Daily Market Analysis By FXOpen

[FXOpen Trader]

Dollar Declines Following Fed Rate Decision

The recent rally of the U.S. dollar, observed during the U.S. election results, has slightly slowed after yesterday's Federal Reserve meeting. As anticipated by analysts, the Fed lowered the base interest rate by 25 basis points, from 5.00% to 4.75%. In their accompanying statement, Fed officials highlighted robust economic activity and improvements in labour market conditions. Following these comments, the dollar initially declined but attempted to recover its lost ground a few hours after the Fed meeting.

USD/JPY

Technical analysis of the USD/JPY pair suggests the possibility of a deeper downward correction, as a "bearish harami" pattern has formed on the daily timeframe. The initial target range for this retracement is 152.70–152.00. If the price consolidates below 152.00, the pair may test recent lows in the 151.30–150.00 range. However, a return to upward movement could occur if the price confidently re-establishes itself above 154.80.

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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]

Tesla (TSLA) Stock Surges Following Trump’s Election Win

According to the TSLA chart:
→ Tesla shares opened this week at $244.25.
→ By yesterday’s close, the stock had reached $296.52.

This reflects a gain of over 21% for the week, with the major boost occurring on 6 November, as news broke of Trump’s U.S. presidential victory—a candidate supported by Tesla’s CEO, Elon Musk.

As CNBC reports:
→ Musk reportedly invested at least $130 million into Trump’s campaign, lending his support as a significant effort in recent months.
→ The president-elect has pledged to roll back regulations that Musk opposes, leading Wall Street to bet on potential advantages for Tesla under the new administration.

Back on 24 October, after Tesla’s earnings report, we noted:
→ Since May, the price has been fluctuating within an upward channel (shown in blue), with the lower boundary acting as a strong support level.
→ The bullish momentum after the earnings release indicated a failed attempt by bears to break this lower boundary (shown with a red arrow).
→ Bulls might continue driving TSLA's price within this channel, aiming to breach the key resistance at $260.

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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]

Fed Cuts Rate by 0.25%; Stocks Reach Highs

Yesterday, the Federal Reserve announced a unanimous decision to lower the interest rate from 4.75% to 4.50%, marking the second consecutive cut—a move in line with analyst expectations and forecasts.

“This move will support further progress in controlling inflation as we aim for a more neutral stance over time,” said Fed Chair Jerome Powell.

According to Bloomberg, this decision aligns with the Fed’s efforts to support robust U.S. economic growth, creating positive sentiment for stock indices as newly re-elected President Donald Trump is expected to introduce economic stimulus measures.

However, could tensions arise between the new administration and the Fed? Trump has a record of publicly criticizing Powell and even considered dismissing him during his first term. At a press conference yesterday, Powell was asked if he would step down if requested by Trump, to which he replied decisively, “No.” He added that the removal or demotion of Fed board members, including himself, is “not legally permissible.” Powell emphasized that the U.S. election results would have "no effect" on the Fed’s decisions in the near term.

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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 to Measure the Trend Strength with the Average Directional Index?

While identifying the direction of a trend is important, knowing how strong that trend is can provide an additional edge. This is where the average directional index (ADX) comes into play. The ADX is a technical analysis tool that helps traders gauge the strength of a trend, regardless of whether the market is moving up or down. In this article, we'll explore what the ADX indicator is, and how to use it to measure trend strength, enhance your trading strategies, and make more confident trades.

What Is an Average Directional Index?

ADX, the average directional index or average directional movement index, is a technical tool developed by J. Welles Wilder in the 1970s to measure the strength of a trend. It ranges from 0 to 100, with higher values indicating a stronger trend and lower values signalling a weaker one. Unlike many technical analysis tools that focus on the direction of price movement, the ADX focuses solely on the trend's intensity. It works in conjunction with two other lines, the positive directional indicator (+DI) and negative directional indicator (-DI), to provide a more complete picture of market dynamics. A rising ADX suggests increasing trend strength, while a falling one may indicate weakening momentum.

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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: Gold Price Takes Hit While WTI Crude Oil Eyes Upsides

Gold price is declining below the $2,700 support zone. Crude oil price is rising and it could climb further higher toward the $75.00 resistance.

Important Takeaways for Gold and WTI Crude Oil Prices Analysis Today

• Gold price failed to clear the $2,800 resistance and corrected lower against the US Dollar.
• There is a key bearish trend line forming with resistance at $2,725 on the hourly chart of gold at FXOpen.
• WTI Crude oil prices are moving higher above the $70.00 resistance zone.
• There is a key bullish trend line forming with support near $70.90 on the hourly chart of XTI/USD at FXOpen.

