Daily Market Analysis By FXOpen

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NZDUSD Technical Analysis – 28th OCT, 2024
NZDUSD – Moving Average Bearish Crossovers

NZDUSD was unable to continue its bullish momentum and after touching a high of 0.5997 the prices started to decline against the United States Dollar today in the US Trading session.
We have seen Moving Average bearish crossovers: MA50 & MA100 in the 15-minutes timeframe.
Also, we see Moving Average bearish crossovers: MA20 & MA50 formation in the 30-minutes timeframe.
The MACD indicator: bullish divergence is visible in the 4-hourly timeframe.

We can see the formation of Bearish engulfing lines in the 4-hourly timeframe.
The prices of NZDUSD are back under the pivot point in the daily timeframe.
Also, we have seen Moving Average bearish crossovers: MA20 & MA50 in the weekly timeframe.
The MACD indicator is back under zero 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.
NZDUSD is now trading below its 100-hour SMA and above its 200-hour SMA simple moving averages.
• Kiwi Bearish reversal seen below the 0.5997 mark.
• Short-term range appears to be Bearish.
• NZDUSD continues to remain above the 0.5960 levels.
• Average true range ATR is indicating Less market volatility.

The next support is located at 0.5993 which is a Price 2 Standard Deviations Support.
NZDUSD is now trading near to its Pivot levels of 0.5970 and is moving into a Bearish channel.
The price of NZDUSD remains above its Classic support levels of 0.5964 and is now moving towards its next target of 0.5946 which is a 14 Day RSI at 30%.

#fxopen

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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USDCAD Technical Analysis – 28th OCT, 2024
USDCAD – Resistance of Channel is Broken

USDCAD was unable to continue its Bearish momentum and after touching a low of 1.3881 the prices started to correct upwards against the United States Dollar today in the US Trading session.
The Resistance of channel is broken in the 15-minutes timeframe.
The prices are Near support of channel in the 1-hourly timeframe.
The Momentum indicator is back over zero in the 1-hourly timeframe.

The prices of USDCAD are back over the pivot point in the daily timeframe.
The Resistance of channel is broken in the daily 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.
USDCAD is now trading above its 100-hour SMA and above its 200-hour SMA simple moving averages.
• Loonie Bullish reversal seen above the 1.3881 mark.
• Short-term range appears to be Bullish.
• USDCAD continues to remain above the 1.3890 levels.
• Average true range ATR is indicating Less market volatility.

The next resistance is located at 1.3904 which is a Pivot Point 1st Resistance Point.
USDCAD is now trading near to its Pivot levels of 1.3897 and is moving into a Bullish channel.
The price of USDCAD remains above its Classic support levels of 1.3888 and is now moving towards its next target of 1.3917 which is a Price 1 Standard Deviation Resistance.

#fxopen

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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USDJPY Technical Analysis – 28th OCT, 2024
USDJPY – RSI Indicator: Bullish Divergence

USDJPY was unable to continue its Bearish momentum and after touching a low of 152.40 the prices started to correct upwards against the United States Dollar today in the US Trading session.
We have seen RSI indicator: bullish divergence in the 15-minutes timeframe.
USDJPY is ranging Near support of triangle in the 15-minutes timeframe.
Also, we see CCI indicator: bullish divergence in the 30-minutes timeframe.

The prices are Near support of triangle in the 1-hourly 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.
USDJPY is now trading above its 100-hour SMA and above its 200-hour SMA simple moving averages.
• Yen Bullish reversal seen above the 152.40 mark.
• Short-term range appears to be Bullish.
• USDJPY continues to remain above the 152.90 levels.
• Average true range ATR is indicating Less market volatility.

The next resistance is located at 153.35 which is a 14 Day RSI at 70%.
USDJPY is now trading near to its Pivot levels of 152.95 and is moving into a Bullish channel.
The price of USDJPY remains above its Classic support levels of 152.69 and is now moving towards its next target of 153.40 which is a 61.8% Retracement from the 52 Week Low.

#fxopen

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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The Purchasing Managers’ Index (PMI): What Does It Tell Traders?

