Daily Market Analysis By FXOpen

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The Dollar Strengthens Ahead of Employment Data

The USD/JPY and USD/CAD currency pairs are showing an upward trend, supported by the strengthening US dollar, which is backed by a number of factors. At yesterday's meeting, the Bank of Japan kept the key interest rate unchanged, disappointing "yen bulls" who had hoped for signals of a possible tightening of monetary policy. This decision by the Japanese regulator contributed to the weakening of the yen, causing the USD/JPY pair to update local highs, approaching key resistance levels.

The USD/CAD pair continues to trade near local lows, holding above support around 1.3780, indicating stabilisation in demand for the dollar. An additional factor is the weak performance of oil prices, which remain in a sideways range, limiting the potential for strengthening the Canadian dollar.

Today, investors' attention is focused on the publication of the Non-Farm Payrolls report — a key employment indicator in the US. The consensus forecast expects job growth in April to be between 135,000 and 145,000, which is significantly lower than the March figure of 228,000. The unemployment rate is expected to remain at 4.2%, while the average hourly earnings growth is forecast to be 0.3% month-on-month. However, deviations from the forecast should be taken into account.

Stronger-than-expected data could bolster the US dollar, as it would reduce the likelihood of an imminent rate cut by the Federal Reserve.

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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: Gold Dips Further and WTI Crude Oil Tumbles

Gold price started a fresh decline below $3,300. WTI Crude oil is down over 10% and remains at risk of more losses.

Important Takeaways for Gold and WTI Crude Oil Price Analysis Today

• Gold price climbed higher towards the $3,350 zone before there was a sharp decline against the US Dollar.
• A key bearish trend line is forming with resistance near $3,270 on the hourly chart of gold at FXOpen.
• WTI Crude oil prices extended downsides below the $60.00 support zone.
• A major bearish trend line is forming with resistance near $57.25 on the hourly chart of XTI/USD at FXOpen.

Gold Price Technical Analysis

On the hourly chart of Gold at FXOpen, the price climbed above the $3,250 resistance. The price even spiked above $3,300 before the bears appeared.

A high was formed near $3,352 before there was a fresh decline. There was a move below the $3,300 support level. The bears even pushed the price below the $3,250 support and the 50-hour simple moving average.

It tested the $3,200 zone. A low has formed near $3,203 and the price is now showing bearish signs. There was a minor recovery wave above the 23.6% Fib retracement level of the downward move from the $3,352 swing high to the $3,203 low.

However, the bears are active below $3,270. Immediate resistance is near $3,270. There is also a key bearish trend line forming with resistance near $3,270.

The next major resistance is near the $3,295 zone and the 61.8% Fib retracement level of the downward move from the $3,352 swing high to the $3,203 low. The main resistance could be $3,352, above which the price could test the $3,400 resistance. The next major resistance is $3,500.

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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 Crude Opens with a Bearish Gap

As shown on the XBR/USD chart, Brent crude oil opened this Monday morning around $59.00, forming a bearish gap relative to Friday’s closing price of approximately $61.40.

The current Brent crude oil price is near the yearly low reached about a month ago, following the announcement of Trump’s tariffs, which turned out to be significantly higher than expected.

Why Is Oil Falling?

As we noted on 30 April, market participants are closely watching news related to OPEC+. Over the weekend, during an online meeting (according to media reports), the following developments occurred:
→ It was stated that the current oil market is fundamentally healthy;
→ A decision was made to accelerate the pace of oil production increases.

According to the plan, output will rise by 411,000 barrels per day — with some believing this move is partly due to certain OPEC+ countries previously failing to adhere to production quotas.

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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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Buffett Steps Down, Berkshire Shares (BRK.B) Pull Back from Record High

Berkshire Hathaway has released its quarterly report, which came in slightly below analysts’ expectations:
→ Earnings per share: actual = $4.46, forecast = $4.72
→ Revenue: actual = $90.8bn, forecast = $89.7bn

However, the bigger news was not the weaker results, but the decision of legendary 94-year-old Warren Buffett to step down as head of the company after nearly 60 years in charge. According to Reuters:
→ Vice Chairman Greg Abel will take over leadership;
→ Buffett will still influence decisions and has said he does “not intend to sell a single share of Berkshire”.

In pre-market trading today, BRK.B shares are priced around $526, compared to Friday’s close above $541, which marked a historic high. The decline suggests a natural negative reaction by market participants to the news.

