Solid ECN | Professional Market Analysis | *Video*

[SOLIDECN]

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

 

[SOLIDECN]

BTC USD - monetary pressure on the token may continue​

The cryptocurrency sector remains under pressure due to the tightening of the US Federal Reserve's monetary policy and the industry's general problems associated with a significant decrease in the capitalization of market leaders. Investors reacted negatively to the June data of the US labor market, believing that they would remove the last concerns of US Federal Reserve officials and force them to increase the rate again by 75 percentage points, which will lead to additional strengthening of the dollar. In public speeches, representatives of the crypto-currency community are trying to calm each other, stating that the current "crypto winter" will play in favor of the market but this looks like an attempt to find at least something good in the current difficult situation for the sector.

The potential for a further decline in digital assets will remain.

The trading instrument is testing the middle line of Bollinger Bands 20500 but the key "bearish" is 18750, the breakdown of which allows further decline to 15625 and 12500 and 10000.00. The breakout of 21875 (the upper line of Bollinger bands) allows growth to 25000(Fibonacci correction 23.6%), 28125.

Resistance levels: 21875, 25000, 28125, 31250 | Support levels: 18750, 15625, 12500, 10000​

 

[SOLIDECN]

Verizon Communications - technical analysis​

On the daily chart of the asset, the quotes are trading below the global channel 51–56 and completing the reverse test of the range support line passed. On the four-hour chart, it is clearly seen that corrective growth is developing in the form of a Triangle pattern. Inside the figure, the price has reached the support line at 50 and is preparing to reverse upward, which, in turn, will signal the end of the correction and the continuation of the global decline with the target around 45.5.

Nevertheless, the readings of technical indicators reflect the continuation of local growth: fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram is trading in the buying zone.​

 

[SOLIDECN]

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​

 

[SOLIDECN]

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​

 

[SOLIDECN]

The USDCAD 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​

 

[SOLIDECN]

Nvidia technical analysis​

On the daily chart of the asset, a global downward channel is developing with dynamic boundaries of 130–230. Currently, the price has reached its support line, breaking the 100% underlying Fibonacci extension trend level at 160 and holding below. The 4-hour chart clearly shows that the downtrend could continue to the full 161.8% Fibonacci extension trend at 83. Before that, the trading instrument will need to break the year’s low of 140.

Technical indicators hold a sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram is forming new bars with a downtrend.​

 

[SOLIDECN]

Google - technical analysis​

On the daily chart of the asset, a downwards channel forms with dynamic boundaries 2450–2000, within which the price has almost reached the resistance line and is preparing to start a reversal. On a four-hour chart, the ascending wave looks like a classic Flag pattern with boundaries of 2450.0–2150.0, which increases the likelihood of forming a downward impulse towards 2000.

Technical indicators do not yet react to the current reversal and keep a local buy signal: fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram forms rising bars above the transition level.​

 

[SOLIDECN]

EURUSD - the pair hit an all-time low​

The EURUSD pair is actively losing value and yesterday reached a historical milestone, which coincides with a 20-year low at 1 the value of the euro caught with the value of the US dollar against the backdrop of a tense economic situation in the EU, where macroeconomic indicators are declining for the second quarter in a row. Today, statistics from Germany for July will be published, and, according to forecasts, the index of current economic conditions from ZEW may correct to -34.5 points from -27.6 points, and the economic sentiment index risks dropping to 2020 levels around –38.3 points, which puts pressure on the single currency.

The trading instrument is moving within the global downward channel, reaching its support line yesterday. Technical indicators maintain a global sell signal: indicator Alligator’s fast EMA oscillation range expands downwards, and the AO oscillator histogram has formed another down bar in the sell zone.

Resistance levels: 1.015, 1.037 | Support levels: 1, 0.99​

 

[SOLIDECN]

MasterCard - Technical analysis

On the daily chart of the asset, a global sideways corridor of 306–380 is developing, within which the price has approached its lower border. There has not yet been a full-fledged attempt to consolidate below it but the likelihood of this remains quite high. The four-hour chart of the asset shows that if the quotes fix below the support level of 308, it is possible to continue to decline and reach an even stronger level of 280.

It is confirmed by the readings of technical indicators, which, working out a local correction, keep a stable sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms new bars below the transition level.​

 

[SOLIDECN]

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

 

[SOLIDECN]

​

Silver - the instrument is developing correctional dynamics​

Trading activity remains subdued this morning as analysts await the publication of key macroeconomic statistics on US consumer inflation for June, the current forecasts for which suggest acceleration from 8.6% to 8.8%, which will be a new record since December 1981. Faster growth is also not ruled out, which could put significant pressure on the US Federal Reserve when choosing the next measures to tighten monetary policy. The regulator's meeting will be held next week, and at the moment a rate hike of 50 or 75 basis points is expected. About 10% of analysts suggest an increase of 100 basis points at once, but this is possible only in the event of a sharp acceleration of inflation in the country.

