increased by 5.1% year-on-year, also exceeding the forecast at 5.0%. In general, statistics show that the labor market is successfully resisting the pressure of the current tightening of monetary policy and gives the US Fed another argument in favor of a new serious interest rate hike this month, which may support the national currency.

The price is testing the lower boundary of the descending channel. If the instrument consolidates below the 0.6803 mark, the decline in quotations will continue to the levels of 0.6713 and 0.6591. If the quotes manage to overcome the middle line of the Bollinger Bands (0.6900), the upward trend will continue to 0.708.

Technical indicators signal the continuation of the downward trend: the Bollinger Bands are directed downwards, the MACD is stable in the negative zone, and the Stochastic is reversing upwards, but its growth potential is seen to be limited.

Resistance levels: 0.6900, 0.7080, 0.7202 | Support levels: 0.6800, 0.6713, 0.6591​

 

[SOLID ECN LLC]

USDJPY Technical Analysis​

Bulls are trading the USD JPY above 137, which supports the price now. RSI and Stochastic have left the overbought zone, that lead the market to test 137 support after the break-out. The bullish trend is valid with the price fluctuation above the 50 MA and 137.74 deck.

Trade idea
Buy at 137.3, Target: Open | SL: 134.26​

 

[SOLID ECN LLC]

The USD CAD is bullish. MA 50 and the blue trend line are playing the support. As long as these levels are held the price will surge to retest the 1.3083 resistance. There is a high chance for the bulls to break that ceiling.

Support: 1.2936, 1.2819 | Resistance: 1.3083

Trade idea
Buy at the current price, buy limit-1 at 1.2936, buy limit-2 at 1.2847, buy limit-3 at 1.2837 | SL: 1.2812​

 

[SOLID ECN LLC]

The shares of Meta Platforms, which owns the world's largest social network Facebook, are moving within a downtrend around 163. On the daily chart of the asset, a global Triangle pattern is forming with local extremes at 18 and 150, and a sharp narrowing of the formation range may indicate that the price is entering its last third, where a signal to exit it will develop.

On the four-hour chart of the asset, the quotes are completing the formation of another ascending wave, after which they can break through the lower border of the pattern around 155 since the probability of a downside implementation is much higher. Technical indicators confirm the possibility of a decline, reversing downwards: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms upward bars in the sell zone.​

 

[SOLID ECN LLC]

EURUSD - the euro is held near the parity level with the US dollar

The European currency shows multidirectional trading dynamics, consolidating near the key level of 1.0000, which has not yet been actively tested. The day before, the instrument also traded near the parity level and even tried to fall to the level of 0.9990 for some time; however, the "bulls" quickly regained the lost positions. The euro is certainly receiving strong technical support near this psychological level, but the pressure on the single currency only intensifies as the region's economic outlook deteriorates. The last time the euro traded at parity against the US dollar was in December 2002.

Yesterday's macroeconomic statistics put additional pressure on the positions of the single currency, intensifying talks about a possible recession in the European economy: ZEW Survey on Economic Sentiment fell sharply in July from –28.0 to –51.1 points, while analysts expected a decline to only –32.8 points. In turn, ZEW Survey on Current Situation in Germany over the same period fell from –27.6 to –45.8 points, while the forecast was –34.5 points, and the Economic Sentiment index fell from –28.0 to –53.8 points, which also turned out to be significantly worse than market forecasts at the level of –38.3 points. Today, investors are focused on statistics on the dynamics of consumer prices in Germany in June, as well as May data on the dynamics of industrial production in the eurozone.

Bollinger Bands in D1 chart demonstrate active decrease. The price range is expanding, making way to new record lows for the "bears". MACD is going down preserving a stable sell signal (located below the signal line). Stochastic retains downward direction but is located in close proximity to its lows, which indicates the risks of oversold EUR in the ultra-short term.