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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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How Leverage May Impact Your Trading

Leverage trading has become the standard for many modern traders. But with its potential rewards come inherent risks. This article delves into the intricacies of leverage trading, helping traders with any level of experience understand its pros, cons, and best practices.

What Is Leverage Trading?

You definitely know what leverage trading is. But let us remind you of its fundamentals. Leverage trading is a financial practice that allows traders to amplify their exposure to the market without increasing their capital investment. Essentially, it involves borrowing funds to magnify potential returns on an investment.

A brokerage or financial institution provides this additional capital, enabling traders to take on larger positions than they could with their own funds alone. In this way, leverage enhances the potential for higher profits. However, it's crucial to remember that while profits can be magnified, so can losses.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. 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: 5 - 9 May

Market Insights with Gary Thomson: Fed and BoE Rate Decisions, Canada Jobs, Earnings Reports

In this video, we’ll explore the key economic events, market trends, and corporate news shaping the financial landscape. Get ready for expert insights into forex, commodities, and stocks to help you navigate the week ahead. Let’s dive in!

In this episode, we discuss:
— Fed’s Interest Rate Decision
— BoE’s Interest Rate Decision
— Unemployment Rate in Canada
— Corporate Earnings Statements

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.

Disclaimer: This video represents the opinion of the Companies operating under the FXOpen brand only. 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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Trading with Moving Average Crossovers

Trading indicators and technical analysis are essential components of the financial markets, utilised by traders and investors to analyse price movements, identify trends, and make informed trading decisions. The moving average is an indicator that is used by many traders. This article will cover the best moving averages for day trading, swing trading, and scalping and discuss the crossover strategies.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. 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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Apple Shares (AAPL) Drop Below $200

Late last week, Apple released a quarterly report that beat analysts’ expectations:
→ Earnings per share: actual = $1.65, forecast = $1.63
→ Revenue: actual = $95.36bn, forecast = $94.5bn

However, today AAPL stock price is below the psychological $200 mark, over 7% lower than last week’s high (point E).

Why did AAPL shares fall?

According to media reports, investors were concerned about weaker-than-expected services revenue and disappointing sales in China. These factors have renewed fears that the ongoing US–China trade tensions could have a deeper impact on Apple going forward.

Bearish sentiment may also have been amplified by Warren Buffett’s decision to step down as head of Berkshire Hathaway — as we noted yesterday — since his company is one of Apple’s major shareholders.

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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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Microsoft (MSFT) Becomes the World’s Most Valuable Company

According to financial data, Microsoft’s market capitalisation currently stands at approximately $3.24 trillion, while the valuations of Apple and Nvidia — second and third on the list respectively — remain below $3 trillion.

This follows a sharp surge in Microsoft’s share price (MSFT), which has risen by over 26% from its April low.

Why has Microsoft’s share price risen?

The main driver behind the MSFT stock rally was last week’s quarterly report, which outperformed analysts’ expectations:
→ Earnings per share: actual = $3.46, forecast = $3.22;
→ Revenue: actual = $70 billion, forecast = $68.4 billion.

As reported in the media, investors responded positively to a notable increase in revenue from Azure cloud services.

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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Choosing the Right Timeframe for Day Trading

In the fast-moving realm of financial markets, comprehending and evaluating price fluctuations is imperative for achieving success in trading. Technical analysis centres on delving into historical market data, primarily focusing on price and volume, to anticipate future shifts. In the domain of technical analysis, the examination of timeframes assumes a pivotal role, furnishing traders with invaluable insights into market dynamics and the identification of trends. This article aims to delve into optimal time periods for intraday trading and illuminate the utilisation of multiple timeframes.

What Is a Day Trading Timeframe?

A timeframe denotes the trading duration symbolised by each candlestick or bar on a price chart. It signifies the length of time encompassed within a single data point, such as 1 minute, 5 minutes, 15 minutes, and so forth. Timeframes hold paramount importance for traders, as they present diverse vantage points of market movements and enable a meticulous analysis of price behaviour across varying levels of granularity.

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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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Eli Lilly (LLY) Shares Fall Over 15% in May

The share price of Eli Lilly and Company (LLY), the world’s largest pharmaceutical company, has seen a sharp shift in market sentiment:

→ From its April low to high, LLY shares rose by over 30%;
→ However, since the start of May, the LLY stock price has dropped more than

15% — the closing price on the last trading day of April was around $895, while today the share is trading near $775.