Additional pressure on the positions of silver is exerted by the situation with the incidence of coronavirus in China, where outbreaks of infections are still observed, which, coupled with the policy of "zero tolerance", leads to new quarantine restrictions, which, in turn, are causing the fall in demand for industrial goods, as well as raw materials, including oil, copper and silver.

Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is almost unchanged, but it remains rather spacious for the current level of activity in the market. MACD indicator tries to reverse to growth and to form a new buy signal (the histogram should consolidate above the signal line). Stochastic is showing a similar trend, trying to retreat from its lows, signaling that silver is oversold in the ultra-short term.

Resistance levels: 19, 19.5, 20, 20.58 | Support levels: 18.71, 18.41, 18, 17.5

 

[SOLIDECN]

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​

 

[SOLIDECN]

Adobe Systems - technical analysis

On the daily chart of the asset, the formation of a downtrend continues, which may continue after the breakdown of the global year's low at 350. On a four-hour chart, the price forms a local Flag pattern with the boundaries of 360 – 400, which increases the likelihood of a global downward movement after the breakdown of its support line.

Technical indicators reflect a possible continuation of the global decline: indicator Alligator's EMA oscillation range expands downwards, and the histogram of the AO oscillator forms downward bars in the sell zone.​

 

[SOLIDECN]

EURUSD - the pair is preparing to consolidate below the historical low

Conflicting macroeconomic statistics from the EU do not allow the euro to interrupt the protracted decline: inflation in Germany in June was 7.6%, which is the same as in May, and CPI in France rose not as much as analysts expected but still amounted to 5.8%, up from 5.2% in May, while the same figure for Spain reached a record high of 10.2%, up sharply from 8.7% in May. With such a significant increase in local values, the composite price index of the EU countries will also increase significantly, preventing a possible reversal and growth of the euro.
​

The trading instrument moves within the global downward channel, near the support line. Technical indicators maintain a global sell signal: fast EMAs on the Alligator indicator expand the range of fluctuations in the direction of decline, and the AO oscillator histogram forms downward bars in the sell zone.
​

Resistance levels: 1.015, 1.037 | Support levels: 0.998, 0.98

 

[SOLIDECN]

Crude Oil - the oil market continues to correct

Brent Crude Oil quotes are correcting, trading just above 98, amid serious concerns about falling energy demand due to a new outbreak of coronavirus in China and, as a result, severe restrictions on the movement of citizens.

The market is awaiting the outcome of US President Joe Biden's visit to Saudi Arabia. John Kirby, National Security Council strategic communications Coordinator at the White House, said yesterday that Biden intends to hold meetings with King Salman bin Abdulaziz Al Saud, as well as with Crown Prince Mohammed bin Salman Al Saud. This visit has a specific goal of persuading Saudi Arabia to increase oil production levels, thereby reducing its quotes on the world market. However, experts are sure that it will not be successful for the United States, since the day before it became known that at a recent online summit of the BRICS organization, which includes the Russian Federation and China, the issue of Saudi Arabia's membership in the organization was discussed.

On the global chart, the price is trading below the key level of 100.00. Technical indicators are holding a steady sell signal, which is still strengthening: fast EMAs of the Alligator indicator are moving away from the signal line, and the AO oscillator histogram, being in the sell zone, is forming new descending bars.

Support levels: 96.22, 88.63 | Resistance levels: 100.7, 106​

 

[SOLIDECN]

ADAUSD - Technical analysis

The ADAUSD pair is moving within a long-term downtrend, and this week it was able to break below the level of 0.43, which it had unsuccessfully tested several times for a month and a half. In the future, the price decline may continue to 0.3906 and 0.3418. If the middle line of Bollinger bands is broken upwards, the quotes may rise to 0.4882 and 0.5371.

Further negative dynamics seem more likely, as technical indicators confirm the continuation of the downward trend: Bollinger bands are directed downwards, the MACD histogram is increasing in the negative zone, and Stochastic has entered the oversold zone and is directed horizontally.

Resistance levels: 0.4600, 0.4882, 0.5371 | Support levels: 0.3906, 0.3418, 0.2929​

 

[SOLIDECN]

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​

 

[SOLIDECN]

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.​

 

[SOLIDECN]

AUDUSD: US dollar continues to trade at highs

Thus, according to data for June, the unemployment rate in Australia fell to a record value of 3.5%, which was facilitated by a monthly increase in employment by 88.4K people after an increase of 60.6K in May. The share of the economically active population increased to 66.8% from 66.7% a month earlier. Also, the University of Melbourne unexpectedly lowered its inflation expectations, suggesting that in the next quarter, the figure will drop to 6.3% from 6.7% current.

Despite the decline, on the global chart of the asset, the price remains inside the Expanding formation pattern, holding around its support line. Technical indicators do not weaken the sell signal, and the downside potential is still high. Still, the possibility of an upward correction should not be ruled out: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms alternating bars in the sell zone.

Resistance levels: 0.6805, 0.6967 | Support levels: 0.668, 0.655​