Daily Market Analysis By FXOpen

[FXOpen Trader]

Brent Crude Oil Analysis: Bulls Hold the Line at Key Support

The XBR/USD chart reveals that Brent crude oil is trading near its lowest levels of the year.

Several factors are pressuring oil prices:
→ China's uncertain demand outlook: As the world's largest crude oil importer, any signs of weakening demand weigh heavily on the market.
→ A strengthening US dollar: Since Brent is priced in USD, a stronger dollar makes oil more expensive for international buyers, dampening demand.
→ Trump's promises to halt wars, including in the Middle East: This reduces geopolitical risk, which traditionally acts as a bullish factor for oil prices.

Technical Analysis of XBR/USD

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

 

[FXOpen Trader]

How Can You Use a Break and Retest Strategy in Trading?

Trading strategies help traders navigate the financial markets with greater confidence. One such approach is the break and retest strategy, which focuses on key support and resistance levels. This article explores the break and retest strategy in detail, providing insights and practical examples to help traders apply it in their trading activities.

Understanding the Break and Retest Strategy

The break and retest strategy is popular among traders who aim to capitalise on clear market movements. At its core, this strategy revolves around identifying key support and resistance levels on a price chart.

Here’s how it works: When the price breaks through a support or resistance level, it signals a potential shift in market sentiment. For example, if a stock breaks above a resistance level, it suggests increasing buying interest. Traders then watch for the price to return to this newly broken level—known as a retest in trading. During the retest, the former resistance now acts as support, providing a potentially more attractive entry point for traders looking to join the trend.

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

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.

 

[FXOpen Trader]

Market Analysis: GBP/USD Nosedives While USD/CAD Regains Strength

GBP/USD started a fresh decline below the 1.2750 zone. USD/CAD is rising and might aim for more gains above the 1.4100 resistance.

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

• The British Pound started a major decline from the 1.3000 resistance zone.
• There is a key bearish trend line forming with resistance at 1.2650 on the hourly chart of GBP/USD at FXOpen.
• USD/CAD is showing positive signs above the 1.4000 support zone.
• There is a connecting bullish trend line forming with support at 1.4040 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair struggled to continue higher above the 1.3000 resistance zone. The British Pound started a downside correction and traded below the 1.2850 support zone against the US Dollar.

The pair even traded below 1.2700 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2600 level. A low was formed at 1.2597 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.

 

[FXOpen Trader]

Walt Disney Company (DIS) Shares Surge Over 11%

On 14 November, Walt Disney Company (DIS) released an investor report that exceeded analysts' expectations:
→ Earnings per share: Actual = $1.14; Expected = $1.10; Year-on-year growth = +39%.
→ Revenue: Actual = $22.57 billion; Expected = $22.42 billion.

The stock market responded positively, with DIS shares rising:
→ On 13 November, prior to the report's release, the stock closed at $102.56.
→ By the end of the week, DIS closed at $114.94, a gain of more than 11% post-announcement.

The company also reported an increase in its streaming subscribers, reaching 200 million. Investors view this growth as a positive signal for Walt Disney Company, similar to the optimism shown towards Netflix (NFLX), which we discussed on 15 November.

Will DIS shares continue to rise?

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.

 

[FXOpen Trader]

What Are Lagging Indicators, and How Can You Use Them in Trading?

Lagging indicators are fundamental tools in technical analysis, helping traders confirm trends and assess market momentum using historical price data. This article explores what lagging indicators are, the types available, and how traders use them in their strategies. We’ll also discuss their limitations and common mistakes traders should avoid.

What Are Lagging Indicators?

Lagging technical indicators are tools that traders use to confirm the direction of a price trend after it has already begun. There are leading and lagging technical indicators. The difference between leading and lagging indicators is that the former signal future price movements while the latter relying on past data help traders spot well-established trends.

These indicators work by smoothing out price movements over time, which helps traders analyse whether a trend is likely to continue. For example, after a market has been rising steadily, a lagging indicator may show that the trend has solidified, giving traders more confidence in their analysis. However, because they react to past movements, lagging indicators can be slow to signal when a trend is reversing, which is why they’re often used alongside other tools.

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

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.

