Currency Pairs Market Analysis

[Solid ECN]

EURUSD - Growth is possible.

On the daily chart, the downward wave of the higher level А ended, within which the fifth wave (5) of А formed, and the development of the upward wave B started. Now, the first entry wave 1 of (1) of B is developing, within which the third wave of the lower level iii of 1 is forming.

If the assumption is correct, the EURUSD pair will grow to the area of 1.0790 – 1.1196. In this scenario, critical stop loss level is 1.0219.

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[Solid ECN]

AUDUSD - Australian economy shows signs of decline

The reason for the negative dynamics was poor macroeconomic data: according to the Australian Bureau of Statistics, retail turnover in October fell by 0.2% after rising by 0.6% in September, which was the first decline since falling by 4.1% in December 2021 and is a consequence of the weakening in all leading industries, except for products retail trade. The leaders of the negative movement were department stores, which lost 2.4%, closely followed by the clothing trade sector (–2.0%), and for the first time since January, the indicators of restaurants and cafes decreased (–0.4%). ABS Head of Retail Statistics Ben Dorber said the correction results from higher interest rates and could be long-term.

On the daily chart of the asset, the price is moving in a downward channel, and after reaching the resistance line, a reversal begins to form. The technical indicators maintain a weakening buy signal.

Resistance levels: 0.6765, 0.6970 | Support levels: 0.6600, 0.6410​

 

[Solid ECN]

NZDUSD Breaks the Support

The NZDUSD pair faced negative pressure to break 0.6240 and settles below it, which pushes the price to achieve more expected decline in the upcoming sessions, targeting visiting 0.6100 areas mainly.

Therefore, the bearish bias will be suggested for today, noting that breaching 0.6240 and holding above it again will reactivate the positive scenario that its first target located at 0.6315.

The expected trading range for today is between 0.6150 support and 0.6260 resistance, and the expected trend for today is Bearish.​

 

[Solid ECN]

USDCAD - the pair is preparing for the strengthening of the downward dynamics

According to the latest survey, the situation of small and medium-sized enterprises in the third quarter improved markedly: 23.5% of enterprises expect difficulties in acquiring resources, and not 26.8%, as it was before, against the backdrop of a decline in inflation to 6.9% from a peak of 8.1%, only 32.4% of organizations expect a new price increase, which is lower than 34.0% in the previous period; and 34.4% predict a decline in profitability, up from the previous 35.9%. Overall, 29.8% of businesses said they still have problems maintaining inventory levels or purchasing, which is lower than the previous estimate but still quite a lot.

On the daily chart, the asset again approached the Neckline of the previously implemented Head and shoulders pattern to test it. The EMA fluctuation range on the Alligator indicator remains downwards, increasing the likelihood of the trend continuing, and the AO oscillator histogram forms bars in the sell zone.

Resistance levels: 1.35, 1.363 | Support levels: 1.3335, 1.3223​

 

[Solid ECN]

GBPUSD - Growth is possible

On the daily chart, the downward fifth wave of the higher level 5 of (V) ended, within which the wave (5) of 5 formed, and the development of the upward first wave (1) started. Now, the third wave of the lower level 3 of (1) is developing, and the wave iii of 3 is forming.

If the assumption is correct, the GBPUSD pair will grow to the area of 1.2281 – 1.259. In this scenario, critical stop loss level is 1.1732.

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[Solid ECN]

GBPJPY tends to postpone the rise

The GBPJPY pair surrendered to stochastic negativity by forming new negative wave and press on the additional support 166.80 after failing to surpass 168.20 barrier. We will start suggesting the correctional bearish attempts that might target 165.90 followed by reaching the moving average 55 at 164.50, while surpassing the mentioned barrier will cancel the negative overview and allows us to wait to record many gains by moving towards 169.40 and 170.20.

The expected trading range for today is between 167.35 and 165.9, and the expected trend for today is Bearish.​

 

[Solid ECN]

USDJPY - The price is in a correction, a fall is possible.

On the daily chart, the third wave of the higher level 3 ended, and a downward correction started to develop as the fourth wave 4. Now, the wave of the lower level a of 4 has formed, and a local correction has started to develop as the wave b of 4.

