Daily Market Analysis By FXOpen

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NZDUSD Technical Analysis – 16th SEP, 2024
NZDUSD – Bullish Price Crossover Pattern


NZDUSD was unable to continue its bearish momentum and after touching a low of 0.6149 the prices started to rise upwards against the United States Dollar today in the European Trading session.
We can see Bullish price crossover with adaptative moving average 20 in the 15-minutes timeframe.
The Resistance of channel is broken in the 1-hourly timeframe.
We have also detected Moving Average bullish crossovers: MA20 & MA50 in the 1-hourly timeframe.

We have seen Bullish price crossover with adaptative moving average 20 in the daily timeframe.
We have also seen Bullish opening of the markets this week.
The prices of NZDUSD are ranging Near a new HIGH record (1 year) in the weekly timeframe.

Some of the technical indicators are giving a Bearish to Neutral stance in the markets which indicates the presence of the consolidation wave in the markets.
NZDUSD is now trading above its 100-hour SMA and its 200-hour SMA simple moving averages.
• Kiwi Bullish reversal seen above the 0.6149 mark.
• Short-term range appears to be Strong Bullish.
• NZDUSD continues to remain above the 0.6190 levels.
• Average true range ATR is indicating Less market volatility.

The next resistance is located at 0.6199 which is a 38.2% Retracement From 4 Week High.
NZDUSD is now trading near to its Pivot levels of 0.6192 and is moving into a Strong Bullish channel.
The price of NZDUSD remains above its Classic support levels of 0.6178 and is now moving towards its next target of 0.6202 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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Understanding a Currency Peg: Definition, Mechanisms, and Implications

Fixed exchange rates, a cornerstone of international finance, play a pivotal role in shaping global commerce and investment landscapes. This article delves into their intricacies, exploring the historical evolution, practical understanding, and the balance of benefits and challenges they present.

Historical Context of Fixed Exchange Rates

The concept of fixed exchange rate systems has evolved over centuries, but its modern form gained prominence with the Bretton Woods Agreement in 1944. This system was designed to rebuild the global economy after World War II by creating a stable international monetary framework. Under the Bretton Woods system, countries pegged their currencies to the US dollar, which in turn was backed by gold at a fixed rate of $35 per ounce. This arrangement aimed to maintain relative exchange rate stability, promote international trade, and prevent competitive currency devaluations.

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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FTSE 100 Bullish Ahead of Key Announcements

The chart of the UK stock index FTSE 100 (UK 100 on FXOpen) shows prevailing positive sentiment in the market. The right side of the daily chart displays a series of bullish candles, with a likelihood of this trend continuing today, as the price has been rising since the market opened.

This optimism is likely driven by the anticipation of key announcements:
→ Tomorrow at 09:00 GMT+3, the UK CPI figures will be released. Analysts expect inflation to remain steady without an increase.
→ Also tomorrow, at 21:00 GMT+3, the Federal Reserve will announce its decision on interest rates, with a cut seeming inevitable.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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

 

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EUR/ZAR: A New Currency Pair for Trading on FXOpen

Traders using FXOpen can now incorporate the EUR/ZAR currency pair into their strategies.

The EUR/ZAR pair is known for its volatility, making it suitable for trend trading within a single day. On the other hand, as the daily chart (below) shows, the exchange rate remains within a range, which supports swing trading around key support and resistance levels.

What Influences the EUR/ZAR Exchange Rate?

Key factors affecting the value of the South African rand (ZAR) in 2024 include:

→ High Inflation: In January, inflation was 5.4%, but by July it had decreased to 4.6% due to high interest rates set by the South African Reserve Bank, which strengthen the rand.

→ Prices of Exported Commodities: Gold, platinum, and diamonds.

→ Political Instability: Domestic political events and reforms can trigger spikes in volatility.

Technical Analysis of EUR/ZAR

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 – 17th SEP, 2024
AUDUSD – Bearish Price Crossover Pattern

AUDUSD was unable to continue its bullish momentum and after touching a high of 0.6768 the prices started to decline against the United States Dollar today in the European Trading session.
We can see the formation of Bearish price crossover with Moving Average 100 in the 15-minutes timeframe.
We can detect Parabolic SAR indicator bearish reversal in the 15-minutes timeframe.

We have also seen Ichimoku - Bearish crossover: Tenkan & Kijun in the 15-minutes timeframe.
We can see the formation of a Long black line in the 15-minutes timeframe.
We can see Bearish trend reversal: adaptative moving average 20 in the 1-hourly timeframe.
We can see CCI indicator: bearish divergence in the 4-hourly timeframe.

