2023 Market Forecast by Solid ECN

EURUSD gets new positive signal

The EURUSD pair leaned on the EMA50 and begins to provide slight positive trades by today?s open, noticing that stochastic overlaps positively now, waiting to motivate the price to resume the expected bullish trend for the upcoming period, which its targets begin by testing 1.0745, noting that breaching this level will extend the bullish wave to reach 1.0840 areas.



Therefore, the bullish trend scenario will remain valid and active, noting that breaking 1.0640 might press on the price to provide intraday negative trades that target testing 1.0515 areas before any new attempt to rise.

The expected trading range for today is between 1.06 support and 1.0760 resistance.

GBPUSD Within Sideways Track

The GBPUSD pair fluctuates within sideways track recently as appears on the chart, and the EMA50 continues to press negatively on the price, to keep the correctional bearish trend active, waiting to visit 1.1950 mainly.



On the other hand, we should note that breaching 1.2135 will stop the expected decline and lead the price to regain the main bullish trend again and head to achieve gains that start by visiting 1.2235 areas.

The expected trading range for today is between 1.1980 support and 1.2150 resistance.

USDCAD Begins Negatively

The USDCAD pair found solid resistance around 1.3600, to rebound downwards strongly now, on its way to turn to decline and head to achieve negative targets that start by testing 1.3500 and extend to 1.3405 after breaking the previous level.



Therefore, we expect to witness more bearish bias today supported by the negative signals provide by stochastic, taking into consideration that breaching 1.3620 will stop the current negative pressure and push the price to 1.3680 initially.

The expected trading range for today is between 1.3460 support and 1.3600 resistance.

EURUSD - The possibility of growth remains.

On the daily chart, the downward wave of the higher level A has completed, in which the fifth wave (5) of A has appeared and the upward wave B is developing. At the moment, the construction of the first wave 1 of (A) of B continues, in which the third wave of the lower level iii of 1 has formed and the development of a local correction as the fourth wave iv of 1 is observed.

If the assumption is correct, the EURUSD pair will rise to the area of 1.1 ? 1.1196. The level of 1.0485 is critical and stop-loss for this scenario.

USDCHF - The possibility of growth remains.

On the daily chart, the third wave of the higher level 3 is developing, in which the ascending first wave (1) of 3 appeared and the downward correction ended as the second wave (2) of 3. At the moment, wave C of (2) has ended and wave (3) of 3 is developing.

If the assumption is correct, the upward dynamics of the USDCHF pair will continue to the area of 0.9900 ? 1.0151. The level of 0.9195 is critical and stop-loss for this scenario.

ETHUSD - Technical analysis

This week, the price has attempted to grow and is currently actively testing the level of 1250 (Murray level [2/8]), consolidation above which will allow the cryptocurrency to return to the mark of 1325 and try to leave the long-term descending channel to rise to the area of 1500 (Murray level [4/8]). Otherwise, the downward dynamics will increase to the levels of 1090, 1000 (Murray level [0/8]) and 875 (Murray level [-1/8]).



Technical indicators allow for the resumption of a smooth decline: the Bollinger Bands are reversing downwards, the MACD histogram is stable in the negative zone, and the Stochastic is approaching the overbought zone, which can become a catalyst for the reversal of the trading instrument down.

Resistance levels: 1250, 1325, 1500 | Support levels: 1090, 1000, 875

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 development of the third wave (3) started, within which the first entry wave of the lower level i of 1 of (3) develops. Now, the wave (iii) of i has developed, a local correction has ended as the wave (iv) of i, and the wave (v) of i is developing.

If the assumption is correct, the AUDUSD pair will grow to the area of 0.7040?0.7142. In this scenario, critical stop loss level is 0.6681.

Chart of the day - US500

FOMC minutes released yesterday have been rather hawkish with the document noting that US central bankers do not expect rate cuts in 2023. It also noted that while progress has been made in bringing inflation back under control, more rate hikes are needed although a slower pace may be adequate. Release can be seen as hawkish but no major long-lasting market reaction occurred in the aftermath. This can be reasoned with the fact that FOMC minutes have only repeated what the market has already known and has already been pricing in.



Taking a look at US500 chart at H4 interval, we can see that the index has been struggling to launch a larger move in either direction as of late. US500 has been trading in a 3,800 - 3,920 pts range since mid-December, awaiting catalyst for the next bigger move. While today's ADP employment report at 1:15 pm GMT is unlikely to be such a catalyst, tomorrow's NFP data may be source of elevated volatility.