Daily Market Analysis By FXOpen

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AUD/USD Analysis: Exchange Rate Holds at a 56-Month Low

As seen on the AUD/USD chart, yesterday the exchange rate fell below the level of 0.618 Australian dollars per 1 US dollar. The last time the Australian dollar was this weak was in April 2020, during the global spread of the coronavirus.

The decline followed the release of inflation data from Australia earlier this week. According to Bloomberg:
→ Overall annual inflation accelerated to 2.3%, up from 2.1% previously.
→ The trimmed mean core inflation (which smooths volatile items and is closely monitored by the Reserve Bank) slowed to 3.2%, down from 3.5%.
→ Traders are pricing in a 70% chance of a 25 basis point rate cut in February from the current 4.35% (a 13-year high).

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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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Penny Stocks vs Forex: Advantages and Challenges

Penny stocks and forex trading offer potential opportunities and challenges, appealing to traders with different goals and risk tolerances. This article explores how the speculative nature of penny stocks compares to the dynamic forex market, examining their key characteristics, risks, and potential rewards.

Understanding Forex Trading
Forex trading involves the exchange of currencies in a global, decentralised market.

What Is Forex Trading?
You already know what the forex market is. However, to make our article comprehensive, we should mention its unique characteristics.

Forex, or foreign exchange trading, is the process of buying and selling currency pairs to take advantage of changes in their relative values. It is the largest financial market in the world, with an average daily trading volume exceeding $7 trillion (as of April 2022). Unlike traditional stock markets, forex operates without a central exchange and functions 24 hours a day, five days a week, allowing traders from different time zones to participate.

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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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S&P 500 Index Drops to 2-Month Low

On Friday, the US unemployment data was released, as reported by ForexFactory:
→ The unemployment rate dropped from 4.2% to 4.1%;
→ The number of new jobs (Non-Farm Employment Change) increased by 256,000 over the month, although analysts had forecast an increase of 164,000 (previous value = 212,000).

According to Reuters, the strong labour market data strengthened the market participants' view that the Federal Reserve will be cautious in cutting interest rates in 2025.

Based on CME Group’s FedWatch tool, traders expect the Fed to reduce borrowing costs for the first time in June and then keep it at that level for the remainder of the year.

Expectations that tight monetary policy will persist longer than usual have led to bearish sentiment. As a result, the S&P 500 index (US SPX 500 mini on FXOpen) dropped below the 5,800 mark this morning, its lowest point since early November.

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 Under Fire, Deeper Losses Ahead?

AUD/USD declined below the 0.6350 and 0.6250 support levels. NZD/USD is also moving lower and might extend losses below 0.5540.

Important Takeaways for AUD/USD and NZD/USD Analysis Today
· The Aussie Dollar started a fresh decline from well above the 0.6300 level against the US Dollar.

· There is a connecting bearish trend line forming with resistance at 0.6175 on the hourly chart of AUD/USD at FXOpen.

· NZD/USD declined steadily from the 0.5690 resistance zone.

· There is a short-term bearish trend line forming with resistance at 0.5580 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 0.6300 zone. The Aussie Dollar started a fresh decline below the 0.6250 support against the US Dollar.

The pair even settled below 0.6220 and the 50-hour simple moving average. There was a clear move below 0.6200. A low was formed at 0.6139 and the pair is now consolidating losses. On the upside, an immediate resistance is near the 0.6175 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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Market Insights with Gary Thomson: UK & US Inflation, UK GDP Growth, Corporate Earnings Statements

We’re excited to launch our new forward-looking ‘Market Insights’ series! Hosted by FXOpen’s UK COO, Gary Thomson, this series provides a fresh perspective on global markets, highlighting upcoming economic data, geopolitical events, and central bank announcements.

In this episode:
- How could the US inflation rate influence the US dollar?
- What might UK GDP growth and inflation data mean for the struggling British pound?
- Which corporate earnings reports could drive the US stock market this week?

Don’t miss out—gain insights to stay ahead in your trading journey.
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

#marketwrap #marketanalysis #forexmarketanalysis #stockmarketanalysis

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.

#fxopen #fxopenyoutube #fxopenint #weeklyvideo

 

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Mastering EUR/USD Trading

The EUR/USD is the most traded forex pair, offering unparalleled liquidity and potential opportunities for traders of all levels. The exchange rate between the euro and the US dollar reflects the economic relationship between the two global powerhouses. In this article, we’ll explore what makes the EUR/USD so popular, the factors influencing its price, and how to approach the pair.

