Daily Market Analysis By FXOpen

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XTI/USD Chart Analysis: Oil Price Falls 2.8% from This Week’s High

As the XTI/USD chart shows, this morning (27 August) WTI crude oil is trading around the $63 level, although on Monday it climbed above $64.70. This means the price has retreated by approximately 2.8% from this week’s high.

The bearish momentum may be linked to the market’s reassessment of geopolitical risks. According to Reuters, US Special Representative Steve Witkoff stated that:
→ he will meet with a Ukrainian delegation in New York this week;
→ the US administration is also in talks with Russia, seeking to bring the war to an end.

He also noted that Washington is striving for de-escalation in the Middle East. We could assume that market participants are pricing in the possibility that these efforts could lead to the easing of sanctions and reduce risks and restrictions in global oil trade.

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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 Prices Climb Again While WTI Crude Oil Faces Hurdles

Gold price climbed again and traded above $3,350. Crude oil is showing bearish signs and might decline below $62.80.

Important Takeaways for Gold and WTI Crude Oil Price Analysis Today

• Gold price started a steady increase from $3,310 against the US Dollar.
• A key bullish trend line is forming with support at $3,378 on the hourly chart of gold at FXOpen.
• Crude oil prices failed to clear the $65.00 region and started a fresh decline.
• There was a break below a major bullish trend line with support at $64.00 on the hourly chart of XTI/USD at FXOpen.

Gold Price Technical Analysis

On the hourly chart of Gold at FXOpen, the price found support near $3,310. The price remained in a bullish zone and started a strong increase above $3,330.

There was a decent move above the 50-hour simple moving average and $3,350. The bulls pushed the price above the $3,365 and $3,378 resistance levels. Finally, the price climbed as high as $3,395 before there was a pullback.

The price tested the 23.6% Fib retracement level of the upward move from the $3,321 swing low to the $3,395 high, and the RSI declined below 50. Initial support on the downside is near $3,378 and the 50-hour simple moving average.

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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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Boeing (BA) Share Price Could Reach 2025 Highs

As the Boeing (BA) stock chart indicates, the price rose by 3.5% yesterday, while the S&P 500 index (US SPX 500 mini on FXOpen) gained only 0.4%. Boeing’s stronger performance reflects optimism driven by news (and market rumours) reported in the media suggesting that:

→ Korean Air has purchased more than 100 aircraft during the newly elected South Korean president’s visit to the White House;
→ Boeing is negotiating the sale of 500 aircraft to China;
→ the Trump administration may acquire stakes in companies linked to the defence sector (Palantir, Boeing, Lockheed Martin).

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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 Trade a Break of a Trendline

Trading broken trendlines is a critical aspect of technical analysis. Understanding how to interpret and act upon the break of trendlines can make a significant difference to a trader's performance. This FXOpen article delves into the intricacies of trading broken trendlines, providing insights, strategies, and risk management techniques to help traders navigate this essential aspect of market analysis.

Understanding Trendlines

Although you know what trendlines are, let’s briefly go over the subject. Trendlines are foundational tools used in technical analysis to visualise the direction of price movements. Drawing accurate trendlines involves selecting the appropriate highs and lows to connect, so they provide a clear representation of the prevailing trend. According to the established rules, there should be at least two highs/lows to draw a strong trendline. The more points you connect, the more solid the line is supposed to be.

There are trendlines in forex, stock, commodity, index, and cryptocurrency* charts. Still, it may be easier to find trendlines on charts of assets experiencing less price volatility.

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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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European Currencies Hold Key Levels: Market in Search of New Signals

The major European currencies held their ground near key levels on Thursday. Following Jerome Powell’s dovish remarks at the Jackson Hole symposium, the US dollar first fell sharply, then corrected higher on Monday, only to weaken again by midweek. Market reaction, however, remains uncertain: investors have yet to form a consensus on whether the dollar’s decline marks the continuation of a downtrend or if the current consolidation will develop into a new upward impulse for the greenback. Against this backdrop, the EUR/USD and USD/CHF pairs have once again tested important levels but managed to rebound, maintaining a balance between supply and demand.

