2023 Market Forecast by Solid ECN

GBPUSD Technical Analysis

The GBPUSD pair trades with clear positivity to start attacking 1.2190 level, to hint the attempt to return to rise and stop the bearish correction that dominated the recent trades, and we prefer to stay neutral until the price confirms its situation according to the mentioned level followed by detecting its next destination clearly.



Note that confirming the beach will push the price to achieve gains that start at 1.2300 and extend to 1.2440, while consolidating below it will press on the price to decline again and test 1.1940 level as a first main station. The expected trading range for today is between 1.2100 support and 1.2250 resistance.

USDCHF - Growth is possible.

If the assumption is correct, the USDCHF pair will grow to the area of 0.9455 ? 0.9600. In this scenario, critical stop loss level is 0.9140.

AUDCAD Leans above the Additional Support

The AUDCAD pair lost the positive momentum, which forces it to form some of the bearish correctional rebound, to face the extra support at 0.9225 and settles above it, the continuation of the stability above this support besides providing positive momentum by stochastic exit from the oversold level, which will increase the chances for gathering positive momentum, to begin activating the bullish track by targeting 0.9345 level initially, then breaching the barrier near 0.9420.



while the price reach below the current support will force it to suffer extra losses by resuming the bearish correctional attempts, to expect reaching the critical support at 0.9130.

XRPUSD - Price Reduction Potential Remains

The XRP token, like most of the cryptocurrency market, continues to be under pressure from monetary factors. The January US inflation data turned out to be worse than forecasts: the consumer price index was 6.4% instead of the expected 6.2%, and the base index was at 5.6% instead of 5.5%. The decline in inflationary pressure in the US economy is happening too slowly to give grounds for the US Fed to suspend the current cycle of tightening monetary policy, so the interest rate increase will continue in the coming months, which will negatively affect the positions of assets alternative to the dollar.

Also, the serious growth of XRP is hindered by the uncertainty associated with the lawsuit of the US Securities and Exchange Commission (SEC) against Ripple. Recall that officials consider the token to be an unregistered security. Currently, both sides are awaiting a court decision, which increases tensions in the market. Trying to reassure investors, Ripple's management demonstrates confidence in its victory over the regulator, as stated by the head of the company Brad Garlinghouse last week, however, experts are not so optimistic and quite admit a negative verdict for Ripple, which could put significant pressure on the entire sector. It should be noted that SEC representatives have previously stated that, in their opinion, most modern cryptocurrencies are securities, therefore, if the court decision is favorable for the commission, lawsuits can also be filed against other digital assets.   



Now the price is in the area of 0.3790, but in order to resume serious growth, it will need to break above 0.3906 (Murray level [8/8], the middle line of the Bollinger Bands). In this case, quotes can rise to 0.4150 (Murray level [+1/8]) and 0.4330 (Fibo retracement 23.6%). The key for the ?bears? is the level 0.3662 (Murray level [7/8]), consolidation below which will give the prospect of further decline to the area of 0.3418 (Murray level [6/8]) and 0.3174 (Murray level [5/8]).

Resistance levels: 0.3906, 0.4150, 0.4330 | Support levels: 0.3662, 0.3418, 0.3174

NZDUSD Technical Analysis

The NZDUSD pair confirmed breaking 0.6290 level after closing the daily candlestick below it, which supports the expectations of achieving more bearish correction on the intraday and short term basis, opening the way to head towards 0.6210 followed by 0.6140 levels as next main targets.



The EMA50 forms negative pressure that supports the continuation of the expected bearish trend, while stochastic begins to loses the positive momentum gradually. Therefore, we are waiting for more expected decline in the upcoming sessions, noting that the continuation of the bearish wave requires holding below 0.6290 and 0.6320 levels.

USDJPY Technical Analysis

The USDJPY pair breached 133.30 level clearly and closed the daily candlestick above it, to open the way to continue the rise on the intraday and short term basis, to head towards achieving positive targets that start at 134.70 and extend to 135.70.



Therefore, we are waiting for more rise in the upcoming sessions, supported by the EMA50 that carries the price from below, noting that stochastic current negativity might cause some sideways fluctuation before resuming the expected bullish bias. On the other hand, we should note that breaking 133.30 will stop the positive scenario and press on the price to turn to decline.

NZDUSD

• Indices from Asia-Pacific traded mostly higher at the beginning of a new week. Nikkei and S&P/ASX 200 traded 0.1% higher, Kospi added 0.2% and Nifty 50 dropped 0.1%. Indices from China traded up to 2% higher.
• DAX futures point to a higher opening of the European cash session today.
• US index futures trade little change compared to Friday's cash closing prices.
• US and Canadian traders are off for holidays today so liquidity conditions in the afternoon may be thinner.
• US Secretary of State Blinken said that US has information suggesting that China is considering providing Russia with ammunition and lethal weapons for war in Ukraine.
• Bloomberg reports that meeting between Blinken and his Chinese counterpart Wang Yi over the weekend was rocky and far from encouraging.
• People's Bank of China left 1- and 5-year prime lending rates unchanged at 3.65 and 4.30%, respectively. Decision was in-line with expectations.
• According to Reuters report, People's Bank of China has reportedly asked domestic bank to slow issuance of loans this month.
• North Korea fired two ballistic missiles today. UN Security Council will convene at 8:00 pm GMT today to discuss the situation.
• Cryptocurrencies are trading mixed today with major coins experiencing rather small moves. Bitcoin drops 0.2%, Ethereum trades 0.3% higher and Dogecoin adds 0.4%.
• Energy commodities trade mixed - oil gains 0.8-0.9% while natural gas pulls back around 2%.
• Precious metals benefit from USD weakening at the beginning of a new week - gold and silver gain around 0.1% each while platinum adds almost 0.5%.
• AUD and JPY are the best performing major currencies while CHF, EUR and USD lag the most.

NZDUSD bounced off the 0.62 support zone last week but failed to launch a major recovery move. There is a lot of uncertainty around NZD as RBNZ is set to announce rate decision this week (Wednesday, 1:00 am GMT) and some see a chance for rate hike cycle pause amid recent floods and cyclone hit.