AUDUSD is now trading above its 100-hour SMA and below its 200-hour SMA simple moving averages.
• Aussie Bearish reversal seen below the 0.6768 mark.
• Short-term range appears to be Mild Bearish.
• AUDUSD continues to remain above the 0.6750 levels.
• Average true range ATR is indicating High market volatility.

The next support is located at 0.6746 which is a 38.2% Retracement From 4 Week High.
AUDUSD is now trading near to its Pivot levels of 0.6754 and is moving into a Mild Bearish channel.
The price of AUDUSD remains just above its Classic support levels of 0.6724 and is moving towards its next target of 0.6724 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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EURUSD Technical Analysis – 17th SEP, 2024
EURUSD – Bearish Trend Reversal Pattern

EURUSD was unable to continue its bullish momentum and after touching a high of 1.1145 the prices started to decline against the United States Dollar today in the European Trading session.
We can see Bearish trend reversal: adaptative moving average 20 in the 30-minutes timeframe.
We can see Ichimoku - Bearish crossover: Tenkan & Kijun in the 30-minutes timeframe.

The Bearish trend reversal: adaptative moving average 20 is visible in the 1-hourly timeframe.
We can see the formation of Parabolic SAR indicator bearish reversal in the 2-hourly timeframe.
The prices of EURUSD are ranging Near resistance of channel in the daily timeframe.

We have also seen EURUSD prices hovering Near resistance of triangle in the weekly timeframe.
Some of the technical indicators are giving a Bullish to Neutral stance in the markets which indicates the presence of the consolidation wave in the markets.
EURUSD is now trading above its 100-hour SMA and its 200-hour SMA simple moving averages.
• Euro Bearish reversal seen below the 1.1145 mark.
• Short-term range appears to be Mild Bearish.
• EURUSD continues to remain above the 1.1110 levels.
• Average true range ATR is indicating High market volatility.

The next support is located at 1.1112 at which the Price Crosses 18 Day Moving Average Stalls.
EURUSD is now trading near to its Pivot levels of 1.1129 and is moving into a Mild Bearish channel.
The price of EURUSD remains above its Classic support levels of 1.1104 and is moving towards its next target of 1.1094 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 – 17th SEP, 2024
GBPUSD – Bearish Engulfing Lines

GBPUSD was unable to continue its bullish momentum and after touching a high of 1.3229 the prices started to decline against the United States Dollar today in the European Trading session.
We can see the formation of Bearish engulfing lines in the 15-minutes timeframe.
We have also seen Bearish price crossover with adaptative moving average 20 in the 1-hourly timeframe.
The Parabolic SAR indicator bearish reversal is visible in the 2-hourly timeframe.

We have seen RSI indicator: bearish divergence in the 4-hourly timeframe.
The prices of GBPUSD are ranging Near resistance of channel in the weekly timeframe.
We can also see GBPUSD prices hovering Near resistance of triangle in the weekly 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.

GBPUSD is now trading above its 100-hour SMA and its 200-hour SMA simple moving average.
• Pound Bearish reversal seen below the 1.3229 mark.
• Short-term range appears to be Mild Bearish.
• GBPUSD continues to remain above the 1.3180 levels.
• Average true range ATR is indicating High market volatility.

GBPUSD is now trading below its Pivot levels of 1.3212 and is moving into a Mild Bearish channel.
The price of GBPUSD is above its Classic support levels of 1.3172 and is now moving towards its next target of 1.3184 which is a 14-3 Day Raw Stochastic at 70%.
We are also looking for the breach of the levels of 1.3153 which is a Pivot Point 1st Support Point.

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 – 17th SEP, 2024
NZDUSD – Bearish Price Crossover Pattern

NZDUSD was unable to continue its bullish momentum and after touching a high of 0.6210 the prices started to decline against the United States Dollar today in the European Trading session.
We can see Bearish price crossover with Moving Average 100 in the 30-minutes timeframe.
We have also seen Bearish price crossover with adaptative moving average 100 in the 30-minutes timeframe.
The prices of NZDUSD are ranging Near horizontal resistance in the 1-hourly timeframe.

The SuperTrend indicator bearish reversal is visible in the 1-hourly timeframe.
The price of NZDUSD is back under the pivot point in the 1-hourly timeframe.
The MACD crosses DOWN its Moving Average in the 2-hourly timeframe.
The Parabolic SAR indicator bearish reversal is seen in the 2-hourly timeframe.