Market participants are now focused on the upcoming data releases from Europe and the United States. In the euro area, figures on consumer and business sentiment, inflation expectations, and business climate indices are due, which could adjust short-term forecasts for the euro. In the US, attention will centre on labour market and price dynamics – jobless claims, the GDP deflator, and the Personal Consumption Expenditures (PCE) index will be key indicators for assessing the Federal Reserve’s future policy trajectory. These publications could determine whether EUR/USD and USD/CHF remain within their current ranges or if the market is preparing for new impulses.

EUR/USD

Yesterday, sellers of the single European currency attempted to break key support at 1.1600. The price set a new August low, but the breakout proved false, and the pair returned to 1.1640. Technical analysis of EUR/USD indicates sideways trading between 1.1580 and 1.1740. A significant fundamental driver would be required to push the pair beyond this range.

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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 Recovers from 20-Day Low

The EUR/USD pair today is moving under the influence of several factors:

Donald Trump’s decision to dismiss Lisa Cook, a member of the Federal Reserve Board of Governors, raising concerns over the Fed’s independence;
expectations of a Fed rate cut in September;
anticipation of US GDP and jobless claims data (due today at 15:30 GMT+3);
the political crisis in France.
These and other drivers pushed the pair down to a 20-day low yesterday (with a local low L3 formed on the EUR/USD 4-hour chart), before it staged a firm recovery.

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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 Reaches Another All-Time High

On 13 August, we wrote about the S&P 500 (US SPX 500 mini on FXOpen) reaching an all-time high following the release of the CPI report. At that time, we suggested that the price might move towards the upper boundary of the ascending channel (highlighted in blue on the chart).

Since then:
→ the price has set a new record, forming peak 0 near the upper boundary of the channel;
→ it then fell back towards the lower boundary, where block A was formed;
→ and subsequently rose again to a fresh all-time high (F), coming close to the 6500 level.

The resilience of the blue channel underlines the prevailing bullish sentiment, which is supported by expectations of a Fed rate cut in September – an event seen as positive for the economy and potentially boosting corporate earnings. This optimism is so far outweighing the fact that Nvidia’s shares slipped slightly yesterday after the company’s earnings release (despite results exceeding investor expectations).

But is the outlook entirely cloudless?

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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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Three Triangles: How to Identify a Trend Continuation

The triangle chart patterns are significant technical analysis formations that often occur in financial markets. They are continuation patterns, indicating that the price is likely to continue its existing trend after a period of consolidation. The key advantage of these formations is that you can find them in any market. Thus, you can trade a triangle stock pattern, a triangle forex pattern, and a triangle commodity pattern. In this FXOpen article, we will learn more about the three types of triangles, including their unique characteristics, implications, and trading rules.

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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 Set an All-Time High

As the chart of Alphabet (GOOGL) shares shows, the price in August exceeded the February high. For the first time in history, the close price moved above $210.

The positive market sentiment is being driven by the development of AI technologies, as well as Alphabet’s (GOOGL) ambition to maintain a leading position in this field. Among the latest news, it is worth noting that Meta Platforms (META) has signed an agreement to use Google Cloud’s infrastructure for its AI projects, which is expected to bring Alphabet around $10 billion in revenue.

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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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NZD/USD Rises by ~1.4% in 2 Days

As the NZD/USD chart shows, the New Zealand dollar was trading around 0.5820 against the US dollar on Wednesday, but today it has climbed above 0.5895 – an impressive gain of approximately 1.4% in just two days.

The rise in NZD/USD is being driven both by the general weakening of the US dollar ahead of the Federal Reserve’s expected September rate cut, and by strengthening demand for the “kiwi”. As Reuters notes:
→ the New Zealand dollar is often used as a substitute for the yuan because of close trade relations with China;
→ meanwhile, the yuan is strengthening, with Chinese policymakers recommending support for the currency given its low valuation and the need to facilitate trade negotiations with the US.

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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 Bulls in Control as USD/CAD Faces Fresh Decline

GBP/USD started a fresh increase above 1.3500. USD/CAD declined and is now consolidating losses below 1.3800.

