Daily Market Analysis By FXOpen

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Imbalance Trading in Forex and CFDs

An imbalance in trading is a price zone where supply or demand heavily outweighs the opposite side, causing a sharp directional move with little trading in between. These zones sit at the heart of Smart Money Concept analysis. They shape how traders read momentum, structure, and entry points across forex and CFDs.

This article covers what drives imbalance in forex and CFDs and how it shows up on a chart. It walks through how an imbalance trading strategy may be built around price action, the link between an order flow imbalance and liquidity, and the difference between imbalance zones, fair value gaps, and order blocks.

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 Fresh Decline Signals More Weakness Ahead

AUD/USD failed to stay in a positive zone and declined below 0.7150. NZD/USD is also moving lower and might extend losses below 0.5800.

Important Takeaways for AUD/USD and NZD/USD Analysis Today
- The Aussie Dollar started a fresh decline from well above 0.7200 against the US Dollar.
- There is a bearish trend line forming with resistance at 0.7120 on the hourly chart of AUD/USD at FXOpen.
- NZD/USD declined steadily from 0.5965 and traded below 0.5880.
- There is a key bearish trend line forming with resistance at 0.5855 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 0.7220. The Aussie Dollar started a fresh decline below 0.7150 against the US Dollar.

The pair even settled below 0.7120 and the 50-hour simple moving average. There was a clear move below 0.7100. A low was formed at 0.7081, and the pair is now consolidating losses. There was a minor recovery wave above the 23.6% Fib retracement level of the downward move from the 0.7184 swing high to the 0.7081 low.

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 Retreat Ahead of the Release of the FOMC Minutes

AUD/USD is pulling back from local highs, while USD/CAD continues to recover amid a stronger US dollar and ahead of the release of the Federal Reserve minutes. Following an extended rally, commodity-linked currencies have entered a corrective phase, although the current move still appears more like profit-taking and a test of key technical levels than a full trend reversal. Market participants remain cautious ahead of the publication of the FOMC minutes, which could reshape expectations regarding the future path of US interest rates.

Additional investor attention will focus on tomorrow’s batch of Australian economic data, including labour market figures and inflation expectations. These indicators may influence expectations surrounding the Reserve Bank of Australia’s next policy steps. At the same time, the US dollar continues to draw support from rising Treasury yields and a broader decline in risk appetite ahead of key Fed-related releases.

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: Beijing Optimism Overshadowed by Debt Risks

Fundamental Background
On 14–15 May, a high-level US–China summit took place in Beijing, where both sides discussed the potential easing of trade tensions and certain mutual concessions. Against a backdrop of positive expectations, the S&P 500 closed above 7,500 points for the first time, while the Dow Jones returned to the psychologically significant 50,000 mark.

At the same time, markets continue to feel pressure from US debt-related risks: the country’s credit rating remains below the highest tier, while the growing federal budget deficit and accumulated debt burden are increasing investors’ sensitivity to fiscal risks. The combination of trade optimism and budgetary vulnerabilities is creating a mixed and more volatile fundamental backdrop for the S&P 500.

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 and Sterling Strengthen After Volatile Support Tests

EUR/USD and GBP/USD have moved into recovery mode following a sharp test of key support levels, although the market remains cautious ahead of the release of important macroeconomic data from the US, the eurozone and the UK. Earlier this week, the European currencies came under pressure: GBP/USD fell towards the 1.3300 area, while EUR/USD tested support at 1.1600. However, the successful defence of these levels triggered active profit-taking on the US dollar and a subsequent corrective rebound in the European currencies.

In the coming trading sessions, investors’ attention will focus on the publication of PMI business activity indices in the eurozone, the UK and the US, as well as US housing market data and jobless claims statistics. The market is assessing signs of a further slowdown in the US economy following recent indications of weakening business activity, which is partly limiting the potential for further dollar appreciation.

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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Overbought vs Oversold Stocks Explained

An overbought stock has risen sharply and may sit above its underlying value, while an oversold stock has fallen sharply and may sit below it. In technical analysis, these conditions are used to identify markets that may be approaching a pause, slowdown, or potential price reversal.

The oversold stock meaning refers to a market condition where selling pressure has pushed a stock’s price lower than its recent trading range or momentum may justify. Overbought conditions reflect the opposite scenario, where strong buying activity has driven prices rapidly higher.

To identify these market conditions, traders often use technical indicators such as the Relative Strength Index (RSI), Stochastic Oscillator, and MACD. This article explains what overbought and oversold stocks and stock CFDs are, how these indicators work, and the limitations traders should consider when interpreting their signals.

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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Australian Dollar Loses Momentum After May Peaks

Fundamental Background
The RBA’s third consecutive interest rate increase to 4.35% reflects the regulator’s concern over rising inflation: the conflict in the Middle East is increasing energy costs and putting upward pressure on prices. Annual consumer inflation stood at 4.6% in March. Analysts at CBA believe this rate hike should be sufficient, with the base-case scenario pointing to rates remaining unchanged until the end of 2026, provided neither the federal budget nor second-quarter inflation data deliver major surprises.

