Daily Market Analysis By FXOpen

[Resolve]

Gold Price Surpasses $2500 for the First Time

We noted bullish sentiment in the gold market six days ago:
→ The price is moving within an ascending channel (shown in blue);
→ Bulls may attempt to set a historic record amid the release of economic news.

As today's XAU/USD chart shows, the gold price has risen above the psychological level of $2500. This was influenced by last week's news, indicating that market participants expect the Federal Reserve to cut rates as early as September. Notably, important signals regarding U.S. monetary policy may be given later this week at the annual economic symposium in Jackson Hole, attended by finance ministers and central bank governors.

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.

 

[Resolve]

Netflix (NFLX) Shares Reach a Two-Month High

As shown on the daily chart of Netflix (NFLX) shares, the price surpassed the July 19 peak around $677 on Friday but closed well below the day’s highs. Notably:
→ Since August 5, Netflix (NFLX) has outperformed stock indices;
→ The stock has risen by about 15% from the August 5 close.

Will the rally continue?

Bullish argument:
→ Analysts expect an improvement in the company’s fundamentals following enhancements to its business model. According to Zacks, Netflix might report earnings of $5.07 per share for the current quarter, representing a year-on-year increase of +35.9%. The Zacks consensus estimate has risen by +7.9% over the past 30 days.

Bearish argument:
According to SEC filings, Netflix’s Chief Legal Officer sold $7 million worth of shares. Could this sale be motivated by insider information that might lead to a decline in the stock price?

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.

 

[Resolve]

What Are 52-Week Highs and Lows, and How Do Traders Use Them?

The 52-week high and low are crucial metrics in stock trading, providing insights into a stock’s performance over the past year. These levels offer valuable guidance on potential breakouts and reversals. In this FXOpen article, we’ll explore their importance for determining reversals and breakouts and examine this with a couple of examples.

Understanding 52-Week High and Low

The 52-week high and low are crucial metrics in stock trading, providing insights into a stock’s performance over the past year. These levels offer valuable guidance on potential breakouts and reversals. In this FXOpen article, we’ll explore their importance for determining reversals and breakouts and examine this with a couple of examples.

Understanding 52-Week High and Low

The 52-week high and 52-week low represent the highest and lowest closing prices for a stock over the past year. Note that this means the previous 52 weeks, not year-to-date. This metric is crucial for traders and investors as it provides a longer-term perspective on a stock's performance, helping them assess potential trading opportunities and market sentiment.

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.

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.

 

[Resolve]

What Is an Inverse Head and Shoulders Pattern in Trading?

It's known that traders, even with little experience, use the head and shoulders pattern. However, it has an inverted version. The inverse head and shoulders is one of the most common patterns experienced traders use in their journeys in the trading world. In this FXOpen article, we will tell you how to spot the inverse head and shoulders pattern and build your own strategies with this formation.

What Is an Inverse Head and Shoulders Pattern?

An inverse head and shoulders pattern, sometimes known as an inverted head and shoulders pattern, is a chart formation that appears at the end of a downtrend. Is the inverse head and shoulders bullish or bearish? It’s a bullish setup that demonstrates a potential reversal from a downtrend to an uptrend.

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.

 

[Resolve]

The Pound Near July Highs: What Could Trigger a Breakout?

The slowdown in U.S. inflation and a cooling labour market have rekindled investor confidence that the Federal Reserve may soon begin cutting interest rates. As bearish sentiment towards the dollar dominates the market, key currency pairs have approached critical levels, the breach of which could spark new medium-term trends.

GBP/USD

Technical analysis of GBP/USD suggests the possibility of a retest of the July high at 1.3050, as a strong upward momentum has developed on the daily timeframe following a bullish engulfing pattern. If buyers manage to secure a hold above 1.3000, the price could extend towards last year's highs around 1.3140-1.3100. Conversely, a rejection from 1.3000 might lead to a corrective decline towards 1.2900-1.2800.

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.

