Daily Market Analysis By FXOpen

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Market Analysis: GBP/USD Recovers While EUR/GBP Eyes Gains

GBP/USD is attempting a fresh increase from the 1.3090 zone. EUR/GBP is gaining pace and might extend its upward move above the 0.8440 zone.

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

• The British Pound is attempting a recovery above the 1.3130 zone against the US Dollar.
• There was a break above a key bearish trend line with resistance at 1.3120 on the hourly chart of GBP/USD at FXOpen.
• EUR/GBP started a fresh increase above the 0.8420 resistance zone.
• There is a major rising channel forming with support near 0.8425 on the hourly chart at FXOpen.
  

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair started a fresh decline from the 1.3265 zone. The British Pound traded below the 1.3200 zone against the US Dollar.

A low was formed near 1.3090 and the pair is now attempting a recovery wave. There was a break above the 23.6% Fib retracement level of the downward move from the 1.3266 swing high to the 1.3088 low.

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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 XAU/USD: Gold Price Holds Near Key Resistance

As shown on the XAU/USD chart today, the price of gold is:

→ above the psychological level of $2,500 per ounce;

→ near a key resistance marked by a red line labelled Support 2. This line has been preventing further price growth several times since 20 August, when the all-time high was reached.

If the bulls manage to break through this line, it could turn into a support level, as happened with Support 1 (as indicated by arrows). This would set the stage for a potential rally within the upward channel, marked in blue. From a technical analysis perspective, a break above the “bull flag” pattern could signal a resumption of the uptrend.

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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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NIO Stock Price Surges by 14%

On 23 August, while analysing the chart of Chinese automaker NIO, we noted that:

→ For months, the price has been forming a downward channel (shown in red), driven by the company’s inability to turn a profit, with the $4.25 level acting as resistance.

→ Investors may hold out for positive shifts in the fundamentals, as for the first time in the company's history, monthly vehicle deliveries have remained above 20,000.

Indeed, the company’s second-quarter report released yesterday brought pleasant surprises, including reduced losses, a 98.9% year-on-year revenue increase, and improved gross profit margins.

Experts are revising their forecasts, with Deutsche Bank analysts raising their target price for NIO shares, anticipating that the company will sell over 60,000 vehicles in the third quarter.

The market reacted with a sharp price increase – NIO stock surged by 14%.

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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Retracements and Reversals: How Can You Distinguish Between Them?

In trading, distinguishing between retracements and reversals is crucial for risk management and overall trading effectiveness. This article explores these two key concepts, providing traders with insights on how to identify and respond to these different market movements. Let's delve into the intricacies of retracements and reversals and the difference between the two.

Understanding Trends

Let us remind you that market trends refer to the general direction in which the price of an asset is moving. Traders classify these trends as upward (bullish), downward (bearish), or sideways (range-bound).

Upward trends are characterised by higher highs and higher lows, indicating growing market confidence. Downward trends display lower highs and lower lows, signalling declining market sentiment. Sideways trends show horizontal movement, reflecting uncertainty or consolidation in the market. The trend concept is important, as it’s critical in establishing whether a move is a retracement or reversal.

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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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EUR/USD Falls After US Labour Market Data

On Friday, key employment data from the US was released, which proved somewhat mixed.

On the one hand, the increase in jobs fell short of expectations. According to ForexFactory, the Non-Farm Employment Change figures were:
→ actual = 142K;
→ expected = 164K;
→ previous month = 89K.

On the other hand, the unemployment rate dropped from 4.3% to 4.2%.

Thus, the economic data showed that the US labour market is slowing down, but not at a rate that would raise significant concerns about US economic growth prospects (as it did after last month's reports).

Friday’s release of US labour market news sparked volatility, and its impact is likely to be felt today, including on the EUR/USD rate.

On 29 August, we wrote that:
→ a bearish head and shoulders (H&S) pattern had formed on the chart;
→ the price broke through the rising trendline (shown in yellow);
→ the target for the decline could be the 1.10415 level.

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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Occidental Petroleum (OXY) Shares Drop to 2.5-Year Low

Shares of Occidental Petroleum Corporation (OXY), the sixth-largest holding in Warren Buffett’s portfolio, have fallen to their lowest level since April 2022. According to Yahoo Finance, Buffett's Berkshire Hathaway increased its stake in Occidental Petroleum to nearly 30% this summer.

But could Buffett be wrong this time? As the chart shows, OXY shares have reached a 2.5-year low.

Meanwhile, analysts are lowering their price targets for OXY shares:
→ Citigroup cut its target from $65 to $62;
→ Wolfe Research reduced its target from $83 to $82;
→ Susquehanna lowered its target from $81 to $78.

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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Shooting Star Pattern: Meaning and Trading Rules

In the fast-paced world of trading, recognising key chart patterns is crucial for informed decision-making. One pattern that traders often look for is the shooting star trading pattern. This article will delve into what a shooting star pattern is, how to spot it on a chart, its associated trading strategies, and its distinctions from similar patterns.

What Is a Shooting Star?

