Daily Market Analysis By FXOpen

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Mastering the Marubozu Candlestick Pattern in Trading

Have you been looking at a chart for hours, wondering when to buy or sell? In one moment, the chart is green, screaming “buy.” Next, it’s all red, and the price is falling. Buying or selling becomes a tough decision if you resonate with this. However, candlesticks on your chart can help you.

This FXOpen article will help cover one of them – the Marubozu candle pattern. Tag along to learn about this candlestick, its types, and how to trade using it.

What Is a Marubozu Candle?

A Marubozu is a candlestick with no wicks that has a long body. It signals a strong price action as buyers or sellers dominate the session. “Marubozu” is a Japanese term meaning “bald” or “close-cropped.”  

It can be bearish (if the open price is above the close) or bullish (if the open price is below the close). When it occurs, traders prepare for a significant price movement. But first, how can you identify it?

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.

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Pound Falls After Inflation Report

The Consumer Price Index (CPI) report for the UK was released today, showing that inflation is decreasing at a faster rate than analysts had predicted. According to data from ForexFactory:

→ Yearly CPI: actual = 1.7%, forecast = 1.9%, previous = 2.2%;

→ Yearly Core CPI: actual = 3.2%, forecast = 3.4%, previous = 3.6%.

The currency market responded with a decline in the pound sterling against other currencies. Traders likely assume that the Bank of England now has stronger reasons to consider easing its current monetary policy, aimed at curbing inflation.

Specifically, the GBP/USD rate fell to its lowest in nearly two months.

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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Nvidia (NVDA) Shares Fall Over 4%, Missing a Record High

On 12 September, when analysing Nvidia’s (NVDA) stock chart, we drew an upward channel (shown in blue) and noted several resistance levels, including:
→ a downward trendline (shown in red);
→ a psychological level at $130.

As Nvidia’s (NVDA) stock chart shows, the bulls managed to overcome this resistance zone with a strong candle on 7 October (marked with an arrow).

Afterwards, Nvidia’s (NVDA) stock price reached the median line of the blue channel, but sharply reversed downwards yesterday. The bearish sentiment was driven by:

→ a broader decline in the US stock market, potentially due to investors reassessing risks following the initial corporate earnings results as the reporting season gains momentum;
→ rumours that the US government is preparing restrictive measures (which may affect Nvidia) to prevent the export of high-tech chip manufacturing technology abroad.

As a result, Nvidia’s (NVDA) stock price dropped by approximately 4% yesterday, just shy of the record set on 20 June.

What’s next?

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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Euro Tests Key Support Levels Ahead of ECB Meeting

At the start of the current trading week, the U.S. dollar continued to strengthen across almost all fronts. European and commodity currencies are testing critical levels, and some pairs have managed to update recent extremes:

• EUR/USD fell below 1.0900
• GBP/USD is testing the 1.3000 level
• USD/CAD briefly traded above 1.3800
  

EUR/USD

The technical analysis of EUR/USD indicates the potential for further price declines, as a “double top” pattern has formed on the daily timeframe. Full completion of this pattern may lead to a test of the 1.0800-1.0790 range. The nearest area for corrective growth is between 1.0950 and 1.0900.

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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Fibonacci Retracements in Action: Practical Applications for Traders

If you’re wondering how to trade with Fibonacci retracements, you’re in the right place. In this article, we will break down why traders use retracements, their unique features, and how you can apply them in your trading strategies. Keep reading to learn about Fibonacci trading.

The Fibonacci Sequence for Trading

Fibonacci retracements are well-known tools used by traders of any level of experience. You may have never heard of Fibonacci Circles, Fibonacci Arcs, or a Fibonacci Spiral, but you have heard of retracements.

Fibonacci retracements make use of the Fibonacci sequence and the resulting Golden Ratio. Simply put, the Fibonacci sequence is a mathematical concept that starts at 0, then 1, with each following number being the sum of the previous two. It goes 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, etc.

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.

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Morgan Stanley (MS) Shares Rise 6.45%, Setting Historic High

Morgan Stanley (MS) reported its third-quarter results:
→ Earnings per share: actual = $1.88, forecast = $1.59
→ Gross revenue: actual = $15.38 billion, forecast = $14.35 billion

According to Barron’s, Morgan Stanley’s profit increased by 32% compared to last year, driven by heightened activity in investment banking, which had previously been pressured by the Federal Reserve's high interest rates.

Market participants reacted positively to Morgan Stanley’s success, with MS shares rising 6.45% in a day, reaching an all-time high. Will the rally continue?

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.