Important Takeaways for GBP/USD and USD/CAD Analysis Today

• The British Pound is eyeing more gains above 1.3500.
• There is a key bearish trend line forming with resistance at 1.3530 on the hourly chart of GBP/USD at FXOpen.
• USD/CAD started a fresh decline after it failed to stay above 1.3900.
• There is a connecting bearish trend line with resistance at 1.3755 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair formed a base above the 1.3390 level. The British Pound started a steady increase above 1.3440 against the US Dollar, as discussed in the previous analysis.

The pair gained strength above 1.3465 and the 50-hour simple moving average. It even cleared the 1.3500 handle and tested 1.3530. It is now consolidating gains below 1.3530.

The pair is stable above the 23.6% Fib retracement level of the upward move from the 1.3446 swing low to the 1.3529 high. It seems like the bulls might aim for more gains. The RSI moved above the 50 level on the GBP/USD chart and the pair could soon aim for an upside break above a key bearish trend line at 1.3530.

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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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Nvidia (NVDA) Shows Bearish Signs After Earnings Release

On Wednesday, Nvidia published a fairly strong quarterly report:
→ Revenue for the second quarter came in at $46.74 billion (record), up 56% compared with the same period last year;
→ Adjusted earnings per share (EPS) were $1.05, a 54% year-on-year increase and above analysts’ expectations of $1.01–$1.02.

However, in the Data Centre segment (closely watched by the market), results fell slightly short of Wall Street forecasts, which may suggest a slowdown in capital flows into AI infrastructure. This factor could explain why Nvidia (NVDA) underperformed the index later in the week: for instance, the S&P 500 hit a record high on Thursday, while NVDA closed lower.

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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 Is ICT PO3, and How Do Traders Use It?

The ICT Power of 3 (PO3) is a structured approach to price action analysis that aims to interpret institutional market behaviour. It divides market movement into three distinct phases: accumulation, manipulation, and distribution. 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.

The ICT Power of 3 (PO3), or the AMD setup, is a strategic trading framework developed by Michael J. Huddleston, better known as the Inner Circle Trader. This approach revolves around three critical phases: accumulation, manipulation, and distribution, which collectively may help traders understand and anticipate market movements.

Accumulation Phase
During this phase, smart money or institutional investors accumulate positions within a price range, often leading to a period of low volatility and sideways movement. This stage sets the groundwork for future price movements by creating a base of support or resistance.

Manipulation Phase
The manipulation phase involves deliberate price moves by smart money to trigger stop losses and deceive retail traders. In a bullish scenario, prices may dip below the established range, while in a bearish market, prices might spike above the range. This phase is seen as being characterised by sharp, misleading price movements aimed at manipulating liquidity.

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: 1 - 5 September

Market Insights with Gary Thomson: UK Retail Sales, Canada Jobs, US NFP, and OPEC+ Meeting

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

In this episode of Market Insights, Gary Thomson unpacks the strategic implications of the week’s most critical events driving global markets.

Key topics covered in this episode:

— UK Retail Sales
— Unemployment Rate in Canada
— US NFP and Unemployment Rate
— OPEC+ Meeting
— Trade Tensions

Gain insights to strengthen your trading knowledge.




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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What Is BOS in Trading? How Is a Break of Structure Used by Traders?

Understanding market structure is fundamental to anticipating directional bias and interpreting institutional behaviour. Within the Smart Money Concept (SMC) framework, one of the most critical structural models is the Break of Structure (BOS)—a key indication that the market may be transitioning from one trend phase to another.

A BOS occurs when price decisively breaks above a significant swing high or below a swing low, suggesting a potential shift in control between buyers and sellers. For traders, the BOS serves as a confirmation tool for trend reversals, which may help them identify potential entry points and align trade setups with higher-timeframe order flow.

In this article, we uncover the core principles of the Break of Structure and how to distinguish it from liquidity grabs or false breakouts.

Strong and Weak Swing Points
In Smart Money Concept trading, understanding the basics of market structure may be crucial, particularly when discerning between strong and weak swing points. These points are pivotal in analysing the current trend and play a significant role in identifying potential breaks in structure.

