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XAGUSD - Growth is possible.

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

If the assumption is correct, the XAGUSD pair will grow to the levels of 22.47–25.4. In this scenario, critical stop loss level is 18.27.

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How to avoid being affected by inflation

For people who have a free, but not anarchic lifestyle, trading is another possibility to earn extra money. The most important factor is time, if you have it at your disposal, you can use it to make trades that lead you to live in a different way.

How to avoid being affected by inflation
Unfortunately, inflation is a very topical issue. At the time of writing, inflation in Europe is high and in Spain it has shot up to 8.7%. To sum it up quickly, inflation is how much prices are rising and the cause of money losing value. Realistic, analytical and scientific trading will increase your winning positions, get money back and, of course, protect you from inflation. This is because you will increase your income and avoid going into debt to continue living, which is unfortunately a very common practice.

We insist on the importance of training, doing trading is not to arrive and kiss the saint, it has a huge work behind that, too often, is not seen. If you have taken a stroll around the supermarket these days, you will have noticed that most of the products sold there are more expensive.

How to increase your savings
Many people who started out trading as a casual activity have gone on to make it a way to increase their income and, therefore, their ability to save. Trading is not about getting in and getting rich, in fact, those who go in with those intentions quickly achieve the opposite. If you keep a cool head and set aside a certain amount of your earnings, you will be acquiring financial freedom and you will have a basis for anything. Get the idea that trading is about casting the net and catching fish, not filling the boat immediately. If you are willing to make trading a way to hold on to your savings, you can do it as long as you take small steps.

 

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Key Releases


The USD today continues to strengthen against its main competitors – the euro, the pound and the yen.


Investors are still waiting for the publication of the minutes of the last meeting of the US Fed, which should be published on Wednesday. The document may contain comments on the latest increase in interest rates, as well as hints at further actions by the financial authorities. Thus, some investors believe that the slowdown in inflation in July from 9.1% to 8.5% can act as a catalyst for adjusting the indicator by 50.0 percentage points, while others tend to move to 75.0 percentage points, since the level of consumer price growth in the country remains extremely high and threatens the purchasing power of households. In this regard, we can note a review by analysts from The Goldman Sachs Group Inc., who believe that the decisions of the US Fed may be justified and not plunge the economy into a recession, but there is less and less chance of this. July data from the US construction market was also published today. The figures were mixed, with the number of building permits issued falling from 1.696M to 1.674M, better than the expected 1.650M, while the number of houses under construction corrected from 1.599M to 1.446M.​


The euro is weakening today against the USD and the pound, but is strengthening against the yen.

The focus of investors is the release of data on the index of economic sentiment from the Center for European Economic Research (ZEW) and trade data from the eurozone countries. Indicators in August showed negative dynamics: the value for the eurozone fell from -51.1 points to -54.9 points, and for the EU economic leader, Germany, from -53.8 points to -55.2 points, which is stronger than experts expected. In general, companies' biggest fear is that a continued rise in the cost of living will be reflected in private consumption and lead to a reduction in household spending. ZEW spokesman Michael Schroeder noted that high inflation and expected increases in heating and electricity tariffs are leading to lower profit expectations for companies. Also today came out the June data on the trade balance of the eurozone, which remained in deficit in the amount of 24.6B euros against the background of the rapid rise in oil and gas prices.​


The pound is weakening against the USD, but strengthening against the euro and the yen.

The data of the British labor market published today turned out to be generally weak: the unemployment rate in June remained the same and amounted to 3.8%, but employment increased only by 160.0K, which is lower than the forecasts of 256.0K, and the May indicator of 296.0K. At the same time, the level of wages continues to grow, which contributes to the development of inflation: excluding bonuses, the indicator increased by 4.75%, and including them – by 5.1%. However, it still does not keep up with the increase in prices, which creates additional pressure on the standard of living of citizens and may seriously reduce consumer demand in the future. This situation is likely to cause further sharp rate hikes by the Bank of England.​


The yen is weakening today against its main competitors – the USD, the euro and the pound.

In the absence of significant economic releases, the Japanese currency is traded under the influence of external factors. It is only worth noting that investors are preparing for the publication of foreign trade data for July. It is expected that the volume of exports of goods will slow down growth from 19.35% to 18.2%, and imports of products to Japan will be the June figure of 45.7%. The trade balance deficit will increase from 1.398B to 1.405B yen. Realization of forecasts may put additional pressure on the yen. We also note that the government is preparing a new package of support for the population in the amount of 4.7T yen, the details of which are not yet known, but experts believe that it will contain measures to curb rising fuel and food prices.​


The Australian dollar is weakening today against the pound and the USD, but is strengthening against the yen and has ambiguous dynamics paired with the euro.

