Solid ECN | Daily Technical | Video | Major Products

[SOLID ECN LLC]

NZDUSD - Candlestick Analysis

H4
On the four-hour chart, at the support level of 0.6031, there is a formation of a reversal Bullish Engulfing candlestick analysis pattern, signaling a change in the balance of power towards buyers, as well as a Gravestone Doji pattern, which, as a rule, appears at the top and is reversal. It can also be fixed at the base, but for this it is necessary to obtain additional confirmation. In the current situation, the likely scenario is the growth of the asset to the resistance level of 0.6172, overcoming which will allow the "bulls" to head higher to the range of 0.6453–0.6703. An alternative scenario is likely if the "bears" break through the key support level of 0.6031, and the price may drop to the area of 0.5849–0.5622.

D1
The daily chart shows the formation of two Hammer figures, which are reversal and signal that the price has reached the bottom. In this case, long positions can be opened after overcoming the resistance level of 0.6172, when the "bulls" test it. If the buyers fail to hold the level of 0.6031, the negative dynamics may intensify up to the level of 0.5622.

Support levels: 0.6031, 0.5849, 0.5622 | Resistance levels: 0.6172, 0.6453, 0.6703​

 

[SOLID ECN LLC]

Shares of eBay, an American online retailer, are trading at 44.

On the daily chart, the price, having left the limits of the global downwards channel with dynamic boundaries 38 – 45, is kept above it, despite approaching the previously passed resistance level.

On the four-hour chart, it is seen that the attempt to enter a full-fledged correction failed, the initial Fibonacci 23.6% correction level at 50 was not broken, and the quotes received a downward impulse, directing them to the year's low at 40.40, which may be reached in the coming days. Technical indicators have reversed and are holding a stable sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms downward bars in the sell zone.​

 

[SOLID ECN LLC]

GBPUSD - The instrument is moving within the global downward channel

Investors are evaluating the announcement of the new British Prime Minister Liz Truss on the abolition from next month of indexation of electricity bills, which will now not exceed 2.5K pounds a year. She also stated the need to expand the sources of electricity supply through increased oil and gas production in the North Sea. Although households have taken the initiative of the official positively, for the economy as a whole, this may become a new problem since 130 – 150 B pounds annually will need to be allocated to finance such a measure. Some experts suggested that these funds would be raised through government loans, which would then be repaid through gradual tariff increases over two years.

In the UK, national mourning has begun in connection with the death of Queen Elizabeth II. The heir to the throne was her son, Prince Charles of Wales, who will be officially proclaimed King Charles III on September 10. The country may enter a new era of change, and it is not yet known how actively the new monarch will be involved in the state's political affairs.

The trading instrument is moving within the global downward channel, reversing towards a local increase. Technical indicators maintain a weakening sell signal: the Alligator indicator's EMA oscillation range narrows slightly, and the histogram of the AO oscillator forms rising bars.

Resistance levels: 1.1652, 1.2 | Support levels: 1.14, 1.115​

 

[SOLID ECN LLC]

AUDUSD: consolidation after reaching local highs in August

The AUDUSD pair shows ambiguous trading dynamics during the Asian session, consolidating near 0.6830. Investors are trying to predict the situation in the market after many currencies showed a confident upward rally against the US dollar at the end of last week. So, for only one trading session on Friday, September 9, the Australian dollar recovered to the local highs of August 31.

At the same time, traders were disappointed by the publication of poor macroeconomic statistics from China, where, in particular, a decrease in inflation in August by 0.1% from 0.5% last month was recorded, while the growth rate adjusted from 2.7% to 2.5% YoY with preliminary estimates of experts at 2.8%, which is a signal of a slowdown in the national economy.

Following the publication by the analytical company Impact Economics and Policy of information about the inflated costs of post-COVID rehabilitation of citizens in the amount of 3.6B US dollars, the Australian authorities launched a parliamentary inquiry to determine the exact number of people who need medical care after an infection. In particular, according to the information provided, taking into account weekly expenses, which amount to about 100.0M Australian dollars, the losses of the national budget for the year amount to 5.2B Australian dollars. As a result, the authorities will submit a report that will collect expropriated treatments and determine whether those who have been ill will be able to receive payments from the state.

