2023 Market Forecast by SolidECN

[SOLIDECN]

Impact of Candlestick Patterns on Bitcoin Trends​

Solid ECN – The long wick candlestick pattern on the Bitcoin daily chart resulted in the price dipping from the $71,909 higher low.
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Bitcoin 1-Hour Chart​

As of writing, the BTC/USD pair trades at about $68,000, close to the lower line of the bearish flag. This proximity might ease the current downtrend momentum and could result in the price testing the broken support at $68,774. If the price stays below the broken support, the Bitcoin price will likely dip to $66,400.

For the uptrend to resume, the bulls must close and stabilize the price above the descending trendline.​

 

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Impact of Fibonacci Levels and EMA on Oil Prices​

Solid ECN—WTI Crude Oil's downtrend has resulted in stabilizing below the 50% Fibonacci level at $77.5. The 50-day EMA is the primary resistance that separates a bear market from a bull market.

The Awesome Oscillator bars have turned red, signaling a continuation of the downtrend. Therefore, from a technical perspective, oil could decline to the next support level at $75.2.

However, the 50-day EMA challenges the bearish market, a barrier reinforced by the descending trendline and the 38.2% Fibonacci level. Should the price rise above the primary resistance, the bearish outlook will be invalidated accordingly.​

 

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Silver Bullish Momentum Resumes Above Key Resistance Level​

Solid ECN—The Silver price bounced from the 38.2% Fibonacci retracement level at $30. As of this writing, XAG/USD is trading at about $30.5, stabilizing momentum above EMA 50 and the Ichimoku cloud. The RSI (14) value is rising at 46, supporting the primary bullish trend.

From a technical standpoint, if XAG/USD remains above the primary resistance at $30, the uptrend will likely resume, with an initial target of $30.9.

Conversely, the downtrend at $32.5 could dip to the 50% Fibonacci retracement level if the U.S. Dollar pushes Silver prices below the immediate support at $30.​

 

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Gold Falls Below $2,353: Bearish Momentum and Key Levels​

Solid ECN—The XAG/USD fell below $2,353 in today's trading session. Currently, gold is trading around $2,338, retracing to test the former support level as new resistance. From a technical standpoint, the gold price dip was anticipated due to a clear divergence signal from the Awesome Oscillator. The bearish momentum has eased today due to Friday's lower trading volumes.

If XAG/USD stays below the immediate resistance at $2,353, the decline will likely extend to the EMA 50, followed by April's all-time low at $2,276.

Conversely, if bulls push the price above the immediate resistance, the uptrend is expected to resume, targeting $2,450.​

 

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EURUSD's Bearish Flag and Potential Reversals​

Solid ECN—The EURUSD currency pair trades in a bearish flag near the upper band. At the time of writing, the bears are keeping the price below the 50% Fibonacci level at $1.084. Interestingly, the 4-hour chart has formed an inverted hammer, suggesting that the downtrend may resume.

The technical indicators suggest a neutral market, with awesome oscillator bars small and clinging to the zero line and the RSI indicator moving sideways alongside the 50 line.

From a technical standpoint, the immediate support is the 61.8% Fibonacci retracement level at 1.086. If the exchange rate remains below this level, the downtrend that began in May is likely to extend with an initial target at the middle Bollinger band, followed by the 23.6% Fibonacci level at $1.082.

Conversely, if the bulls close and stabilize the price above the immediate support at 1.086, the bullish wave that began last week could target the 78.6% Fibonacci at 1.087, followed by the May all-time high at 1.089.​

 

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GBP/USD Faces Resistance: Market Outlook​

Solid ECN—The GBP/USD currency pair trades in an uptrend, facing the $1.276 immediate resistance. The Stochastic oscillator (14.3.3) suggests an overbought market. Therefore, the pound sterling might lose ground against the U.S. Dollar. The ascending trendline supports the current bullish wave, while the Awesome Oscillator indicates a divergence.

However, the trend hasn't reversed, and it seems the divergence signal refers to a consolidation phase. The market is still overbought, and we do not suggest going long in this market situation.

From a technical standpoint, the uptrend will likely escalate if the bulls cross above the immediate resistance at 1.276. If this scenario occurs, the road to the next significant support at $1.289 can be paved.

On the other hand, if the bears cross below the ascending trendline (in red), the price could dip to the key support at $1.263. This level provides a decent bid for bullish traders to reevaluate the market. Therefore, it is recommended to wait for the GBP/USD to either make a breakout or dip to the key support before joining the market, either as a bull or as a bear.​

 

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Will AUD/USD Break Out? Key Levels to Watch​

Solid ECN —AUD/USD resumed its uptrend after hitting the ascending trendline at $0.659. As of writing, the pair is trading inside the symmetrical triangle, testing the upper line at $0.664.

