Daily Market Analysis By Fxopen

Discussion in 'Forex - Currencies Forums' started by FXOpen Trader, Oct 19, 2021.

  1. FXOpen Trader

    FXOpen Trader Senior Investor

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    EUR/USD Analysis: Price Reaches the Level of 1.1000
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    Before yesterday's trading session, the last time 1 euro was 1.1 USD was in the first half of August.

    The growth of the rate was facilitated by the weakening of the dollar, which occurred against the background of the words of Christopher Waller, a member of the Fed Board of Governors, who is known for his hawkish policies. But he has already softened his position.

    "I am increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2 percent," he said yesterday, however, adding that if the decline in inflation continues “for a few more months... three months, four months, five months... we can start reducing the discount rate just because inflation is lower.”

    The expected rate cut could mark the beginning of a new period of looser monetary policy. Therefore, financial markets reacted by increasing the prices of currencies relative to the dollar — in particular, the euro reached a psychological level.

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    Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. 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.
     
  2. FXOpen Trader

    FXOpen Trader Senior Investor

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    NASDAQ Composite Index Heralds a Fine Time for Tech Stocks
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    In the ever-fluctuating landscape of financial markets, the NASDAQ exchange, home to some of the world's most prominent technology stocks, has been a bastion of volatility over the past two years. This week, the NASDAQ index continues its upward trajectory, reaching its highest point in five days, marking a notable shift in sentiment for the technology-focused venue.

    As of the close of the New York trading session yesterday, the NASDAQ index has demonstrated resilience and vigour. A closer look at the five-day moving average reveals a climb to the highest point in five days, showcasing the current bullish sentiment among investors. Over the course of the last month, the NASDAQ index has experienced an impressive gain of 12%, underlining the sustained positive momentum.

    VIEW FULL ANALYSIS VISIT - FXOpen Blog...

    Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. 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.
     
  3. FXOpen Trader

    FXOpen Trader Senior Investor

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    EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Falls to Its Lowest Level Since Mid-August
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    EUR/USD

    The euro strengthened on Monday as the dollar fell on expectations that the Federal Reserve will not raise rates again. Traders this week will have to weigh data on how the US economy performed in the third quarter, as well as key data on consumer inflation and spending, both of which could play an important role in setting expectations for the timing of the first rate cut.

    The focus this week will be Thursday's October US Personal Consumption Expenditures Price Index (PCE) report, which is said to be the Fed's preferred measure of inflation, as well as eurozone consumer inflation data for greater clarity on where prices and monetary policy are heading. According to the EUR/USD technical analysis, the nearest resistance can be seen at 1.1023, a breakout to the upside could trigger a rise to 1.1046. On the downside, immediate support is seen at 1.0966, a break below could take the pair towards 1.0924.

    At the highs of the week, a new ascending channel has formed. Now, the price has moved away from the upper border of the channel and may continue its corrective decline.

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    Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. 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.
     
  4. FXOpen Trader

    FXOpen Trader Senior Investor

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    Today OPEC+ May Announce New Oil Production Cuts
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    According to WSJ, the reduction could be 1 million barrels per day. Saudi Arabia is in favour of cuts, but the idea causes disagreements among other members of the organisation.

    In anticipation of news about the OPEC+ decision, the price of oil is rising - this indicates that market participants assess the possibility of new production cuts as quite real, even if we are not talking about 1 million barrels per day. The price is approaching its maximum for November.

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    VIEW FULL ANALYSIS VISIT - FXOpen Blog...

    Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. 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.
     
  5. FXOpen Trader

    FXOpen Trader Senior Investor

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    BTC/USD Analysis: New High for the Year Shows Bulls Are Indecisive
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    During November, the price of bitcoin increased by approximately 10% in anticipation of the launch of a bitcoin ETF. But the positive sentiment of crypto investors is seriously overshadowed by news regarding Binance:

    → Changpeng Zhao resigned as head of Binance.US, pleading guilty to money laundering charges. He also agreed to pay $50 million in a lawsuit from the US Department of Justice, and his company will have to pay $4.3 billion. This fine to Binance was one of the largest in the history of punishment of corporations. In addition, Zhao faces up to 10 years in prison. The judges banned him from leaving the United States until the proceedings are completed.

    → Cristiano Ronaldo was sued for $1 billion for advertising Binance. This was done by people who claim they suffered losses by buying unregistered securities that the sports star was promoting.

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    Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. 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.
     
  6. FXOpen Trader

    FXOpen Trader Senior Investor

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    Stock Market Reaction to US GDP News
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    According to data released yesterday, the US economy is growing at a stronger pace than expected. Thus, US GDP in the 3rd quarter increased by 5.3% in annual terms (an increase of 4.9% was expected).

    Combined with softening rhetoric from the Federal Reserve, this is a positive signal for US stock markets, which have shown impressive performance: in November, the S&P 500 and Nasdaq Composite indices rose by 8.5% and 11%, respectively (the final figure will be known later, since today – last day of the month), which is the best month since July 2022.