What Is the EUR/USD Forex Pair?
Although you definitely know what the EUR/USD pair is, we can’t start this article without a short overview.

The EUR/USD pair represents the exchange rate between the euro (EUR) and the US dollar (USD), showing how many US dollars are needed to buy one euro. It's the most traded currency pair in the world, thanks to its significant role in the global economy. For traders, this often means tight spreads, high trading volumes, and potential opportunities in various market conditions.

Introduced in 1999 with the euro's creation, the EUR/USD pair reflects the economic relationship between the Eurozone—comprising 20 European countries—and the United States. It’s more than just a number on a chart; it’s a barometer for the performance of two of the largest economic regions. Movements in this pair are influenced by factors like interest rates set by the European Central Bank (ECB) and the Federal Reserve (Fed), economic indicators such as GDP growth, and geopolitical events impacting either region.

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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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Brent Oil Price Retreats from a 3-Month High

On January 6, while analysing the XBR/USD chart, we:
→ constructed an upward structure using blue trend lines;
→ highlighted the potential for a pullback after the formation of peaks A and B around the $76.20 level.

What happened next?

As shown on the XBR/USD chart, Brent oil prices retreated on January 8 to the lower blue line (point C), where bulls successfully resumed the uptrend, pushing the price close to $81—a level last seen in early October 2024, near a key peak (not shown on the chart).

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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Tesla (TSLA) Stock Price Rises Above $400

According to the Tesla (TSLA) chart, the stock price increased by 2% on Monday, closing above the key psychological level of $400.

Bullish sentiment was driven by Morgan Stanley analysts raising their target price for Tesla (TSLA) from $400 to $430, citing the company's "highly promising" progress in autonomous vehicle (AV) technology.

From a technical analysis perspective, this upward move is notable. Applying a linear regression trend channel from early November, when Tesla’s stock began a sharp rise following news of Trump’s victory (supported by Elon Musk), reveals:
→ a reversal upward from the lower boundary of the trend channel;
→ the potential for an upward breakout through the resistance of the red descending trend line, which formed as the price declined from the record high near $488 on December 18.

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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Why the British Pound Is Stronger than the US Dollar

How strong is the pound compared to the US dollar? The GBP/USD exchange rate is a key indicator of the economic relationship between two global powers. From historical dominance to modern fluctuations driven by monetary policy, economic metrics, and geopolitical events, understanding this pair offers insights into both economies. This article explores why the pound remains stronger in nominal terms and what impacts its value today.

A Brief History of the GBP/USD Pair
The British pound sterling has long been one of the most significant currencies globally. As the currency of one of the world’s earliest industrialised nations, its value and influence were deeply intertwined with the UK’s position as a global economic leader. The pound’s status as a trusted store of value was solidified during the height of the British Empire, as it facilitated international trade and finance across the empire's vast reach.

By the 19th century, the pound sterling was backed by the gold standard. This system ensured that each pound in circulation was supported by a fixed amount of gold, offering stability and trust. However, geopolitical shifts, wars, and the rise of competing economies, particularly the United States, began to challenge the pound's dominance as the 20th century progressed.

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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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GBP/USD Analysis: Bulls Find Renewed Hope

This morning, UK inflation data was released, as reported by ForexFactory:

Consumer Price Index (CPI): actual = 2.5%, expected = 2.6%, previous = 2.6%;
Core CPI: actual = 3.2%, expected = 3.4%, previous = 3.5%.
The foreign exchange market reacted with a surge in volatility as UK inflation showed a decline.

At the same time, a technical analysis of the GBP/USD chart offers some hope for bulls following a drop of more than 9% from the peaks of September 2024 (interestingly, on 10th September 2024, we noted that bulls were facing challenges).

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 and WTI Crude Oil Prices Regain Momentum

Gold price started a fresh increase above the $2,665 resistance level. WTI Crude oil prices climbed higher above $77.00 and might extend gains.

Important Takeaways for Gold and WTI Crude Oil Prices Analysis Today
· Gold price started a steady increase from the $2,630 zone against the US Dollar.

· It cleared a key bearish trend line with resistance at $2,670 on the hourly chart of gold at FXOpen.

· WTI Crude oil prices extended gains above the $74.40 and $76.50 resistance levels.

· There is a short-term declining channel forming with support at $76.00 on the hourly chart of XTI/USD at FXOpen.

Gold Price Technical Analysis

On the hourly chart of Gold at FXOpen, the price formed a base near the $2,630 zone. The price started a steady increase above the $2,650 and $2,665 resistance levels.

