Video | Market Technical | Solid ECN

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A downtrend is forming on the daily chart of the asset, which may continue with renewed vigor if the price breaks the global year’s low of 373.

On a four-hour chart, the trading instrument failed to overcome the resistance line of the global downtrend at 440 and, having reversed, is actively declining. Despite the recent upward correction, the current momentum began with a price gap, one of the key markers reflecting its strength.

Technical indicators reflect a possible reversal: indicator Alligator’s EMA oscillation range began to actively narrow, and the histogram of the AO oscillator formed the first down bar in the buy zone.

 

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The New Zealand currency is declining against the US dollar. However, there is an obvious trend towards its strengthening relative to other currencies due to the publication of positive national macroeconomic statistics: after the removal of the main coronavirus restrictions, the flow of people crossing the border increased significantly, reaching 266.7K people in April, which significantly exceeds the figures of previous months and 15.9K in May 2020. Also, data on spending on credit cards were published earlier, which reflected an increase in the purchasing activity of the population. Thus, the May figure was 123M New Zealand dollars, which is 1.4% higher than the April data.

The US currency strengthened significantly, surpassing 104.000 in the USD Index. The upward trend was catalyzed by the publication of data on consumer prices: inflation in the United States increased to 8.6% compared to May 2021, which exceeded the analysts' forecast, which assumed that the indicator would remain at 8.3%. The US Federal Reserve did not expect the index to rise in May, but it amounted to 1.0%, significantly exceeding the consensus forecast of 0.7%, leading to an annual value increase. Such statistics mean that the US regulator will have to continue actively tightening monetary policy.

The trading instrument is moving within the global downtrend, approaching the year's low around 0.6220. Technical indicators reversed and gave a sell signal: fast EMAs on the Alligator indicator crossed the signal line downwards, and the AO oscillator histogram formed new downward bars below the zero line.

Resistance levels: 0.6410, 0.6566 | Support levels: 0.6220, 0.6070​

 

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The pound is correcting after yesterday's negative dynamics caused by the publication of disappointing macroeconomic data, and now the GBP USD pair is trading around the level of 1.2172.

According to data for April, the UK economy slowed down by 0.3%, which led to a decrease in the growth rate to 0.2% QoQ. The negative dynamics harmed the annual GDP, which fell to 3.4% YoY from 6.4% earlier. Despite the upward correction, today's macroeconomic data did not reassure investors: the unemployment rate rose to 3.8% from 3.7% in March, and the Claimant Count Change decreased by only 19.7K instead of the expected 49 .4K against the background of correction of the average level of wages to 6.8% from 7.0% a month earlier.

Yesterday, the instrument renewed the year's low at 1.2170 and is now trying to consolidate below it. The technical indicators reversed rather quickly and gave a new sell signal: indicator Alligator's EMA oscillation range expands downwards, and the histogram of the AO oscillator forms downward bars.

Resistance levels: 1.2317, 1.2629 | Support levels: 1.2107, 1.1952​

 

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Yesterday, Statistics Canada (StatCan) published data on the state of the Construction Sector, investment in which has been increasing for the seventh month in a row, adding 2.7% to 20.0 billion Canadian dollars in April. Financing for the construction of houses increased by 3.2%, and for the construction of non-residential buildings it increased by 1.4%. These data point to the stability of the real estate market in Canada, even in conditions of high inflation. Today, traders will be watching the data on Manufacturing Sales, which is expected to slow down to 1.6% from 2.5% a month earlier.

The US dollar, in turn, reached an all-time high of the year on May 12 at 104.900 in the USD Index on the back of a wave of sell-offs in risky assets, remaining stable in anticipation of today's publication of Producer Price Index data. According to forecasts, the May Producer Price Index may rise by 0.8%, which will provide an uptrend in the annual rate by 10.9%, and this, in turn, will signal a strengthening of the national currency.