On Thursday, Australian investors are focused on the report on the national labor market for August, and analysts predict an increase in employment by 50.0K after falling by 40.9K last month.

On the daily chart, Bollinger bands reverse in the horizontal plane: the price range is narrowing from above, reflecting the ambiguous nature of trading in the short term. MACD is growing, maintaining a relatively strong buy signal and above the signal line. Stochastic shows a confident upward direction, but at the moment, it is rapidly approaching its highs, indicating that the instrument may become overbought in the ultra-short term.

Resistance levels: 0.6853, 0.69, 0.695, 0.7 | Support levels: 0.680, 0.675, 0.67, 0.665​

 

[SOLID ECN LLC]

The Home Depot

On the daily chart, the correction is developing within a wide corridor with dynamic boundaries of 350 – 290.

On the four-hour chart, after reaching the support line, the quotes reversed upwards, breaking the initial correction level of 23.6% Fibonacci around 298. Holding the trading instrument above it is a key factor for the continuation of the upward trend, the target of which is the Fibonacci 61.8% retracement level at 315.

Technical indicators are weakening the sell signal: the Alligator indicator's EMA oscillation range narrows actively, and the histogram of the AO oscillator, trading in the sell zone, forms new rising bars.​

 

[SOLID ECN LLC]

USDCAD - Candlestick analysis

H4
On the four-hour chart, under the resistance level of 1.3214, there is the formation of Hanging man and Shooting star reversal models of candlestick analysis, as well as the appearance of the Three black crows trend continuation pattern at 1.302. At the opening of the trading session, the “bulls” tried unsuccessfully to restore their positions, which is confirmed by the “Bearish” belt hold figure. However, in the current situation, the continuation of the downward dynamics of the asset to the support level of 1.2960 is likely, the breakdown of which allows the “bears” to head lower to the area of 1.2661− 1.2322. If the buyers hold the support level of 1.2960 and the price reverses upwards, the growth to the resistance level of 1.3214 is expected, the breakout of which will become a catalyst for the movement to the area of 1.3412−1.3729.

D1
On the daily chart, under the resistance level of 1.3214, a series of Shooting star and Hanging man reversal candlestick patterns are formed, which signal that the price has reached the local high and the market is under the control of the “bears.” Also, the Three black crows downtrend continuation model has formed, and in this situation, most likely, a further decline in the asset in the range of 1.2960–1.2322 is expected.

Support levels: 1.2960, 1.2661, 1.2322 | Resistance levels: 1.3214, 1.3412, 1.3729​

 

[SOLID ECN LLC]

USDCHF - Candlestick analysis​

H4​

On the four-hour chart, a long-term downtrend is recorded. At the moment, above the level of 0.9568, a "bullish" Hammer pattern is being formed, which signals a likely reversal of quotes, and two more reversal patterns have appeared: the Inverted Hammer and the Bullish Engulfing one. Quotes of the asset are consolidating above the key support level of 0.9485, and the pressure of the "bears" is still visible. However, if the "bulls" manage to stay above this level, then, most likely, it will be possible to observe a small uptrend to the resistance level of 0.9568, after which the correction will take a reversal character, and the price will continue to recover higher to the area of 0.9694–0.9840. If the buyers fail to hold the key support level, one should expect an increase in negative dynamics to the level of 0.9222.

D1​

The daily chart shows the formation of the Three Black Crows trend continuation pattern, which indicates strong pressure on the price from sellers. In the current situation, a short upward correction to the level of 0.9568 and a further reversal of the price back to the support level of 0.9485 is possible, the overcoming of which will allow the "bears" to go lower to the range of 0.9366 – 0.9222.