At the same time, the Australian dollar failed to hold near its May highs, as rising demand for safe-haven assets amid global uncertainty weighed on risk-sensitive currencies.

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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4 Popular 1-Minute Scalping Strategies (VWAP, MACD, RSI, ALMA & More)



In this video, we break down 4 popular 1-minute scalping strategies designed for fast-paced trading conditions and short-term momentum trades.

If you trade the 1-minute timeframe, you already know that price action is often driven by rapid movements, volatility spikes, and quick reversals. That’s why professional traders prefer a structured approach using proven trading indicators.

We cover four widely used scalping strategies:
1. VWAP + MACD Trend Strategy
2. Keltner Channels + RSI Breakout Strategy
3. ALMA + Stochastic Reversal Strategy
4. RSI + Bollinger Bands Mean Reversion Strategy

These strategies are not edges on their own — they are frameworks. The difference comes down to how consistently they are executed when the market speeds up.

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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Netflix 2026: Reversal on the Deal, Pullback on Earnings

Fundamental Background
At the end of February, Netflix withdrew from the bid for Warner Bros. Discovery assets after WBD’s board deemed Paramount Skydance’s $31-per-share offer more attractive. Netflix chose not to raise its own bid of $27.75 per share and received compensation of $2.8 billion. The market reacted positively to the company’s exit from the months-long M&A battle, as the threat of adding more than $40 billion in debt to the balance sheet was removed.

The second key event was the company’s Q1 2026 earnings report, released on 16 April. Revenue reached $12.25 billion (+16% year-on-year), while earnings per share came in at $1.23, exceeding consensus forecasts. However, guidance for Q2 fell short of analysts’ expectations for both revenue and EPS, while company founder Reed Hastings announced plans to step down from the board in June. Together, these factors triggered a sharp negative market reaction in April.

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: GBP/USD Turns Bullish Again While EUR/GBP Drops More

GBP/USD is showing positive signs above 1.3440 and 1.3460. EUR/GBP declined and is now consolidating losses below 0.8680.

Important Takeaways for GBP/USD and EUR/GBP Analysis Today
- The British Pound started a fresh increase above 1.3420 to enter a positive zone.
- There is a bullish trend line forming with support at 1.3450 on the hourly chart of GBP/USD at FXOpen.
- EUR/GBP is trading in a bearish zone below the 0.8660 pivot level.
- There is a connecting bearish trend line forming with resistance near 0.8650 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair remained well-bid above 1.3350. The British Pound started a decent increase above 1.3400 against the US Dollar.

The bulls were able to push the pair above the 50-hour simple moving average and 1.3440. The pair even climbed above 1.3480. A high was formed at 1.3490, and the pair is now consolidating gains above the 23.6% Fib retracement level of the upward move from the 1.3395 swing low to the 1.3490 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.

 

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ICT Power of 3 (PO3) Explained

The ICT Power of 3 is a price action model describing how markets move through three phases: accumulation, manipulation, and distribution. Also called the AMD trading model, it sits within the Inner Circle Trader framework. Traders use it to interpret institutional behaviour and shape their own market analysis. Recognising these phases may help traders assess potential areas of interest and align their strategies with broader market dynamics.

This article outlines the core principles of the Power of 3 framework, providing a detailed examination of how it is applied in the context of institutional order flow and market structure.

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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EUR/JPY: Yen Recovers April Losses as the Market Searches for a New Equilibrium

Fundamental backdrop
In late April 2026, Japan’s Ministry of Finance moved from verbal warnings to direct action, carrying out a currency intervention worth roughly ¥5.5 trillion ($35 billion) — the first since July 2024. The move was triggered by the yen weakening beyond the psychologically significant level of 160 against the dollar.

Additional context comes from the divergence in monetary policy between the ECB and the Bank of Japan: the European regulator continues to leave the door open to tighter policy amid rising inflation expectations, while Tokyo maintains a cautious normalisation path without providing clear guidance on the timing of its next move.

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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Break and Retest Strategy in Trading

The break and retest strategy is a trading approach based on support and resistance levels. A breakout occurs when price moves beyond a key level, while a retest happens when price returns to that level before potentially continuing in the direction of the breakout. Traders use this strategy in forex and CFD markets to identify possible trend continuation setups and evaluate market structure shifts.

The approach is commonly applied in trending conditions, where price momentum may support continuation after the retest is confirmed. Traders often combine break and retest in trading with price action analysis, volume, or technical indicators to assess breakout strength and manage risk more effectively. In this article, we explain how the break and retest strategy works, how traders may apply it in different market conditions, and which confirmation methods are commonly used.

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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Geopolitical Risks Support the Dollar Ahead of Fresh US Data

At the start of the week, the US currency continues to trade near significant levels amid ongoing uncertainty surrounding negotiations between the United States and Iran. Markets are closely monitoring reports suggesting a possible prolongation of the negotiation process and an increased US military presence in the Middle East, both of which are supporting demand for safe-haven assets, including the dollar.

