Daily Market Analysis By FXOpen

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EURUSD Technical Analysis – 03rd SEP, 2024
EURUSD – Bearish Price Crossover Pattern

EURUSD was unable to continue its bullish momentum and after touching a high of 1.1072 the prices started to decline sharply against the United States dollar in the European Trading session.
We can see Bearish price crossover with adaptative moving average 100 in the 30-minutes timeframe.
The price of EURUSD is back under the pivot point in the 15-minutes timeframe.

We can also see the formation of Bearish price crossover with Moving Average 100 in the 15-minutes timeframe.
The Ichimoku: price is under the cloud in the 30-minutes timeframe.
Some of the technical indicators are also giving a bullish to neutral stance in the markets which indicates the presence of the Consolidation wave in the markets.

The prices of EURUSD are ranging Near a new LOW record of 1 month.
EURUSD is now trading below its 100-hour SMA and its 200-hour SMA simple moving averages.
• Euro Bearish reversal seen below the 1.1072 mark.
• Short-term range appears to be Mild Bearish.
• EURUSD continues to remain above the 1.1040 levels.
• Average true range ATR is indicating High market volatility.

The next support is located at 1.1050 which is a Pivot Point 1st Support Point.
EURUSD is now trading above its Pivot levels of 1.1037 and is moving into a Mild Bearish channel.
The price of EURUSD remains above its Classic support levels of 1.1021 and is moving towards its next target of 1.1041 which is a 50% Retracement From 4 Week High/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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GBPUSD Technical Analysis – 03rd SEP, 2024
GBPUSD – Bearish Trend Reversal Pattern

GBPUSD was unable to continue its bullish momentum and after touching a high of 1.3148 the prices started to decline sharply against the United States Dollar in the European Trading session today.
The Bearish trend reversal: adaptative moving average 50 is seen in the 15-minutes timeframe.
We can also see Bearish price crossover with adaptative moving average 100 in the 15-minutes timeframe.
The RSI indicator: bearish divergence is visible in the 15-minutes timeframe.

The Ichimoku: price is under the cloud in the 30-minutes timeframe.
The price of GBPUSD is back under the pivot point in the 30-minutes timeframe.
The Support of channel is broken in the 1-hourly timeframe.
The Parabolic SAR indicator bearish reversal is seen in the daily timeframe.

GBPUSD is now trading below its 100-hour SMA and its 200-hour SMA simple moving average.
• Pound Bearish reversal seen below the 1.3148 mark.
• Short-term range appears to be Mild Bearish.
• GBPUSD continues to remain above the 1.3090 levels.
• Average true range ATR is indicating High market volatility.

GBPUSD is now trading below its Pivot levels of 1.3130 and is moving into a Mild Bearish channel.
The price of GBPUSD is above its Classic support levels of 1.3085 and is now moving towards its next target of 1.3091 which is a Pivot Point 3rd Support Point.
We are also looking for the breach of the levels of 1.3089 at which the Price Crosses 9 Day Moving Average Stalls.

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 Traders Spot and Use the Dragonfly Doji Candlestick Pattern?

The dragonfly doji candlestick pattern holds intrigue and fascination for traders in financial markets. Its distinct shape and positioning on price charts make it a keen subject for observation and analysis. In this article, we will explore this setup, its significance, and how traders use it in their trading strategies.

What Does a Dragonfly Doji Mean?

The red or green dragonfly doji is a candlestick pattern that forms when the opening, closing, and high prices of an asset are equal or almost equal. This formation resembles the shape of a dragonfly because it has an extended lower shadow. It provides bullish signals and is considered a neutral pattern as it provides continuation and reversal signals, depending on its context within a trend. The meaning of a dragonfly doji is that there is uncertainty in the market, and traders are prompted to carefully analyse other factors before making trading decisions.

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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Commodity Currencies Retreat from Recent Highs

The first trading week of September is packed with significant macroeconomic data releases. On Friday, the US employment report is expected, tomorrow the Bank of Canada will announce its interest rate decision, and the US non-manufacturing PMI and crude oil inventory data will also be published. In anticipation of this data mix, the Canadian and Australian currencies have retreated from their recent highs and are currently in a phase of corrective decline. Let's consider the potential scenarios for the upcoming trading sessions.