On the global chart of the asset, the price is trading within the wide upward channel with dynamic borders of 1.2450–1.3100, actively approaching the resistance line. The fluctuation range of the Alligator indicator EMAs is about to issue a buy signal, and the histogram of the AO oscillator is forming new ascending bars, actively rising in the sell zone.

Support levels: 1.2763, 1.2525 | Resistance levels: 1.2937, 1.3077​

 

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EUR USD, the market is waiting for the decision of the US Federal Reserve on the interest rate​

Today data on inflation in France will be published. According to analysts' forecasts, the consumer price index for May will rise by 0.6%, which will increase the rate by 5.2% YoY after 4.8% a month earlier. Yesterday, it became known that the same indicator in Germany reached a record 7.9%, adding 1.1% over the month. Sharp inflation is putting pressure on key sectors, and today's EU industrial output data will likely reflect continued negative momentum. According to experts' expectations, the value will decrease by 2.0% for April and by 1.1% YoY, which will increase pressure on the European currency.

Quotes of the American currency have consolidated after reaching the year's high, around 105.000 in the USD Index, and the market is waiting for the evening decision of the US Federal Reserve on interest rates. The consensus forecast of analysts suggests an increase in the indicator by the already familiar 50 basis points but after inflation in the United States rose to 8.6%, some experts spoke out for a sharper increase in the value by 75 basis points, which may be a completely justified action by the regulator to convince investors of the seriousness of their intentions. Also, to determine the rate for the current period, the agency will publish a monetary policy forecast for the near future.

The trading instrument moves within a narrow downward channel, approaching the support line. Technical indicators strengthen the sell signal: indicator Alligator's fast EMA oscillation range expands downwards, and the AO oscillator histogram formed a down bar after entering the sell zone.

Resistance levels: 1.0498, 1.0776 | Support levels: 1.0353, 1.01​

 

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USD TRY, Turkish statistics alarm investors​

According to the Turkish Statistical Institute (TurkStat), Retail Sales added 14.7% in April 2022, supported by a 31.3% increase in sales of non-food products, while the same indicator for fuel and food corrected down by 2.8% and 1.1% respectively. Despite the positive results, the Inflation Research Group (ENAG), created by Turkish scientists and economists, seriously doubted their reliability. According to experts, the agency deliberately understates data on consumer price dynamics, and the May figure was not 73.50%, as stated in official statistics, but 161.0%. Against this background, the Turkish government is considering the possibility of banning independent economic analysts from publishing statistics without prior approval from TurkStat.

In turn, the US currency reached 105 in the USD Index and consolidated there, in anticipation of the evening publication of the US Federal Reserve's decision on the interest rate, which can be increased once again by at least 50 basis points. There is practically no doubt about the correction of the value, and the implementation of the forecast will only increase the upward momentum in the trading instrument.​

The USD TRY quotes are rising as part of another wave of global growth, approaching the all-time high of 2021 at around 18.25. Technical indicators maintain a steady buy signal: the range of EMA fluctuations on the Alligator indicator is still directed upwards and the AO oscillator histogram is trading in the purchases area, forming new ascending bars.

Support levels: 16.9, 16.15 | Resistance levels: 17.5, 18.25​

 

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USD JPY, the market is waiting for decisive steps from the Bank of Japan​

The USD JPY pair shows extremely unstable trading dynamics as investors are waiting for a two-day meeting of the Bank of Japan on monetary policy, being corrected around 134.36.

The yen is rapidly declining amid ultra-soft policy from the country's main financial regulator, and inflation in May rose sharply to 2.5% from 1.2%, which requires the authorities to take steps to contain it. As for the local macroeconomic background, foreign trade data were published today, among which the increase in imports by 48.9% in May is particularly notable, which led to a serious correction in the trade balance to –2.384T yen from –842.8B for the month previously.

