Daily Market Analysis By FXOpen

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Euro and Pound Under Pressure as Markets Focus on Upcoming Data

The euro has resumed its decline amid political uncertainty in France, while the pound remains under pressure, following the broader weakness in European currencies. On Monday, the euro fell to its lowest level in more than a week after the surprise resignation of French Prime Minister Sébastien Lecornu, which deepened the country’s political crisis and fuelled bearish sentiment in the options market. The risk reversal indicator — a closely watched gauge of market sentiment — has turned negative, suggesting traders are bracing for further losses. With US trading subdued by the ongoing government shutdown, investor focus has shifted to European developments. In the coming sessions, attention will centre on macroeconomic releases from the eurozone and the United Kingdom, which could set the short-term direction for EUR/USD and GBP/USD.

EUR/USD

After testing and sharply rebounding from 1.1780, EUR/USD buyers lost upward momentum, allowing the price to settle below 1.1700. Yesterday, the pair hit a new September low at 1.1600 but recovered above that level following the release of the FOMC minutes. A firm move below yesterday’s low could pave the way for further declines towards 1.1530–1.1570, while a sustained rise above 1.1700 may revive bullish momentum and lead to a retest of recent highs near 1.1760–1.1780.

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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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Dollar Index (DXY) Rises to Highest Level in Over Two Months

The chart shows the Dollar Index (DXY) trading above the 99-point level today — its highest since early August. The dollar’s strength is supported by the weakening of other currencies:

→ The yen is weakening amid expectations of looser monetary policy. Conservative Sanae Takaichi could become the first female prime minister in Japan’s history, pursuing substantial spending and economic stimulus.

→ The euro remains under pressure amid France’s political crisis. Following the resignation of Prime Minister Sébastien Lecornu’s government, President Emmanuel Macron stated he plans to appoint a new prime minister this week.

Will the Dollar Index continue to rise?

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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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Identifying and Trading the Cypher Harmonic Pattern

Harmonic trading patterns provide traders with structured setups based on Fibonacci ratios. The Cypher, while less frequent than patterns like the Gartley or Bat, may provide strong reversal signals when determined correctly. Trading the Cypher pattern requires both skill in identifying the formation and discipline in following its entry and exit rules. In this article, we’ll explore how to draw the Cypher, interpret its signals and how traders apply it within a disciplined trading framework.

What Is the Cypher Harmonic Pattern?
The Cypher is a type of harmonic pattern used by traders to identify potential buy and sell trades in financial markets. Specifically, it’s used to help find areas where a reversal may occur.

The pattern is made up of five swing points (X, A, B, C, D) and four legs (XA, AB, BC, CD). It’s characterised by an “M” shape when bullish and a “W” shape if bearish. Traders typically place orders at D to catch the potential 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.

 

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EUR/USD Falls to Two-Month Low

As shown on the EUR/USD chart today, the euro has dropped below 1.1550 against the US dollar — its lowest level since early August. The main driver of pressure on the single currency remains the political crisis in France:

President Emmanuel Macron is currently seeking a candidate for the position of prime minister. The situation is complicated by the fact that:
→ the government needs to quickly approve a rather tight budget reflecting the country’s significant deficit;
→ media reports highlight unrest in the streets;
→ financial market turbulence is intensifying amid uncertainty surrounding the ongoing US government shutdown.

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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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PepsiCo (PEP) Shares Jump Over 4% After Earnings Report — What’s Next?

Yesterday, PepsiCo Inc. (PEP) released its quarterly earnings report, which significantly exceeded expectations:
→ Earnings per share ($2.29) beat estimates of $2.26.
→ Gross revenue ($23.94 billion) also came in above forecasts of $23.94 billion.

According to The Wall Street Journal, PepsiCo will have a new Chief Financial Officer in a month — Steve Schmitt, a senior executive from Walmart. Analysts suggest that this leadership change could give the company a fresh boost, particularly as it continues to face challenges with sales growth, reflected in a months-long downtrend in its share price.

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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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Trump’s Decision Shakes Global Financial Markets

On Friday, 10 October, President Trump made an unexpected statement about the possible introduction of 100% tariffs on Chinese goods, triggering sharp price swings across global markets:

→ Stock markets: The S&P 500 index (US SPX 500 mini on FXOpen) tumbled by more than 3%, hitting its lowest level in over a month.
→ Currency markets: The US dollar slumped sharply against other major currencies.
→ Cryptocurrency markets: Bitcoin plunged from above $125k to below $110k, while other digital assets followed suit, leading to the largest long-position liquidation in history.