 

[Resolve]

AMD Shares Soared After News of a Server Manufacturer Acquisition

Yesterday, it was announced that Analog Micro Devices (AMD) intends to acquire ZT Systems, a manufacturer of equipment for data centres, cloud computing, and artificial intelligence. The market responded positively, with investors believing this move could help AMD reduce Nvidia's substantial market share.

As shown by the AMD stock chart, the price jumped by 4.5% yesterday. What’s next?

On 30 July, we highlighted the support block formed by the $135 level and the long-term upward trendline (shown in yellow). Bears managed to push the price below this block during the overall market decline on 5 August, but only briefly.

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.

 

[Resolve]

Brent Oil Price Drops Over 3.5% in Two Days

As indicated by the XBR/USD chart, the price per barrel opened at $80.28 on Friday and closed at $77.27 on Monday. Moreover, early Tuesday trading also shows a downward trend.

Bearish sentiment in the market is being influenced by geopolitical factors, particularly the easing of tensions in the Middle East. According to media reports, Israeli Prime Minister Benjamin Netanyahu has accepted a proposal aimed at resolving disagreements between Israel and Hamas.

Additionally, ANZ Bank analysts point to a reduction in petrol consumption in China due to the increasing use of electric vehicles.

Could Brent crude oil prices continue to fall further?

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.

 

[Resolve]

What Is a Morning Star Pattern, and How Can You Use It in Trading?

The morning star candlestick is a popular price action pattern that technical analysts and traders use to identify potential trading opportunities. It indicates a reversal from a bearish to a bullish trend and is a valuable addition to any trader's toolkit. In this article, we will cover all the technical aspects of the morning star candlestick pattern.

What Is the Morning Star Candlestick Pattern?

The morning star in technical analysis is a reversal formation that appears at the end of a downtrend and signals a trend reversal. It consists of three candles.

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.

 

[Resolve]

Market Analysis: EUR/USD Regains Strength While USD/CHF Struggles

EUR/USD started a fresh increase above the 1.1000 resistance. USD/CHF declined and now struggling below the 0.8600 resistance.

Important Takeaways for EUR/USD and USD/CHF Analysis Today

• The Euro surged after it broke the 1.0950 resistance against the US Dollar.
• There is a connecting bullish trend line forming with support near 1.1090 on the hourly chart of EUR/USD at FXOpen.
• USD/CHF declined below the 0.8635 and 0.8600 support levels.
• There is a major bearish trend line forming with resistance near 0.8575 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair started a fresh increase from the 1.0950 zone. The Euro cleared the 1.1000 resistance to move into a bullish zone against the US Dollar.

The bulls pushed the pair above the 50-hour simple moving average and 1.1050. Finally, the pair tested the 1.1130 resistance. A high was formed near 1.1132 and the pair is now consolidating gains above the 23.6% Fib retracement level of the upward wave from the 1.0798 swing low to the 1.1132 high.

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.

 

[Resolve]

USD/CAD Drops to 1.3600 Support Level

The USD/CAD chart shows the Canadian dollar strengthening against the USD to levels last seen at the end of July.

On one hand, the US dollar is weakened by expectations of an inevitable rate cut. On the other, the Canadian dollar gained strength after yesterday’s inflation data:
→ Although the initial reaction pushed USD/CAD up to 1.364,
→ Today, the market seems to have reassessed the impact, with the pair falling to yesterday's low, indicating continued bearish dominance.

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.

 

[Resolve]

Coinbase (COIN) Shares Drop Below $200

Yesterday, shares of cryptocurrency exchange Coinbase (COIN) underperformed the broader market, falling by approximately 5%.

This decline is part of a worrying trend. While the S&P 500 (US SPX 500 mini on FXOpen) set records in mid-summer, Coinbase (COIN) struggled to surpass its March high. It seems the positive impact of the Bitcoin ETF launch earlier this year has faded.

Additionally, COIN's share price has been affected by a weak earnings report published on 1st August, where earnings per share fell significantly short of expectations (actual = $0.14 vs forecast = $0.95).