A shooting star in trading is a bearish candlestick pattern that can signify a potential reversal of an uptrend. It consists of a single candlestick with the following characteristics:

• A small body that is located at the lower end of the candlestick.
• A long upper shadow that is at least twice the length of the candle's body.
• A short or nonexistent lower shadow.
  

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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Alphabet Inc. (GOOGL) Shares Drop to Almost Six-Month Low

Alphabet Inc. (GOOGL) shares closed below $150 yesterday, a level last seen in late March this year.

According to Barron’s, the stock is under pressure due to ongoing litigation with the US Department of Justice (DOJ), which:

→ claims Google holds a monopoly over software used for buying and selling digital ads, alleging the company uses its size to stifle competition.

→ argues that Google employed unlawful methods to block rival ad technologies, forcing advertisers and publishers to use its systems.

The DOJ suggests that Google should divest a product called Ad Manager.

Google, however, maintains that the digital advertising market is more competitive than ever, and the government's arguments don’t reflect the current state of affairs. The company asserts that its case involves website ads, while most of the advertising industry has shifted to apps, social media, and Smart TVs.

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 GBP/USD Today: Bulls Face Challenges

UK labour market data was released today.

According to Dow Jones Newswires:

→ Employment growth exceeded expectations, and unemployment benefit claims came in lower than forecast. ING analysts believe this supports the view that the Bank of England will cut interest rates more cautiously compared to the Federal Reserve.

→ Capital Economics analysts also suggest that the Bank of England is unlikely to lower rates for a second consecutive month at next week’s policy meeting.

The initial reaction to the positive UK labour market news was a bullish impulse for the pound, with GBP/USD rising from around 1.3080 to break above 1.3100 shortly after the release.

However, the pair then retraced towards its “initial levels,” indicating that bulls are struggling to capitalise on the strong data. This could also signal the dominance of bears.

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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Pound and Euro Decline Ahead of Key Macroeconomic Data

The US labour market data released on Friday caused sharp fluctuations in major currency pairs. Following the release of average wage and employment data from the US:

• EUR/USD rose to 1.1140 before sharply dropping to 1.1070.
• GBP/USD buyers attempted to push the price to 1.3240, but by market close, they had lost some of their gains.
• EUR/JPY tested support at 158.00 but failed to hold below that level.
  

The market’s reaction to the mixed labour report led to investors shifting out of riskier assets and into “safe-haven” currencies, with the US dollar being one of them.

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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What Is Spot Trading? How It Works, Unique Features, and Comparison

Spot trading is a fundamental method of buying and selling financial instruments for immediate delivery at the current market price. This article delves into the key aspects of spot trading, comparing it to other trading methods and explaining its significance for traders.

Spot Trading: An Overview

So, what is spot trading? Spot trading refers to the buying and selling of financial instruments like currencies, commodities, stocks, cryptocurrencies* or other assets for immediate delivery. This means that buyers receive physical securities for cash. In practice, these assets are delivered within two business days, known as T+2 settlement (as of May 2024, many US assets are now settled within one business day).

Unlike futures or options, where contracts settle at a future date, spot trading is based on the current market price, known as the spot price. This real-time transaction process is why it's often called "on-the-spot" trading.

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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Oracle Shares (ORCL) Surge Over 11% to Record High

As the chart shows, Oracle Corp. (ORCL) closed yesterday’s trading session above $155, and during the session, the stock even climbed above $160, marking an all-time high.

The bullish sentiment is driven by a strong quarterly earnings report:

→ Earnings per share were $1.39, surpassing the $1.33 expected by FactSet analysts.
→ Revenue rose to $13.31 billion from $12.45 billion, beating the forecast of $13.23 billion.

"With cloud services becoming Oracle’s largest business, the growth in our operating profit and earnings per share has accelerated," said CEO Safra Catz in a press release.

Investors reacted positively to news of Oracle’s partnership with Amazon Web Services and projections of accelerated growth in the company’s order backlog.

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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Market Analysis: AUD/USD and NZD/USD Trim Gains, Are Bears Back?

AUD/USD declined below the 0.6720 and 0.6700 support levels. NZD/USD is also moving lower and might struggle to recover above 0.6200.

Important Takeaways for AUD/USD and NZD/USD Analysis Today

• The Aussie Dollar started a fresh decline from well above the 0.6700 level against the US Dollar.
• There is a connecting bearish trend line forming with resistance at 0.6660 on the hourly chart of AUD/USD at FXOpen.
• NZD/USD declined steadily from the 0.6255 resistance zone.
• There is a key bearish trend line forming with resistance at 0.6155 on the hourly chart of NZD/USD at FXOpen.
  

AUD/USD Technical Analysis

On the hourly chart of AUD/USD at FXOpen, the pair struggled to clear the 0.6765 zone. The Aussie Dollar started a fresh decline below the 0.6720 support against the US Dollar.

The pair even settled below 0.6700 and the 50-hour simple moving average. There was a clear move below 0.6670. A low was formed at 0.6640 and the pair is now consolidating losses. On the upside, an immediate resistance is near the 0.6660 level.