In the focus of investors' attention is the publication of the minutes of the last meeting of the Reserve Bank of Australia (RBA). According to the document, the regulator still sees the need for a further increase in interest rates in order to prevent inflation from rising, but does not have a clear plan for tightening monetary policy and will try to prevent the economy from going into recession. It should be recalled that in August the RBA raised the rate by 50 percentage points, bringing it to 1.85%.​


Oil quotes are trying to grow today.

Oil quotes are attempting growth today, winning back yesterday's losses, but in general the situation on the market remains uncertain. The influence of two opposite factors is observed. On the one hand, investors fear a global economic slowdown that could hit demand for oil and fuel, as the latest economic data from China turned out to be weak: production rose by 3.8% instead of 4.6%, and retail sales – by 2. 7% instead of 5.0% expected. On the other hand, rising prices are supported by investors' hopes that the difficult economic situation will push the Chinese authorities to introduce new incentives that will revive the industry and demand. Chinese Premier Li Keqiang has already promised such measures. The situation with the “nuclear deal” between Western countries and Iran also remains ambiguous. Earlier, the authorities of the Islamic Republic gave a response to the new proposals developed by EU diplomats, but the text was not made public. During the day, investors are also waiting for the publication of a weekly report on the amount of oil reserves in the USA from the American Petroleum Institute (API). The last time the figure rose by 2.156M barrels. The continuation of this trend may put pressure on oil quotes.

 

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NZDUSD - Technical analysis

H4
On the four-hour chart, there is the formation of a Three Black Crows candlestick analysis pattern, which means a continuation of the downtrend. In addition, under the resistance level of 0.6239, another Three Black Crows figure appeared, which confirms the previous pattern and emphasizes the strength of the "bears". However, at the moment, one can see the construction of the Morning Star reversal pattern above the level of 0.6152, which means that a strong support line has formed at the current level, where buyers have activated, but in order to fully confirm the reversal, the "bulls" should consolidate above the resistance level of 0.6239. In this case, the asset can restore positions to the zone of 0.6362 – 0.6475. If the trading instrument reaches the key support level of 0.6102 and consolidates below it, one should expect further downward movement to the range of 0.5929 – 0.5785.

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D1
On the daily chart, at the level of 0.6362, there is the formation of a Hanging Man reversal pattern, after which the asset showed a decrease to the level of 0.6189. In addition, the movement was accompanied by the formation of the Three Black Crows candlestick analysis model, which included the Shooting Star candlestick. The combination of these figures may mean a continuation of the negative dynamics for the instrument after a short-term price rebound. It is likely that the NZD/USD pair will continue to lose positions after an upward correction to 0.6239, thus testing the broken down level, overcoming which will allow quotes to reach the area of 0.6102, where the buying zone is concentrated. If the "bulls" fail to hold this level, the asset may fall down to the level of 0.5785.

Support levels: 0.6102, 0.5929, 0.5785 | Resistance levels: 0.6239, 0.6362, 0.6475

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USD is strengthening against its main competitors – GBP, EUR, and JPY.
The July poor data on sales in the US secondary housing market were published yesterday: the figure fell from 5.11M to 4.85M or 5.9%. Earlier, it became known that the number of building permits issued decreased by 1.3%, and the volume of new housing construction – by 9.6%, so experts are already talking about the possibility of a recession in the construction sector. Nevertheless, the US labor market, which remains stable, continues to support the US economy, despite the weakness in other areas. Louis Fed President James Bullard said that the regulator was considering another significant rate hike in September and added that it is not yet possible to say with certainty that inflation in the country has reached its peak.


EUR weakens against USD but strengthens against GBP and JPY.
Today, the German Producer Price Index for July was published: the indicator rose from 0.6% to 5.3% MoM and 32.7% to 37.2% YoY. Growing inflationary pressures in the economy leave the European Central Bank (ECB) with no other option than a further tightening of monetary policy, which threatens the region with a recession. For example, Germany is already in serious trouble: according to the monthly report released yesterday by the Ministry of Finance, the outlook for the German economy is negative due to reduced gas supplies from Russia, persistently high prices for energy and other goods, and longer-than-expected disruptions in supply chains. Of the positive news, we can note the release of the June data on the balance of the current account of the Eurozone countries: the balance again became positive and amounted to 4.2B euros.