We have also detected CCI indicator: bearish divergence in the 4-hourly timeframe.
NZDUSD is now trading above its 100-hour SMA and its 200-hour SMA simple moving averages.
• Kiwi Bearish reversal seen below the 0.6210 mark.
• Short-term range appears to be Mild Bearish.
• NZDUSD continues to remain above the 0.6170 levels.
• Average true range ATR is indicating High market volatility.

The next support is located at 0.6170 at which the Price Crosses 9 Day Moving Average.
NZDUSD is now trading below its Pivot levels of 0.6191 and is moving into a Mild Bearish channel.
The price of NZDUSD remains above its Classic support levels of 0.6156 and is now moving towards its next target of 0.6164 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 Can You Use AI and ChatGPT to Trade Stocks?

As you may know, AI can mimic human intelligence and make decisions based on data analysis. Artificial intelligence trading software can be used to analyse historical market data, generate investment ideas, form portfolios, and automatically buy and sell stocks. AI can quickly process huge amounts of data and make informed trading decisions. AI-based trading strategies can be used to identify patterns and trends in real-time.

This FXOpen article explores the use of artificial intelligence in stock trading and highlights the pros and cons of AI-automated trading.

How Does Trading with AI Work?

Using AI for trading stocks is a relatively new practice. AI analyses markets with accuracy and efficiency and may help traders learn about stocks and build a trading strategy. Here’s a breakdown of how to use AI in trading.

The first stage needed for an AI model to function properly is robust data collection and preprocessing. This stage is akin to gathering raw materials to create a final product.

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 Strengthens While USD/CHF Faces Hurdles

EUR/USD started a fresh increase above the 1.1050 resistance. USD/CHF declined and now struggling below the 0.8500 resistance.

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

• The Euro surged after it broke the 1.1050 resistance against the US Dollar.
• There is a connecting bullish trend line forming with support near 1.1125 on the hourly chart of EUR/USD at FXOpen.
• USD/CHF declined below the 0.8500 and 0.8460 support levels.
• There is a major bearish trend line forming with resistance near 0.8460 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair started a fresh increase from the 1.1000 zone. The Euro cleared the 1.1050 resistance to move into a bullish zone against the US Dollar, as mentioned in the last analysis.

The bulls pushed the pair above the 50-hour simple moving average and 1.1100. Finally, the pair tested the 1.1145 resistance. A high was formed near 1.1146 and the pair is now consolidating gains above the 23.6% Fib retracement level of the upward wave from the 1.1001 swing low to the 1.1146 high.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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

 

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S&P 500 Sets Record Ahead of Fed Decision

As shown by the S&P 500 index chart (US SPX 500 mini on FXOpen), yesterday's trading saw the index hit a new intraday high of 5,678.9, surpassing the previous record of 5,677.5 set on 16 July. However, the bulls were unable to maintain this historic peak, which is a negative sign, suggesting the possibility of a bear trap scenario.

Nevertheless, this first new record in two months is significant as it shows the market's recovery from the panic-driven drop on 5 August, which was linked to fears of a potential recession.

Yesterday’s rise was boosted by the US Commerce Department's August retail sales report, which exceeded expectations. As Forbes noted, this supports the view that the US is not on the brink of a recession.

The market now heads into the final stretch before the highly anticipated Federal Reserve decision, expected today at 21:00 GMT+3, which will likely see the first interest rate cut in 4.5 years.

According to Forex Factory, analysts predict a rate cut to 5.25% from the current 5.50%. However, surprises are possible, with a 0.5% cut also on the table. Only a small minority seems to expect the rate to remain unchanged.

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 – 18th SEP, 2024
AUDUSD – Resistance of Channel is Broken

AUDUSD was unable to continue its bearish momentum and after touching a low of 0.6743 the prices started to rise upwards against the United States Dollar today in the European Trading session.
The Resistance of channel is broken in the 15-minutes timeframe.
The MACD crosses UP its Moving Average in the daily timeframe.

We can detect Ichimoku - Bullish crossover: Tenkan & Kijun in the daily timeframe.
The Momentum indicator is back over zero in the daily timeframe.
We can see the Bullish price crossover with adaptative moving average 50 in the weekly timeframe.

We can see Bullish price crossover with adaptative moving average 100 in the weekly timeframe.
The prices of AUDUSD are ranging Near a new HIGH record (1 year) in the weekly timeframe.
AUDUSD is now trading above its 100-hour SMA and below its 200-hour SMA simple moving averages.
• Aussie Bullish reversal seen above the 0.6743 mark.
• Short-term range appears to be Strong Bullish.
• AUDUSD continues to remain above the 0.6780 levels.
• Average true range ATR is indicating Less market volatility.

