2023 Market Forecast by Solid ECN

US100 Surges Nearly %2.5

Wall Street rallies ahead of big tech earnings

US indices rose sharply today, extending Friday gains  as risk appetite improved bolstered by the lack of Fed members' speeches, due to the blackout period, ahead of the FOMC meeting on January 31 ? February 1. Now investors brace themselves for a busy week of earnings, including top tech giants Microsoft, Tesla, IBM, and Intel.

Recent economic data have magnified concerns that the US economy is near a recession while boosting bets that the Fed will continue to raise rates however at a slower pace. Wall Street Journal Fed insider,  claims that the US central bank will announce a 25 basis point rate hike next week, which boosted upbeat sentiment. Later this week we get the US GDP and inflation data releases, which may increase volatility on the markets and influence FED decision.



US100 jumped above major resistance at 11500 pts and 50 SMA (green line) on Friday and during today's session buyers breached long-term downward trendline. Currently the index is approaching 200 SMA (red line) and if buyers manage to uphold momentum resistance at 13000 pts may be at risk.  This level is marked with previous price reactions and 38.2% Fibonacci retracement of the upward wave started in March 2020.

Silver - The price is in a correction and may grow.

On the daily chart, a downward correction of the higher level ended as the second wave (2), and the third wave (3) forms, within which the entry first wave of the lower level 1 of (3) develops. Now, the wave iii of 1 has formed, and a local correction is ending to develop as the wave iv of 1, within which the wave (c) of iv is developing.

If the assumption is correct, the XAGUSD pair will grow to the area of 26 ? 27. In this scenario, critical stop loss level is 21.80.

USDCHF Negotiates the Resistance

USDCHF pair provided new positive trades to test the bearish channel?s resistance, noticing that stochastic shows new negative signals now, waiting to motivate the price to resume the main bearish trend, which its targets begin at 0.9100 and extend to 0.9100.



We remind you that breaching 0.9230 will push the price to start bullish correction that its targets begin by testing 0.9335 areas. The expected trading range for today is between 0.9140 support and 0.9275 resistance.

Soy Technical Analysis

Bearish Scenario:
Soyabeans is trading in the upward channel, noting the AO indicator shows negative signals waiting to motivate the bears to confrim the break of the main bullish trend 1477.45 support (Fibo retracement 38.2) which extends to 1465.42 - 1456.05 (Fibo retracement 50).



Bullish Scenario:
We see a hammer candle in 12 hours chart which can indicate trend reversal. Breaching MA 50 would push the price to continue the bullish trend that its targets begin by testing 1511.8 - 1520.16.

XRPUSD - Current trend

The XRPUSD pair has been growing within the general market trend since the beginning of this month, and this week has reached 0.4290 for the first time since November.



Currently, the quotes have corrected to the 0.4000 area, but the current short-term uptrend will be reversed only after the breakdown of the middle line of Bollinger bands in the 0.3780 area, and then the asset will be able to return to 0.3418 (Murrey level [6/8]) and 0.3174 (Murrey level [5/8]). The key "bullish" level is the resistance zone 0.4330?0.4395 (Fibonacci correction 23.6%, Murrey level [+2/8]), the breakout of which allows growth to 0.4750 and 0.5219 (Fibonacci correction 38.2%).

Resistance levels: 0.4395, 0.4750, 0.5219 | Support levels: 0.3780, 0.3418, 0.3174

USDCAD - Growth is possible.

On the daily chart, the upward fifth wave of the higher level 5 develops, within which the wave (3) of 5 forms. Now, the wave 5 of (3) is forming, within which the first wave of the lower level i of 5 has formed, a local correction has ended as the wave ii of 5, and the wave iii of 5 is developing.

If the assumption is correct, the USDCAD pair will grow to the area of 1.3978 ? 1.4500. In this scenario, critical stop loss level is 1.3315.

XAUUSD - Growth is possible.

If the assumption is correct, the XAUUSD pair will grow to the area of 1990 ? 2050. In this scenario, critical stop loss level is 1782.23.

USDCAD breaks the support

The USDCAD pair succeeded to break 1.3350 level and closed the daily candlestick below it, which supports the continuation of our bearish overview efficiently for the upcoming sessions, opening the way to head towards our next target that reaches 1.3205.



The EMA50 continues to support the suggested bearish wave, which will remain valid unless breaching 1.3350 and holding above it again. The expected trading range for today is between 1.3260 support and 1.3400 resistance.