GBP is weakening against EUR and USD but has ambiguous dynamics against JPY.
GBP remains under pressure from poor inflation data for July, with the CPI rising from 9.4% to 10.1% YoY, higher than the forecasted 9.8% and the highest reading since 1982. Under these conditions, the Bank of England is likely to continue raising rates, increasing the risks of a recession in the economy. British retail sales for July released today were generally positive, rising by 0.3% MoM instead of an expected decline of 0.2% and falling by 3.4%, which, however, is less than June's 6.1%. However, these statistics failed to strengthen the pound's position, as the positive effect was leveled by the start of transport workers' strikes, which could put additional pressure on the national economy.


JPY is weakening against EUR and USD but has ambiguous dynamics against GBP.
Investors are focused on the publication of data on inflation in Japan for July: the nationwide consumer price index rose from 2.4% to 2.6% YoY, while the underlying value corrected from 2.2% to 2.4%. Thus, the indicator exceeds the target level of the Bank of Japan for the fourth month in a row, calling into question the statements officials that the rise in prices is a temporary phenomenon. However, soon, the Japanese regulator is unlikely to abandon the current ultra-soft monetary policy.


AUD strengthens against GBP and JPY but has ambiguous dynamics against EUR and USD.
Due to a lack of significant economic releases, AUD is traded under the influence of external factors. Investors are looking ahead to Monday when preliminary data on business activity for August are released in Australia. It is predicted that the value in the manufacturing sector will decrease from 56.2 points to 55.0 points, and for the service sector, it will increase from 50.9 points to 51.0 points. These statistics will give an idea of the state of the Australian economy and whether it can withstand the pressure of the current rate hike by the Reserve Bank of Australia (RBA).


Oil quotes are being corrected amid the strengthening of the USD and investors' fears about a slowdown in the global economy.
Experts believe that a significant increase in inflation in the Eurozone and the UK, a decline in production in China, and a weakening of the US construction market may reduce global oil demand. However, not all traders look at the situation pessimistically: for example, the new head of OPEC, Haitham Al Ghais, said that the global economy would cope with the current crisis and a decline in energy demand next year is possible but will not be serious.

 

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Solid ECN Trading Platform​


The popular trading platforms are narrowed to a few. We chose the newest and the most advanced platform that is available in the market, the MetaTrader 5!

Why MetaTrader 5?​

Contrary to commune belief, MetaTrader 5 is not an upgrade of MT4. The MT4 platform was developed for trading in the Forex environment, whereas MT5 was coded for CFDs, Stocks, and futures access. To be short, MetaTrader 5 is for more experienced and advanced traders, but before we go with the MT5, at Solid ECN we ran a survey of the traders we know, and found out that most rookies and novice users are already with the MT5 platform, and for the first time the MT5 users have surpassed the MT4’s!

MT4 has 9-time frames, whereas MT5 offers 21-time frames. More time frames assist technical analyzers to have a better conception of the market movement.
  • MT 4 has 4 pending orders, whereas MT5 provides 6 types of pending orders.​
  • MT 4 doesn’t have the market depth, but MT5 market depth is accessed within the chart.​
  • MT5 has the Economic calendar on default.​
  • MT4 has 4 types of pending orders, whereas MT5 holds 6 types.​
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MetaQuote corporation has been sending announcements about stopping MT4 updates. Therefore, we believe it was in the best interest of all parties to go with the MT5 platform!

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Morning Market Review​


EURUSD
The European currency shows mixed trading dynamics, consolidating near 0.9960. Market activity remains low ahead of US Federal Reserve Chairman Jerome Powell's speech at the annual symposium in Jackson Hole. It is expected that the official may speak in favor of raising the interest rate in September by another 75 basis points (for the third time in a row), which will provide moderate short-term support to the US currency. Investors have no doubt that the regulator will continue a rather tight monetary policy, so the whole question is only in the pace of this tightening. Also, traders would like to hear updated forecasts regarding the prospects for economic growth. The global economy continues to show a steady downtrend, and the widespread increase in interest rates is only exacerbating the situation caused by rising energy prices. In particular, it became known that a number of large industrial enterprises in Europe (zinc and aluminum plants) were forced to temporarily close due to a sharp increase in electricity tariffs. In turn, the euro was moderately supported yesterday by optimistic macroeconomic statistics from Germany. The revised indicator of Gross Domestic Product (GDP) reflected the growth of the German economy in the second quarter by 0.1% (previously, zero dynamics were assumed), and excluding seasonal fluctuations, GDP in annual terms grew by 1.7% against the previous estimate of 1.4%. In turn, the index of Economic Expectations from the IFO in August fell by only 0.1 points to 80.3 points, while forecasts suggested a fall to 79.0 points.​


