Daily Market Analysis By FXOpen

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Nasdaq Composite: Worst Session Since Late 2022

As indicated by the Nasdaq Composite chart (US Tech 100 mini on FXOpen), yesterday's decline was -2.62% in a single session.

Thus, tech stocks experienced the sharpest drop since late 2022, with around 75% of companies in the Nasdaq Composite index closing in the red.

Alphabet (GOOG) shares, the parent company of Google, fell by 4.9% due to higher-than-expected AI expenses and disappointing YouTube advertising revenues.

Tesla (TSLA) shares dropped by 12% due to a 7% decline in automotive revenue, missed earnings, and delays in the Robotaxi project.

Chipmaker stocks also suffered losses.

What is the reason for the Nasdaq Composite (US Tech 100 mini on FXOpen) price decline?

According to Business Insider, renowned Wall Street investor Ed Yardeni believes that:

→ Major market players started exiting tech stocks on July 11, as news of low inflation motivated them to rotate and shift capital into stocks sensitive to the anticipated interest rate cuts;

→ The stock market is overbought and undergoing a minor correction.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

 

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Analysis of USD/JPY: Yen Strengthens by 5.5% Against US Dollar in 2 Weeks

On Thursday, 11 July, the USD/JPY exchange rate was above 161, and today it is below 153.

According to Reuters, this could be attributed to effective intervention by the Bank of Japan.

While intervention was anticipated when the yen weakened to extreme levels not seen since 1983, Tokyo authorities were cryptic in their comments, maintaining uncertainty, making it harder for investors to predict when and how they might intervene.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

 

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Order Blocks and Breaker Blocks and How To Trade Them

In the intricate world of trading, especially within the forex markets, understanding the mechanics behind order blocks and breaker blocks is paramount. These concepts, rooted in the actions of institutional participants, offer a window into the potential future price movements. In this article, we’ll explore what these critical areas are and how to use them effectively.

What Is an Order Block in Trading?

An order block, also known as a supply or demand zone, represents a significant area on the price chart where large market participants, such as banks or institutional traders, have placed substantial buy or sell orders. They’re crucial in understanding the flow and direction of an asset, as they often precede notable movements in price. Particularly in the realm of forex, where the magnitude of transactions can be immense, identifying these zones can provide traders with a strategic edge.

TO VIEW THE FULL ARTICLE, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

 

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Analysis of AMZN Stock: Price at 1.5-Month Low

As shown in the AMZN chart, the stock price dropped below:

→ the psychological level of $180;

→ the mid-June interim low.

The last time AMZN traded below $180 was in early June.

Thus, AMZN has faced sell-offs, similar to other tech stocks whose charts we've published this week. A widely mentioned reason for the sell-offs is investor rotation, moving capital from overbought tech stocks to shares in other sectors.

Will AMZN's price drop further?

Fundamentally, bulls might find hope in speculation that:

→ the company might start paying dividends. Rumours suggest the company has accumulated $100 billion in cash;

→ Amazon in Austin, Texas, is developing its own AI chip to compete with Nvidia.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

 

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Analysis of AUD/USD: Exchange Rate Falls to Early May Low

As indicated by the 4-hour AUD/USD chart today:

→ the rate fell below 0.652, a level last seen on May 2;

→ the RSI indicator dropped below 15, a level last seen during the panic over the spread of COVID-19 in spring 2020.

The weakening of the Australian dollar could be linked to participants' expectations of upcoming news:

→ the US Core PCE Price Index will be published today at 15:30 GMT+3;

→ next week, Australian inflation data and the Federal Reserve's interest rate decision (both events scheduled for Wednesday) will be released.

Is further decline in the AUD/USD rate possible?

It is possible that the release of significant news could trigger a surge in volatility, causing the AUD/USD rate to fall below the recent monthly low of 0.652.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

 

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Watch FXOpen's 22 - 26 July Weekly Market Wrap Video

Weekly Market Wrap With Gary Thomson: Nasdaq, EUR/USD, USD/CHF, Crude Oil, Alphabet Inc. Shares

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

• Nasdaq Composite: Worst Session since Late 2022
• Market Analysis: EUR/USD Trims Gains While USD/CHF Regains Strength
• Brent Crude Oil Price is Declining amid De-escalation in the Middle East
• Alphabet Inc. (GOOGL) Shares Decline after Earnings Report

Stay in the know and empower yourself with our short, yet power-packed video.

Watch it now and stay updated with FXOpen.

Don't miss out on this invaluable opportunity to sharpen your trading skills and make informed decisions.




FXOpen YouTube


Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

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