 

[FXOpen Trader]

Natural Gas Prices Reach Yearly Highs

According to the XNG/USD chart, natural gas prices have risen by approximately 13% since early November and this week hit a new 2024 high.

Factors Driving Bullish Sentiment (as reported by Reuters):
→ A sharp increase in global gas prices.
→ Forecasts of colder weather and higher heating demand in the United States.

Will Natural Gas Prices Continue to Rise?

From a fundamental perspective, the Energy Information Administration (EIA) forecast on 13 November predicts natural gas prices could peak in January 2025.

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.

 

[FXOpen Trader]

Meta Platforms (META) Shares Dip Below $550

On 7 October, we analysed the Meta Platforms (META) price chart and highlighted:
→ The formation of a long-term upward channel (marked in blue).
→ The key drivers supporting bullish sentiment.

We also emphasised the psychological significance of the $600 level.

Since then, the price has approached this level four times, only to be met with resistance each time (indicated by red arrows).

Yesterday, for the first time since mid-September, META’s price fell below $550, suggesting that the stock underperformed the broader market during October and November.

What’s Next?

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

 

[FXOpen Trader]

What Are Leading Trading Indicators, and How Can You Use Them in Trading?

Leading indicators are essential tools for traders aiming to analyse market movements. This article explains what leading indicators are, how they work, and their practical application across different asset classes. Read on to discover how tools like RSI, Stochastic Oscillator, On-balance Volume, and Fibonacci retracements can enhance your trading strategy.

What Are Leading Technical Indicators?

Technical indicators are divided into leading and lagging. Leading indicators in trading are tools used to identify potential price movements before they occur. Lagging indicators confirm trends after they begin, helping traders validate price movements. The difference between leading and lagging indicators is that leading indicators aim to give traders an edge by signalling when a new trend or reversal might be on the horizon while lagging indicators confirm trends after they've developed.

Leading trading indicators work by analysing price data to identify patterns or extremes in buying and selling behaviour. For instance, popular leading indicators like the Relative Strength Index (RSI) and the Stochastic Oscillator measure momentum in a market. These indicators help traders spot overbought or oversold conditions, where RSI tracks recent price movements relative to historical performance, while the Stochastic Oscillator compares a security's closing price to its price range over a set period.

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.

 

[FXOpen Trader]

Shopify (SHOP) Shares Retreat After Sharp Surge

On 12 November, Shopify released its Q3 earnings report, which exceeded analysts' expectations:

• Earnings per share: actual = $0.36, forecast = $0.27;
• Gross revenue: actual = $2.23 billion, forecast = $2.15 billion.

The company also provided strong earnings guidance for Q4. According to Zacks analysts, Q4 earnings per share could reach $0.39.

As a result, SHOP shares surged by more than 20% following the report's release. But is it the right time to buy now?

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.

 

[FXOpen Trader]

Market Analysis: AUD/USD and NZD/USD Recover - More Gains Ahead?

AUD/USD is attempting a recovery wave from 0.6440. NZD/USD is also correcting losses and might recover if there is a clear move above the 0.5950 resistance.

Important Takeaways for AUD/USD and NZD/USD Analysis Today

• The Aussie Dollar found support near 0.6440 and is now recovering against the US Dollar.
• There was a break above a key bearish trend line with resistance at 0.6480 on the hourly chart of AUD/USD at FXOpen.
• NZD/USD is attempting a recovery wave above the 0.5880 resistance.
• There was a break above a major bearish trend line with resistance near 0.5860 on the hourly chart of NZD/USD at FXOpen.

AUD/USD Technical Analysis

On the hourly chart of AUD/USD at FXOpen, the pair dipped from the 0.6685 resistance zone. The Aussie Dollar declined below 0.6500, but the bulls were active near 0.6440 against the US Dollar.

A low was formed near 0.6439 and the pair is now correcting losses. There was a move above the 23.6% Fib retracement level of the downward wave from the 0.6685 swing high to the 0.6439 low. There was also a break above a key bearish trend line with resistance at 0.6480.

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.

 

[FXOpen Trader]

Morgan Stanley: Trump’s Tariff Plans Could Lower Stock Indices

As reported by CNBC, Morgan Stanley analysts have evaluated the potential impact of tariff plans proposed by Donald Trump during his presidential campaign on the U.S. economy and stock market.