Why Are Eli Lilly (LLY) Shares Falling?

The decline can be attributed to three key factors:

1→ Q1 Earnings Report: Although the company reported earnings per share above expectations ($3.34 vs $3.25), investors may have been concerned by significantly higher spending on research and development.

2→ Competitor Partnership: CVS Health’s announcement that it will offer Novo Nordisk’s Wegovy instead of Lilly’s Zepbound added further pressure to LLY shares.

3→ Sector Sentiment: Broader biotech sentiment turned negative following reports that the Trump administration is considering a pricing model that would cap drug prices based on lower rates in other countries.

The media is also discussing upcoming decisions from Vinay Prasad, the new head of the FDA division overseeing vaccines and gene therapy.

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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Markets Await Signals from the Fed

Major currency pairs are showing muted movements as investors await the outcome of today’s Federal Reserve meeting, scheduled for this evening. Market participants are adopting a cautious stance, locking in positions and waiting for the tone of Fed Chair Jerome Powell’s remarks.

Investors are hoping for clearer guidance on the future path of interest rates. Despite inflation remaining above target, signs of slowing economic growth in the US and a cooling labour market are fuelling speculation that a shift in monetary policy could occur in the second half of the year. Markets have already partially priced in a rate cut for September, and any hints from Powell in this direction may put pressure on the dollar and reignite bearish momentum.

EUR/USD has stabilised around 1.1370, showing limited fluctuations ahead of the Fed announcement. GBP/USD is holding above the 1.33400 level, remaining within a narrow range. The pound is consolidating after a volatile start to the week, with future direction likely to be determined by the Fed’s decisions. Today's statement and Powell's press conference may set the tone for currency markets in the weeks ahead. Any indications of a policy shift could trigger higher volatility and increased risk appetite.

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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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XAU/USD Analysis: Chart Indicates Elevated Volatility

The XAU/USD chart shows that the ATR (Average True Range) indicator has reached its highest level in several weeks, signalling increased market volatility.

In addition, trading activity is being fuelled by heightened geopolitical tensions, now including an escalation of the conflict between India and Pakistan.

The price action analysis of the precious metal also provides valuable insight, highlighting the ongoing battle between supply and demand.

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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Exploring Different Order Types and Their Uses

In forex, commodities, and stock trading, order types dictate how trades are executed. Mastering these is like learning a new language; it’s essential for navigating the complex world of financial markets. Dive into this article to decode the tools traders rely on daily.

List of Order Types

Understanding order types is a foundational skill. Think of them as the various tools in a trader's toolbox, each serving a unique purpose. Although you are already familiar with order types, you may not know all of them. Here are 18 of the most well-known types of orders in the stock market and beyond.

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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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Alphabet (GOOGL) Shares Drop Over 7% in a Single Day

According to the Alphabet (GOOGL) stock chart, yesterday’s main trading session opened around $163.70 but then saw a sharp decline, hitting an intraday low of approximately $148 per share. By the close, bulls managed to recover only a small portion of the losses. As a result, Alphabet (GOOGL) shares fell by more than 7% during the session – marking the worst performance among the S&P 500 constituents (US SPX 500 mini on FXOpen).

Why Did GOOGL Shares Fall?

The drop followed remarks by Eddy Cue, Apple’s Senior Vice President of Internet Software and Services, who:
→ noted a decline in search traffic on Safari;
→ revealed plans to expand Safari’s search capabilities using artificial intelligence.

These developments heightened concerns over Google’s dominance in search and its advertising revenue. According to media reports, analysts are warning of rising competition from AI-powered search platforms such as OpenAI, Grok, and Perplexity.

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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Dollar Strengthens Following Fed Verdict

The USD/JPY and USD/CAD currency pairs are showing moderate gains following yesterday’s meeting of the US Federal Reserve. As expected, the American central bank kept its key interest rate unchanged. However, the tone of the accompanying statement and Jerome Powell’s comments were perceived by the market as less dovish than anticipated. Fed officials reaffirmed their willingness to maintain current rates for a longer period until there is clear evidence of easing inflationary pressure. The Fed Chair also noted that recent macroeconomic data does not provide sufficient grounds to begin a rate-cutting cycle in the coming months. These signals supported the US dollar and contributed to corrective moves in major currency pairs.