The Purchasing Managers’ Index (PMI) is a widely watched economic indicator that helps traders assess the overall health of the economy via an early snapshot of business activity. Traders often use this data to analyse potential market movements across different asset classes, from equities to forex. In this article, we’ll explore what the PMI is, how it works, and why it matters for traders.

PMI Definition

The Purchasing Managers’ Index (PMI) is a key economic indicator that offers insight into the business conditions of the manufacturing and services sectors. It’s derived from monthly surveys sent to purchasing managers at various companies, who provide data on several aspects of their business activities. The idea is to get a snapshot of how the economy is performing based on the people making the procurement decisions. PMI data is released in various countries, including majors.

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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McDonald's (MCD) Stock Trades Below $300 Ahead of Earnings Report

The $300 level has proven psychologically significant for McDonald’s (MCD) stock:

→ In summer 2023, bullish investors failed to push the price above this mark, leading to a decline from $298 in July to $246 by October.

→ Again, in January 2024, the price briefly surpassed $300 but quickly dropped, eventually falling to $245 by July.

This autumn, it appeared the level had been breached when an uptrend (highlighted by the blue channel) lifted MCD above $315. However, reports of customer food poisoning incidents hit the news, causing MCD’s stock to plummet to $295 on October 23, making the orange channel more prominent in the technical analysis.

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 100 Consolidates Ahead of Major Market Leader Earnings Reports

This week, five companies with market capitalisations exceeding $1 trillion are set to release their quarterly earnings:

→ Alphabet (GOOGL) on October 29
→ Microsoft (MSFT) on October 30
→ Meta Platforms (META) on October 30
→ Apple (AAPL) on October 31
→ Amazon (AMZN) on October 31

These results and profit forecasts from leading tech giants could fuel momentum for the Nasdaq 100 (US Tech 100 mini on FXOpen).

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 Three Black Crows Pattern: Trading Principles

Various candlestick and chart patterns indicate potential market reversals. One such formation is the three black crows pattern that indicates a potential bearish reversal in the price of an asset. You can find three black crows stock, commodity, and forex patterns. This FXOpen article will help you understand how such a pattern is formed, explaining how it can be used to spot trading opportunities in the market and demonstrating live trading examples.

What Are the Three Black Crows?

The three black crows is a bearish candlestick pattern used in technical analysis to signal a potential reversal of an uptrend. It consists of three consecutive long bearish candlesticks that occur after a strong upward trend. The pattern suggests that the momentum has shifted from buyers to sellers, indicating that a downtrend could be about to begin.

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: GBP/USD Recovers While EUR/GBP Struggles

GBP/USD is attempting a recovery wave above the 1.2950 resistance. EUR/GBP declined steadily below the 0.8330 and 0.8325 support levels.

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

• The British Pound is attempting a fresh increase above 1.2950.
• There is a key rising channel forming with support near 1.2980 on the hourly chart of GBP/USD at FXOpen.
• EUR/GBP is trading in a bearish zone below the 0.8350 pivot level.
• There is a connecting bearish trend line forming with resistance near 0.8330 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair declined after it failed to clear the 1.3120 resistance. As mentioned in the previous analysis, the British Pound even traded below the 1.3000 support against the US Dollar.

Finally, the pair tested the 1.2910 zone and is currently attempting a fresh increase. The bulls were able to push the pair above the 50-hour simple moving average and 1.2950. The pair even climbed above the 50% Fib retracement level of the downward move from the 1.3071 swing high to the 1.2907 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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Dollar Continues Aggressive Rise Ahead of U.S. Elections

The U.S. dollar is reaching new highs, driven by rising bets on Trump’s potential success in the upcoming election, which has renewed its appeal as a safe-haven currency. Over the past week:

• The USD/CAD pair strengthened above 1.3900,
• USD/JPY nearly tested the 154.00 level,
• USD/CHF is showing signs of a “double bottom” pattern.

USD/JPY

The rate differential between the Federal Reserve and the Bank of Japan, coupled with positive sentiment surrounding the upcoming U.S. elections, has fueled a sharp rise in USD/JPY. Over the past two weeks, the pair has gained more than 500 points, reaching significant highs of 154.00–155.00 this year.