USD/CAD

Technical analysis of USD/CAD indicates the potential for a deeper upward correction, as a "bullish engulfing" pattern has formed on the daily timeframe. If the 1.3500 level holds as support, the pair could continue to rise towards 1.3620-1.3580. A drop below 1.3490-1.3470 would invalidate the bullish scenario.

Today, investors and market participants are awaiting the Bank of Canada's interest rate decision. It is expected that the rate will be reduced by 0.25% to 4.25%. Given the pair's movement in recent days, this decision seems to be priced in. What will be important for investors are the Canadian regulator's future plans, including the timing and scale of the next rate cut.

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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Nvidia (NVDA) Shares Among the Biggest Losers

On July 31, US labour market data was released, which proved disappointing and contributed to a decline in the Nasdaq 100 index (US Tech 100 mini on FXOpen) by over 10% between August 1 and 5.

This heightens the importance of the upcoming labour market data release, scheduled for tomorrow (15:15-15:30 GMT+3). It seems that concerns are growing among market participants that the news could reveal further negative trends.

This could explain the sell-off that gripped the US stock market yesterday. The Nasdaq 100 index (US Tech 100 mini on FXOpen) dropped by more than 3%, with Nvidia (NVDA) shares losing over 9% of their value.

In the first half of 2024, NVDA was a growth leader, but now it is among the biggest decliners—a bearish signal that suggests the price decline could continue. If so, how significant could it be?

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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Brent Crude Oil Price Hits Yearly Low

Analyzing the oil market on the XBR/USD chart from August 26, when Brent crude was trading around $79 per barrel, we observed the following:

→ The price was forming a descending channel (shown in red) and approaching its upper boundary, which could act as resistance.
→ We identified a key support level (shown in yellow).
→ We suggested that the bulls would need to prove their determination when facing a block of resistance around the $80 level.

Since then, Brent crude oil has:

→ Reversed downward, failing to hold above the $80 level, and continued to decline within the red channel.
→ Accelerated its decline, breaking through the key support around the $75 level.

Bearish sentiment was fueled by OPEC+ plans to increase oil production, signaling a shift away from production cuts aimed at maintaining higher prices.

Could Brent Crude Oil Continue to Decline?

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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Understanding the Inverse Cup and Handle Chart Pattern

Understanding chart patterns is fundamental for market participants. This article delves into the inverse cup and handle formation, a bearish signal indicating a potential downward movement. Explore its identification, trading strategies, psychological underpinnings, common pitfalls, and more to boost your trading knowledge.

What Is the Inverse Cup and Handle Pattern?

The inverse cup and handle, sometimes called an upside-down cup and handle pattern, is a bearish chart pattern that may appear during up- and downtrends. It is the opposite of the traditional cup and handle pattern, which is bullish. The inverse formation consists of two main parts: the "cup," which is an inverted U-shape, and the "handle," a small upward retracement following the cup.

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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Market Analysis: EUR/USD Eyes Fresh Increase, USD/JPY Trims Gains

EUR/USD started a fresh decline from 1.1200. USD/JPY is correcting gains and might test the 144.15 support in the near term.

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

• The Euro started a fresh decline below the 1.1150 support.
• There is a key bearish trend line forming with resistance at 1.1055 on the hourly chart of EUR/USD at FXOpen.
• USD/JPY struggled near 147.20 and recently started a downside correction.
• There was a break below a major bullish trend line with support at 145.80 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair started a fresh decline from the 1.1200 zone. The Euro declined below the 1.1150 support zone to enter a bearish zone against the US Dollar.

The pair even settled below the 1.1110 zone and the 50-hour simple moving average. A low was formed near 1.1026 and the pair is now correcting losses. It is now approaching the 23.6% Fib retracement level of the recent decline from the 1.1190 swing high to the 1.1026 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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The Pound Approaches Recent Highs: What Could Happen Next?

GBP/USD

After a sharp rise at the end of August, the British currency corrected to a key support level around 1.3100. At the start of the week, sterling sellers attempted to push through this support, but so far without success. A false breakout of the 1.3100 level, followed by a rebound, allowed buyers to form a bullish engulfing pattern.