GBPUSD
The pound is trading with a downtrend, testing the level of 1.18 for a breakdown. The British currency slightly strengthened the day before, which, however, was caused only by technical factors, as well as expectations that the Bank of England will continue to tighten its monetary policy. The Governor of the regulator, Andrew Bailey, announced his readiness to adjust the interest rate to fight inflation, despite the fact that as early as the fourth quarter, the national economy could enter a recession, the risks of which increase against the backdrop of an intensifying energy crisis, which could turn into a full-fledged industrial one. Due to high prices, many enterprises are forced to reduce production rates or temporarily close, while with the onset of cold weather, conditions can worsen even more. The situation is aggravated by the uncertainty brought about by the forthcoming elections of the British Prime Minister scheduled for autumn.​


NZDUSD
The New Zealand dollar shows a moderate decline, correcting after an attempt to grow the day before, which led to a short-term update of local highs from August 19. The uptrend was not hindered by weak macroeconomic data from New Zealand, released yesterday. Retail Sales fell 2.3% in the second quarter, after falling 0.9% in the prior period, and Retail Sales excluding Autos fell 1.6% after falling 0.3% a quarter earlier. At the same time, the statistical picture from the USA turned out to be mixed. Revised annual data on Gross Domestic Product (GDP) in the second quarter showed a decline of 0.6%, which was significantly better than the previous estimate of –0.9%. At the same time, the Gross Domestic Product Price Index for the same period was revised upward from 8.9% to 9.0%, while the forecast was for a decrease to 8.7%. This means that inflationary risks in the country remain high, and therefore the US Federal Reserve may continue to tighten monetary policy at a record pace. The instrument is slightly supported today by the statistics from New Zealand: the ANZ Roy Morgan Consumer Confidence in August rose noticeably from 81.9 points to 85.4 points, which turned out to be better than the average analysts' expectations.​


USDJPY
The US dollar shows weak growth, consolidating above 136.8. The American currency is trying to win back the corrective losses incurred the day before; however, investors are in no hurry to open new positions ahead of the speech of US Federal Reserve Chairman Jerome Powell at the annual symposium of representatives of leading central banks in Jackson Hole. Moderate support for the yen today is provided by optimistic macroeconomic statistics from Japan. Tokyo Consumer Price Index in August accelerated from 2.5% to 2.9%, while analysts expected the same growth rates to be maintained. CPI excluding Fresh Food accelerated from 2.3% to 2.6%, 0.1% ahead of market forecasts. Excluding Food and Energy prices, the index rose from 1.2% to 1.4%, falling short of the expected 1.5%. Thus, the situation in a country accustomed to deflationary phenomena in the economy may soon change. Rising consumer prices potentially mean that the Bank of Japan may reduce the pace of stimulus, and in the longer term, even decide to raise interest rates.​


XAUUSD
Gold prices practically do not change, consolidating near 1755. The day before, the instrument made an attempt to grow, and the XAUUSD pair managed to update local highs from August 18, but failed to consolidate at new levels. Investors tend to stay out of the market until comments from US Federal Reserve Chairman Jerome Powell, who will give a speech at the annual symposium in Jackson Hole today. The official is expected to confirm a further increase in the interest rate by 75 basis points. If the pace of monetary tightening is reduced to 50 basis points, this may put short-term pressure on the positions of the US currency, and will also mean that the regulator is concerned about the risks of a recession in the national economy, which could provoke an increase in alarming sentiment across the entire spectrum of the market.

 

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Morning Market Review​


EURUSD
The European currency is falling, again testing the level of 0.9900 for a breakdown and returning to the previous local lows, updated at the beginning of last week. The euro is again under pressure from the rising dollar, which received an impetus to grow on Friday after the speech of the Chair of the US Federal Reserve, Jerome Powell. The official emphasized the regulator's resolute readiness to continue the policy of high interest rates, even if this leads to a slowdown in the national economy. Thus, the majority of analysts (approximately 75%) are again counting on a correction of the value by 75 basis points during the September meeting of the Fed. In turn, the euro reacts negatively to the prospects for the European economy in the face of a sharp rise in energy costs. Natural gas quotes are once again updating record highs, and electricity suppliers are warning consumers about higher prices for their services. In Germany, the basic electricity tariff for 2023 exceeded 800 euros per MWh, a new record high. In addition, the country is still experiencing a sharp drop in consumer confidence: the September Gfk Consumer Confidence index fell from –30.9 points to –36.5 points, while analysts had expected a decline to –31.8 points.


