Daily Market Analysis By FXOpen

GBP/USD Exchange Rate Rises Above 1.3000 on Inflation News


As evidenced by the GBP/USD chart, yesterday the exchange rate rose above the psychological level of 1.3000 USD per pound for the first time in 12 months.

The strengthening of the British currency occurred after the release of inflation news. According to ForexFactory:

→ Year-on-year Consumer Price Index (CPI): actual = 2.0%, forecast = 1.9%, previous = 2.0%;

→ Year-on-year Core CPI: actual = 3.5%, forecast = 3.4%, previous = 3.5%.

Thus, analysts' expectations of a slowdown in inflation were not met, giving market participants a reason to believe that the Bank of England's tight policy would continue for a longer period, providing a bullish boost for the GBP.

However, in the second half of yesterday, the bears managed to “extinguish” all the progress from the bullish momentum. A bearish engulfing pattern formed on the chart (shown with an arrow).

Moreover, bearish activity intensified this morning after the release of labour market news. The number of jobless claims (Claimant Count Change) filed in the previous month was 32.3K, whereas analysts had expected 23.4K.

This has clouded expectations regarding the future policy of the Bank of England – whether it will keep rates at the current high level of 5.25%, or start to reduce them.

In any case, the pound exchange rate fell below the psychological level of 1.3000 today, raising the possibility of a false bullish breakout. What can the chart suggest about whether this scenario will actually play out?



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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.

NVDA Stock Price Recovers After 1.5-Month Low


Yesterday, NVDA’s stock price fell to 116.61 – its lowest level since June 5th.

The bearish sentiment was triggered by Trump’s cautious remarks regarding the necessity to defend Taiwan from the threat of military action by China. The leading pre-election candidate suggested in a Bloomberg interview that the island should pay for US defensive support, leading to a drop in semiconductor manufacturers' stock prices: TSMC fell by 8%, and Nvidia shares dropped by 6.6% during yesterday's session, as its primary AI chip producer is Taiwan Semiconductor Manufacturing.

However, today in pre-market trading, NVDA's price is recovering, rising above $120 per share. How might the situation develop further?

Let us recall that on 10th July, we wrote about strong seller pressure above the $130 per share level. Since then, the price has declined by approximately 9%.



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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.

Analytical MSFT Stock Price Predictions for 2024, 2025–2030, and Beyond


Understanding the future of Microsoft stock is crucial for anyone looking to trade or invest in this mega-cap giant. This article provides a comprehensive analysis of MSFT's price history, its analytical forecasts for 2024, Microsoft price target for 2025, and long-term projections up to 2030 and beyond, offering valuable insights into Microsoft's potential trajectory and the factors influencing its market performance.

Microsoft Price History

Microsoft Corporation went public on March 13, 1986, at an initial public offering (IPO) price of $21 per share. Adjusted for stock splits, that translates to $0.0601 in today's terms. The stock experienced a steady climb during the late 1980s and early 1990s, driven by the success of Windows operating systems and Office software. By the end of 1999, MSFT had surged to a high of around $36 per share, largely fueled by the dot-com boom.

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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.

How To Trade Natural Gas: Tools and Approaches


Natural gas trading presents unique opportunities due to its critical role in the global energy market and its inherent volatility. This article delves into the various strategies and tools traders can use to navigate natural gas CFDs, from fundamental and technical analysis to understanding market dynamics.

Overview of the Natural Gas Market

Made up of primarily methane, natural gas is a key fossil fuel that’s grown in use over the past two decades. It forms deep beneath the Earth's surface from the remains of plants and animals buried under layers of sediment and subjected to intense heat and pressure over millions of years. It’s typically found near oil reserves and must be extracted and processed before it can be used.

Natural gas is a relatively clean-burning energy source, at least compared to coal or oil. It plays a crucial role in the global energy sector, accounting for about 23% of energy consumption worldwide in 2023, according to Statista, and 33% of US energy consumption in 2022, according to the EIA.

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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.

Market Analysis: Gold Price and Crude Oil Price Correct Recent Gains


Gold price started a downside correction from $2,485. Crude oil prices are also moving lower from the $82.20 resistance zone.

Important Takeaways for Gold and Oil Prices Analysis Today

• Gold price climbed higher toward the $2,485 zone before there was a pullback against the US Dollar.
• A key bearish trend line is forming with resistance near $2,450 on the hourly chart of gold at FXOpen.
• Crude oil prices extended downsides below the $81.30 support zone.
• A major contracting triangle is forming with resistance near $80.70 on the hourly chart of XTI/USD at FXOpen.