Additional support for the US currency comes from rising US Treasury yields and expectations surrounding upcoming macroeconomic data releases, which could influence further market expectations regarding Federal Reserve policy.

At the same time, the dollar’s movement remains mixed. Despite the recent strengthening of USD/JPY and USD/CAD, both pairs have approached important technical resistance levels, where buying activity is beginning to slow. The market is now assessing whether the current momentum can develop into a broader continuation of dollar strength, or whether the advance in the US currency will remain merely a short-term reaction to geopolitical risks.

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: EUR/USD Targets More Upside As USD/CHF Turns Higher Again

EUR/USD started a downside correction from 1.1650. USD/CHF is rising and might aim for a move toward 0.7880 or 0.7900.

Important Takeaways for EUR/USD and USD/CHF Analysis Today
- The Euro struggled to clear 1.1650 and corrected gains against the US Dollar.
- There is a key bullish trend line forming with support at 1.1630 on the hourly chart of EUR/USD at FXOpen.
- USD/CHF is showing positive signs above the 0.7830 zone.
- There was a break above a connecting bearish trend line with resistance at 0.7830 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair gained pace for a move above 1.1600. The Euro tested 1.1650 and recently corrected gains against the US Dollar.

The pair dipped below 1.1635 and the 38.2% Fib retracement level of the upward move from the 1.1588 swing low to the 1.1652 high. However, the bulls were active above 1.1620. There is also a key bullish trend line forming with support at 1.1630.

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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NZD/USD: RBNZ Decision Strengthens Expectations of Further Rate Hikes

Fundamental backdrop
On 27 May, the Reserve Bank of New Zealand kept the Official Cash Rate (OCR) unchanged at 2.25%, in line with market expectations. However, the decision proved finely balanced: the Monetary Policy Committee voted 3–3, with the final decision resting with Governor Anna Brehman.

In its updated rate projection path, the regulator signalled that the OCR could rise to around 2.8% by the end of the year, implying several rate hikes before year-end. Additional caution stems from the inflation backdrop: the conflict in the Middle East continues to keep inflation above the target range, while the central bank also warned about the weak pace of economic recovery. The split vote and the signal of likely future tightening supported the New Zealand dollar during the Asian session.

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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EUR/USD and GBP/USD Range-Bound Ahead of Key US Data

European currencies continue to trade within established ranges following the heightened volatility of recent weeks. Last week, both EUR/USD and GBP/USD declined before staging a recovery; however, the pairs are once again testing important support levels without developing a sustained directional impulse. Market participants remain cautious amid the absence of fresh geopolitical catalysts and ahead of key macroeconomic data releases from the United States.

Investor attention is primarily focused on the publication of US core Personal Consumption Expenditures (PCE) data, GDP figures, and durable goods orders. These indicators could significantly influence expectations regarding future Federal Reserve policy and determine the next direction for the dollar. Additional market influence is also coming from comments by Bank of England officials and European data on business activity and consumer confidence.

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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FTSE 100: Correction Has Ended, but a New Impulse Has Yet to Form

Fundamental backdrop
The UK inflation report for April, published on 20 May, delivered unexpectedly positive figures: annual inflation slowed to 2.8% in April 2026 from 3.3% in March, coming in below the consensus forecast of 3.0% and marking the lowest reading since March last year.

Nevertheless, the relief is being viewed as temporary. The unresolved conflict involving Iran continues to exert pressure on oil prices, while the Bank of England maintains a cautious approach towards rate cuts, unwilling to move ahead of incoming inflation data.

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/CHF: Consolidation After the Trend

Fundamental Backdrop
The Swiss franc remains influenced by two opposing forces. On the one hand, there is steady demand for safe-haven assets amid tariff-related risks stemming from the United States. On the other, the policy stance of the Swiss National Bank (SNB) continues to play a role: in March, the central bank kept its policy rate at zero and reaffirmed its readiness to intervene in the foreign exchange market to prevent excessive franc appreciation.

The Federal Reserve, for its part, is also taking a cautious approach to policy easing. In January, the Fed paused its rate-cutting cycle, citing persistent inflationary pressures. The divergence in the rhetoric of the two central banks has so far failed to provide either side with a sustained advantage.

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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Quasimodo Pattern in Trading

The Quasimodo pattern is a reversal structure that closely resembles the Head and Shoulders. Many traders overlook it or mistake it for its more popular counterpart in price action trading. The QM pattern has distinct entry, stop-loss, and take-profit rules that set it apart. This article covers its structure, the methods used to confirm signals, and the execution rules.

Quasimodo Pattern Structure Explained
The Quasimodo pattern is a reversal chart structure that forms at the end of a trend. The QM pattern relies on a failed continuation. Price prints a higher high (or lower low) in line with the trend. Then it reverses and breaks the prior swing in the opposite direction. This break invalidates the previous structure and signals exhaustion. QM pattern trading suits any timeframe. A Quasimodo trading strategy may be used across forex, stock, and commodity charts.

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.