GBPUSD
The British pound is trading down, building on the "bearish" momentum that was formed last Friday. The GBP/USD pair is making new 40-year lows, testing 1.1650 for a breakdown, below which the instrument last traded in March 2020. The pound, like many other risky assets, is reacting to a noticeable strengthening of the US currency after the "hawkish" comments of the Chair of the US Federal Reserve, Jerome Powell, who spoke in favor of further raising interest rates at a record pace. The official urged to maintain a tight monetary policy, seeking to bring under control the high inflation rates that are still observed in the US economy. Thus, traders have revised their forecasts for the September meeting of the regulator: at the moment, most analysts expect a 75 basis point increase in interest rates, while earlier the chances of adjusting the value by 50 basis points and 75 basis points were estimated to be about the same. Meanwhile, the pound remains under pressure amid record inflation in the EU and the UK due to a sharp rise in energy prices. Ahead of the cold weather and the beginning of the heating season, politicians are trying to prepare their voters for an increase in tariffs for heat and electricity, which leads to a noticeable decrease in consumer activity and the level of confidence.


AUDUSD
The Australian dollar is noticeably declining, developing the downward momentum formed at the end of last week. The instrument showed active negative trend, having reacted to the speech of the Chair of the US Federal Reserve Jerome Powell at the annual symposium in Jackson Hole. As expected, the official advocated further tightening of monetary policy in order to control the inflation rate in the country. In addition, despite receiving the first evidence of some slowdown in consumer prices in the US, the Fed is clearly concerned about the current situation. This is an extremely negative signal for the entire global economy, as the overall picture is complicated by a further rise in energy prices and the onset of cold weather in the northern hemisphere. Today, the instrument practically does not react to the publication of optimistic macroeconomic statistics from Australia. Thus, Retail Sales in July increased by 1.3% after an increase of 0.2% a month earlier, although analysts' forecasts suggested a slight correction of the indicator by 0.3%.


USDJPY
The US dollar is actively adding in value during morning trading, testing the level of 138.80 for a breakout. The USD/JPY pair is approaching its previous record highs, updated in mid-July, while the US currency received a new impetus, reacting to the comments of US Federal Reserve Chairman Jerome Powell on the need to maintain a "hawkish" monetary policy. The official is convinced that raising interest rates will help bring record inflation under control, even if it means sacrificing economic growth. In turn, macroeconomic statistics from the US, published on Friday, put some pressure on the dollar. In particular, the Personal Income in July slowed down from 0.7% to 0.2%, which turned out to be noticeably worse than market expectations at the level of 0.6%, and Personal Spending decreased from 1.0% to 0.1%, with the forecast at 0.4%. Additional pressure on the position of the yen today is exerted by statistics from Japan: the Coincident Index in June fell from 99.0 points to 98.6 points, and the Leading Economic Index for the same period fell from 101.2 points to 100.9 points, while forecasts assumed a fall to 100.6 points.


XAUUSD
Gold prices are noticeably declining, developing a "bearish" trend of the end of last week. On Friday, the US dollar received a powerful impetus to growth, reacting to statements by the Chair of the US Federal Reserve, Jerome Powell, about the need to continue high interest rates. In fact, the official confirmed the possibility of an additional 75 basis points correction in the value, which would negatively affect non-interest bearing gold. Recall that the target inflation rate is still at 2.0%. In turn, in July, consumer price growth in the US slowed down somewhat and receded from the record high at around 9.1% to 8.5%, which is still well above the target levels.

 

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Morning Market Review​


EURUSD
The European currency shows a slight decrease, testing the level of 0.99 for a breakdown. The EURUSD pair is holding near record lows, updated on August 23, and remains under pressure from pessimistic economic forecasts for the region. Inflation in the EU is held at record levels, while decisive action by the European Central Bank (ECB), aimed at tightening monetary policy, is leading to a recession in individual economies of the eurozone. However, the monetary policy of the European regulator can hardly be called aggressive so far, because interest rates have been raised only once. The next meeting of the ECB will be held on September 8 and it is expected that the regulator will adjust the value by another 50 basis points to 1.00%. Meanwhile, European countries are also forced to look for a solution to the energy problem. Gas prices remain at record levels, and given disruptions in supplies from Russia, they may increase in the near future. At present, the bloc members have agreed on the introduction of a ceiling on prices for oil and oil products from December, but the supply of "blue fuel" remains a more painful issue. In early September, PJSC Gazprom suspended the operation of the only turbine on the Nord Stream gas pipeline for technical reasons. There was no further information about the timing of the possible resumption of work.​