The American currency unexpectedly for investors remained at the beginning of the week at 105 in the USD Index after the decision of the US Federal Reserve to raise the rate by 75 basis points to 1.75%. Also, the regulator plans to increase the pace of treasury and mortgage securities sales from September to 60B and 35B dollars, respectively, from the current 30B and 17.5B dollars. By the end of the year, the agency expects that the rate will reach 3.4%, and in 2023, the rate of increase will be reduced, and the indicator will stop around 3.8%, after which it is planned to start a cycle of reduction in 2024 and bring the value to 3.4%.

The instrument is moving within the global uptrend, having renewed another high of the year at 135.5 yesterday. Technical indicators maintain a stable buy signal: indicator Alligator's EMA oscillation range expands upwards, and the histogram of the AO oscillator forms new rising bars.

Resistance levels: 136, 142.2 | Support levels: 130.9, 126.75​

 

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Crude Oil, prices for "black gold" are slightly reduced​

During the Asian session, Brent Crude Oil prices are traded in different directions, consolidating near 117.00. Yesterday, the instrument moderately declined in response to the publication of macroeconomic statistics on energy reserves, which slightly eased experts' fears regarding oil supply on the market.

In particular, the International Energy Agency (IEA) report indicated an increase in commercial oil reserves worldwide by 77M barrels in April compared to March. The positive dynamics were confirmed by the Energy Information Administration of the US Department of Energy (EIA) statistics: as of June 10, the indicator rose by 2M barrels, while analysts expected it to decrease by 1.3M barrels. The overall level of oil production in the United States also increased by 100K barrels per day to a combined level of 12M barrels per day. The OPEC report reflects that demand from market participants remained around 3.4M barrels per day, amounting to 100.3M barrels per day. The cartel is confident that the resumption of scheduled air travel after the coronavirus pandemic and the elimination of disruptions in supply chains will maintain positive momentum.

In turn, quotes continue to be supported by the prospect of a decrease in oil supply on the market with a moderate increase in consumption. Thus, the export of resources from the Russian Federation is currently difficult since Western countries are actively introducing new blocking sanctions against the Russian economy in response to a special military operation on the territory of Ukraine. Analysts note that the decline in the production of raw materials in Russia will be compensated by the growth in production in the Middle East and the United States, but only partially.

On the daily chart, Bollinger bands reverse into a horizontal plane: the price range remains practically unchanged, reflecting the flat nature of trading in the short term. The MACD indicator is falling, keeping a strong sell signal (the histogram is below the signal line). Stochastic shows similar dynamics, approaching its lows and indicating that the instrument may become oversold in the ultra-short term.

Resistance levels: 120, 123.24, 125.85, 128.6 | Support levels: 116, 114.09, 112, 109​

 

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Netflix, technical analysis​

On the daily chart of the asset, the formation of a global downward channel with dynamic boundaries at 70 – 205 continues, within which the trading instrument has almost reached the resistance line and is preparing to continue its decline.

On the four-hour chart, it can be seen that the main obstacle for the negative dynamics is the year's low at 163, which the price has already tested twice but has not been able to break, so a slight upward pullback is quite justified: it will allow the market to gain sufficient strength and overcome the obstacle.

The technical indicators reversed and gave a sell signal: indicator Alligator's EMA oscillation range reversed downwards, and the histogram of the AO oscillator forms downward bars in the sell zone.

Read more market news​

 

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EUR USD, investors expect inflation data in the EU​

The European currency is trading with a slight slowdown after yesterday's strong growth, caused by investors' reaction to the wage increase in the EU in the first quarter by 2.70% from 1.50%, but today's data will have a key impact on the dynamics of the instrument. In the middle of the day, Eurostat will publish May's CPI, which estimates inflation, and the monthly increase could be 0.8% against the 0.6% shown in April, and the growth will remain around 8.1% YoY. As for the core consumer price index, which does not consider food and fuel prices, analysts do not expect positive dynamics and expect the value to remain at the April level of 3.8%.