Gold Price Technical Analysis


On the hourly chart of Gold at FXOpen, the price rallied heavily above the $2,425 resistance. The price even spiked above $2,480 before the bears appeared.

A high was formed near $2,483 before there was a downside correction. There was a move below the $2,465 support level. The bears even pushed the price below the $2,450 support and the 50-hour simple moving average.

The price declined below the 50% Fib retracement level of the upward move from the $2,391 swing low to the $2,483 high. If the bears remain in action, the price might decline further.

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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.

META Price Is Holding Around a Key Support Level. But for How Long?


According to TipRanks, the average target price for META, as forecasted by Wall Street analysts, is $537.41 (a 12.94% increase from current levels) over the next 12 months. However, not all analysts remain positive.

Craig Johnson, Chief Market Technician at Piper Sandler, issued a warning about the future of the "Magnificent Seven" stocks, which include Microsoft (MSFT), Apple (AAPL), NVIDIA (NVDA), Meta Platforms (META), Tesla (TSLA), Amazon.com (AMZN), and Alphabet Inc. (GOOG and GOOGL).

"These charts are reversing, and they need further correction," he said on CNBC's Last Call programme.

Indeed, the market is sending alarming signals regarding the leaders. Yesterday, we wrote about the increasing signs of bearish aggression on Nvidia's stock chart; today, we'll assess the price action of Meta Platforms Inc.



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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.

USD/CAD Exchange Rate Approaches Key Resistance


As the USD/CAD chart shows, the Canadian dollar has weakened against the US dollar over the week – today, the USD/CAD rate is near two-week highs.

According to Reuters, this has been influenced by:

→ the strengthening of the USD against other currencies;

→ the anticipation of retail sales data, which could affect the outlook for a potential rate cut by the Bank of Canada. The Retail Sales data will be released today at 15:30 GMT+3.

How might the Canadian dollar's exchange rate change against the “greenback”?



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.

Watch FXOpen's 15 - 19 July Weekly Market Wrap Video

Weekly Market Wrap With Gary Thomson: US Banks Turn Bullish, GBP/USD, Gold Price, NVDA Stock

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

• US Banks Set a Bullish Tone at the Start of Earnings Season
• GBP/USD Exchange Rate Rises Above 1.3000 on Inflation News
• Analysis of XAU/USD: Gold Price Sets Historical Record
• NVDA Stock Price Recovers After 1.5-Month Low

Stay in the know and empower yourself with our short, yet power-packed video.

Watch it now and stay updated with FXOpen.

Don't miss out on this invaluable opportunity to sharpen your trading skills and make informed decisions.



FXOpen YouTube


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.

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Market Analysis: GBP/USD Trims Gains While USD/CAD Rallies


GBP/USD started a pullback from the 1.3050 zone. USD/CAD is rising and might aim for more gains above the 1.3735 resistance.

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

• The British Pound started a downside correction from the 1.3050 resistance zone.
• There is a key bearish trend line forming with resistance at 1.2940 on the hourly chart of GBP/USD at FXOpen.
• USD/CAD is showing positive signs above the 1.3700 support zone.
• There is a major bullish trend line forming with support at 1.3720 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 1.3050 resistance zone. The British Pound started a downside correction and traded below the 1.3010 support zone against the US Dollar.

The pair even traded below 1.2970 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2900 level. A low was formed at 1.2900 and the pair is now consolidating losses below the 23.6% Fib retracement level of the downward move from the 1.3044 swing high to the 1.2900 low.

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.

What Is Confluence in Trading, and How Can You Use It?


Confluence in trading involves the strategic alignment of multiple signals to validate trade decisions. This method is supposed to enhance the reliability of trade signals and allows traders to filter out low-probability outcomes. This article delves into the key components of confluence trading, its practical applications, implementation, and common mistakes.

Confluence: Definition in Trading

Confluence in trading refers to the alignment of multiple indicators or analysis tools to get stronger signals for decision-making. By combining various technical indicators, chart patterns, and support and resistance levels, traders can filter out low-probability setups and focus on higher-probability outcomes.

For instance, confluence can involve using a moving average crossover, a support level, and an RSI reading below 30 to identify a potential buying opportunity. This multi-faceted approach helps validate the trade signal and potentially increases the likelihood of favourable outcomes​.

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.