GBPUSD
The British pound is trading with a downtrend, developing a strong "bearish" momentum, formed at the end of August. The GBP/USD pair is testing the level of 1.1450, continuing to update record lows of March 2020, when the UK economy faced the challenges of the COVID-19 pandemic. The depreciation of the British currency is due to increased inflation with a simultaneous deterioration in economic forecasts. The UK, like the EU, is facing a sharp increase in the cost of living amid rising prices for gasoline, gas, electricity and food. The Bank of England is trying to curb inflation and hastily raises interest rates, but so far the trend has not been reversed. In addition, investors are waiting for the announcement of the results of the election of the head of the Conservative Party of Great Britain and the new Prime Minister, who will have to look for ways to resolve the difficult economic situation. Specifically, Liz Truss is promising to freeze electricity prices, which could ease the burden on consumers but would require an additional 100.0 billion pounds to be found.​


NZDUSD
The New Zealand dollar shows a weak growth, keeping close to the local lows of July 15. NZD/USD is testing 0.6100 for a breakout. At the beginning of the week, trading activity remains restrained, due to closed markets in the US and Canada due to the Labor Day. Meanwhile, investors are evaluating the report on the US labor market for August published at the end of last week. The statistics showed an increase in the Nonfarm Payrolls by 315.0 thousand, which turned out to be 15.0 thousand better than market expectations. In July, the increase in new jobs amounted to 526.0 thousand. At the same time, Average Hourly Earnings in August slowed down from 0.5% to 0.3%, while the forecast was 0.4%. The Unemployment Rate for the same period unexpectedly accelerated sharply from 3.5% to 3.7%, although analysts did not expect any changes. The released report cannot be called unambiguously strong, but it is unlikely to influence the decision of the US Federal Reserve on the interest rate. The next meeting of the regulator will be held on September 21, and it is expected that the value will be adjusted by another 75 basis points.​


USDJPY
The US dollar shows weak growth, holding above the psychological level of 140. The positions of the American currency are still supported by the expectations of further tightening of monetary policy by the US Federal Reserve, while the Bank of Japan is forced to keep rates unchanged, trying to accelerate its deflationary economy. The next meeting of the American regulator will be held on September 21 and it is expected that the interest rate will be increased in the range from 50 basis points to 75 basis points. In the meantime, investors are analyzing macroeconomic statistics published in the US. Published on Friday, the August report on the US labor market reflected an increase in Nonfarm Payrolls by another 315.0 thousand after an increase of 526.0 thousand a month earlier; however, statistics also recorded acceleration in the Unemployment Rate from 3.5% to 3.7% with a neutral forecast of analysts. The yen is now slightly supported by statistics from Japan: Jibun Bank Manufacturing PMI strengthened from 49.2 points to 49.5 points in August, while experts did not expect any changes at all.​


XAUUSD
Gold prices show mixed dynamics, holding around 1700.00. At the end of last week, the quotations of the instrument managed to show weak growth and retreated from local lows of July 21, reacting to the publication of not the strongest report on the US labor market for August, which reflected an increase in Nonfarm Payrolls by 315.0 thousand after increase by 526.0 thousand a month earlier. At the same time, the released data indicated a slowdown in the Average Hourly Earnings, and also reflected an increase in the Unemployment Rate from 3.5% to 3.7%. All this somewhat reduced the likelihood of an interest rate hike by the US Federal Reserve by 75 basis points at the September meeting, but so far it is premature to draw unambiguous conclusions. Markets in the US are closed today for Labor Day, so noteworthy data is expected on Tuesday, when S&P and ISM business data for August are released.

 

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BTCUSD - "digital gold" is preparing to update the June low

The BTCUSD pair is under pressure after the statements of the head of the US Federal Reserve, Jerome Powell, made at a symposium in Jackson Hole, where the official indicated the readiness of the regulator for a serious tightening of monetary policy in the future.

Thus, investors lay a 70% chance of raising interest rates by 75.0 basis points at the department's meeting on September 21. If the forecast is realized, the US dollar will continue to strengthen, and the interest of traders in the first cryptocurrency will continue to decline, increasing the likelihood of bankruptcies of crypto companies. Against the backdrop of the existing uncertainty in the market, market participants are forced to close long positions and redirect their capital to the US currency, which leads to a stronger downward trend in the BTCUSD pair.