If the 1.3100 level holds, the GBP/USD pair may consolidate around the recent highs in the 1.3240-1.3200 range. A deeper downward correction could occur if the pair breaks below 1.3100. In the coming trading sessions, we might see a surge in volatility as several important macroeconomic reports are expected:

• Today at 11:30 (GMT +3:00) – UK Construction PMI for August;
• Today at 15:15 (GMT +3:00) – US ADP Nonfarm Employment Change;
• Today at 16:45 (GMT +3:00) – US Services PMI.

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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Canopy Growth Corp (CGC) Shares Drop Below $5

As the chart indicates, Canopy Growth Corporation (CGC) shares closed below $5 yesterday for the first time since late March 2024.

In the spring, the stock price of the cannabis production and distribution company surged amid expectations that the US Drug Enforcement Administration (DEA) might downgrade marijuana from a Schedule I to a Schedule III substance.

The decision was indeed made on 30 April, which saw CGC’s share price peak above $14, as investors anticipated that the move would: → accelerate the legalisation of marijuana for both medical and recreational use; → reduce penalties for illegal marijuana trade; → boost profits for companies like Canopy Growth Corporation.

However, the reality was different. The Q2 earnings report released on 9 August showed that Canopy Growth Corporation's (CGC) actual performance fell short of analysts' expectations. For instance, gross revenue was $48.3 million (compared to the forecast of $51.2 million and Q1 revenue of $53.7 million).

Despite favourable conditions, including a rising stock market in 2024, Canopy Growth Corporation's (CGC) shares have disappointed.

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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Analysis of USD/CAD: Bank of Canada Cuts Interest Rate

Yesterday, the Bank of Canada reduced its key interest rate by 25 basis points to 4.25%. Its governor, Tiff Macklem, cited weak economic growth and suggested that a more substantial rate cut could be considered in the future.

While the rate cut was widely expected, the currency market reacted with a surge in volatility. For instance, on the USD/CAD chart:
→ On 3 September, ahead of the decision, the USD/CAD rate was climbing;
→ On 4 September, immediately after the announcement, the rate dropped sharply.

What could be the outlook for the exchange rate, which has fallen by approximately 3% from early August to the end of the month, breaking key resistance at 1.3600?

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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AUDUSD Technical Analysis – 05th SEP, 2024
AUDUSD – Bullish Trend Reversal Pattern

AUDUSD was unable to sustain its bearish momentum and after touching a low of 0.6708 the prices started to rise upwards against the United States Dollar in the European Trading session today.
We can see Bullish trend reversal: adaptative moving average 100 in the 30-minutes timeframe.
The MACD crosses UP its Moving Average in the 30-minutes timeframe.
We have also detected Bullish price crossover with adaptative moving average 50 in the 1-hourly timeframe.

The Parabolic SAR indicator bullish reversal is seen in the 1-hourly timeframe.
We can see the formation of Bullish engulfing lines in the 1-hourly timeframe.
The price of AUDUSD is back over the pivot point in the daily timeframe.

AUDUSD is now trading below its 100-hour SMA and its 200-hour SMA simple moving averages.
• Aussie Bullish reversal seen above the 0.6708 mark.
• Short-term range appears to be Mild Bullish.
• AUDUSD continues to remain above the 0.6720 levels.
• Average true range ATR is indicating Less market volatility.

The next resistance is located at 0.6753 which is a Pivot Point 1st Resistance Point.
AUDUSD is now trading above its Pivot levels of 0.6718 and is moving into a Mild Bullish channel.
The price of AUDUSD remains above its Classic support levels of 0.6707 and is moving towards its next target of 0.6759 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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EURUSD Technical Analysis – 05th SEP, 2024
EURUSD – Bullish Price Crossover Pattern

EURUSD was unable to continue its bearish momentum and after touching a low of 1.1065 the prices started to rise upwards against the United States Dollar in the European Trading session.
We can see Bullish price crossover with adaptative moving average 20 in the 15-minutes timeframe.
The MACD crosses UP its Moving Average in the 15-minutes timeframe.
We can also see Parabolic SAR indicator bullish reversal in the 15-minutes timeframe.