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    Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. 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.
     
  7. FXOpen Trader

    FXOpen Trader Senior Investor

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    European Currencies at Strategic Levels
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    The downward trend in the US currency continues to gain momentum. Thus, the euro/dollar pair yesterday tested important resistance at 1.1000, the pound/dollar pair strengthened to 1.2700, and the usd/cad pair fell below 1.3600. A lot of important groundwork is expected today in both the European and American sessions. Depending on the published data, these pairs may either go into correction or continue the main movements.

    GBP/USD

    The British currency is growing for the third week in a row. Yesterday, buyers of the pair managed to rise above 1.2700, but so far there has been no confident consolidation above this level. A reversal bar has formed at 1.2660 on the daily timeframe. If it begins to work out, a corrective price reduction to 1.2600-1.2500 is possible. A price move above yesterday's high at 1.2730 may contribute to a test of the psychological level at 1.3000.

    Today at 10:00 GMT+3, we are waiting for data on the Nationwide House Price Index in the UK for November.

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    Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. 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.
     
  8. FXOpen Trader

    FXOpen Trader Senior Investor

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    AUD/USD Trims Gains While NZD/USD Extends Increase
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    AUD/USD is correcting gains from the 0.6675 zone. NZD/USD is rising and could extend its increase above the 0.6185 resistance zone.

    Important Takeaways for AUD USD and NZD USD Analysis Today

    • The Aussie Dollar started a downside correction below the 0.6650 level against the US Dollar.
    • There is a connecting bearish trend line forming with resistance near 0.6620 on the hourly chart of AUD/USD at FXOpen.
    • NZD/USD is gaining bullish momentum above the 0.6120 support.
    • There is a key bullish trend line forming with support near 0.6140 on the hourly chart of NZD/USD at FXOpen.

    AUD/USD Technical Analysis
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    On the hourly chart of AUD/USD at FXOpen, the pair started a fresh increase from the 0.6530 support. The Aussie Dollar was able to clear the 0.6600 resistance to move into a positive zone against the US Dollar.

    Finally, the pair tested the 0.6675 zone before it started a downside correction. The recent swing high was formed near 0.6634 and the pair is now trading below the 50-hour simple moving average. There was a move below the 23.6% Fib retracement level of the upward move from the 0.6570 swing low to the 0.6634 high.

    On the downside, initial support is near the 50% Fib retracement level of the upward move from the 0.6570 swing low to the 0.6634 high at 0.6600.

    The next support could be the 0.6570 zone. If there is a downside break below the 0.6570 support, the pair could extend its decline toward 0.6530. Any more losses might signal a move toward 0.6450.

    On the upside, the AUD/USD chart indicates that the pair is now facing resistance near a connecting bearish trend line at 0.6620. The first major resistance might be 0.6650.

    An upside break above the 0.6650 resistance might send the pair further higher. The next major resistance is near the 0.6675 level. Any more gains could clear the path for a move toward the 0.6740 resistance zone.

    VIEW FULL ANALYSIS VISIT - FXOpen Blog...

    Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. 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.
     
  9. FXOpen Trader

    FXOpen Trader Senior Investor

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    The USD/CAD Rate Drops to Its Minimum of 2 Months
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    This morning, 1 USD was selling for less than 1.354 Canadian dollars – for the first time since October 1st.

    The strengthening of the Canadian dollar and the weakening of the USD was facilitated by the news published yesterday:
    → Canada's real gross domestic product (GDP) grew by 0.1% in September, which exceeded analysts' expectations and reduced the relevance of the recession scenario in Canada.
    → The number of applications for unemployment benefits in the US for the week amounted to 218k (a week earlier it was 211k), which may indicate a cooling of the US economy.
    → The price index for personal consumption expenditures (PCE) fell to 3% from the previous value of 3.4%. While 3% remains too high to declare victory over inflation, it marks a new series low that is sure to reduce the likelihood of a Fed rate hike.

    In our previous analysis of the USD/CAD market, we wrote that the price could form a rebound from support in the area of 1.36625. However, the rebound to point E was very weak, and after the breakdown, the level 1.36625 showed resistance properties.

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    Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. 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.
     
  10. FXOpen Trader

    FXOpen Trader Senior Investor

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    Market Analysis: UK100 Shows Bullish Signs
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    On the morning of Friday, December 1, the UK stock market index rose to its November highs. This was facilitated by the fundamental background:
    → among the UK100 growth leaders are shares of companies mining ore and other resources. As metal prices rise and industry in China shows signs of recovery;
    → general sentiment on the world's stock markets due to the fact that the policy of raising rates pursued by the central banks of Western countries has come to an end. Fed Chairman Powell is expected to speak this evening, which could provide more evidence of this.
    → Since the UK100 index has performed weaker relative to other indices (due to higher inflation in the UK), it may be undervalued.

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    VIEW FULL ANALYSIS VISIT - FXOpen Blog...

    Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. 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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