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The long-term trend remains downwards, and the trading instrument is falling towards 18500, after which breakdown, the downward dynamics will continue with the target at 13200. Otherwise, a repeated correction to the resistance area of 24900 will begin.

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The medium-term trend is also downwards. After an unsuccessful attempt to break through the resistance level of 20480.00, the quotes are falling to the support area of 19500, upon the breakdown of which the next target will be 19000.

Resistance levels: 24900, 27444, 32100 | Support levels: 18500, 13200​


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Payment Methods​

Solid ECN Securities added more than 50 cryptocurrencies to its payment system. Our clients at Solid ECN can manage their account funding by a wide range of cryptos, from bitcoin to Zilliqa, all are available in the Solid-Dashboard > Account funding.

Solid ECN took this step to offer cost-effective payment methods for its customers. The blockchain transfer fee of the major cryptocurrencies have been increasing, therefore, retails are interested in trying the alternatives.

With Solid ECN, any trader can take advantage of +50 crypto payments.

> It is secured;
> It is undisclosed;
> it is decentralized.

Solid ECN brings vital advantages for forex traders in the US, EU, and beyond. High levels of market transparency mean price manipulation is not possible.

 

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Morning Market Review​


EURUSD
The European currency shows mixed trading dynamics, consolidating near 1.0125. The day before, the EUR/USD pair showed active growth and managed to update local highs from August 17, approaching the resistance at the level of 1.0200. Nevertheless, the "bulls" failed to consolidate at their positions, and in the afternoon the dollar began to quickly win back its losses. The single currency is slightly supported by the improvement of the situation in the energy markets. Against the backdrop of reports that European storage facilities are full of gas, prices for this energy resource fell below 2000 dollars per 1000 cubic meters for the first time since July. In the meantime, experts warn against premature conclusions, as the main difficulties are yet to come. Investors are analyzing August data on inflation in Germany, released today: on a monthly basis, the figure fell from 0.9% to 0.3%, and on an annual basis it corrected from 7.5% to 7.9%, justifying analysts' preliminary estimates. The Harmonized Consumer Price Index recorded at the level of 8.8%. In addition, during the day the results of a study by the ZEW Institute on Economic Sentiment in Germany and the eurozone for September will be published.​


GBPUSD
The British pound is trading with multidirectional dynamics, holding near 1.1700 and local highs of August 30. The day before, the GBP/USD pair showed moderate growth, although the macroeconomic background from the UK turned out to be rather weak. Gross Domestic Product (GDP) in July showed an increase of only 0.2% after falling by 0.6% a month earlier. Analysts expected an increase of 0.5%. The volume of Industrial Production fell again in July by 0.3% after falling by 0.9% in June. In annual terms, the growth rate of production slowed down from 2.4% to 1.1%. Forecasts suggested an increase of the indicator by 0.4% in monthly terms and by 2.0% in annual terms. NIESR GDP Estimate in August was adjusted downward by 0.2%, which also turned out to be worse than market expectations of growth by 0.1%. Today, investors are watching the statistics on the British labor market. The Unemployment Rate in July fell from 3.8% to 3.6%; however, the Claimant Count increased by 6.3 thousand after a decrease by 14.5 thousand, which may negatively affect the quotations of the national currency.​


XAUUSD
Gold prices show multidirectional dynamics, continuing to consolidate near 1720.00. Investors prefer to wait for new drivers to move the XAU/USD quotes. However, the latest report from the US Commodity Futures Trading Commission (CFTC) recorded an active reduction in transactions by sellers, and the trend is observed in all categories: in positions backed by money, "bulls" increased activity, reaching 1.294 thousand contracts, while "bears" reduced the volume by 4.035 thousand. At the same time, despite signs of a slowdown in consumer prices, the US Federal Reserve still expects to raise interest rates by 75 basis points for the third time in a row at a meeting to be held next week.​
 

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Morning Market Review​

EURUSD​

The EUR/USD pair is testing 1.002 for a breakout; however, investors prefer to wait for new drivers to appear on the market. In particular, the speech of the President of the European Central Bank (ECB) Christine Lagarde will take place today, in which market participants expect to hear hints on the pace of further increase in interest rates by the regulator. In addition, traders will evaluate recession forecasts in the region. At the moment, the threat of a two-quarter decline in the euro area is estimated at about 80%. Also today begins a two-day meeting of the US Federal Reserve, according to the results of which the markets expect another increase in interest rates by 75 basis points. Last week, analysts for the first time spoke about a possible correction of the value by 100 basis points at once, but this probability does not exceed 15-17%. Moderate support for the single currency is also provided by the gradual decline in gas prices, which, in turn, react to growing optimism that Europe will still be able to survive the winter without Russian "blue fuel". However, it should be noted that optimism does not negate the subsidizing of payments, as well as the introduction of rationing of energy consumption.