The technical indicators suggest a resumption of the uptrend. Therefore, if the bulls manage to close and stabilize the price above the immediate resistance at $0.664, the next bullish target could be $0.668.

On the flip side, if the price remains inside the wedge pattern, it will likely float sideways to the apex, targeting the ascending trendline again.​

 

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USD/CAD Breaks Below Key Fibonacci Levels​

Solid ECN—USD/CAD broke below the 61.8% Fibonacci level today, and as of writing, the pair trades at approximately 1.363 CAD. The current bearish momentum will likely target the 78.6% Fibonacci level at 1.362 CAD.

Bullish traders should wait for signs of a reversal or consolidation phase at the 78.6% Fibonacci level. If the selling pressure exceeds this level, the next bearish target will be the May low of 1.358 CAD.​

 

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EUR/USD Analysis: Bullish Flag Pattern Insights​

Solid ECN—The EUR/USD currency pair trades in a bullish flag pattern, stabilizing above the 78.6% Fibonacci level at $1.08. The technical indicators are bullish. The RSI (14) value at 65 indicates some room left before becoming oversold, suggesting that the bullish momentum is likely to continue.

From a technical standpoint, the uptrend is expected to persist as long as the EUR/USD trades above the ascending trendline and the 61.7% Fibonacci level at $1.086. In this scenario, the next target will be $1.089.

Conversely, if the price dips below $1.086, the 50% Fibonacci level at $1.084 will be the next support. If the price falls below $1.084, the bullish outlook should be invalidated, and the trend would likely shift from a bull market to a bear market.​

 

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Silver Analysis​

Solid ECN— The silver price became overbought after the bulls hit the $31 high. Subsequently, the chart formed a long-wick bearish candlestick pattern, which led to the price entering a consolidation phase. As of writing, the pair is testing the Ichimoku cloud as support, maintaining its position above the 25-day simple moving average.

From a technical standpoint, the primary trend is bullish, and the 23.6% Fibonacci level offers a decent opportunity to join the bull market. Another option to join the bullish market is to wait for a breakout above the immediate resistance at $31.8. If this scenario continues, the next bullish target will be $32.5.

Conversely, the bullish outlook should be canceled if the silver price dips below the 25-day SMA. In this case, the dip that began today could extend to the 38.2% Fibonacci level at $30.​

 

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Pound Sterling Soars: Technical Analysis of GBP/USD​

Solid ECN—The GBP/USD currency pair broke above the 1.276 immediate resistance in today's trading session. This development in the pound sterling drove the relative strength index indicator into the overbought area, signifying that the market might reverse or initiate a consolidation phase.

From a technical standpoint, the road to 1.28 is paved, but for the bulls to achieve this target, the price must maintain its position above the ascending trendline.

The bullish outlook will be invalidated if the GBP/USD price drops below the ascending trendline. 1.267 is the next support level in this scenario, followed by 1.263.​

 

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NZD/USD - Entry Points and Bullish Targets​

Solid ECN—The NZD/USD currency pair broke above the immediate support at 0.6139, and as of writing, it is trading at approximately at 0.616. The RSI indicator is becoming overbought, indicating that the uptrend might ease and the market will likely experience a consolidation phase.

From a technical standpoint, the overbought RSI could lead the U.S. Dollar to erase some of its recent losses. Hence, if the price dips to the ascending trendline, this level around 0.613 can provide a decent entry point to join the bullish momentum. In this scenario, the next bullish target should be set at 0.621.

Conversely, if the NZD/USD dips below the ascending trendline, the initial support level will be 0.608, followed by the secondary support level at 0.603.​

 

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USD/CHF Eyes Bullish Reversal Above Key Resistance​

Solid ECN—The USD/CHF currency pair bounced from the 38.2% Fibonacci support level at $0.909. As of writing, the pair is targeting the 23.6% Fibonacci level at $0.911. The RSI value is increasing and moving away from the oversold area, indicating that the market trend could shift from a bearish to a bullish market. However, the bulls must overcome the $0.911 barrier.

From a technical standpoint, for the trend to reverse, the price must close and stabilize above $0.911. If this scenario unfolds, the next bullish target will be the middle band of the Bollinger.

On the flip side, if the price fails to close above the immediate resistance, the downtrend that began on May 23 will likely resume, initially testing the $0.909 level.​

 

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GBP/USD Tests Key Support Amid Divergence Signals​

Solid ECN—The GBP/USD currency pair dipped from the $1.280 high today and is currently testing the $1.275 immediate support. The middle band of the Bollinger Bands and the May 22 high reinforce this support level.​

• The Awesome Oscillator signals divergence, indicating a potential trend reversal or consolidation.​
• The RSI indicator reads 56, approaching the 50 line, suggesting that the upward momentum is weakening.​

From a technical standpoint, while indicators suggest a bearish trend might be imminent, the price remains above the ascending trendline. The pair must stay above this trendline for the primary bullish trend to continue. If this occurs, the bulls' first target is $1.280, and with increased buying pressure, the price could move towards $1.289.