We have also detected Bullish trend reversal: Moving Average 50 in the 30-minutes timeframe.
The SuperTrend indicator bullish reversal is visible in the 4-hourly timeframe.
The price of EURUSD is back over the pivot point in the weekly timeframe.

EURUSD is now trading below its 100-hour SMA and above its 200-hour SMA simple moving averages.
• Euro Bullish reversal seen above the 1.1065 mark.
• Short-term range appears to be Mild Bullish.
• EURUSD continues to remain above the 1.1090 levels.
• Average true range ATR is indicating Less market volatility.

The next resistance is located at 1.1105 which is a Pivot Point 1st Resistance Point.
EURUSD is now trading above its Pivot levels of 1.1099 and is moving into a Mild Bullish channel.
The price of EURUSD remains above its Classic support levels of 1.1073 and is moving towards its next target of 1.1123 which is a Price 2 Standard Deviations Resistance.

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 – 05th SEP, 2024
GBPUSD – Bullish Engulfing Lines

GBPUSD was unable to continue its bearish momentum and after touching a low of 1.3127 the prices started to rise upwards against the United States Dollar in the European Trading session today.
We can see the formation of Bullish engulfing lines in the 1-hourly timeframe.
We can also see Bullish price crossover with Moving Average 100 in the 2-hourly timeframe.
The SuperTrend indicator bullish reversal is visible in the 4-hourly timeframe.

We can also see the formation of Ichimoku - Bullish crossover: Tenkan & Kijun in the 4-hourly timeframe.
We have also detected the formation of Bullish Harami pattern in the weekly timeframe.
Some of the technical indicators are also giving a Neutral stance of the markets.

GBPUSD is now trading above its 100-hour SMA and below its 200-hour SMA simple moving average.
• Pound Bullish reversal seen above the 1.3127 mark.
• Short-term range appears to be Mild Bullish.
• GBPUSD continues to remain above the 1.3150 levels.
• Average true range ATR is indicating Less market volatility.

GBPUSD is now trading below its Pivot levels of 1.3164 and is moving into a Mild Bullish channel.
The price of GBPUSD is above its Classic support levels of 1.3137 and is now moving towards its next target of 1.3168 at which the Price Crosses 9 Day Moving Average.
We are also looking for the breach of the levels of 1.3180 which is a Price 2 Standard Deviations Resistance.

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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NZDUSD Technical Analysis – 05th SEP, 2024
NZDUSD – Bullish Trend Reversal Pattern

NZDUSD was unable to continue its bearish momentum and after touching a low of 0.6176 the prices started to rise upwards against the United States Dollar in the European Trading session today.
We can see Bullish trend reversal: adaptative moving average 50 in the 2-hourly timeframe.
The Parabolic SAR indicator bullish reversal is seen in the 2-hourly timeframe.

We have also detected Bullish price crossover with adaptative moving average 100 in the 4-hourly timeframe.
We can see Aroon indicator bullish trend in the 4-hourly timeframe.
The Horizontal resistance is broken in the daily timeframe.
The Resistance of channel is broken in the weekly timeframe.

We have also detected Moving Average bullish crossovers: MA20 & MA50 in the weekly timeframe.
NZDUSD is now trading above its 100-hour SMA and below its 200-hour SMA simple moving averages.
• Kiwi Bullish reversal seen above the 0.6176 mark.
• Short-term range appears to be Mild Bullish.
• NZDUSD continues to remain above the 0.6200 levels.
• Average true range ATR is indicating Less market volatility.

The next resistance is located at 0.6224 which is a Price 1 Standard Deviation Resistance.
NZDUSD is now trading above its Pivot levels of 0.6216 and is moving into a Mild Bullish channel.
The price of NZDUSD remains above its Classic support levels of 0.6195 and is now moving towards its next target of 0.6234 at which the Price Crosses 9 Day Moving Average Stalls.

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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What Is the S&P 500 Index and How to Trade It via CFDs?

The S&P 500 index is a cornerstone of the financial world, providing a snapshot of the US stock market by tracking 500 of the largest companies. This FXOpen article delves into the essence of the S&P 500, its operational mechanics, and how traders can navigate its movements through CFDs.