GBPUSD​

The British pound is trading with multidirectional dynamics, consolidating near 1.1430. The GBP/USD pair has been trying to recover since the record lows were updated at the end of last week, but the "bulls" are reluctant to act and expect new growth drivers, one of which may be the decision of the Bank of England to raise interest rates. At the next meeting of the British regulator, which will be held on Thursday, the rate may be adjusted by 50 basis points to 2.25%. In addition, traders are going to evaluate the effectiveness of the measures already taken and receive new inflation forecasts for the near future. Investors are also worried about a possible downturn in the economy. Bank of England officials warned of significant risks of a recession as early as the fourth quarter, which could be overcome no earlier than 2024. Finally, the fiscal policy of the country's new Prime Minister, Liz Truss, adds uncertainty to the market, as tax cuts figured as Truss's election theses.

XAUUSD​

Gold prices are slightly declining, consolidating near 1670.00. The pressure on the XAUUSD pair remains ahead of the meetings of the US Federal Reserve and the Bank of England, at which decisions can be made on further tightening of monetary policy. In particular, the US regulator may raise interest rates by 75 basis points, while the British one is likely to limit itself to a correction of 50 basis points. In addition, traders expect to receive updated recession forecasts. The Bank of England still expects that the national economy will go into recession in the fourth quarter, and will be able to get out of it no earlier than 2024. In turn, the demand for gold is supported by expanding economic and geopolitical risks, as the conflict in Eastern Europe does not weaken, and the consequences of the energy crisis increasingly affect economic activity.​
 

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Morning Market Review

EURUSD

The European currency shows a downtrend, renewing new record lows and dropping below 0.9550, after which the EUR/USD pair still showed an uncertain corrective rebound. The instrument was falling against the US dollar at a moderate pace throughout the past week, and the culmination of the "bearish" dynamics fell on Friday, when disappointing statistics came to the market. S&P Global Manufacturing PMI in Germany fell from 49.1 points to 48.3 points in September, the Services PMI decreased from 47.7 points to 45.4 points, and the Composite PMI decreased from 46.9 points to 45.9 points against the expected 46.0 points. In turn, in the euro area, the Manufacturing PMI fell from 48.9 points to 48.2 points, and the Services PMI declined from 49.8 points to 48.9 points. The focus of investors today will be the speeches of representatives of the European Central Bank (ECB), among which are Luis de Guindos, Fabio Panetta, and the President of the regulator Christine Lagarde.


GBPUSD
The British pound is trading with a strong downward momentum, approaching the parity level and updating record lows. GBP/USD is at 1.0500, retreating slightly from its record lows at 1.0270. The pressure on the British currency is exerted by the actively growing dollar, the demand for which is supported by the growth of alarming sentiment in the market. In particular, last Friday, investors paid attention to the statistics on business activity in Europe and the US, which increased the likelihood that the economy will enter a recession in the near future. The UK Services PMI from S&P Global in September declined from 50.9 points to 49.2 points, dropping below the level of 50.0 points, which separates growth from recession. The S&P Global/CIPS Composite PMI for the same period fell from 49.6 points to 48.4 points, while the forecast suggested a decrease to only 49.0 points. In addition, the Consumer Confidence index from Gfk Group in September fell from -44.0 points to -49.0 points, while the forecast for a correction to -42.0 points.


XAUUSD
Gold prices show mixed dynamics, holding near 1640.00 and updating April 2020 record lows. The pressure on the position of the instrument is exerted by the growing dollar, which is supported by the deterioration of global economic forecasts. In addition, the meetings of world central banks last week, which resulted in the widespread tightening of monetary policy, had a noticeable pressure on gold. Only the Bank of Japan remained on the sidelines, announcing foreign exchange intervention. The US Federal Reserve raised rates by 75 basis points and is likely to adjust the value at least once before the end of 2022. It is noted that under certain conditions, the regulator may decide to raise the rate immediately by 1.25%.​
 
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