However, on Sunday, Donald Trump softened his tone on Truth Social, suggesting that trade relations with Beijing “will be absolutely fine”. Vice President JD Vance echoed this sentiment, adding that the United States is ready for talks if China is “prepared to act reasonably”.

This shift in rhetoric from US officials helped markets recover, with the S&P 500 index (US SPX 500 mini on FXOpen) rebounding sharply at Monday’s open, reclaiming much of Friday’s losses.

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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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XTI/USD Chart Analysis: Oil Price Falls Below $60

Friday’s comments from President Trump about the potential introduction of 100% tariffs on trade with China pushed WTI crude oil below the $60 level for the first time in four months. The bearish sentiment stemmed from fears of a global economic slowdown amid escalating trade tensions between the world’s two largest economies.

The decline was further supported by news of peace efforts in the Middle East, which reduced the impact of geopolitical risk on oil prices.

As the XTI/USD chart shows, WTI is currently trading below $60. How might the situation unfold next?

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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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Market Analysis: GBP/USD Dips Again While EUR/GBP Holds Support

GBP/USD failed to climb above 1.3500 and corrected some gains. EUR/GBP started a decent increase and might aim for more gains above 0.8710.

Important Takeaways for GBP/USD and EUR/GBP Analysis Today
- The British Pound is showing bearish signs below the 1.3400 support.
- There is a key bearish trend line forming with resistance near 1.3370 on the hourly chart of GBP/USD at FXOpen.
- EUR/GBP is gaining pace and trading above the 0.8700 handle.
- There is a connecting bullish trend line forming with support at 0.8695 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair failed to stay above the 1.3450 pivot level. As a result, the British Pound started a fresh decline below 1.3420 against the US Dollar.

There was a clear move below 1.3400 and the 50-hour simple moving average. The bears pushed the pair below 1.3300. Finally, there was a spike below the 1.3280 support zone. A low was formed near 1.3261 and the pair is now consolidating losses.

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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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Top 10 Currencies That Are Considered the Strongest in Asia

Asia is home to some of the world’s most powerful economies, and this strength is reflected in many Asian countries’ currencies. From oil-rich Gulf states to financial hubs like Singapore, the region hosts a diverse mix of currencies that stand out in global markets. These currencies highlight the economic environment, fiscal discipline, and the influence of natural resources.

In this article, we look at the top ten currencies considered the most valuable in Asia and the reasons behind their resilience.

The List of Top 10 Currencies That Are Considered the Strongest in Asia
The currency rate of Asian countries offers insight into their economic health, showing how each nation’s money trades internationally. Stronger currencies typically reflect economic health, resource wealth, or advanced financial systems, while weaker ones may reveal structural challenges.

Below, we present a list of Asian currencies ranked by their value against the US dollar. Using the dollar as the global benchmark allows for clear comparisons between what are seen as Asia’s top 10 currencies.

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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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Silver Price Reaches Record High

The previous peak was set in 1980, but this week the price of silver rose above $53 for the first time ever, as shown on the XAG/USD chart.

Bullish sentiment has been driven by political factors, sustained demand from central banks, and the metal’s growing use in modern industries such as renewable energy.

Meanwhile, media reports are adding to the sense of market frenzy, noting:
→ shortages in physical supply;
→ forced liquidation of short positions (the “short squeeze” effect);
→ bold analyst forecasts — with a CNBC survey suggesting silver could double from current levels to reach $100.

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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Commodity Currencies Weaken Amid Escalating Trade Tensions

The Australian and Canadian dollars weakened after Donald Trump announced plans to impose 100% tariffs on Chinese goods. The escalation in trade tensions between the world’s two largest economies has increased market caution and weighed on risk-sensitive currencies.

Trump stated that the tariffs would come into effect from 1 November or sooner, depending on Beijing’s response. The announcement followed China’s decision to restrict exports of rare earth metals — a move that fuelled concerns over the stability of global supply chains.

Although Trump later expressed optimism about a “constructive dialogue” with China, markets interpreted his remarks as a signal for heightened volatility.

This week, traders’ focus will remain on further comments from Washington and Beijing, as well as on oil price movements, which continue to be a key driver for USD/CAD. Any softening of rhetoric could support a recovery in commodity currencies, but if the US maintains a hard line, downward pressure on the AUD and CAD may intensify.

USD/CAD

News of the proposed tariffs prompted USD/CAD to break out of its medium-term range between 1.3930 and 1.3970. The pair not only pierced the upper boundary but also consolidated above the key psychological resistance level of 1.4000.

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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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Broadcom (AVGO) Shares Surge Nearly 10% on OpenAI Partnership News

Last month, news of a partnership with OpenAI served as a powerful bullish catalyst for NVIDIA (NVDA) shares. In October, a similar effect can be seen on the Broadcom (AVGO) chart.