What Is the S&P 500?

The S&P 500 index, established in 1957, serves as a barometer for the US economic health, tracking the performance of 500 large companies listed on stock exchanges in the United States. It is widely regarded as one of the best representations of the US stock market and a leading indicator of other US equities. The index is managed by Standard & Poor's, a division of S&P Global, and is updated to reflect changes in the market and economy.

Inclusion in the S&P 500 is based on several criteria, including market capitalisation, liquidity, domicile, public float, financial viability, and the length of time publicly traded. Market capitalisation, in particular, is a critical factor, ensuring that the index reflects the largest and most stable companies that meet Standard & Poor's stringent requirements.

The index uses a market capitalisation-weighted formula. In essence, market capitalisation weighting means those with a greater value, like Apple or Microsoft, have an outsized impact on the index’s movements. The calculation involves summing the adjusted market capitalisation of all 500 companies and dividing it by a divisor, a proprietary figure adjusted by Standard & Poor's to account for changes such as stock splits, dividends, and mergers.

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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Market Analysis: GBP/USD Recovers While EUR/GBP Eyes Gains

GBP/USD is attempting a fresh increase from the 1.3090 zone. EUR/GBP is gaining pace and might extend its upward move above the 0.8440 zone.

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

• The British Pound is attempting a recovery above the 1.3130 zone against the US Dollar.
• There was a break above a key bearish trend line with resistance at 1.3120 on the hourly chart of GBP/USD at FXOpen.
• EUR/GBP started a fresh increase above the 0.8420 resistance zone.
• There is a major rising channel forming with support near 0.8425 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair started a fresh decline from the 1.3265 zone. The British Pound traded below the 1.3200 zone against the US Dollar.

A low was formed near 1.3090 and the pair is now attempting a recovery wave. There was a break above the 23.6% Fib retracement level of the downward move from the 1.3266 swing high to the 1.3088 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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Analysis of XAU/USD: Gold Price Holds Near Key Resistance

As shown on the XAU/USD chart today, the price of gold is:

→ above the psychological level of $2,500 per ounce;

→ near a key resistance marked by a red line labelled Support 2. This line has been preventing further price growth several times since 20 August, when the all-time high was reached.

If the bulls manage to break through this line, it could turn into a support level, as happened with Support 1 (as indicated by arrows). This would set the stage for a potential rally within the upward channel, marked in blue. From a technical analysis perspective, a break above the “bull flag” pattern could signal a resumption of the uptrend.

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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NIO Stock Price Surges by 14%

On 23 August, while analysing the chart of Chinese automaker NIO, we noted that:

→ For months, the price has been forming a downward channel (shown in red), driven by the company’s inability to turn a profit, with the $4.25 level acting as resistance.

→ Investors may hold out for positive shifts in the fundamentals, as for the first time in the company's history, monthly vehicle deliveries have remained above 20,000.

Indeed, the company’s second-quarter report released yesterday brought pleasant surprises, including reduced losses, a 98.9% year-on-year revenue increase, and improved gross profit margins.

Experts are revising their forecasts, with Deutsche Bank analysts raising their target price for NIO shares, anticipating that the company will sell over 60,000 vehicles in the third quarter.

The market reacted with a sharp price increase – NIO stock surged by 14%.

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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Retracements and Reversals: How Can You Distinguish Between Them?

In trading, distinguishing between retracements and reversals is crucial for risk management and overall trading effectiveness. This article explores these two key concepts, providing traders with insights on how to identify and respond to these different market movements. Let's delve into the intricacies of retracements and reversals and the difference between the two.

Understanding Trends

Let us remind you that market trends refer to the general direction in which the price of an asset is moving. Traders classify these trends as upward (bullish), downward (bearish), or sideways (range-bound).

Upward trends are characterised by higher highs and higher lows, indicating growing market confidence. Downward trends display lower highs and lower lows, signalling declining market sentiment. Sideways trends show horizontal movement, reflecting uncertainty or consolidation in the market. The trend concept is important, as it’s critical in establishing whether a move is a retracement or reversal.

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.