Adding to the negative sentiment is the news that if Kamala Harris wins the US presidential election, current SEC Chair Gary Gensler, known for his sceptical stance on cryptocurrencies, might be appointed as Treasury Secretary.

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.

 

[Resolve]

How Traders Use Support and Resistance Indicators in Trading Strategies

In the dynamic realm of trading, traders employ a variety of tools to navigate the continually evolving market landscape. Among these, support and resistance stand out as pivotal instruments, aiding traders in understanding important price levels on the charts. This article seeks to explore the indicators for support and resistance, offering insights into how they can be used to analyse market changes.

Why Traders Use Support and Resistance Levels

By effectively utilising support and resistance trading strategies, traders may enhance their decision-making processes.

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.

 

[Resolve]

European Currencies Strengthened Ahead of the Jackson Hole Symposium

The release of revised US employment data and the FOMC minutes has added downward pressure on the dollar. The updated figures show that in March, there were 818,000 fewer non-farm jobs than initially reported, suggesting that the US labour market continues to slow. This raises the possibility that the Fed may cut rates by 0.50% at the September meeting, rather than the 0.25% predicted by experts.

Given the current situation, traders will be closely watching the annual Jackson Hole symposium and Jerome Powell’s comments on the state of the US economy. Important data is also expected from the UK and Europe.

EUR/USD

Technical analysis of the EUR/USD pair indicates the potential for further price strengthening, supported by a strong bullish impulse on the daily timeframe after a series of buy setups. Yesterday, the price broke through key resistance at 1.1100. If this level turns into support, the pair may continue its rise towards last year’s highs at 1.1270-1.1240.

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.

 

[Resolve]

Analysis of NZD/USD: Price Approaches Key Resistance Zone

The NZD/USD chart today shows that the New Zealand dollar has risen by over 3% against the USD in less than a week. From another perspective, the NZD/USD rate has climbed more than 5% from its August low.

The volatility in the exchange rate was influenced by the Reserve Bank of New Zealand's decision to cut interest rates, as reported on 14 August.

Technical analysis of the NZD/USD chart reveals:
→ The current bullish sentiment has pushed the RSI indicator from the oversold into the overbought zone.
→ The 0.60770 level, which marked the peak on 13-14 August, may now act as support following its bullish breakout on 19 August.

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.

 

[Resolve]

The S&P 500 Index Approaches Historic High

On 2 August, we analysed the S&P 500 (US SPX 500 mini on FXOpen) chart, where we:
→ Constructed an ascending channel A-B with a median line shown as a dotted line;
→ Highlighted the risk of a bearish breakout (as indicated by the red arrow).

Since then:
→ The price dropped by more than 5% to the 5 August low, doubling the width of the A-B channel towards point C – the B line became the median of a wider channel. The index's decline was driven by recession fears, based on weak US labour market data;
→ However, the price then began to recover from the lower boundary of the wider channel, indicating that recession fears have subsided and the rally continues;
→ The price has now returned close to historical highs.

Yesterday, the minutes from the FOMC meeting on 30-31 July were released, revealing that the vast majority of participants noted that if data continues to align with expectations, it might be appropriate to ease policy at the next meeting.

The S&P 500 (US SPX 500 mini on FXOpen) index remained largely unchanged on this news – this indicates market participants' belief that interest rates will likely be cut in September, which would stimulate economic growth, company performance, and stock indices.

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.

 

[Resolve]

5 Popular Momentum Indicators

Momentum indicators are technical analysis tools that help traders gauge the force behind price movements. They can show optimal entry and exit points and provide valuable insight into whether a trend is likely to continue or reverse.

Let’s look at the most common momentum signals.
- Overbought and oversold conditions;
- Divergences;
- Crossovers.

Now let’s break down five of the most popular indicators.