The next resistance is located at 0.6792 which is a 3-10 Day Moving Average Crossover Stalls.
AUDUSD is now trading near to its Pivot levels of 0.6787 and is moving into a Strong Bullish channel.
The price of AUDUSD remains just above its Classic support levels of 0.6781 and is moving towards its next target of 0.6795 at which the Price Crosses 18 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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EURUSD Technical Analysis – 18th SEP, 2024
EURUSD – Resistance of Channel is Broken

EURUSD was unable to continue its bearish momentum and after touching a low of 1.1111 the prices started to correct upwards against the United States Dollar today in the European Trading session.
The Resistance of channel is broken in the 15-minutes timeframe.
We can see Bullish price crossover with adaptative moving average 20 in the 1-hourly timeframe.
We have detected the formation of Doji in the daily timeframe which indicates a Neutral market.

The CCI indicator is overbought: over 100 in the weekly timeframe indicating a Neutral market.
We have also seen EURUSD prices hovering Near a new HIGH record (1 year) in the weekly timeframe.
Some of the technical indicators are giving a Bearish to Neutral stance in the markets which indicates the presence of the consolidation wave in the markets.
EURUSD is now trading above its 100-hour SMA and its 200-hour SMA simple moving averages.
• Euro Bullish reversal seen above the 1.1111 mark.
• Short-term range appears to be Mild Bullish.
• EURUSD continues to remain above the 1.1120 levels.
• Average true range ATR is indicating Less market volatility.

The next resistance is located at 1.1125 which is a 38.2% Retracement From 4 Week High.
EURUSD is now trading near to its Pivot levels of 1.1133 and is moving into a Mild Bullish channel.
The price of EURUSD remains above its Classic support levels of 1.1119 and is moving towards its next target of 1.1141 which is a Price 1 Standard Deviation 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 – 18th SEP, 2024
GBPUSD – Ichimoku - Bullish crossover: Tenkan & Kijun

GBPUSD was unable to continue its bearish momentum and after touching a low of 1.3145 the prices started to rise upwards against the United States Dollar today in the European Trading session.
We can see the formation of Ichimoku - Bullish crossover: Tenkan & Kijun in the 1-hourly timeframe.
The MACD crosses UP its Moving Average in the 2-hourly timeframe.

The Parabolic SAR indicator bullish reversal is visible in the 4-hourly timeframe.
The Resistance of channel is broken in the daily timeframe.
The prices of GBPUSD are back over the pivot point in the daily timeframe.
We can see the formation of Bullish engulfing lines in the weekly timeframe.

Some of the technical indicators are also giving a Bearish to Neutral stance in the markets which indicates the presence of the consolidation wave in the markets.
GBPUSD is now trading above its 100-hour SMA and its 200-hour SMA simple moving average.
• Pound Bullish reversal seen above the 1.3145 mark.
• Short-term range appears to be Strong Bullish.
• GBPUSD continues to remain above the 1.3200 levels.
• Average true range ATR is indicating Less market volatility.

GBPUSD is now trading below its Pivot levels of 1.3211 and is moving into a Strong Bullish channel.
The price of GBPUSD is above its Classic support levels of 1.3199 and is now moving towards its next target of 1.3217 at which the Price Crosses 18 Day Moving Average Stalls.
We are also looking for the breach of the levels of 1.3223 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 – 18th SEP, 2024
NZDUSD – Resistance of Channel is Broken

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 today in the European Trading session.
The Resistance of channel is broken in the 1-hourly timeframe.
The Horizontal resistance is broken in the daily timeframe.
We can see that the Williams percent Range indicator is back over -50 in the daily timeframe.

We have also seen the formation of a White morning star in the weekly timeframe which indicates the bullish nature of the markets.
The CCI indicator is overbought: over 100 in the 4-hourly timeframe which indicates a Neutral market.
Some of the technical indicators are also giving a Bearish to Neutral stance which indicates the presence of the consolidation wave in the markets.
We can see that the NZDUSD is hovering Near a new HIGH record (1 year) in the weekly timeframe.

NZDUSD is now trading above its 100-hour SMA and its 200-hour SMA simple moving averages.
• Kiwi Bullish reversal seen above the 0.6176 mark.
• Short-term range appears to be Strong Bullish.
• NZDUSD continues to remain above the 0.6215 levels.
• Average true range ATR is indicating Less market volatility.

The next resistance is located at 0.6225 which is a Pivot Point 2nd Level Resistance.
NZDUSD is now trading below its Pivot levels of 0.6225 and is moving into a Strong Bullish channel.
The price of NZDUSD remains above its Classic support levels of 0.6215 and is now moving towards its next target of 0.6234 at which the Price Crosses 18 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