Gold Price Technical Analysis

On the hourly chart of Gold at FXOpen, the price was able to climb above the $2,750 resistance. The price even broke the $2,765 level before the bears appeared.

The price traded toward $2,785 before there was a fresh decline. There was a move below the $2,760 pivot zone. The price settled below the 50-hour simple moving average and RSI dipped below 30. Finally, it tested the $2,645 zone.

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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]

Coinbase (COIN) Stock Rises Approximately 18% in Two Days

On 15 October, in our analysis of Coinbase (COIN) stock:
→ we established a long-term upward channel (shown in blue),
→ speculating that bulls were aiming to renew the trend from its lower boundary.

Then, on 30 October, Coinbase released its Q3 performance report to investors. Results fell short of expectations, leading to a decline in COIN’s price (indicated by a red arrow).

Despite this, today COIN’s stock price is providing investors with renewed optimism as it approaches its record high, currently around the $282.00 mark.

In this move, the price broke through:
→ the $220 resistance level,
→ a red trendline shown on the chart.

Key drivers of COIN's recent price increase:
→ the Fed's interest rate cut,
→ Trump’s election win, which market participants view as a positive signal.

What lies ahead?

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]

GBP/USD Chart Analysis: Bears Apply Pressure to Key Support

According to ICE data, the U.S. Dollar Index futures have reached highs last seen in early July 2024. The dollar’s strength is attributed, in part, to anticipated economic stimulus measures outlined by the newly elected President Donald Trump during his campaign.

This has put pressure on other currencies paired with the dollar. Currently, the British pound is trading near 1.28400, close to a three-month low.

Today’s technical analysis of the 4-hour GBP/USD chart reveals:
→ long-term price fluctuations have shaped an upward channel since May;
→ the pair is near a key support level at the lower boundary of this channel;
→ a downtrend channel (in red) has formed since early October, highlighting recent bearish control; → the ATR indicator is at an annual high, indicating heightened volatility.

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 Is Quantitative Tightening and How Does It Work in Financial Markets?

Quantitative tightening (QT) is a critical tool central banks use to control inflation by reducing the money supply. In this article, we’ll break down how QT works, its impact on financial markets, and how it influences the broader economy. Read on to learn more about the effects of QT and how it shapes markets.

What Is Quantitative Tightening?

Quantitative tightening (QT) is a type of tightening monetary policy that central banks use to reduce the amount of money circulating in the economy.

When central banks like the USA’s Federal Reserve or European Central Bank engage in QT, they aim to tighten liquidity by reducing their balance sheets, typically by allowing bonds or other financial assets to mature without reinvestment or selling them outright. QT is a practice often used alongside hiking central bank interest rates, though not always.

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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: EUR/USD Dips Further While USD/CHF Turns Green

EUR/USD extended losses and traded below the 1.0775 support. USD/CHF is rising and might aim a move toward the 0.8850 resistance.

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

• The Euro struggled to clear the 1.0935 resistance and declined against the US Dollar.
• There is a key bearish trend line forming with resistance at 1.0680 on the hourly chart of EUR/USD at FXOpen.
• USD/CHF is showing positive signs above the 0.8745 pivot zone.
• There was a break above a short-term bullish continuation pattern with resistance at 0.8770 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair failed to clear the 1.0935 resistance. The Euro started a fresh decline below the 1.0825 support against the US Dollar, as mentioned in the previous analysis.

The pair declined below the 1.0775 support and the 50-hour simple moving average. Finally, the pair tested the 1.0630 level. A low was formed at 1.0628 and the pair is now consolidating losses. The pair is showing bearish signs, and the upsides might remain capped.

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]

Amazon Stock (AMZN) Holds Above $200

On Thursday, October 31, Amazon released its Q3 earnings report:
→ Earnings per share: actual = $1.43, forecast = $1.14;
→ Gross sales: actual = $158.8 billion, forecast = $157.2 billion.

The report exceeded analyst expectations, with additional optimism driven by Trump’s victory and a Fed rate cut, pushing Amazon’s stock price past the psychological $200 mark and reaching a new high above $210.

Today, Amazon’s stock chart shows the price beginning to round off (indicated by an arrow). Does this signal the end of the bullish trend?

Unlikely, given the strong fundamental support. In technical terms, it may be more accurate to consider the price’s vulnerability to a correction, especially as it sits near the upper boundary of an ascending channel.

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.