There was a decent move above the 50-hour simple moving average and $2,680. The bulls pushed the price above the $2,690 resistance zone. Finally, the bears appeared near $2,700. A high was formed near $2,697 before there was a downside 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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Morgan Stanley (MS) Shares Display Strength Ahead of Earnings Release

The stock market is eagerly awaiting the start of the quarterly earnings season. Traditionally, it kicks off with reports from major players in the financial sector, including Morgan Stanley (MS). The bank's earnings report is scheduled for tomorrow, Thursday, before the opening of the main trading session.

According to Yahoo Finance, analysts expect:
→ Earnings per share (EPS) to be $1.62, indicating a 43.4% increase compared to the previous year;
→ Revenue to reach $14.8 billion, reflecting a 14.7% rise year-on-year.

Meanwhile, MS’s share price may also be influenced by internal organisational changes at Morgan Stanley. The bank has created a new division to enhance client relations and appointed a new head of wealth management.

MarketWatch notes that the upcoming earnings season could be the strongest in three years (based on FactSet data), with the financial sector likely to be the largest contributor to profits this season. Furthermore, a technical analysis of Morgan Stanley’s (MS) stock chart suggests that market participants are optimistic.

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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European Currencies Correcting After Sharp Decline

At the beginning of the week, the US dollar managed to reach new highs against certain currencies. For instance, the EUR/USD pair hit a recent low of 1.0200, sellers of GBP/USD tested the support at 1.2100, and the USD/JPY pair is stubbornly trying to stay above 158.00.

EUR/USD
The US employment report released last Friday provided significant support to the US dollar. The increase in new jobs at 256K, against a forecast of 164K, and the drop in the unemployment rate to 4.1%, versus the expected 4.2%, suggest that a change in the Federal Reserve's monetary policy may be anticipated in the near future.

The upcoming inauguration of President Donald Trump and the associated threats of new trade wars are putting additional pressure on EUR/USD.

On Tuesday, sellers of the EUR/USD pair managed to break the current year’s low at 1.0220. The price quickly bounced back, forming a reversal pattern, a "hammer." Technical analysis of EUR/USD indicates a potential continuation of the upward correction if buyers manage to hold above 1.0340. However, if the price drops below 1.0230, the recent low could be revisited.

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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How to Trade with the On-Neck Pattern

Analysing price movements and identifying trends are crucial aspects of financial markets, and traders often rely on trading indicators and candlestick patterns for informed decision-making. In the realm of trading, the On-Neck pattern may serve as a significant setup for traders. This article delves into the understanding of the On-Neck pattern in day trading and explores its strategic implications.

What Is an On-Neck Pattern?

The On-Neck is a two-candlestick formation that usually appears in a downtrend and signals a trend continuation. It consists of a tall down candle followed by one that gaps down on the open but closes at or near the previous candle’s close. The term "On-Neck" refers to the horizontal line formed by the identical or nearly identical closing prices of the two candlesticks, resembling a neckline.

VIEW 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 Index Rises to Psychological Level

The US stock market experienced an upswing following the release of inflation data yesterday. According to ForexFactory:
→ The annual Consumer Price Index (CPI) matched expectations at 2.9%.
→ The monthly Core CPI came in at 0.2%, below analysts' forecast of 0.3%.

Market participants interpreted this as a positive signal, leading to the S&P 500 index (US SPX 500 mini on FXOpen) gaining over 1% in the first 30 minutes after the data release.

As reported by Reuters:
→ Concerns about inflation eased, reviving hopes for a potential Federal Reserve rate cut, buoyed by a strong start to the earnings season (which we will cover in more detail later);
→ However, the rally may be short-lived, as inflation in the US remains uncomfortably high and could increase further due to aggressive tariff and tax policies under the new Trump administration;
→ Analysts caution that the Federal Reserve's rate is likely to remain unchanged for some time.

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 Hits One-Month Low

The USD/JPY pair fell to its lowest level in a month during today’s Asian session, dropping below 155.5 yen per US dollar for the first time since 19th December.

As Reuters reports:
→ The yen’s strengthening was driven by hawkish comments from Bank of Japan (BOJ) Governor Kazuo Ueda, which prompted markets to bet on a potential interest rate hike next week.
→ A significant majority of surveyed economists anticipate the BOJ will raise rates at one of its two meetings this quarter, with most favouring a January hike.

The BOJ’s decision on rates may depend on market stability following Donald Trump’s return to the White House next Monday. His inauguration speech will be closely watched by policymakers worldwide to gauge his likely political direction.

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.