Daily Market Analysis By FXOpen

Watch FXOpen's September 5 - 9 Weekly Digest Video

In this video, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports.

• British Pound at 20 year low as new Prime Minister takes office
• New extreme for the yen
• Has Apple's presentation affected the stock price?
• Stark reality of China's lockdowns: Oil and FTSE 100 down

Watch our short and informative video, and stay updated with FXOpen.



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GBP/USD Recovers, EUR/GBP Eyes More Upsides


GBP/USD started a fresh increase above the 1.1550 zone. EUR/GBP is rising and might climb further higher above the 0.8700 resistance.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound started a fresh recovery wave above the 1.1550 resistance zone against the US Dollar.
• There is a key bullish trend line forming with support near 1.1585 on the hourly chart of GBP/USD.
• EUR/GBP climbed higher above the 0.8620 and 0.8650 resistance levels.
• There is a major bullish trend line forming with support near 0.8665 on the hourly chart.

GBP/USD Technical Analysis

The British Pound found support near the 1.1420 zone against the US Dollar. The GBP/USD pair started a recovery wave and was able to clear the 1.1500 resistance zone.

There was a decent increase above the 1.1550 level and the 50 hourly simple moving average. The pair even climbed above the 1.1600 level. A high was formed near 1.1641 on FXOpen and the pair is now correcting gains.

GBP/USD Hourly Chart


There was a move below the 1.1620 level. The pair declined below the 23.6% Fib retracement level of the upward move from the 1.1550 swing low to 1.1641 high.

On the downside, an initial support is near the 1.1600 level. It is near the 50% Fib retracement level of the upward move from the 1.1550 swing low to 1.1641 high. There is also a key bullish trend line forming with support near 1.1585 on the hourly chart of GBP/USD.

The next major support is near the 1.1550 level. Any more losses could lead the pair towards the 1.1500 support zone or even 1.1420.

On the upside, an initial resistance is near the 1.1640 level. The next main resistance is near the 1.1650 zone. A clear upside break above the 1.1640 and 1.1650 resistance levels could open the doors for a steady increase in the near term. The next major resistance sits near the 1.1715 level.

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BTCUSD and XRPUSD Technical Analysis – 13th SEP 2022


BTCUSD: Inverted Hammer Pattern Above $19025

Bitcoin was unable to sustain its bearish momentum and after touching a low of 18567 on 07th Sep, it started to correct upwards crossing the $22000 handle today in the European trading session.

The price of Bitcoin continues to correct upwards due to the increased buying pressure and more upsides are expected towards the $25000 levels.

We can see a bullish price crossover with the adaptive moving average AMA50 in the 15-minute time frame.

We have also seen a bullish opening gap underpinning the markets this week.

We can clearly see an inverted hammer pattern above the $19025 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

Bitcoin touched an intraday low of 22067 in the Asian trading session and an intraday high of 22553 in the European trading session today.

Both the STOCH and Williams percent range are indicating overbought levels which means that in the immediate short term a decline in the prices is expected.

The relative strength index is at 71 indicating a very strong demand for bitcoin at the current market levels and the continuation of the buying pressure in the markets.

Bitcoin is now moving above its 100 hourly simple moving average and below its 200 hourly exponential moving averages.

All of the major technical Indicators are giving a STRONG BUY signal, which means that in the immediate short term we are expecting targets of 24000 and 25000.

The average true range is indicating LESS market volatility with a strong bullish momentum.

• Bitcoin: bullish reversal seen above $19025.
• STOCHRSI is indicating an oversold level.
• The price is now trading just above its pivot level of $22332.
• All of the moving averages are giving a STRONG BUY market signal.

Bitcoin: Bullish reversal seen above $19025


The price of bitcoin is forming an ascending channel, with the current price action indicating a move towards the consolidation phase above the $22000 handle.

We can see the formation of a bullish harami pattern in the 2-hourly time-frame indicating the underlying bullish nature of the markets.

We have also detected the formation of a bullish engulfing line in the 1-hourly time frame indicating the bullish scenario.

The immediate short-term outlook for bitcoin is bullish, the medium-term outlook has turned neutral, and the long-term outlook remains neutral under present market conditions.