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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USD/JPY Analysis: Rate Drops to New Yearly Low

The USD/JPY chart shows the rate has fallen below its 5 August low.

This decline was influenced by comments from Bank of Japan representative Junko Nakagawa, who stated that the bank would continue raising interest rates if inflation keeps decreasing.

“Given that real interest rates are currently very low, we will adjust the level of monetary support to ensure the sustainable and stable achievement of our 2% inflation target,” she said.

Technical analysis of the USD/JPY chart shows:

→ Since early August, the price movement has fit within a descending channel (shown in red). → The price has fallen to the median of this channel, which continues to show signs of support (indicated by arrows).

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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S&P 500 Rises Following Inflation Data Release

Historically, September has been the worst month for the S&P 500 (US SPX 500 mini on FXOpen), and the start of the month reflected this trend, with the index dropping around 4.5% from 1 to 6 September, indicating bearish sentiment.

However, yesterday's event — the release of the Consumer Price Index (CPI) — may have marked a turning point.

According to Reuters, US inflation data showed that the core CPI rose by 0.28% in August, slightly above the forecast of 0.2%. This led market participants to believe that the Federal Reserve might agree to a 25-basis point rate cut next Wednesday.

TO VIEW THE FULL ANALYSIS, 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.

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Analytical Gold Price Forecasts for 2024 and the Next 6 Years

Over the past century, gold has consistently shown as both a beacon of potential stability and a mirror reflecting global economic fluctuations. This FXOpen article delves into the historical trends and future projections of gold prices, offering insights into its expected movements between 2024 and 2030.

Gold Price History

The journey of gold's value over time is marked by significant fluctuations influenced by economic policies, global crises, and shifts in demand. Traders can observe how these various factors influenced the spot gold price (XAUUSD) on FXOpen’s free TickTrader platform.

Post Bretton Woods and 1970s Inflation

The collapse of the Bretton Woods system in 1971 initiated a free float of currency values against gold, leading to a decade of volatility. The 1970s experienced a dramatic increase in the price of gold, fueled by inflation, geopolitical tensions, and energy crises, peaking at around $843 in 1980.

TO VIEW THE FULL ARTICLE, VISIT THE FXOPEN BLOG

Disclaimer: This article represents the opinion of the FXOpen INT company only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the the FXOpen INT, 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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Nvidia (NVDA) Shares Surge Over 8%

According to the Nvidia (NVDA) stock chart, yesterday’s closing price was just below $117, compared to just over $108 the day before. The positive momentum was largely driven by the stock market’s reaction to inflation news, as mentioned earlier.

For Nvidia investors, this is a clear sign that the stock is regaining its leadership position, a success attributed to CEO Jensen Huang.

As Barron’s reports, at the Goldman Sachs conference in San Francisco, Huang discussed the launch of the new Blackwell chip and the return on investment for Nvidia’s clients. He mentioned that demand is so high that some companies Nvidia works with have become "emotional."

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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Market Analysis: Gold Price Rallies To New ATH, Crude Oil Price Recovers

Gold price started a fresh surge above $2,550. Crude oil is recovering and might rise toward the $70.25 resistance zone.

Important Takeaways for Gold and Oil Prices Analysis Today

• Gold price started a strong increase from the $2,500 zone against the US Dollar.
• A major bullish trend line is forming with support at $2,528 on the hourly chart of gold at FXOpen.
• Crude oil is recovering losses and trading above the $67.00 support.
• There was a break above a connecting bearish trend line with resistance near $67.00 on the hourly chart of XTI/USD at FXOpen.
  

Gold Price Technical Analysis

On the hourly chart of Gold at FXOpen, the price formed support near the $2,500 zone. The price remained in a bullish zone and started a fresh increase above $2,520.

The bulls even pushed the price above the $2,550 level and the 50-hour simple moving average. Finally, it traded to a new all-time high at $2,570. The price is now consolidating gains near the $2,570 zone and the RSI is above 75.

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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DAX 40 Reacts Positively to ECB's Rate Cut Decision

Yesterday, the European Central Bank’s Governing Council cut the refinancing rate, as expected, from 4.25% to 3.65%.

The ECB also stated that monetary policy would remain sufficiently restrictive "for as long as necessary" to ensure inflation returns to its medium-term target of 2%.

Financial markets responded with:
→ A strengthening of the euro. EUR/USD rose by more than 0.5% after the rate cut announcement.
→ A rise in European stock market 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.

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Gold Price Hits New Record

As shown by the XAU/USD chart:
→ Gold has reached a new all-time high;
→ This morning, gold is trading around $2,567 per ounce.

Bullish sentiment is being driven by expectations of a Federal Reserve rate cut next week. According to MoneyControl, the International Monetary Fund stated on Thursday that it would be "appropriate" for the Fed to start its long-awaited monetary easing cycle at its meeting next week, as inflation risks have eased.

On 6 September, we analysed the gold price chart and identified:
→ an ascending channel (shown in blue);
→ two resistance lines forming a “bullish flag” pattern.

Gold’s surge to a new all-time high has broken through the “bullish flag,” suggesting a potential resumption of the rally. How successful could this be?

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.