Support levels: 0.9485, 0.9366, 0.9222 | Resistance levels: 0.9568, 0.9694, 0.984​

 

[SOLID ECN LLC]

NZDUSD - New Zealand food prices hit a 13-year high

Today, Statistics New Zealand (Stats NZ) released a report on food prices, which rose 8.3% in August, reflecting the biggest correction since July 2009. Most of all, vegetables and fruits went up in price, adding 15%, the cost of grocery sets increased by 8.7%, fish and poultry – by 7.6%, restaurant dishes – by 6.5%, and prices for soft drinks rose by 4.1%. %. The negative dynamics are primarily due to disruptions in supply chains caused by the COVID-19 pandemic, the development of the energy crisis, and the rise in the cost of transport services. Thus, inflation in August exceeded the previous month by 1.1%, confirming the slowdown in the national economy.

The US currency fell below 108.000 in the USD Index. Markets are awaiting the publication of data on consumer prices in the US for August: analysts suggest that the dynamics will be negative at –0.1% MoM and slow down to 8.1% YoY from 8.5% earlier. However, the Core figure, which excludes fuel and food prices, could rise by 0.3% MoM, reflected in an increase to 6.1% YoY from 5.9% a month earlier.

The trading instrument is moving within the global downtrend, away from the year's low. Technical indicators maintain a weakening sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms upward bars in the sell zone.

Resistance levels: 0.6194, 0.6330 | Support levels: 0.6096, 0.6000​

 

[SOLID ECN LLC]

AUDUSD - The market is waiting for the US inflation data

The Australian Bureau of Statistics released its second-quarter housing stock data today, showing total home values down 162.4 billion Australian dollars for the first time since March 2020 after peaking in the previous quarter. The number of residential buildings increased by 45.2 thousand, while the average price of a house decreased by 18.9 thousand Australian dollars. In addition, the Westpac Consumer Sentiment Index showed positive results, adding 3.9% in September after falling 3.0% in the previous month.

The key influence on the AUD/USD pair is provided by the US dollar, which for the first time since the beginning of August corrected below 108 in the USD Index. Today at 14:30 (GMT+2) the market will follow the data on the dynamics of consumer prices for August, and analysts predict a decline in inflation to 8.1% from 8.5% a month earlier. The current indicator is also important as a key benchmark for the US Federal Reserve, which is going to continue the aggressive tightening of monetary conditions. Investors hope that positive macroeconomic statistics may act as a driver for the revision of plans to raise interest rates, which will ease the pressure on the economy, which is at risk of recession.

On the daily chart of the asset, the price is correcting upwards, moving away from the lows of the year. Technical indicators start to reverse towards growth: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram started reversing towards the transition level while forming new ascending bars.

Support levels: 0.6829, 0.6698 | Resistance levels: 0.6916, 0.7050​

 

[SOLID ECN LLC]

XAUUSD - demand for gold is gradually increasing

Although the quotes of the trading instrument are near the annual lows, the demand for both physical gold and contracts remains high. Thus, the Australian Mint reported that in August, it sold 84.9K ounces of metal in the form of bars and coins, which is 57.4% higher than the same indicator last year and 7.2% higher than in July. The US Mint sold 857.0K ounces of gold as coins in the first eight months of this year, up 1.2% from last year, while Canada sold CAD 31.9M worth of coins in the second quarter compared to 24.8M Canadian dollars a year earlier.

The latest report from the US Commodity Futures Trading Commission (CFTC) last week recorded active closing of transactions by sellers, and the trend is observed in all categories: in positions backed by money, the “bulls” increased their superiority, reaching 1.294K contracts, while the “bears” there is a decrease by 4.035K. In the positions of swap dealers, buyers added 2.064K contracts, and sellers liquidated 10.359K contracts.

On the daily chart of the asset, the price moves in a downward channel, and after reaching the low of the year, it again approaches the resistance line. Technical indicators maintain a weakening sell signal: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram is forming upward bars in the sell zone.

Resistance levels: 1734, 1780 | Support levels: 1696, 1650​