Bitcoin’s support zone is located at $21000 and the price continues to remain above these levels for the continuation of the bullish reversal in the markets.

The price of BTCUSD is now facing its classic resistance level of 22502 and Fibonacci resistance level of 22731 after which the path towards 23000 will get cleared.

In the last 24hrs BTCUSD has increased by 0.95% by 211$ and has a 24hr trading volume of USD 43.846 billion. We can see a decrease of 2.98% in the trading volume as compared to yesterday, which appears to be normal.

The Week Ahead

The price of bitcoin is moving in a consolidation zone above the $22000 levels. At present the price is moving into a narrow range between the 22000 and 22500 levels.

We can see that the price of bitcoin is super bullish and we are heading towards the $30000 handle in the medium term range.

The daily RSI is printing at 61 which indicates a very strong demand from the long-term investors.

The price of BTCUSD will need to remain above the important support levels of $21000 this week.

The weekly outlook is projected at $25000 with a consolidation zone of $24500.

Technical Indicators:

The moving averages convergence divergence (12, 26): is at 564.30 indicating a BUY.

The ultimate oscillator: is at 57.64 indicating a BUY.

The rate of price change: is at 5.34 indicating a BUY.

The commodity channel index (14): is at 105.75 indicating a BUY.

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EUR/USD Trims Gains, USD/JPY Aims New High


EUR/USD started another decline from the 1.0200 resistance. USD/JPY is rising and might soon clear the key 145.00 resistance zone.

Important Takeaways for EUR/USD and USD/JPY

• The Euro started a fresh decline and even traded below the 1.0020 support.
• There was a break below a major bullish trend line with support near 1.0140 on the hourly chart of EUR/USD.
• USD/JPY started a fresh increase after it remained well bid above the 141.50 support.
• There is a key bullish trend line forming with support near 142.30 on the hourly chart.

EUR/USD Technical Analysis

This past week, the Euro was able to recover above the 1.0100 level against the US Dollar. The EUR/USD pair even broke the 1.0150 level, but the bears were active near the 1.0200 zone.

A high was formed near 1.0197 on FXOpen and the pair started a fresh decline. There was a clear move below the 1.0150 and 1.0120 support levels. The pair declined below the 50% Fib retracement level of the upward move from the 0.9864 swing low to 1.0197 high.

EUR/USD Hourly Chart


Besides, there was a break below a major bullish trend line with support near 1.0140 on the hourly chart of EUR/USD. The pair is now trading below the 1.0050 level and the 50 hourly simple moving average.

An immediate resistance on the upside is near the 1.0000 level. The next major resistance is near the 1.0030 level. An upside break above 1.0030 could set the pace for a steady increase. In the stated case, the pair might revisit 1.0080.

Any more gains might send the pair towards 1.0120. If not, the pair might drop and test the 0.9950 support. The next major support is near 0.9920, below which the pair could drop to 0.9860 in the near term.

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What's going on with the stock markets? It's all sudden panic!


Yesterday, it became clear that some of the world's most seasoned analysts and investment managers had begun to look at the US stock markets with trepidation.

Indeed, one particular long-established investment manager, Jeremy Grantham of GMO fame, stated on Monday that he envisages the S&P500 index to collapse by 26% by the end of the year, citing junk bonds and unstable NASDAQ tech stocks as possible reasons.

Well, today the nervousness is all out in the open and other very well recognized commentators are following suit.

Morgan Stanley stated during the late hours of the European evening yesterday that they expect the S&P500 to plunge by a further 17 to 17% in the next four months.

This is a sudden depiction of low confidence in company stocks listed on American exchanges, and it has sent waves through the entire global financial markets to the extent that everyone from bank executives to cryptocurrency HODLers are talking about a potential stock market crash.

Even in Australia, the ASX exchange, based in Sydney, experienced a total wipeout of over $72 billion in the value of its listed stocks yesterday, as commentator Scott Pape stated that the country is 'well overdue' for a major stock crash.

The last time a stock market collapse occurred at the same time as poor credit conditions was during the global banking crisis in 2008, and whilst there certainly are poor indicators this time, the 2008 financial crisis was purely bank related. The rest of the economy of the West was fully operational and could work to pull things back.