• The Average Directional Index, or ADX, is used to determine a trend’s strength.
• The Commodity Channel Index, or CCI, is a versatile momentum indicator that measures an asset's price deviation from its average price relative to its mean deviation. The indicator can also be used to identify divergences.
• The Relative Strength Index, or RSI, is an oscillator that measures the speed and change of price movements. Traders can look for divergence between the RSI and price to identify weakening trends and possible reversals.
• The Moving Average Convergence Divergence, or MACD, is a highly regarded trend-following momentum indicator. Traders use crossovers between the MACD and signal lines as potential entry and exit signals.
• The Momentum indicator measures the rate of change in an asset's price over a specific period. The Momentum is especially useful for identifying divergences.

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.

#indicatorstrading #adx #rsi #macd #cci

 

[Resolve]

What Is the ICT Silver Bullet Strategy, and How Does It Work?

The ICT Silver Bullet strategy offers traders a unique approach to capitalising on market opportunities during specific trading hours. This article explored this advanced strategy, explaining the role of fair value gaps, liquidity, and timeframes and how to implement it.

Understanding the ICT Silver Bullet Strategy

The ICT Silver Bullet trading strategy is a sophisticated trading methodology developed by Michael J. Huddleston, known as the Inner Circle Trader, or ICT. This strategy is designed to capitalise on specific, high-probability trading opportunities that align with certain times throughout certain sessions, specifically the London and New York sessions.

TO VIEW THE FULL ARTICLE, VISIT THE 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.

 

[Resolve]

Market Analysis: GBP/USD Surges, USD/CAD Drops To Support

GBP/USD started a fresh increase above the 1.2920 zone. USD/CAD declined and now consolidates below the 1.3640 level.

Important Takeaways for GBP/USD and USD/CAD Analysis Today

• The British Pound is eyeing more gains above the 1.3130 resistance.
• There is a connecting bullish trend line forming with support near 1.3100 on the hourly chart of GBP/USD at FXOpen.
• USD/CAD started a fresh decline after it failed to clear the 1.3720 resistance.
• Recently, there was a break above a short-term bearish trend line with resistance at 1.3585 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair formed a base above the 1.2880 level. The British Pound started a steady increase above the 1.2920 resistance zone against the US Dollar.

The pair gained strength above the 1.3000 level. The bulls even pushed the pair above the 1.3050 level and the 50-hour simple moving average. The pair tested the 1.3130 zone and is currently consolidating gains.

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.

 

[Resolve]

Analysis of GBP/USD: The Pair Approaches 2023 High

Yesterday, the Purchasing Managers' Index (PMI) data for both the UK and the US were released.

According to ForexFactory, the UK figures were as follows:
→ Flash Manufacturing PMI: actual = 52.5, forecast = 52.1; previous = 52.1;
→ Flash Services PMI: actual = 53.3, forecast = 52.8; previous = 52.5.

As SPGlobal reports, the August PMI data signalled another significant expansion (the largest since April) in the UK's private sector output, supported by strong growth in new orders.

In contrast, the US figures were less encouraging:
→ Flash Manufacturing PMI: actual = 48.0, forecast = 49.5; previous = 49.6;
→ Flash Services PMI: actual = 55.2, forecast = 54.0; previous = 55.0.

In response to yesterday’s PMI releases, the GBP/USD rate has been climbing this morning towards the 2023 high around the 1.3140 level. Notably:
→ Since the August low, the pair has risen by over 3.5%;
→ A key driver of bullish sentiment for GBP/USD is the weakness of the US dollar, driven by expectations of a Fed rate cut in September.

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.

 

[Resolve]

NIO Stock Price Tests the 4.2 Level

For many months, the share price of the Chinese automaker NIO has been moving within a downward channel (shown in red), driven by the company’s ongoing struggle to achieve profitability.

From a technical analysis perspective, this week has provided a discouraging signal for investors – the 4.2 level, which acted as support in June and July before being broken in early August, has now been tested:
→ On the 19th, the price rose on a narrow candle (a sign of buyer uncertainty);
→ On the 20th, the price fell on a wide candle (a sign of seller confidence);
→ This suggests that the 4.2 level has likely switched from support to resistance.

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.