Resistance levels: 1.005, 1.01, 1.015, 1.02 | Support levels: 1, 0.995, 0.99

 

[SOLID ECN LLC]

AUDUSD - Australian dollar develops a weak upward correction

The Australian dollar is showing an uncertain rise, building on the corrective momentum that was formed on Tuesday, July 12, when AUDUSD traded at record lows of June 2020. The instrument is testing the level of 0.677 for a breakout, receiving support from strong macroeconomic statistics from Australia and China. In turn, the growing demand for the US currency prevents the emergence of a more active "bullish" dynamics.

Trade Idea
Sell, TP 0.6710 | SL: 0.6874​

 

[SOLID ECN LLC]

GBPUSD - consolidating at record lows

The British pound shows near-zero dynamics, testing 1.1820 for a breakdown, returning to active decline after an unsuccessful attempt at corrective growth, which was supported by optimistic macroeconomic statistics from the UK. On Wednesday, data on the dynamics of GDP and industrial production for May were released. The British economy strengthened by 0.5% after declining by 0.3% a month earlier, although analysts had expected zero dynamics. Industrial Production for the same period increased by 0.9% after falling by 0.1% in the previous month, with forecasts suggesting zero growth, and in annual terms, the figure corrected from 1.6% to 1.4%, while analysts assumed a sharp decline of 0.5%.

​

Resistance levels: 1.1854, 1.1933, 1.2, 1.2074 | Support levels: 1.18, 1.1758, 1.17, 1.16

 

[SOLID ECN LLC]

Starbucks - Technical analysis

On the daily chart of the asset, a global downwards channel is formed, within the framework of which the price is closed in the local Triangle pattern with dynamic boundaries 70 – 80. The four-hour chart shows that this figure is likely to work according to a classic scenario with consolidation the quotes below the lower border at 70. After reaching the pattern resistance line at 80 and the subsequent reversal, the scenario of subsequent downwards dynamics can be considered confirmed.

Technical indicators began to reverse towards the decrease: fast EMA on the Alligator indicator again began to approach the signaling line, narrowing the oscillation range, and the AO histogram forms downward bars in the purchase zone.​

 

[SOLID ECN LLC]

NZDUSD technical analysis

H4
On the four-hour chart of the asset, at the level of 0.6107, there is a formation of a Hammer candlestick pattern, which signals a possible change in the trend to an upward one, as well as a "bullish" Engulfing pattern at the level of 0.6174, which means a reversal of quotes at the bottom. In the current situation, the priority scenario is an increase from the level of 0.6246 to the zone of 0.6559−0.6869. An alternative scenario is possible if the buyers fail to hold the key support level of 0.6107, then the price may drop even lower to the range of 0.5929–0.5755.

D1
On the daily chart, a Falling Wedge price pattern is observed, and at the moment, an upward exit from the "bearish" trend channel is being implemented. A positive signal for the asset is the appearance of a Hammer reversal pattern at the support level of 0.6107, which can act as a catalyst for the uptrend from the level of 0.6246 up to the level of 0.6869. If the price consolidates below the level of 0.6107, the trading instrument may show a decrease to the zone of 0.5929−0.5755.

Support levels: 0.6107, 0.5929, 0.5755 | Resistance levels: 0.6246, 0.6559, 0.6869​

 

[SOLID ECN LLC]

EURUSD - the euro takes every opportunity to correct

Tomorrow, market participants will follow the June macroeconomic data on consumer prices in the EU, which will determine the rhetoric of the European Central Bank (ECB) in terms of tightening monetary policy in the near future. Analysts expect inflation to remain at the May level of 8.6%, which is nonetheless unlikely given the sharp rise to 5.8% in France and 10.2% in Spain. If the experts' forecasts come true, one should expect more "dovish" signals from the financial authorities and an increase in the interest rate with a standard step of 0.25% or 0.50%.

The trading instrument is within the global descending channel, near the support line. Technical indicators maintain the global sell signal: the fast EMAs of the Alligator indicator are significantly below the signal line, and the histogram of the AO oscillator is trading in the sell zone, forming new correction ascending bars.

Support levels: 1, 0.98 | Resistance levels: 1.0197, 1.037​