Technical analysis of USD/JPY suggests potential for further growth if the price holds above 154.00, though a corrective pullback to the 152.30–151.00 range remains possible.

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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Alphabet Inc. (GOOGL) Shares Rise to $180 Following Earnings Report

On September 10, we noted that GOOGL shares:

→ Were forming an ascending channel (highlighted in blue on the chart below, updated with the latest trading data);
→ Could begin to rebound from the psychological support level of $150 (indicated by an arrow).

Since then, the price did indeed turn upward from that level, fluctuating in October between a support level of $160 and a resistance level of $168, signaling a supply-demand equilibrium.

However, this balance now appears to be shifting, as Alphabet Inc. (GOOGL) released its Q3 earnings report post-market yesterday, surpassing expectations:

→ Earnings per share: actual = $2.12, expected = $1.84
→ Gross revenue: actual = $88.27 billion, expected = $86.39 billion.

Investors were likely encouraged by the company’s statement that its AI investments are "paying off." Consequently, Alphabet's shares rose to $180 in after-hours trading, suggesting a likely opening at this level in today's main session.

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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Technical Analysis of USD/CHF: Rate Reaches Key Resistance Level

As seen on the USD/CHF chart, the pair has been moving within a descending channel (highlighted in red) since May.

In September, price action confirmed that the 0.84000 level, near the lower channel boundary, serves as strong support—after several unsuccessful attempts to break below it, the pair rebounded from point A to point B, rising by over 3% to the current level around 0.86750.

The U.S. dollar’s recent strength has been supported by:

→ Expectations of a Trump victory in the upcoming presidential election,
→ Rising yields on long-term U.S. Treasury bonds.

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 – 31st OCT, 2024
AUDUSD – Near Support of Channel

AUDUSD was unable to continue its bearish momentum and after touching a low of 0.6563 the prices have started to correct upwards against the United States Dollar today in the US trading session.
The prices are ranging Near support of channel in the 15-minutes timeframe.
We can see the SuperTrend indicator bullish reversal signal in the 15-minutes timeframe.
Also, we see Ichimoku - Bullish crossover: Tenkan & Kijun in the 30-minutes timeframe.
The MACD crosses UP its Moving Average in the 1-hourly timeframe.

We have also seen Bullish trend reversal: adaptative moving average 20 in the 2-hourly timeframe.
Some of the technical indicators are also giving a Bearish to Neutral stance in the markets indicating the presence of the Consolidation wave in the markets.
The AUDUSD is ranging Near support of channel 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 0.6563 mark.
• Short-term range appears to be Bullish.
• AUDUSD continues to remain above the 0.6570 levels.
• Average true range ATR is indicating Less market volatility.

The next resistance is located at 0.6595 which is a Price 2 Standard Deviations Resistance.
AUDUSD is now trading near to its Pivot levels of 0.6574 and is moving into a Bullish channel.
The price of AUDUSD remains above its Classic support levels of 0.6566 and is moving towards its next target of 0.6603 which is a 14-3 Day Raw Stochastic at 30%.

#fxopen

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 – 31st OCT, 2024
EURUSD – Near Horizontal Support

EURUSD was unable to continue its bearish momentum and after touching a low of 1.0807 the prices started to correct upwards against the United States Dollar today in the US Trading session.
The MACD crosses UP its Moving Average in the 30-minutes timeframe.
Also, we can see Aroon indicator bullish trend formation in the 30-minutes timeframe.
EURUSD is now ranging Near support of triangle in the 1-hourly timeframe.

The Williams percent Range indicator is back over -50 in the 1-hourly timeframe.
The Momentum indicator is back over zero in the 1-hourly 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.
EURUSD is now trading above its 100-hour SMA and below its 200-hour SMA simple moving averages.
• Euro Bullish reversal seen above the 1.0807 mark.
• Short-term range appears to be Bullish.
• EURUSD continues to remain above the 1.0850 levels.
• Average true range ATR is indicating Less market volatility.

The next resistance is located at 1.0884 which is a Price 1 Standard Deviation Resistance.
EURUSD is now trading near to its Pivot levels of 1.0852 and is moving into a Bullish channel.
The price of EURUSD remains above its Classic support levels of 1.0840 and is moving towards its next target of 1.0907 which is a 38.2% Retracement From 4 Week Low.

