Daily Market Analysis By FXOpen

[FXOpen Trader]

Adobe (ADBE) Shares Drop Over 8%

On Thursday evening, Adobe Inc. (ADBE) reported its third-quarter financial results:
→ Earnings per share: actual = $4.65, expected = $4.53;
→ Revenue: actual = $5.40 billion, expected = $5.37 billion.

Despite beating analyst estimates, Adobe Inc.'s (ADBE) stock dropped by more than 9% due to a disappointing fourth-quarter forecast, which fell short of market expectations. According to the chart for Adobe Inc. (ADBE), trading on Friday opened with a large bearish gap. By the end of the day, the stock had fallen by more than 8% compared to Thursday's close.

To recap, on 5 June, when the stock price was around $460, we conducted a technical analysis and identified an upward channel (shown in blue), pointing to the potential resumption of a bullish trend.

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]

USD/JPY Analysis: The Rate Falls Below 140 Yen per Dollar

Despite today's public holiday in Japan, yen buyers remain active.

As shown on the USD/JPY chart, today's candle low has dropped below the psychological level of 140 yen per dollar. The last time this exchange rate was seen was on 28 July 2023.

On 11 August, when analysing the USD/JPY chart, we:
→ drew a descending channel (shown in red);
→ plotted a resistance line (shown in orange);
→ predicted the possibility of a bearish attack on the 140 yen per dollar level.

Current market sentiment is influenced by:
→ comments from Bank of Japan representative Junko Nakagawa, who stated last week that interest rates will continue to rise if economic and inflation forecasts align with expectations;
→ expectations of a rate cut from the Federal Reserve. A shift towards monetary easing now seems almost inevitable, with the main question being whether the rate will be reduced by 25 or 50 basis points.

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]

Mastering Trading with the Symmetrical Triangle Chart Pattern

In technical analysis, a symmetrical triangle is one of the most popular tools traders use to analyse a price direction. It’s a bilateral formation, meaning it provides buy and sell signals. This is the biggest challenge for traders. In this FXOpen article, we will try to explain how to read and use the symmetrical triangle formation.

What Is a Symmetrical Triangle Pattern in Trading?

A symmetrical triangle is a chart pattern that relates to the triangle group, which also includes ascending and descending triangles. It’s a bilateral formation, so it may signal a fall or rise in the price.

Moreover, as with ascending and descending triangles, it can occur in an uptrend and downtrend and reflect a potential trend reversal or continuation. Still, according to the work Technical Analysis of Stock Trends by Robert D. Edwards and John Magee, in 75% of cases, the triangle is a continuation signal. Therefore, it can be assumed that a bullish symmetrical triangle pattern occurs in an uptrend, while a bearish symmetrical triangle pattern appears in a downtrend.

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]

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.

 

[FXOpen Trader]

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.

 

[FXOpen Trader]

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.

 

[FXOpen Trader]

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.

 

[FXOpen Trader]

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.

 

[FXOpen Trader]

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.