Key initiatives from the president-elect include:
→ Introducing a general tariff of 10% to 20% on all imported goods.
→ Imposing additional tariffs of 60% to 100% on imports from China.

Morgan Stanley’s Chief Global Economist, Seth Carpenter, suggests these measures could:
→ Eliminate the possibility of interest rate cuts in 2025 and constrain economic growth.
→ Threaten a slowdown in U.S. economic growth by 2026.
→ Drive inflation higher.
→ Pressure industries such as automotive, consumer electronics, machinery, construction, and retail. Increased producer costs are likely to be passed on to consumers.

These scenarios imply a negative outlook for the U.S. stock market. Tariffs may reduce investment appeal and raise borrowing costs for companies, potentially dampening market performance.

How Might This Affect Indices Like 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.

 

[FXOpen Trader]

European Currencies' Decline Slows Near Key Levels

As anticipated, investor concerns over escalating trade tensions between the U.S. and Europe, following Donald Trump’s U.S. election victory, have driven the euro and pound toward critical support levels.

GBP/USD

Last week, GBP/USD sellers pushed the pair down to the significant 1.2600 level. After testing this support, the downward trend paused, transitioning to sideways movement within the 1.2700–1.2600 range.

Technical analysis suggests the possibility of an upward correction, with a bullish "engulfing" pattern visible on the daily timeframe. If the price breaks above 1.2700 in the next trading sessions, a move toward 1.2840–1.2800 could follow. Conversely, breaking the recent low near 1.2600 might open the path to 1.2500–1.2450.

Key events to watch:

• 10:00 (GMT+3): UK Consumer Price Index (CPI) for October.
• 16:30 (GMT+3): UK House Price Index.
• 19:00 (GMT+3): Speech by Bank of England MPC member Ramsden.

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.

 

[FXOpen Trader]

Tweezer Candlestick Patterns for Trend Trading

There are numerous patterns and indicators that can help traders determine the formation of a new trend. One valuable tool in a trader's arsenal is the Tweezer candlestick pattern. In this FXOpen article, we will discuss the definition of Tweezers, elucidate the importance of these patterns in trading, and emphasise their role in potentially achieving precision in trend trading.

What Is a Tweezer?

Tweezers are candlestick patterns that signify potential reversals in market trends. These patterns occur when two consecutive candlesticks share similar highs or lows, forming a "tweezer" shape on the price chart. Tweezers can be either bullish or bearish, each conveying distinct market sentiment.

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.

 

[FXOpen Trader]

Nvidia (NVDA) Stock Drops Following Earnings Report

On 13 November, we analysed Nvidia’s (NVDA) price chart and noted:
→ The continuation of a long-term upward channel (highlighted in blue).
→ A consolidation below the psychological $150 level, forming a narrowing triangle along the Quater Line, which divides the lower half of the channel.

On 20 November, Nvidia released its Q3 earnings report, which exceeded analysts’ expectations:
→ Earnings per share (EPS): $0.81 (expected: $0.74).
→ Revenue: $35.08 billion (expected: $33.17 billion).
→ Revenue growth: +94% year-on-year, +17% quarter-on-quarter.
Key Insights (via Reuters):

→ Optimism centres on Nvidia’s new Blackwell processors.
→ Concerns arise over a reduced revenue forecast due to supply chain constraints in chip production.

Despite strong results, Nvidia’s stock price dipped slightly following the report. Pre-market data suggests today’s trading could start around $142.50.

What’s Next?

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.

 

[FXOpen Trader]

Analysis of XAU/USD: Gold Price Rises by 5% in a Week

As shown in the XAU/USD chart, last Thursday, the price of gold dropped below $2,540. Today, however, the precious metal has surged above $2,660 per ounce.

The more than 5% weekly increase was driven by a new wave of international tensions, particularly the escalation surrounding the approval for Ukraine to use Western long-range weapons for strikes deep into Russian territory.

Technical analysis of the XAU/USD chart highlights that last week’s upward reversal once again demonstrates how effectively parallel channel lines can work. During the summer, the median line of the ascending channel (marked in blue) acted as support. However, following its bearish breakout on 11 November, the lower boundary of the channel, reinforced by the $2,535 level (which served as resistance in August and September), provided support for the price.

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.