#fxopen

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 – 31st OCT, 2024
GBPUSD – Bullish Trend Reversal Pattern

GBPUSD was unable to continue its bearish momentum and after touching a low of 1.2936 the prices started to correct upwards against the United States Dollar today in the US Trading session.
We can see Bullish trend reversal: adaptative moving average 100 in the 30-minutes timeframe.
Also, we see Bullish trend reversal: Moving Average 20 in the 1-hourly timeframe.
We can see Aroon indicator bullish trend in the 1-hourly timeframe.

We also see Bullish trend reversal: adaptative moving average 20 in the 2-hourly timeframe.
We have detected Bullish trend reversal: adaptative moving average 100 in the 2-hourly timeframe.
Some of the technical indicators are also giving a Bearish to Neutral stance in the markets indicating the presence of the consolidation wave in the markets.
The MACD indicator: bullish divergence is visible in the daily timeframe.

GBPUSD is now trading above its 100-hour SMA and its 200-hour SMA simple moving average.
• Pound Bullish reversal seen above the 1.2936 mark.
• Short-term range appears to be Bullish.
• GBPUSD continues to remain above the 1.2970 levels.
• Average true range ATR is indicating Less market volatility.

GBPUSD is now trading near to its Pivot levels of 1.2986 and is moving into a Bullish channel.
The price of GBPUSD is above its Classic support levels of 1.2938 and is now moving towards its next target of 1.2994 which is a Price 2 Standard Deviations Resistance.
We are also looking for the breach of the levels of 1.3005 which is a 14-3 Day Raw Stochastic at 50%.

#fxopen

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 – 31st OCT, 2024
NZDUSD – Near Support of Channel

NZDUSD was unable to continue its bearish momentum and after touching a low of 0.5964 the prices started to correct upwards against the United States Dollar today in the US Trading session.
The prices are ranging Near support of channel in the 15-minutes timeframe.
Also, we see Bullish trend reversal: Moving Average 20 in the 4-hourly timeframe.
We see that prices are Near support of triangle in the weekly timeframe.

The CCI indicator is oversold: under -100 in the daily 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.
NZDUSD is now trading below its 100-hour SMA and above its 200-hour SMA simple moving averages.
• Kiwi Bullish reversal seen above the 0.5964 mark.
• Short-term range appears to be Bullish.
• NZDUSD continues to remain above the 0.5970 levels.
• Average true range ATR is indicating Less market volatility.

The next resistance is located at 0.5999 which is a Pivot Point 1st Resistance Point.
NZDUSD is now trading near to its Pivot levels of 0.5978 and is moving into a Bullish channel.
The price of NZDUSD remains above its Classic support levels of 0.5963 and is now moving towards its next target of 0.6025 which is a Pivot Point 2nd Level Resistance.

#fxopen

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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USDCAD Technical Analysis – 31st OCT, 2024
USDCAD – Near Resistance of Triangle

USDCAD was unable to continue its Bullish momentum and after touching a high of 1.3931 the prices started to decline against the United States Dollar today in the US Trading session.
The prices are ranging Near Resistance of Triangle in the 15-minutes timeframe.
We have seen Moving Average bearish crossovers: MA20 & MA50 in the 1-hourly timeframe.
The MACD indicator: bearish divergence is visible in the 1-hourly timeframe.

Also, we see Moving Average bearish crossovers: AMA20 & AMA50 in the 2-hourly timeframe.
The Momentum indicator is back under zero in the 2-hourly 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.
USDCAD is now trading above its 100-hour SMA and above its 200-hour SMA simple moving averages.
• Loonie Bearish reversal seen below the 1.3931 mark.
• Short-term range appears to be Bearish.
• USDCAD continues to remain above the 1.3920 levels.
• Average true range ATR is indicating Less market volatility.

The next support is located at 1.3891 which is a Price 1 Standard Deviation Support.
USDCAD is now trading near to its Pivot levels of 1.3919 and is moving into a Bearish channel.
The price of USDCAD remains above its Classic support levels of 1.3910 and is now moving towards its next target of 1.3886 which is a Pivot Point 1st Support Point.