A strong swing point, whether it be a high in a downtrend or a low in an uptrend, is considered to be likely to hold if the price revisits the area. A bullish trend, for example, is denoted by a series of higher highs and higher lows. For the trend to remain, traders typically watch that the last higher low is not breached.

Conversely, a weak swing point is seen as vulnerable and more likely to be breached. In an uptrend, a peak or area of resistance is expected to be traded through, continuing the trend.

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: Pound and Euro Hold Ground—Statistics in Focus

European currencies are holding near four-week highs at the start of the week. Following the volatile swings sparked by Jerome Powell’s remarks at the Jackson Hole symposium, the market has yet to form a clear scenario: the dollar corrected but then came under renewed pressure. As a result, EUR/USD and GBP/USD managed to test key resistance levels, though no breakout from their sideways ranges has yet occurred. The next move will largely depend on upcoming macroeconomic data releases from Europe, the UK, and the US, which could shift the short-term outlook.

Today, market participants are focused on the release of business activity indices and producer prices in Europe, along with inflation (CPI) data in Italy and the euro area. The significance of these releases is heightened by their potential to shape expectations for the European Central Bank’s future policy. Tomorrow, a batch of important statistics is due from the UK.

GBP/USD

The GBP/USD pair yesterday tested a key resistance at 1.3550. Technical analysis suggests a potential move towards 1.3600 if the price maintains its current upward momentum. This growth scenario could be invalidated should support at 1.3500 be broken.

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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Alibaba (BABA) Shares Soar ~13% After Earnings Report

Alibaba published its second-quarter report on Friday morning. Although the company’s gross revenue came in below analysts’ forecasts ($34.6bn vs $35.1bn), BABA’s share price surged by around 13% (to its highest level since March) as the market reacted positively to:

→ Faster growth in cloud services revenue, seen as key to the company’s success in monetising artificial intelligence, similar to Microsoft and Google.
→ Testing of a new processor designed to reduce reliance on Nvidia.

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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GBP/USD Exchange Rate Tumbles

As today’s GBP/USD chart shows, the pound sterling fell by nearly 1% against the US dollar in just one hour, forming an exceptionally long bearish candle.

The sharp drop was driven by concerns over public finances and a broad sell-off in the bond market. According to Reuters, the yield on UK 30-year government bonds hit 5.69% – the highest level since May 1998 – highlighting the elevated risk premium.

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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20 Currencies That Are Considered the Strongest in Africa

Africa’s currency landscape is as diverse as its economies. While many associate African currencies with volatility, several nations on the continent maintain strong units backed by robust fiscal policies and strategic ties to global markets. Understanding which currencies hold the most value can be useful for informed decision-making in foreign exchange trading, cross-border investments, and risk management.

In this article, we rank the 20 most valuable African currencies, based on their exchange rate against the US dollar, while exploring the economic factors that drive their performance.

The List of Currencies That Are Considered the Strongest in Africa
Below is the ranking of the 20 top-performing currencies in Africa. The US dollar remains the global benchmark for currency valuation, which is why this list is based on the exchange rates of African currencies against the US dollar.

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 Trims Gains as USD/CHF Targets Fresh Upside

EUR/USD started a downside correction from 1.1740. USD/CHF is rising and might aim for a move toward 0.8100.

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

• The Euro struggled to clear 1.1740 and corrected gains against the US Dollar.
• There was a break below a key bullish trend line with support at 1.1705 on the hourly chart of EUR/USD at FXOpen.
• USD/CHF is showing positive signs above the 0.8020 zone.
• There was a break above a connecting bearish trend line with resistance at 0.8000 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 1.1650. The Euro tested 1.1735 and recently corrected gains against the US Dollar.

The pair dipped below 1.1700 and a key bullish trend line with support at 1.1705. It sparked a move below the 50% Fib retracement level of the upward move from the 1.1574 swing low to the 1.1736 high.

The pair shows some bearish signs below the 50-hour simple moving average, and gains might remain capped since the RSI is now below 50. Immediate resistance on the upside is near 1.1655. The next key hurdle for the bulls could be near the 50-hour simple moving average at 1.1675.

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.