Conversely, if the GBP/USD price falls below the immediate support at 1.274, it will likely test the 1.267 support, followed by the $1.263 level.​

 

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EUR/USD Outlook - May-29-2024​

Solid ECN—The EUR/USD pair is trading in an uptrend at approximately 1.084 in today's session. The pair bounced from the 38.2% Fibonacci retracement level at 1.083, a support reinforced by the ascending trendline.​

• The Relative Strength Index (RSI) is at 47, hovering below the median line, indicating that bearish momentum may resume.​
• The Awesome Oscillator is also declining toward the zero line, currently reading 0.0006, further suggesting a strengthening bearish momentum.​

From a technical perspective, the primary trend remains bullish, with the current bounce from 1.088 potentially representing a consolidation phase. The uptrend is likely to continue if the EUR/USD price remains above the ascending trendline and the 38.2% Fibonacci retracement level at 1.083. In this case, the next resistance levels are the 78.6% Fibonacci retracement at 1.087, followed by the May all-time high at 1.089.

Conversely, the bullish scenario would be invalidated if the pair dips below the ascending trendline and the 23.6% Fibonacci level. Should this occur, the next support level would be at 1.080, corresponding to the May 24 low.​

 

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GBP/USD Testing Key Resistance Levels​

Solid ECN—The GBP/USD price bounced from the $1.267 support and is testing the $1.274 resistance. The RSI value is 53, above the median line, and the awesome oscillator bars are below zero, but the colors have turned green, and the value is on the rise. These developments in the technical indicators suggest that the trend might resume its bullish momentum.

Immediate resistance is at $1.274. For the bull market to resume, the GBP/USD must cross above this barrier. If this scenario comes into play, the road to retest the $1.280 resistance will be paved.

On the flip side, a failure to overcome the $1.274 barrier will likely result in the price declining, testing the immediate support at $1.267. If the selling pressure exceeds this level, the next bearish target could be $1.263.​

 

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USD/JPY Faces Critical $156.5 Resistance​

Solid ECN—The USD/JPY currency pair is testing the $156.5 resistance level. This level is backed by the Ichimoku Cloud and the 50 SMA. Interestingly, the 4-hour chart has formed a hammer candlestick pattern, indicating that the price might bounce from this level. Meanwhile, the technical indicators show a sideways market.

From a technical perspective, USD/JPY is in a bull market. If the price holds above the immediate support at $156.5, it will likely rise to test the immediate resistance at $157.7.

Conversely, if the USD/JPY price dips below the immediate support, the next bearish target could be $155.6.​

 

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Will GBP/USD Break Above $1.276?​

Solid ECN—The GBP/USD currency pair trades at about $1.273 in today's trading session, which is below the descending trendline and the $1.276 resistance. The RSI indicator signals a sideways market, but the Awesome Oscillator value is on the rise and about to close above the signal level.

From a technical standpoint, for the uptrend to resume, the bulls must cross above the $1.276 level. If this scenario plays out, the next bullish target will be the $1.280 resistance.

On the flip side, if the price remains below the descending trendline, the price will likely target $1.2681, followed by the lower line of the bearish flag.​

 

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EURUSD Analysis​

Solid ECN—The EUR/USD price declined from the $1.088 ceiling, and as of writing, the currency pair trades at about $1.084, testing the May 30 high. The technical indicators give mixed signals. The relative strength index clings to the median line, signaling a low momentum market. Furthermore, the awesome oscillator's recent bar turned red, indicating that bearish momentum may resume.

The immediate resistance is at $1.085. From a technical standpoint, if the EUR/USD price holds below the immediate resistance, the downtrend will likely resume with the next bearish target at the May 30 low of $1.078.

Conversely, if the bulls cross above the $1.085 immediate resistance, the uptrend that began on May 30 will likely aim to exceed the $1.088 key resistance.​

 

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AUD/USD Tests Immediate Support​

Solid ECN—The AUD/USD currency pair traded at $0.664 in today's trading session. As of this writing, it is testing immediate support at $0.663. The technical indicators in the 4-hour chart suggest the currency pair is trading sideways, and the market lacks significant momentum.

From a technical perspective, if the AUD/USD bulls maintain their position above the immediate support at $0.663, the price will likely aim for the key resistance level at $0.668. The next bullish target should be $0.671 if the buying pressure exceeds this.

Conversely, if the bears push the price below the $0.663 support and stabilize it below it, the new bearish momentum will likely head to the next support at $0.659.​