Now, however, Australia has been subjected to two years of draconian lockdowns, almost making it an isolated island. This impacted important trade with its key partners in the Asia Pacific region, all of which continued their business unhindered and became ever stronger.

The United States economy has been somewhat overlooked recently, largely because the US Dollar has been holding itself up well against other Western majors, all of which have been tanking, especially the British Pound, and although inflation is high in the United States, it is lower than it is in Europe and the United Kingdom.

Therefore, the weaknesses in corporate stock have been perhaps overlooked and now the doom-mongers are moving in.

the Australian Securities Exchange plunged by 2.75 per cent in the opening minutes this morning, wiping out $66billion, after another high inflation reading in the US sparked fears of a giant interest rate rise in the world's biggest economy.

As the winter draws closer, and the potential cost of domestic energy is on the minds of the American and European public, conservatism and looking to cover existing expenses rather than invest in new ones is a priority for many.

A bear market it certainly is.

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

ETHUSD and LTCUSD Technical Analysis – 15th SEP, 2022


ETHUSD: Hammer Pattern Above $1551

Ethereum was unable to sustain its bullish momentum and after touching a high of 1788 on 11th Sep the price started to decline against the US dollar. This decline was mainly attributed to the strength of the US dollar in the global markets and the subsequent increase in the market liquidity.

We can see a continued buying pressure since yesterday and the formation of a bullish price crossover pattern with moving averages MA20, MA50 and MA100 in the 15-minute time frame.

We can clearly see a hammer pattern above the $1551 handle which is a bullish pattern and signifies the end of a bearish phase and the start of a bullish phase in the markets.

ETH is now trading just above its pivot level of 1599 and moving in a strong bullish channel. The price of ETHUSD is now testing its classic resistance level of 1625 and Fibonacci resistance level of 1651 after which the path towards 1700 will get cleared.

The relative strength index is at 56 indicating a STRONGER demand for Ether and the continuation of the uptrend in the markets.

We can see that the super trend indicator is giving a bullish reversal signal in the 15-minute time frame.

We have also detected a bullish harami cross pattern in the 1 -hour time frame.

The STOCHRSI is indicating an OVERBOUGHT market, which means that the prices are expected to decline in the short-term range.

Most of the technical indicators are giving a STRONG BUY market signal.

Most of the moving averages are giving a BUY signal and we are now looking at the levels of $1750 to $1900 in the short-term range.

ETH is now trading below both the 100 & 200 hourly simple and exponential moving averages.

• Ether: bullish reversal seen above the $1551 mark
• Short-term range appears to be strongly BULLISH
• ETH continues to remain above the $1600 level
• The average true range is indicating HIGH market volatility

Ether: Bullish Reversal Seen Above $1551


ETHUSD is now moving into a strongly bullish channel with the prices trading above the $1600 handle in the European trading session today.

ETH touched an intraday low of 1571 and an intraday high of 1651 in the European trading session today.

We have seen a bullish opening of the markets today indicating the underlying bullish nature of the markets.

We can see that MACD has crossed UP its moving average in the 4-hour time frame indicating the bullish tone, and now we are looking at the levels of 1800 to 2000 in the medium-term range.

The daily RSI is printing at 48 indicating a neutral demand in the long-term range.

The key support levels to watch are $1566 and $1501 and the prices of ETHUSD need to remain above these levels for the continuation of the bullish reversal in the markets.

ETH has increased by 1.40% with a price change of 22.33$ in the past 24hrs and has a trading volume of 24.474 billion USD.

We can see an increase of 5.50% in the total trading volume in the last 24 hrs which appears to be normal.

The Week Ahead

On the upside, the next visible targets are 1752 which is a 38.2% retracement from 4 week low, and 1690 which is a 50% retracement from 4 week high/low.

The prices of Ethereum are now testing its immediate resistance zone located at $1700 and we are likely to witness a rally in the prices once it touches these levels.

The immediate short-term outlook for Ether has turned strongly BULLISH, the medium-term outlook has turned NEUTRAL, and the long-term outlook for Ether is NEUTRAL in present market conditions.