If the assumption is correct, the USDJPY pair will fall to the area of 133.2 – 127.36. In this scenario, critical stop loss level is 146.42.

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[Solid ECN]

NZDUSD -Quotes remain within the downward channel

Thus, according to the report of Statistics New Zealand (Stats.nz), employment in the main sectors of the economy in October adjusted to 2.32M jobs, but the decrease in the indicator in the primary sectors was 1.7%, in the commodity-producing sector, growth reached 0.6%, while the service sector showed no change. Regarding age groups, the largest increase in the value was observed in the category of 15–19 years old, which added 18.5%, and the maximum outflow of workers was in the category of 25–29 years old, which amounted to –3.3%. Considering that the first category includes mainly part-time jobs, the increase in this category had little effect on economic activity. The situation in the asset may change tomorrow when the data on building permits is published, the positive dynamics of which reached 3.8% last month.

The trading instrument moves within the downward channel on the daily chart, steadily near the resistance line. Technical indicators maintain a stable buy signal, working out a slight correction.

Resistance levels: 0.6265, 0.6467 | Support levels: 0.61, 0.5878​

 

[Solid ECN]

USDCAD Begins Bearish Wave

The USDCAD pair touched the key resistance 1.3500 and consolidated below it, to start providing negative trades by today’s open, which encourages us to suggest building bearish wave on the intraday basis, targeting testing 1.3350 initially.

Therefore, the bearish bias will be suggested for today unless breaching 1.3500 and holding above it, noting that breaking the targeted level will extend the bearish wave to reach 1.3205 areas as a next main station.

The expected trading range for today is between 1.3360 support and 1.3500 resistance, and the expected trend for today is Bearish.​

 

[Solid ECN]

AUDUSD - Growth is possible.

On the daily chart, the first wave of the higher level (1) formed, a downward correction ended as the second wave (2), and the third wave (3) develops. Now, the first entry wave of the lower level i of 1 of (3) is forming, within which the wave (iii) of i is developing.

If the assumption is correct, the AUDUSD pair will grow to the area of 0.6916 – 0.7142. In this scenario, critical stop loss level is 0.6584.

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[Solid ECN]

NZDUSD - Growth is possible.

On the daily chart, the upward wave of the higher level (А) formed, a downward correction ended as the wave (B), and the development of the wave (C) started. Now, the first entry wave of the lower level i of 1 of (C) is developing, within which the wave (iii) of i has formed, and the wave (iv) of i is forming.

If the assumption is correct, the NZDUSD pair will grow to the area of 0.6465 – 0.66. In this scenario, critical stop loss level is 0.6053.

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[Solid ECN]

GBPUSD awaits the breach

The GBPUSD pair trades within minor bearish channel that appears on the chart, and we believe it forms bullish flag pattern, as the price needs to breach 1.1995 to activate the positive effect of this pattern followed by rallying to resume the main bullish trend, which targets 1.2080 followed by 1.2200 levels as next main stations. Therefore, we will continue to suggest the bullish trend for the upcoming period unless breaking 1.1950 and holding below it.

The expected trading range for today is between 1.1920 support and 1.2090 resistance, and the expected trend for today is Bullish.​

 

[Solid ECN]

USDCAD - Growth is possible.

On the daily chart, the upward fifth wave of the higher level 5 develops, within which the wave (3) of 5 forms. Now, the third wave of the lower level 3 of (3) has formed, a local correction ha ended as the fourth wave 4 of (3), and the wave 5 of (5) is developing, within which the wave i of 5 is forming.

If the assumption is correct, the USDCAD pair will grow to the area of 1.3820–1.3978. In this scenario, critical stop loss level is 1.3314.

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[Solid ECN]

USDCHF - Growth is possible.

On the daily chart, the first upward wave of the higher level (1) of 3 develops, within which the wave 3 of (1) formed, a local correction ended as the fourth wave 4 of (1), and the formation of the fifth wave 5 of (1) started. Now, the first entry wave of the lower level i of 5 is developing, within which the wave (iii) of i has started to form.