#fxopen

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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USDJPY Technical Analysis – 31st OCT, 2024
USDJPY – Bearish Price Crossover Pattern

USDJPY was unable to continue its Bullish momentum and after touching a high of 153.56 the prices started to decline against the United States Dollar today in the US Trading session.
We can see Bearish price crossover with Moving Average 20 in the 15-minutes timeframe.
Als owe see Bearish price crossover with adaptative moving average 20 in the 15-minutes timeframe.
The Support of channel is broken in the 1-hourly timeframe.
We can see Ichimoku: price is under the cloud in the 2-hourly 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.
USDJPY is now trading below its 100-hour SMA and above its 200-hour SMA simple moving averages.
• Yen Bearish reversal seen below the 153.56 mark.
• Short-term range appears to be Bearish.
• USDJPY continues to remain above the 152.20 levels.
• Average true range ATR is indicating Less market volatility.

The next support is located at 152.23 which is a 14-3 Day Raw Stochastic at 70%.
USDJPY is now trading near to its Pivot levels of 152.48 and is moving into a Bearish channel.
The price of USDJPY remains above its Classic support levels of 152.12 and is now moving towards its next target of 151.13 which is a 14-3 Day Raw Stochastic at 50%.

#fxopen

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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Learning Key Signals of Reversal Candlestick Patterns

Candlestick charts are frequently used in technical analysis to provide traders with a visual representation of price movements and help them identify future price directions. Reversal candlestick patterns are a common tool traders look for to empower their trading strategies.

In this FXOpen article, we explain how to spot reversal candlesticks on a price chart, understand their signals, and use them to create a solid trading approach.

What Are Reversal Candlestick Patterns?

Reversal candlesticks are key formations in technical analysis that signal a potential shift in the direction of an asset’s price. These patterns are observed within candlestick charts, where each "candle" reflects the opening, closing, high, and low prices for a specific period. Reversal patterns suggest that the current trend, whether upward or downward, may be losing momentum, providing an opportunity for traders to enter or exit the market before the trend reverses.

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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Microsoft (MSFT) Shares Decline Despite Strong Earnings Report

On 9 October, our analysis of Microsoft (MSFT) suggested that the stock price:

→ Was forming an ascending channel (shown in blue on the chart);
→ Could see a rebound from its lower boundary (indicated by an arrow).

Since then, the price indeed moved upward from this support around the $411 level, even surpassing $437. However, following Microsoft’s Q3 earnings report released post-market yesterday, the share price faced heightened volatility.

In the Q3 report:

→ Earnings per share (EPS) came in at $3.30, exceeding the expected $3.10;
→ Gross revenue was $65.58 billion, also above the forecasted $64.57 billion.

Despite these positive figures, MSFT shares saw a decline due to high volatility during after-hours trading, reaching $444 at one point and then falling to around $410. This drop may be due to Microsoft’s rising expenses. As reported by The Wall Street Journal, Microsoft’s capital expenditures in 2024 have hit $53 billion (about 28% of revenue), a substantial increase from the 12% average of revenue allocated to capital costs between 2014 and 2023.

As of pre-market trading today, MSFT is trading around $417 (approximately -4% from yesterday’s close), likely setting the opening level for today’s main session.

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 AI is Becoming a Bearish Factor for the Nasdaq 100

In 2024, the Nasdaq 100 index (US Tech 100 mini on FXOpen) has risen by approximately 20%, with optimism around the integration of artificial intelligence (AI) acting as one of the bullish drivers.

However, yesterday's reports from Microsoft (MSFT) and Meta Platforms (META) indicated that AI, as a factor influencing stock prices, may be shifting from a bullish to a bearish driver. The issue lies in the rising expenses that these tech giants are incurring in the race for leadership in this area.

Earlier today, we noted that due to increasing expenditures, MSFT shares fell by roughly 4%, despite a strong earnings report.

A similar trend is seen in Meta Platforms' stock: actual earnings per share and gross revenue exceeded analysts’ expectations. However, due to high capital investments, META shares in pre-market trading today are around 3% lower than yesterday's opening.

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.