Daily Market Analysis By FXOpen

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GBPUSD Technical Analysis – 05th AUG, 2024

GBPUSD – Bullish Trend Reversal Pattern

GBPUSD was unable to continue its bearish momentum and after forming a low of 1.2710 the prices started to correct upwards against the United States dollar.
We can see that the formation of Bullish Trend Reversal Pattern with the Adaptive Moving average AMA20 and AMA50 in the 30-minutes timeframe.
The Ichimoku: price is over the cloud in the 1-hourly timeframe which indicates the bullish nature of the markets.

The RSI indicator is back over 50 in the 2-hourly timeframe.
We can also see that the MACD crosses UP its Moving Average in the 2-hourly timeframe.
The Ichimoku: price is over the cloud in the 1-hourly timeframe.

The MACD indicator is giving a bullish divergence signal in the 2-hourly timeframe.
The prices of GBPPUSD are ranging near a Near a new HIGH record of 1 month.
GBPUSD is now trading below its 100-hour SMA and its 200-hour SMA simple moving average.
• Pound Bullish reversal seen above the 1.2710 mark.
• Short-term range appears to be Strong Bullish.
• GBPUSD continues to remain above the 1.2760 levels.
• Average true range ATR is indicating high market volatility.

GBPUSD is now trading above its Pivot levels of 1.2759 and is moving into a Strong Bullish channel.
The price of GBPUSD is above its Classic support levels of 1.2751 and is now moving towards its next target of 1.2774 which is a 14-3 Day Raw Stochastic at 20%.
We are also looking for the breach of the levels of 1.2808 which is a 14-3 Day Raw Stochastic at 30%.

Disclaimer: This analysis represents my own opinion only. It is not to be construed as an opinion, offer, solicitation, recommendation, or financial advice of the Companies operating under the FXOpen brand.

For in-depth analysis, please check FXOpen Blog

 

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How Do Dovish and Hawkish Monetary Policies Affect Markets?

In the intricate dance of global finance, central banks play a leading role, their policies echoing through markets and economies. The terms "dovish" and "hawkish" encapsulate their strategies towards interest rates and money supply, each with profound implications for currency values and investor strategies.

This FXOpen article explores how these stances offer valuable insights for traders in understanding the forex market’s movements and the broader economic landscape.

Understanding Dovish vs Hawkish
In the world of economics, central banks use monetary policy to navigate between stimulating growth and controlling inflation. This delicate balance is often characterised by two primary stances: dovish and hawkish. Understanding these policies is crucial for traders, as they significantly influence domestic economic conditions and the forex market.

TO VIEW THE FULL ARTICLE, 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.

RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

 

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Dollar Adjusts After Disappointing Labour Market Data

The release of very weak data on average wages and the number of new jobs in the US contributed to the dollar's decline and sharp fluctuations in the currency and stock markets. On Friday, the NonFarm Payrolls report showed that:

• The number of new jobs stood at 114K, while the forecast was 176K;
• The average wage increase was recorded at 0.2%, whereas 0.3% was expected;
• Unemployment rose (4.3% against 4.1%).

A weak labour market coupled with slowing inflation could signal that the Federal Reserve may begin to lower the base interest rate in the coming months.

USD/CAD

At the start of this week, the USD/CAD pair tested two-year highs around 1.3950-1.3900. It has not yet managed to strengthen above this level, but if buyers can hold the price above 1.3800, the pair might attempt to resume growth towards the psychological resistance level of 1.4000. A break of the support at 1.3800-1.3780 could lead to a deeper downward correction towards 1.3740-1.3700.

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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Nasdaq Composite Index: A Ray of Hope

On July 31, we noted that the Nasdaq Composite Index (US Tech 100 mini on FXOpen) had reached significant support, highlighting trendline A and warning of potential volatility spikes due to fundamental news from the Federal Reserve and earnings season.

Since then, the price of the Nasdaq Composite Index (US Tech 100 mini on FXOpen):
→ Jumped to the 19540 level;
→ But encountered resistance there (indicated by an arrow), as this was previous support;
→ And returned to trendline A.

Thus, we have an argument that can be interpreted as the bulls' inability to resume the upward trend. The bears seized the opportunity to take control and break below trendline A on August 2.

Contributing factors included:
→ The decline in the Japanese stock market, which we wrote about yesterday. It is possible that the extremely strong sell-off of Japanese company shares affected sentiments in the US.
→ Increasing talks of a recession due to very weak US labour market data (published on Friday, which we also covered yesterday).