After three days of being near the year's highs, around 105 in the USD Index, Quotes of the American currency reversed downwards and rolled back to 104 against the backdrop of disappointing data on the US labor market. Initial Jobless Claims amounted to 229K, which exceeds the quoted market expectations of 215K, and the total number of citizens receiving payments from the state consolidated at 1.312M compared to 1.309M last week. Investors drew attention to a significant decrease in the index of manufacturing activity from the Philadelphia Fed in June to –3.3 points from 2.6 points in May.

The trading instrument moves within a narrow downward channel, approaching the support line. Technical indicators maintain a global sell signal: indicator Alligator's EMA oscillation range downwards, and the AO oscillator histogram has formed another down bar in the sell zone.

Resistance levels: 1.0630, 1.0778 | Support levels: 1.0377, 1.0151​

 

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USD JPY, development of a new upward momentum​

After a correction to 131.40, the pair USD JPY starts a new upward momentum with the target at 135.50 amid investor disappointment in the policy of the Bank of Japan. Today the regulator decided to leave the interest rate unchanged at –0.10%. At a subsequent press conference, department head Haruhiko Kuroda said it was appropriate now to maintain the current strong monetary easing to support the economy, which is needed for profitable companies to benefit from the poor yen and get a boost in capital expenditures, higher wages and a strengthening trend from income to expenses. It, in turn, should boost inflation to the 2.00% target. The Bank of Japan will continue to closely monitor the impact of the yen on the economy and prices and, in the event of a sharp change in the situation, will be ready to respond accordingly.

The Japanese authorities intend to create a specialized headquarters, the main task of which will be to monitor the market and combat the rise in the cost of living of the population and rising inflation in the country against the backdrop of rising energy costs and the weakening yen. Hirokazu Matsuno, Secretary General of the Cabinet of Ministers of Japan, noted that experts would also assess the impact of tightening the American regulator's monetary policy parameters and, in particular, the increase in the interest rate to 1.75% on the national economy. It is noted that the anti-crisis body will begin work on June 21.

It is likely that in the long term, the growth of the USD JPY pair will continue to 139 and 141 since, from a fundamental point of view, the US dollar will strengthen due to the tightening of the monetary policy of the US Federal Reserve and the increase in interest rates.

The long-term trend is upward. After the test of key support around 131, a new impulse began, which was to renew the weekly high around 135.5. In case of breakdown, the positive dynamics will continue to 139. According to the RSI indicator, there is a divergence on the chart, leading to a technical correction in the medium term.

The medium-term trend is upwards. This week, the traders tested the key trend support 131.63–131.29, after which the price began to rise to the high of the week in the 135.50 area, and zone 3 (137.10–136.72) will become its next target.

Resistance levels: 135.50, 139, 141 | Support levels: 131.40, 126.50, 124.08

 

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Stocks of Meta Platforms, which owns Facebook, the world's largest social network, continue to trade in a corrective trend and are around the 160 mark. At the end of last week, the results of almost a decade of the company's activity were finally summed up. The last thing that connected Meta Platforms Inc. with the previous name was its stock ticker FB, which has now also changed to META and is already used in trading on the Nasdaq exchange. It should be noted that the rebranding did not contribute to improving the financial situation of the company. Since the beginning of 2022, the shares have fallen by 51.4%, and there are no prerequisites for a trend change yet. Previously, the Ministry of Digital Information of the Russian Federation published statistics according to which Meta Platforms Inc. lost about 80% of its traffic on social networks Facebook and Instagram due to blocking in the country. Through dedicated VPN channels, services are now visited by only 10%-12% of the volume recorded before blocking.

As for the global state, the financial report for Q2 will be published in July, which may reflect revenue of 29.29B dollars and earnings per share of 2.63 dollars, which is even inferior to the 2.72 dollars shown in Q1.

The price is trading in a global downtrend and on the eve set a new low of the year at around 160. Technical indicators continue to hold a stable sell signal: the fast EMAs of the alligator indicator are below the signal line, and the histogram of the AO oscillator, being in the sales zone, forms descending bars.