The price of ETHUSD will need to remain above the important support level of $1500 this week.

The weekly outlook is projected at $1900 with a consolidation zone of $1700.

Technical Indicators:

The average directional change (14): is at 24.06 indicating a BUY

The moving averages convergence divergence (12,26): is at 0.48 indicating a BUY

The rate of price change: is at 2.61 indicating a BUY

The ultimate oscillator: is at 62.47 indicating a BUY

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

Gold Price and Crude Oil Price At Risk of More Losses


Gold price started a fresh decline below the $1,685 support zone. Crude oil price is also struggling and remains at a risk of more losses.

Important Takeaways for Gold and Oil

1. Gold price started a fresh decline after it failed to stay above $1,700 against the US Dollar.
2. There is a key bearish trend line forming with resistance near $1,675 on the hourly chart of gold.
3. Crude oil price also started a steady decline from the $90.00 zone.
4. There was a break below a major bullish trend line with support near $87.50 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price attempted to gain pace above the $1,735 level against the US Dollar. However, the price failed to stay above $1,720 and started a fresh decline.

There was a clear move below the $1,700 support zone and the 50 hourly simple moving average. The price declined below the $1,675 level to move into a bearish zone. The decline gained pace below the $1,670 level.

Gold Price Hourly Chart


The price traded as low as $1,660 and is currently consolidating losses. On the upside, the price is facing resistance near the $1,670 level.

The first major resistance is near the $1,675 level. There is also a key bearish trend line forming with resistance near $1,675 on the hourly chart of gold. The trend line is near the 23.6% Fib retracement level of the recent decline from the $1,735 swing high to $1,660 low.

The main resistance is now forming near the $1,688 level and the 50 hourly simple moving average, above which it could even test the 50% Fib retracement level of the recent decline from the $1,735 swing high to $1,660 low.

A clear upside break above the $1,700 resistance could send the price towards $1,735. An immediate support on the downside is near the $1,660 level. The next major support is near the $1,650 level, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,620 support zone.

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

GBP/USD Turns Red While USD/CAD Aims Higher


GBP/USD is trading in a bearish zone below the 1.1480 and 1.1440 support levels. USD/CAD is surging and could continue to rise above the 1.3300 resistance zone.

Important Takeaways for GBP/USD and USD/CAD

• The British Pound started a major decline below the 1.1550 support zone.
• There is a key bearish trend line forming with resistance near 1.1415 on the hourly chart of GBP/USD.
• USD/CAD started a fresh increase above the 1.3200 resistance zone.
• There is a connecting bullish trend line forming with support near 1.3220 on the hourly chart.

GBP/USD Technical Analysis

After a strong rejection near 1.1740, the British Pound started a fresh decline against the US Dollar. GBP/USD declined heavily below the 1.1550 support zone.

There was a move below the 1.1500 support zone and the 50 hourly simple moving average. The pair even traded below the 1.1480 support zone and formed a low near 1.1350 on FXOpen. It is now consolidating losses above the 1.1350 level.

GBP/USD Hourly Chart


An immediate resistance is near the 1.1415 level. There is also a key bearish trend line forming with resistance near 1.1415 on the hourly chart of GBP/USD. The next resistance is near the 1.1440 level or the 38.2% Fib retracement level of the downward move from the 1.1589 swing high to 1.1350 low.

The main resistance is near the 1.1480 level. It is near the 50% Fib retracement level of the downward move from the 1.1589 swing high to 1.1350 low.

If there is an upside break above the 1.1480 zone, the pair could rise towards 1.1550. The next key resistance could be 1.1580, above which the pair could gain strength.

On the downside, an initial support is near the 1.1380 area. The first major support is near the 1.1350 level. If there is a break below 1.1350, the pair could extend its decline. The next key support is near the 1.1300 level. Any more losses might call for a test of the 1.1240 support.

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

British Pound hits 37-year low against US Dollar


Just as we all thought a 20-year low point for the British Pound was a staggering end to a continual downward spiral for the world's most valuable currency, another leap toward the bottom took place.

The British Pound finished the trading week on Friday at an astonishing 37-year low.