At the low point yesterday, the Nasdaq Composite Index (US Tech 100 mini on FXOpen) dropped by 7% from Friday's close. Of course, this isn't comparable to March 16, 2020, when the index fell by 12.32%, or October 19, 1987 (known as "Black Monday"), when it dropped by 11.35%. Nonetheless, the mood was grim – as CNBC reports, the stock market had its worst day in about two years. The RSI index fell to the oversold boundary.

But not all is bleak.

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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Apple (AAPL) Share Price Influenced by Psychological Factors

The first factor is the news that Warren Buffett is halving his position in AAPL shares. Whether this indicates that the legendary investor foresees the company losing its market leadership or a recession threat, Buffett's authority may create a psychological effect on retail investors and prompt them to sell their shares.

The second factor is the breach of the $200 psychological level. After the strong rise above $200 per share in June, it seemed the price had securely settled above this round number. However, it's not uncommon for breakout tests to occur, stop-loss orders to be triggered, and the supply-demand balance to shift, resulting in price growth. For example, yesterday's price action saw the bulls nearly close a 7% bearish gap.

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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EURUSD Technical Analysis – 06th AUG, 2024

EURUSD – Ichimoku - Bearish Crossover: Tenkan & Kijun

EURUSD was unable to continue its bullish momentum and after touching a high of 1.0962 the prices started to decline sharply against the US Dollar.
We can see the formation of Ichimoku - Bearish Crossover: Tenkan & Kijun in the 1-hourly timeframe.
The Support of the channel is broken in the 1-hourly timeframe.

The prices of EURUSD are ranging near the resistance of the channel in the 15-minutes timeframe.
The MACD crosses DOWN its Moving Average in the 4-hourly timeframe.
The horizontal support is broken in the daily timeframe.
The prices of EURUSD are ranging near a new LOW record of 1 month.

EURUSD is now trading above its 100-hour SMA and its 200-hour SMA simple moving averages.
• Euro Bearish reversal seen below the 1.0962 mark.
• Short-term range appears to be Strong Bearish.
• EURUSD continues to remain above the 1.0920 levels.
• Average true range ATR is indicating less market volatility.

The next support is located at 1.0920 which is a 38.2% Retracement From 4 Week High.
EURUSD is now trading just above its Pivot levels of 1.0916 and is moving into a Strongly Bearish channel.
The price of EURUSD remains above its Classic support levels of 1.0907 and is moving towards its next target of 1.0893 which is a 14-3 Day Raw Stochastic at 50%.

Disclaimer: This analysis represents my own opinion only. It is not to be construed as an opinion, offer, solicitation, recommendation, or financial advice of the Companies operating under the FXOpen brand.

For in-depth analysis, please check FXOpen Blog

 

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GBPUSD Technical Analysis – 06th AUG, 2024

GBPUSD – Parabolic SAR Indicator Bearish Reversal

GBPUSD was unable to continue its bullish momentum and after touching a high of 1.2802 the prices started to decline sharply against the US dollar.
The Parabolic SAR Indicator is giving a Bearish Reversal signal in the weekly timeframe.
We can see the formation of Bearish price crossover pattern with adaptative moving average 50 AMA50 and moving average MA50 in the daily timeframe.
The Support of the channel is also broken in the daily timeframe.

The horizontal support is broken in the 15-minutes timeframe.
The MACD indicator is back under zero in the daily timeframe.
The prices of GBPPUSD are ranging near a Near a new LOW record of 1 month.

GBPUSD is now trading below its 100-hour SMA and its 200-hour SMA simple moving average.
• Pound Bearish reversal seen below the 1.2802 mark.
• Short-term range appears to be Strong Bearish.
• GBPUSD continues to remain above the 1.2700 levels.
• Average true range ATR is indicating high market volatility.

GBPUSD is now trading above its Pivot levels of 1.2692 and is moving into a Strong Bearish channel.
The price of GBPUSD is above its Classic support levels of 1.2685 and is now moving towards its next target of 1.2701 which is a Price 2 Standard Deviations Support.
We are also looking for the breach of the levels of 1.2675 which is a 38.2% Retracement From 13 Week Low.

Disclaimer: This analysis represents my own opinion only. It is not to be construed as an opinion, offer, solicitation, recommendation, or financial advice of the Companies operating under the FXOpen brand.

For in-depth analysis, please check FXOpen Blog

 

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Market Analysis: GBP/USD Dives While EUR/GBP Gains Strength

GBP/USD started a fresh decline from the 1.2860 resistance zone. EUR/GBP is rising and might climb above the 0.8620 resistance.