Support levels: 155, 130 | Resistance levels: 175, 211​

 

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NZD USD, technical analysis​

H4
On the four-hour chart, at the level of 0.6224, a "bullish" Inverted Hammer candlestick analysis pattern is formed, which is a signal for a price reversal at the bottom. The "bullish" trend in the asset is also confirmed by the appearance of the Engulfing Pattern, which indicates that, most likely, the asset has reached the bottom and is currently forming a reversal. A more likely scenario for further movement of the NZD USD quotes is an uptrend towards the resistance level of 0.6476, overcoming which will allow the "bulls" to head higher to the zone of 0.6709–0.6986. An alternative scenario is possible if the support level of 0.6224 is overcome with the target of 0.5931–0.5694.

D1
The daily chart shows the formation of a Double Bottom price pattern, which is a reversal. In addition, a confirming signal is the formation of a Bullish Candle at the support level of 0.6224, which indicates the prevailing "bullish" power. The reversal is also confirmed by the formation of a Hammer Pattern indicating that buyers have taken control of the market and intend to raise the price in the range of 0.6476–0.6986.

Support levels: 0.6224, 0.5931, 0.5694 | Resistance levels: 0.6476, 0.6709, 0.6986

 

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USD CAD - May high update​

The US dollar continues to strengthen due to the policy of the US Federal Reserve aimed at tightening the parameters of the national monetary policy, and USD CAD is trading around 1.2995.

Last week, the regulator decided to raise the interest rate by 75 basis points to 1.75%, as a result of which the US dollar strengthened against the Canadian currency and updated the May high at 1.3065. US Federal Reserve Chairman Jerome Powell confirmed the authorities' readiness to fight the highest inflation in the last 40 years and said that the changes made will increase the attractiveness of the national currency and increase the number of transactions nominated in it. Also, the authorities will continue to monitor the global economic situation, and, if necessary, will again adjust the rate upward at the next meeting at the end of July.

Meanwhile, the Canadian dollar is declining following oil prices: WTI Crude Oil lost 7.7% last week and it looks like the negative dynamics will only intensify. Today, the General Administration of Customs of the People's Republic of China presented a report that notes a record increase in imports of "black gold" from the Russian Federation: the figure reached 8.42 million tons, exceeding the April value by 25%, while the volume of supplied liquefied gas amounted to 400 thousand tons, which is 56% higher than in May last year. Analysts believe that the displacement of Saudi Arabia from the list of leaders among energy suppliers became possible against the backdrop of the implementation of the Russian authorities' discount policy in the sale of oil.

The tightening of monetary conditions by the US Federal Reserve acts as a catalyst for the upward movement of the US dollar, as a result of which USD/CAD may rush to 1.3360 after the breakdown of the resistance level of 1.3065. Thus, there is a high probability that the trading instrument will continue to strengthen in the long term.

The long-term trend is upward. Last week, the May high was updated at 1.3065 and if the price fixes above it, the next buy target will be at 1.3157. Strong levels, from which new long positions can be considered, formed in the area of 1.2950 and 1.2860.

The mid-term trend changed to an uptrend last week, when the target zone 1 (1.2766 – 1.2745) was broken out and the target zone 2 (1.2985 – 1.2963) was reached, above which the traders will try to consolidate this week. If successful, the growth of the trading instrument will continue with the target in the area of the target zone 3 (1.3212 - 1.3189). The key trend support is shifting to the levels of 1.2856 – 1.2835.

Resistance levels: 1.3065, 1.3157, 1.336 | Support levels: 1.2950, 1.2860, 1.2525

 

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USD CHF, the pair is trading within a wide range of 1.004 – 0.956​

Last week, the Swiss National Bank unexpectedly raised interest rates by 50 basis points to –0.25% for the first time in seven years, which caused the USD CHF pair to fall to 0.9650. Officials, led by Chairman Thomas Jordan, also spoke of the possibility of further tightening monetary policy and added that they would remain "active" in the foreign exchange market. Meanwhile, inflation in Switzerland continues to rise: the producer price index for May increased by 0.9%, and the upward trend is likely to continue, as a result of which the regulator will raise rates at the next meetings, which in the medium term can strengthen the Swiss franc.