The USD/JPY pair has strengthened towards the 144.00 mark, reflecting the dollar’s overall resilience amid rising US bond yields. However, market participants remain cautious due to the potential for intervention by Japanese monetary authorities should the yen weaken further. The USD/CAD pair is trading above 1.38, still influenced by moderately weak oil prices and steady demand for the dollar.

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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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How to Make Risk Management Effective

The journey taken by every trader involves a constant effort to navigate the dynamic and often unpredictable financial markets. One of the most critical elements that separates successful traders from the rest is their ability to combine trading and risk management strategies effectively. This FXOpen article explores the various ways of managing risk in trading you may want to apply to produce better trading consistency in the short and long term.

Setting Trading Goals and Risk Tolerance

Traders e*stablish clear and attainable objective*s before initiating trades*. By defining specific goals, they can maintain focus and discipline*, avoiding impulsive decisions. It is crucial for traders to unde*rstand their risk appetite and tole*rance in conjunction with their trading goals.

Traders diffe*r in their comfort levels in relation to risk. To achie*ve a balanced and sustainable approach to trading, it is e*ssential to align risk management strate*gies with individual risk tolerance. By adapting the* risk management approach according to personal circumstance*s, traders can prevent unne*cessary stress and enhance* overall trading performance.

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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 Trims Gains While USD/CHF Regains Strength

EUR/USD extended losses and traded below the 1.1250 support. USD/CHF is rising and might aim for a move toward the 0.8400 resistance.

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

• The Euro struggled to clear the 1.1380 resistance and declined against the US Dollar.
• There is a key bearish trend line forming with resistance at 1.1240 on the hourly chart of EUR/USD at FXOpen.
• USD/CHF is showing positive signs above the 0.8265 resistance zone.
• There is a connecting bullish trend line forming with support at 0.8300 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair failed to clear the 1.1380 resistance. The Euro started a fresh decline below the 1.1300 support against the US Dollar.

The pair declined below the 1.1250 support and the 50-hour simple moving average. Finally, the pair tested the 1.1200 level. A low was formed at 1.1196 and the pair is now consolidating losses. The pair is showing bearish signs, and the upsides might remain capped.

There was a minor increase toward the 23.6% Fib retracement level of the downward move from the 1.1381 swing high to the 1.1196 low. Immediate resistance on the upside is near the 1.1240 level.

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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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4 Best Trend Indicators

Identifying market trends can be challenging, but there are tools that can help. One common question traders often grapple with is: What are the best trend indicators? This article aims to shed light on four of the top trend tools traders use.

Moving Averages

Moving Averages (MAs) are one of the best stock trend indicators. It's also widely used in other financial markets, including forex, commodities, and cryptocurrencies*. They smooth out price data to create a single flowing line, which makes it easier to identify the direction of the trend. Two popular types are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA), the latter giving more weight to recent prices.

One classic trading strategy involving MAs is the "crossover." A crossover occurs when a short-term MA crosses above or below a long-term MA. When the short-term MA crosses above the long-term MA, it's generally seen as a bullish signal, indicating a potential uptrend. Conversely, a downward crossover of the short-term MA below the long-term MA is considered bearish, suggesting a possible downtrend.

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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. a

 

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Market Analysis: AUD/USD and NZD/USD Ready to Climb Again

AUD/USD is attempting a fresh increase from the 0.6370 support. NZD/USD is also rising and could aim for a move above the 0.5945 resistance.

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

• The Aussie Dollar found support at 0.6370 and recovered higher against the US Dollar.
• There was a break above a key bearish trend line with resistance at 0.6410 on the hourly chart of AUD/USD at FXOpen.
• NZD/USD is consolidating above the 0.5915 support.
• There was a break above a connecting bearish trend line with resistance at 0.5910 on the hourly chart of NZD/USD at FXOpen.

AUD/USD Technical Analysis

On the hourly chart of AUD/USD at FXOpen, the pair formed a base above 0.6420. The Aussie Dollar started a decent increase above the 0.6450 resistance against the US Dollar, as mentioned in the previous analysis.

The pair even cleared 0.6500 before there was a minor pullback. The recent low was formed at 0.6370 and the pair is again rising. The bulls pushed the pair above the 23.6% Fib retracement level of the downward move from the 0.6514 swing high to the 0.6370 low.

Besides, there was a break above a key bearish trend line with resistance at 0.6410. The pair is now consolidating above the 50-hour simple moving average. On the upside, the AUD/USD chart indicates that the pair is now facing resistance near the 0.6440 zone.

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.