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

• The British Pound is showing bearish signs below the 1.2800 support.
• There is a key bearish trend line forming with resistance near 1.2750 on the hourly chart of GBP/USD at FXOpen.
• EUR/GBP is gaining pace and trading above the 0.8500 zone.
• There is a short-term contracting triangle forming with support near 0.8570 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 1.2860 pivot level. As a result, the British Pound started a fresh decline below 1.2820 against the US Dollar.

There was a clear move below 1.2800 and the 50-hour simple moving average. The bears pushed the pair below 1.2750. Finally, there was a spike below the 1.2680 support zone. A low was formed near 1.2673 and the pair is now consolidating losses.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

 

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How to Trade Commodities? Five Popular Strategies

Whether you're a seasoned trader or new to the world of commodities, understanding the various available strategies can play an important role in building an effective trading plan. In this article, we’ll explain five commodity trading strategies that you can get started with today.

Commodity Trading Explained
Commodity trading refers to the buying and selling of raw materials and industrial components in the financial markets. While forex trading deals with currencies, commodities trading primarily deals with physical goods. Typically, commodities fall into four broad categories: energy, metals, agricultural, and environmental.

There are many reasons why people buy and sell commodities. Some trade them as a way of hedging against inflation, particularly precious metals. Others might use them to take advantage of a booming economy, as demand for energy, metal, and food usually increases in times of economic growth.

TO VIEW THE FULL ARTICLE, 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.

RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

 

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EURUSD Technical Analysis – 07th AUG, 2024

EURUSD – Aroon Indicator Bullish Trend

EURUSD was unable to continue its bearish momentum and after touching a low of 1.0904 the prices have started correcting upwards against the United States dollar.
The resistance of the channel is also broken in the 15-minutes timeframe.
We can see the formation of Bullish trend reversal: Moving Average 50 MA50 in the weekly timeframe.

The Momentum indicator is also back over zero in the 2-hourly timeframe.
The MACD crosses UP its Moving Average in the 1-hourly timeframe.
The Aroon indicator is giving bullish trend in the 30-minutes timeframe.

Some of the technical indicators are also giving a neutral stance in the markets which means that the prices are in the consolidation phase now.
EURUSD is now trading above its 100-hour SMA and its 200-hour SMA simple moving averages.
• Euro Bullish reversal seen above the 1.0904 mark.
• Short-term range appears to be Neutral.
• EURUSD continues to remain above the 1.0910 levels.
• Average true range ATR is indicating less market volatility.

The next resistance is located at 1.0920 which is a 38.2% Retracement From 4 Week High.
EURUSD is now trading just below its Pivot levels of 1.0921 and is moving into a Consolidation channel.
The price of EURUSD remains above its Classic support levels of 1.0899 and is moving towards its next target of 1.0939 which is a 14-3 Day Raw Stochastic at 70%.


Disclaimer: This analysis represents my own opinion only. It is not to be construed as an opinion, offer, solicitation, recommendation, or financial advice of the Companies operating under the FXOpen brand.

For in-depth analysis, please check FXOpen Blog

 

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GBPUSD Technical Analysis – 07th AUG, 2024

GBPUSD – MACD Indicator: Bullish Divergence

GBPUSD was unable to continue its bearish momentum and after forming a low of 1.2672 the prices started to correct upwards against the US dollar.
The MACD Indicator is giving a Bullish Divergence signal in the 4-hourly timeframe.
The RSI indicator is also giving a Bullish Divergence signal in the daily timeframe.

The prices of GBPUSD are ranging near the horizontal support in the 15-minutes timeframe.
Some of the technical indicators are also giving a neutral stance in the markets which indicates the presence of the consolidation wave in the markets.
The prices of GBPPUSD are ranging near a Near a new HIGH record of 1 year.

GBPUSD is now trading below its 100-hour SMA and its 200-hour SMA simple moving average.
• Pound Bullish reversal seen above the 1.2672 mark.
• Short-term range appears to be Neutral.
• GBPUSD continues to remain above the 1.2700 levels.
• Average true range ATR is indicating less market volatility.

GBPUSD is now trading near to its Pivot levels of 1.2703 and is moving into a Consolidation channel.
The price of GBPUSD is above its Classic support levels of 1.2691 and is now moving towards its next target of 1.2722 which is a Pivot Point.
We are also looking for the breach of the levels of 1.2740 which is a 14-3 Day Raw Stochastic at 20%.


Disclaimer: This analysis represents my own opinion only. It is not to be construed as an opinion, offer, solicitation, recommendation, or financial advice of the Companies operating under the FXOpen brand.

For in-depth analysis, please check FXOpen Blog

 

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Analysis of Amazon (AMZN) Share Price After Disappointing Report

On Thursday, Amazon released its second-quarter report:
→ Earnings per share: actual = $1.26, forecast = $1.03;
→ Gross sales: actual = $147.98 billion, forecast = $148.66 billion.