However, the long-term trend in the USD CHF pair remains upward. After the test of 1.0040 and the buyers' inability to break through it, the price went into a correction and is currently testing the support level of 0.9650. If traders hold this level, the asset will continue to grow with the target at the month's high, and in case of a breakdown, a correction is expected with the target at the key support of the trend at 0.9560.

The medium-term trend is downwards, and within its framework, the trading instrument has broken through the target zone 3 (0.9710 – 0.9699). The next sell target is zone 4 (0.9601–0.9591). Last week, the asset corrected to the key trend resistance area of 0.9738–0.9728, held by market participants. As a result, the USD CHF pair is now falling with the first target around last week's low of 0.9622.

Resistance levels: 1.0040, 1.012 | Support levels: 0.9650, 0.956

 

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DAX 30 - Murrey analysis​

DAX 30 has been correction downwards over the past two weeks. During this time, the price moved into the negative zone of Murrey's trading range and reached the lower pivot level 13125 ([2/8]) but the quotes failed to consolidate below it. If successful, the decline will continue up to 12500 ([0/8]) and 12187.5 ([–1/8]).

In general, the downward trend in the market continues, which confirms the downward reversal of Bollinger bands and the increase in the MACD histogram in the negative zone. The expected exit of Stochastic from the oversold zone may signal the beginning of an upward correction to 13437.5 ([3/8]), 13750.0 but this is unlikely to lead to a reversal of the current trend, and the continued decline of the asset soon remains a more likely scenario.

Resistance levels: 13437, 13750 | Support levels: 13125, 12500, 12187​

 

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Crude Oil: prices are recovering after a sharp decline last week​

Quotations are supported by data indicating growing imports of oil and oil products from China. According to the report of the General Administration of Customs of China, "black gold" from Russia is sent to the country both by sea and through the Eastern Siberia–Pacific Ocean pipeline. In May, deliveries reached 1.98 million barrels per day, which was a record value, exceeding the April figure by a quarter, while for liquefied gas this figure was fixed at around 400 thousand tons, adding 56% compared to May 2021. Analysts note that the discount policy adopted by Russian officials against the backdrop of sanctions imposed after the start of the military conflict in Ukraine contributes to the increase in imports.

Investors expect that the recovery of the Chinese economy will contribute to a further increase in demand for petroleum products, which will support prices at current levels or contribute to their growth. In turn, fears about possible interruptions in Russian supplies to Western countries still persist. By the end of this year, the EU intends to significantly reduce the volume of imports of oil from the Russian Federation, and then to find alternative sources altogether.

In the near future, investors expect the publication of statistics from the American Petroleum Institute (API) on the dynamics of "black gold" reserves for the week ended June 17. The previous report showed a weak increase of 0.736 million barrels, which, however, put additional pressure on the quotes.

Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is expanding, while remaining spacious enough for the current activity level in the market. MACD is going down preserving a stable sell signal (located below the signal line). In addition, the indicator is testing the zero level for a breakdown. Stochastic, having approached the level of "20", reversed into a horizontal plane, indicating the growing risks of oversold instrument in the ultra-short term.

Resistance levels: 114.09, 116, 120, 123.24 | Support levels: 112, 109, 106, 102.57

 

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USDJPY - The probability of a downward correction remains​

The USD JPY pair is trading around 135.11. The asset failed to break the resistance level of 135.5, which suggests the development of a downward correction. Last Friday, the Bank of Japan decided to leave interest rates unchanged at –0.10%. Earlier, representatives of the regulator have repeatedly announced their intention to adhere to the course of ultra-soft monetary policy to increase household spending and stabilize the labor market. Now the focus of investors is on the minutes of the meeting on the monetary policy of the central bank, which will be published on Wednesday. Considering the latest changes, inflation in Japan was 2.5% YoY, and the base indicator reached 2.1%, which is above the target level of 2.0%. Traders want to know how long the current approach to monetary policy will last and when to expect a move to tighten.