If the assumption is correct, the USDCHF pair will grow to the area of 1.0054–1.0200. In this scenario, critical stop loss level is 0.9385.

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[Solid ECN]

NZDUSD Surpasses the Target

The NZDUSD pair rallied upwards strongly to succeed breaching 0.6240 and achieve our waited positive target at 0.6300, waiting for more expected rise in the upcoming period, and the way is open to head towards 0.6400 barrier as a next positive station. Therefore, the bullish wave will remain dominant in the upcoming sessions unless breaking 0.6240 and holding below it.

The expected trading range for today is between 0.6280 support and 0.6400 resistance, and the expected trend for today is Bullish.​

 

[Solid ECN]

AUDUSD - Key parameters of the Australian economy are declining

Thus, the index of manufacturing activity from AIG in November fell to 44.7 points from 49.6 points earlier, and the Manufacturing PMI amounted to 51.3 points, which is lower than 52.7 points earlier. The volume of investments also continues to decline: investments in production equipment in the third quarter lost 1.6%, and capital investments of individuals decreased by 0.6%. Even more critical is the 0.2% decline in retail sales in November after a positive 0.6% trend in October, which reflects a drop in buying activity due to rising prices.

On the daily chart of the asset, the trading instrument is moving within a downward channel and is preparing to break the range resistance line, and the technical indicators keep a buy signal.

Resistance levels: 0.6855, 0.705 | Support levels: 0.671, 0.653​

 

[Solid ECN]

AUDUSD - Key parameters of the Australian economy are declining

Thus, the index of manufacturing activity from AIG in November fell to 44.7 points from 49.6 points earlier, and the Manufacturing PMI amounted to 51.3 points, which is lower than 52.7 points earlier. The volume of investments also continues to decline: investments in production equipment in the third quarter lost 1.6%, and capital investments of individuals decreased by 0.6%. Even more critical is the 0.2% decline in retail sales in November after a positive 0.6% trend in October, which reflects a drop in buying activity due to rising prices.

On the daily chart of the asset, the trading instrument is moving within a downward channel and is preparing to break the range resistance line, and the technical indicators keep a buy signal.

Resistance levels: 0.6855, 0.705 | Support levels: 0.671, 0.653​

 

[Solid ECN]

USDCHF - Dollar weakness does not allow the pair to recover

Yesterday in Switzerland, the Federal Statistical Office (FSO) published data on the volume of retail sales, which for the first time since the beginning of the summer, fell by 2.5% after rising by 2.6% in September. Inflation remained at 3.0% YoY, and there was no monthly change in the indicator, although analysts predicted its increase by 0.1%. The information portal procure.ch published a monthly index of business activity, which fell to 53.9 points in November from 54.9 points a month earlier, thus continuing the negative dynamics that began in April.

On the daily chart of the asset, the trading instrument has slowed down the decline and is gaining new strength to continue the trend, and the technical indicators maintain a sell signal.

Resistance levels: 0.943, 0.959 | Support levels: 0.934, 0.919​

 

[Solid ECN]

EURCHF attempts to resume the rise

The EURCHF pair succeeded to provide new positive close above the moving average 55 at 0.9845, to confirm its surrender to the domination of the suggested bullish bias and approach the first target at 0.99. Note that stochastic continuous positive momentum will provide additional chance to record additional gains that might extend towards 0.9935 followed by 1.0 in the medium term period.

The expected trading range for today is between 0.9865 and 0.9935, and the expected trend for today is Bullish.​

 

[Solid ECN]

EURJPY fluctuates within the bearish track

The EURJPY pair touched 140.75 level on last Friday, to rebound positively towards 42.20 and settles near the moving average 55, these factors won’t affect the bearish track by settling below 142.60 resistance line, to confirm confining trades within the negative track and wait to renew the negative attack to target the first main target at 140.25. On the other hand, breaching the mentioned resistance will confirm regaining the bullish bias by consolidating within the bullish channel again, allowing us to start suggesting the bullish trades and target 143.15 initially.

The expected trading range for today is between 142.60 and 141.1, and the expected trend for today is Bearish.​