That is a trip back to the dark days of the fierce industrial action by rampant workers unions of the early 1980s and the nationalization of many large companies such as British Leyland, the closures of the coal mines and inflation at over 18%.

As a result of some very drastic action by the government at the time, the economy was brought back into good order but it was a very difficult job for the working public, for businesses and for the government itself.

Today, the causes and circumstances are different, but the effect is the same. A catastrophically declining national economy and a volatile Pound which would have been unheard of for two decades until this year.

Retail sales figures in Britain which were released early in the Friday trading session on the London market underscored a high street in trouble. Retail sales volumes fell by 1.6% in August, continuing a downward trend since summer 2021 according to the Office for National Statistics, demonstrating that the public are cash-strapped and are perhaps prioritizing their main household bills rather than shopping for new consumer products.

With news channels full of anticipation of expensive winter energy bills and a potential 18% inflation figure by January, a conservative approach is being taken by a large portion of the population.

The Bank of England, which is the Central Bank of the United Kingdom, last week made an announcement relating to its decision relating to potential interest rate rises one day before an emergency mini-budget was delivered by newly appointed Chancellor of the Exchequer Kwasi Kwarteng.

UK inflation stands at 9.9% currently, and has been predicted to rise to 18% by Citi by January during a prediction last month in which the same analysts at Citi suggested that the interest rate may rise from the 1.75% it stands at currently to a sudden 7% by January.

Some pundits have stated that inflation in the United Kingdom may go over 20%, and this analysis was not coming from sensationalists, rather from the analytical think tanks within some investment bank.

It is now being suggested by commentators that inflation may begin to drop if the British government lives up to its promise of capping consumer energy costs for the next two years, although energy costs continue to spiral whereas in France, they have been capped some months ago.

The BoE may rein in any thoughts of a 75 basis point rate hike if they believe/know that the chancellor will effectively cool price pressures the next day. This may leave GBP/USD vulnerable to a further sell-off, especially if the US Federal Reserve hikes by a minimum of 75 basis points on Wednesday last week.

What a bleak outlook for the Pound, and the wider British economy!

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.

US Stock market complacency on the bankers' radar


At the end of last week, we all witnessed a spectacular collapse in the value of some of the most prestigious indices on New York's exchanges, much to the surprise of those who had been looking at the relative strength of the United States economy compared to the flagging counterparts on the European side of the Atlantic.

Just as minds were concentrating on the strength of the US Dollar against the plummeting British Pound, a false sense of security had become evident, and the US was being held up as a shining example; the West's only productive economy in today's climate of rampant inflation, low productivity and massive national debt.

As stock markets crashed last week, analysts at investment banks made grave predictions that the S&P500 could fall another 22% this year.

During the later part of the US trading session yesterday, the Chief Investment Officer at investment bank Morgan Stanley stated that complacency is abound among stock market investors at a time at which interest rates are on the increase.

Morgan Stanley's Lisa Shallett told MarketWatch yesterday evening “The real 10-year Treasury yield, at 1%, approaches a four-year high. Consider that back in June, when the real rate was at this level, the S&P 500 Index was at 3,667, 5.3% lower than it is now.”

Equally, Morgan Stanley has been the bearer of another grave statistic: there has been a considerable downturn in technology company IPOs due to the gloomy market conditions.

Tomorrow will mark 238 days without a technology company IPO worth more than $50 million on the American markets, surpassing the previous records set in the aftermath of the 2008 financial crisis and the early 2000s dotcom crash.

Some proposed fintech IPOs have been withdrawn, with one insider having said "Who would go public in this market?".

The tech-dominated Nasdaq Composite has fallen nearly 28% this year compared with a drop of just over 19% in the S&P 500 and the aforementioned predictions that a further even larger amount could fall from the value of the S&P500 before the year is out.

There are genuine fears of a looming recession across all Western markets. The pound is at a 37 year low against the US Dollar and Britain's economy is flagging, whereas despite a strong US Dollar and productive American economy, the inflation and interest rate rises have been a key catalyst in collapsing the value of company equities listed on top New York exchanges.

The volatility is there, but has to be navigated carefully!

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Disclaimer: CFDs are complex instruments and come with a high risk of losing your money.