As for the US dollar, the likelihood of its appreciation remains against the backdrop of the policy pursued by the US Federal Reserve. On Friday, the department's chairman, Jerome Powell, reaffirmed his determination to contain inflation, which peaked in the last 40 years, and declared his readiness to continue adjusting interest rates further.

After the technical correction, the next target for the USD JPY pair quotes will be 139 and 141.

The long-term trend is upwards. Now the price is trading below the resistance level of 135.5, which implies the possibility of opening short positions with the target at 131.4 but in case of its breakout, the positive dynamics will continue to 139.

The medium-term trend remains upwards. Last week, traders unsuccessfully tested the key trend support 131.63–131.29, as a result of which an increase in the number of open long positions was recorded, the target of which is to renew the high of the last week and then move to zone 3 (137.09–136.72).

Resistance levels: 135.5, 139, 141 | Support levels: 131.4, 126.5, 124.08

 

[Solid ECN]

USDCHF, consolidation pending new drivers​

The sharp rise in the Swiss franc was due to the decision of the Swiss National Bank to raise interest rates by 50 basis points at once to –0.25% for the first time since 2007. According to officials, this measure is designed to maintain control over the growth of the national currency, as well as curb inflation, which is rapidly overcoming the Central Bank's target levels of 2%, being at around 2.4%. In addition, the financial authorities announced the possibility of similar measures in the future. According to updated forecasts, the Swiss National Bank expects inflation at 2.8%, next year prices may slow down to 1.9%, and only in 2024 will drop to 1.6%. Previously, the regulator expected 2.1%, 0.9% and 0.9%, respectively.

Today, the focus of investors will be on statistics from the US on Redbook Retail Sales Index for the week ended June 17, as well as data on Existing Home Sales for May. Current forecasts suggest that sales will decline by 0.2% after a sharp decline of 2.4% last month.

In the D1 chart, Bollinger Bands are reversing horizontally. The price range is slightly narrowing, staying spacious enough for the current activity level in the market. MACD is going down preserving a stable sell signal (located below the signal line). The indicator is about to test the zero level for a breakdown. Stochastic, having approached its lows, reversed into the horizontal plane, reacting to the appearance of ambiguous dynamics in the ultra-short term.

Resistance levels: 0.97, 0.9762, 0.9847, 0.99 | Support levels: 0.9618, 0.954, 0.9459, 0.94

 

[Solid ECN]

AUD USD - Technical analysis​

H4
On the four-hour chart above the level of 0.6901 there is a "bullish" Engulfing Pattern, which signals a price reversal at the bottom, as well as a Bullish Belt Hold pattern, explaining that the buyers attempted to counterattack, but the "bears" seized the initiative, which became a driver for the decline in instrument quotes. At the moment, the most likely scenario is with an uptrend from the support level of 0.6841 to the resistance area of 0.7048, overcoming which will allow the "bulls" to move higher into the range of 0.7270–0.7581. An alternative scenario may be relevant if the buyers fail to hold the support level of 0.6841: then the price may fall down to the level of 0.6539.

D1
On the daily chart, there is a formation of a Double Bottom price pattern. An additional signal for a reversal may be the formation of a large Bullish Candle above the support level of 0.6841, which is also a Bullish Belt Hold pattern. Next is the formation of another Bullish Belt Hold pattern, which is similar to the Piercing Pattern of the reversal at the bottom. In the current situation, it is possible to retest the level of 0.6841, from where the instrument may bounce to the resistance level of 0.7048, with its subsequent overcoming and the price recovering to the zone of 0.7270–0.7581.

Support levels: 0.6841, 0.6693, 0.6539 | Resistance levels: 0.7048, 0.7270, 0.7581​