Amazon’s CFO, Brian Olsavsky, attributed the decline in sales to distractions caused by Trump’s news coverage and the Olympics, suggesting people spent more time reading news and less time shopping on Amazon.

As a result, the sales forecast for the third quarter fell short of expectations, with management estimating between $154 billion and $158.5 billion, while analysts’ average estimate was $158.24 billion.

Investors were disappointed by this news, causing Amazon’s share price to drop approximately 9% on Friday, creating a wide bearish gap. On Monday, the price also opened with a bearish gap and continued to fall, creating a precarious situation.

However, by Monday’s close, the bulls had recovered the early trading losses, and on Tuesday, AMZN showed some stability, staying close to Monday’s closing price.

Does this mean the downward trend (with AMZN’s price now more than 20% below its July all-time high) has run its course?

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

 

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USD/JPY Analysis: Rate Stabilizes After Tsunami

Less than a month ago, the rate was above 161 yen per US dollar. This week, it dropped below 142.5 yen (approximately -12%).

The strengthening of the Japanese yen was driven by actions from the Bank of Japan and financial authorities:
→ Intervention to support the yen in mid-July;
→ An interest rate hike last week.

On its downward trajectory, the USD/JPY rate broke through:
→ The ascending trendline (shown in purple);
→ The median line of a large ascending channel (shown in blue) that began in 2023;
→ The psychological levels of 160 and 150 yen per dollar.

The bears' aggression seems to have exhausted near the lower boundary of the blue channel. This was aided by statements from authorities aimed at stabilising financial markets, including the Japanese stock market.

Specifically, Bank of Japan Deputy Governor Shinichi Uchida said: “I believe that the bank needs to maintain monetary easing with the current policy interest rate for the time being, with developments in financial and capital markets at home and abroad being extremely volatile.” He also noted that concerns about the US economy, combined with actions from the Bank of Japan, triggered the volatility.

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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Candlestick Wick Meaning and Trading Strategies

Understanding the subtle cues provided by candle wicks can unlock new dimensions in trading strategy development. These seemingly minor details offer profound insights into market sentiment and price action dynamics. This article delves into the meaning behind candle wicks and explores strategic ways to trade them, equipping traders with the knowledge to potentially enhance their trading performance.

Understanding Candle Wicks

Candle wicks, extending beyond the body of the candlestick, offer a deeper insight into market dynamics than open and close price levels. Their lengths and positions relative to the candle body unveil the tug-of-war between buyers and sellers within a given timeframe.

A long wick candle to the upside suggests that buyers pushed the price higher, but sellers eventually overcame, driving the price down from its peak. Conversely, a lengthy lower wick indicates sellers initially dominated, with buyers making a strong comeback.

TO VIEW THE FULL ARTICLE, 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.

RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

 

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Yen in Correction: Factors for Potential Growth

In August, the Japanese yen became one of the most popular instruments in the forex market. Following an unexpected rate hike by the Bank of Japan and weak labour market data from the US, the USD/JPY pair dropped by more than 1000 pips, settling below the psychological level of 150.00. The divergent monetary policies of the US and Japanese regulators contributed to increased volatility in yen pairs. However, after a speech by the Bank of Japan's Deputy Governor, the yen sharply corrected. Shinichi Uchida stated that "it is necessary to maintain the current level of monetary easing," which the market interpreted as a signal that the yen's rate is unlikely to increase this year.

Currently, the yen is experiencing a corrective pullback. Let's consider the possible developments in the upcoming trading sessions.

USD/JPY

Technical analysis of the USD/JPY pair indicates a potential continuation of the corrective pullback, as a "bullish harami" pattern formed on the daily timeframe two days ago. If the recent high at 147.90 is surpassed, the price may test the important area of 151.00-150.00. A decline below 145.40-145.00 could lead to a resumption of the downward movement towards 142.00-141.00.

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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Is the Japanese Stock Market Stable Today?

On July 11, the Nikkei 225 index (Japan 225 on FXOpen) started to decline. Notably, on July 15, we observed bearish activity around the 41330 level.

Interestingly, US stock indices also began to fall on July 11. However, the Japanese stock market saw a more dramatic drop, exceeding 25% by the August 5 low.

Has the Japanese stock market continued to fall? No. After a alarming Monday on August 5, the price has been recovering. It closed higher on Tuesday and Wednesday, with bullish signs observed today, Thursday.