According to media reports, the two companies have been collaborating for 18 months but are now making their partnership public. Their plans for 2026 include launching chip racks developed by OpenAI and based on Broadcom technology.

The rally in AVGO shares was further supported by:
→ President Trump’s conciliatory tone following his earlier remarks about imposing 100% tariffs on Chinese goods;
→ the prospect of a meeting between the Chinese and US leaders in South Korea at the end of October, as announced by US Treasury Secretary Scott Bessent.

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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Ascending Channels: Key Characteristics and Trading Applications

Recurring market structures are one of the critical parts of technical analysis. The ascending channel is a classic pattern that reflects steady upward movement. In this article, we break down the structure of ascending channels, their trading implications, and how traders may use them to identify price direction.

What Is an Ascending Channel Pattern?
An ascending channel is a common pattern on price charts. Also known as a rising channel pattern or an upward channel pattern, this formation can be found primarily in the uptrend. It is characterised by two parallel lines. As the price of an asset moves higher over time, these two lines are formed by connecting higher highs and lows, creating boundaries that the price interacts with.

According to the theory, ascending channels mark a period of consolidation in a bullish trend, after which an upward breakout is expected to occur. However, a breakdown may happen. Also, in some cases, we can see the pattern in a downtrend, where the price can also break out in any direction.

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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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What Order Imbalance Is and How It May Be Applied in Trading

Grasping the dynamics of order imbalances may help traders interpret shifts in asset prices. By highlighting the real-time tug-of-war between supply and demand, order imbalances offer valuable market insights. In this article, we explore what drives these imbalances and outline a practical approach within the framework of a trading strategy.

Understanding Order Imbalances
Order imbalance, a fundamental concept in forex, crypto*, commodity, and stock markets, refers to a situation where there is a disproportionate number of buy or sell orders for a particular asset. This imbalance of orders can significantly influence asset prices, pushing them up or down depending on the direction of the imbalance. Known also as fair value gaps, they offer a window into the underlying supply and demand dynamics shaping the market at any given moment.

A market imbalance occurs when there's an overwhelming interest from buyers (buy-side imbalance) or sellers (sell-side imbalance) without enough opposite-side orders to match. This scenario typically reflects the market participants' consensus about the asset's future direction.

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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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Hidden Divergence Vs Regular Divergence: Basics and Examples

Divergence is a popular tool for spotting potential shifts in market direction. While the general principles for identifying divergence are straightforward, distinguishing between regular and hidden forms can be more complex. In this article, we outline the main differences between regular and hidden divergence and demonstrate how traders may interpret their signals using practical examples.

What Is Divergence?
In technical analysis, the term divergence has two meanings. You may have heard of the MACD indicator. It’s an abbreviation for Moving Average Convergence Divergence. In this case, divergence stands for the movement of two lines relative to each other – they move away from each other. Convergence occurs when the lines move closer together.

The second meaning relates to the topic we will discuss in this article – how the price and the indicator relate to each other. Traders look for divergence between the price and an oscillator, like the relative strength index, stochastic, awesome oscillator, or MACD. It occurs when the market forms an extreme high or low, but the indicator doesn’t follow.

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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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Market Analysis: EUR/USD Attempts Recovery While USD/JPY Corrects Gains

EUR/USD is recovering losses from 1.1540. USD/JPY is correcting gains from 153.20 and might decline further below 151.00.

Important Takeaways for EUR/USD and USD/JPY Analysis Today
- The Euro struggled to stay in a positive zone and declined below 1.1650 before finding support.
- There was a break above a connecting bearish trend line with resistance at 1.1590 on the hourly chart of EUR/USD at FXOpen.
- USD/JPY rallied significantly before the bears appeared near 153.20.
- There is a major bearish trend line forming with resistance near 151.55 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair started a fresh decline from 1.1720. The Euro declined below 1.1650 and 1.1600 against the US Dollar.

The pair even declined below 1.1565 and the 50-hour simple moving average. Finally, it tested the 1.1540 zone. A low was formed at 1.1541, and the pair is now recovering losses. There was a move above 1.1600 and a connecting bearish trend line at 1.1590.

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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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Gold Price Falls from Above $4,200

The XAU/USD chart shows that gold recently climbed above the $4,200 mark for the first time. The upward momentum has been supported by the ongoing US government shutdown, central bank demand (with reports highlighting a sharp rise in reserves at the Reserve Bank of India), and market focus on US–China trade developments.

According to Trading Economics, on Tuesday President Donald Trump accused China of “economically hostile” behaviour, citing a halt in soybean imports, and warned of potential retaliatory measures.

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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.