Analyzing the Nikkei 225 (Japan 225 on FXOpen) chart on Monday, we noted that:

→ The price dropped to a support block between 30,400 and the psychological level of 30k.

→ A strong bounce from this block could indicate activated demand (a sign of an emotional selling climax in Wyckoff's terminology).

We then suggested that this support block would hold, and the Japanese stock market might enter a consolidation phase to establish a new balance of 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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Silver Price Finds Support Near 3-Month Low

As shown on the XAG/USD chart, the price of silver is currently around $26.75 this week, marking the lowest level since early May.

In our analysis of silver on June 6, we noted:

→ Silver was underperforming gold—a bearish sign;

→ Other bearish indicators included a double top pattern near the $32 per ounce level.

Since the close on June 6, silver prices have dropped by more than 14%, with:

→ A bearish head-and-shoulders pattern forming above the psychological level of $30 per ounce;

→ The price breaking below the median line of an ascending channel (shown in blue);

→ The price establishing a downward channel (shown in purple), with the $29 level acting as resistance (indicated by an arrow).

One of the drivers of this decline has been recession fears in the U.S. economy, as commodity markets typically experience downward trends during recessions.

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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Renko Trading Strategies: How To Trade With Renko Charts

Renko charts stand out in the trading world for their unique ability to filter market noise and highlight significant price movements, offering a clearer view of market trends. This FXOpen article delves into the synergy between Renko charts and various trading indicators, unveiling four strategies designed to navigate the complexities of the financial markets.

Understanding Renko Charts

Renko charts, derived from the Japanese word 'renga' meaning 'brick', offer a distinctive approach to charting price movements in the financial markets. Unlike traditional candlestick charts that plot price changes over time, Renko charts focus solely on price movement, disregarding time and volume. This method is known for its simplicity and effectiveness in identifying market trends and reducing noise.

Renko charts consist of Renko bars (or bricks), where each bar represents a fixed price movement. Each new Renko bar is plotted at a 45-degree angle from the previous one to the right. The size of the movement, known as the "box size", is predetermined by the trader.

TO VIEW THE FULL ARTICLE, VISIT THE 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.

RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

 

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Eli Lilly Shares Surge Over 9% After Strong Earnings Report

As the chart of Eli Lilly's (LLY) share price shows today, yesterday's trading closed at a level more than 9% higher than Wednesday's closing price. The main driver of this growth was a strong Q2 report:

→ Earnings per share: actual = $3.92, expected = $2.74;
→ Gross sales: actual = $11.3 billion, expected = $9.99 billion.

Market participants reacted positively not only to the fact that the American pharmaceutical company's actual results significantly exceeded forecasts but also to Eli Lilly's rising expectations for the second half of the year, driven by demand for its diabetes treatment Mounjaro and weight loss drug Zepbound.

Technical analysis of the Eli Lilly (LLY) stock chart shows that:
→ The price action is forming an upward channel in 2024 (shown in blue);
→ After a rebound, the median line of this channel was breached (as indicated by the arrow);
→ As could be expected, this line acted as resistance – as indicated by the high of yesterday's candlestick.

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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EURUSD Technical Analysis – 09th AUG, 2024

EURUSD – Ichimoku - Bullish Crossover: Tenkan & Kijun

EURUSD was unable to continue its bearish momentum and after touching a low of 1.0880 the prices have started correcting upwards against the United States dollar.
The resistance of the channel is also broken in the weekly timeframe.
We can see the formation of Ichimoku - Bullish crossover: Tenkan & Kijun in the 1-hourly timeframe.
We have also detected Bullish trend reversal: Moving Average 50 in the weekly timeframe.

The prices of EURUSD are ranging near the support of the channel in the 15-minutes timeframe.
Some of the technical indicators are also giving a neutral stance in the markets which means that the prices are in the consolidation phase now.
EURUSD is now trading below its 100-hour SMA and above its 200-hour SMA simple moving averages.
• Euro Bullish reversal seen above the 1.0880 mark.
• Short-term range appears to be Neutral.
• EURUSD continues to remain above the 1.0910 levels.
• Average true range ATR is indicating less market volatility.

The next resistance is located at 1.0920 which is a 38.2% Retracement From 4 Week High.
EURUSD is now trading just below its Pivot levels of 1.0924 and is moving into a Consolidation channel.
The price of EURUSD remains above its Classic support levels of 1.0910 and is moving towards its next target of 1.0939 which is a 14-3 Day Raw Stochastic at 70%.

Disclaimer: This analysis represents my own opinion only. It is not to be construed as an opinion, offer, solicitation, recommendation, or financial advice of the Companies operating under the FXOpen brand.

For in-depth analysis, please check FXOpen Blog