Daily Market Analysis By FXOpen

How Did MSFT Stock Price React To Global Outage?


On 19th July, a global outage occurred. Numerous computers running Windows worldwide experienced "blue screens of death" (BSOD), affecting companies in different sectors, including airlines, hospitals, media, banks, and others.

The outage was caused by a CrowdStrike's Falcon Sensor update, a component of the Windows system that essentially works to protect computers from cyber threats. CrowdStrike quickly acknowledged the issue, stating that it was not a cyberattack but an update error, and suggested a solution.

According to CNBC, the large-scale outage did not significantly impact the operation of most financial markets. Representatives of the New York Stock Exchange and Nasdaq stated on Friday that they were operating despite the issues with the CrowdStrike update. The only noticeable unpleasant consequence for most was the inability to calculate the Russell stock indices, including the popular Russell 2000. However, the confusion was resolved later on Friday.



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What Is a Global Macro Strategy, and How Do Traders Use It in Trading?


A global macro strategy is a comprehensive investment and trading approach that includes analysis of economic, political, and global trends to make decisions. This article delves into the core components, analytical tools, and practical applications of global macro strategy, providing a detailed outline for understanding and implementing this sophisticated trading method.

Understanding Global Macro Strategy

Global macro strategy is an investment and trading approach that focuses on the analysis and interpretation of economic and political events on a global scale.

This strategy is typically employed by hedge funds and mutual funds, which take positions based on macroeconomic principles and geopolitical developments, including interest rates, currency movements, and political changes. However, many individual traders also opt for this approach, but it typically requires a deep understanding of the global economic system and the interrelated factors that drive markets.

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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.

Analysis of XAU/USD: Gold Price Falls for 4 Consecutive Days


As shown on the XAU/USD chart, Monday, 22 July marked the fourth consecutive day of declining gold prices. The change from the historical peak reached on Wednesday is around -3.5%.

Bearish sentiment is driven by:

→ Market participants' assessment of prospects due to the change of the Democratic Party's presidential candidate in the US.

→ Caution in anticipation of economic news. On Thursday at 15:30 GMT+3, US GDP data will be released. On Friday at the same time, the Core PCE Price Index data will be published.

Market participants may also be influenced by the psychological level of $2500.

Can the Gold Price Fall 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.

EUR and GBP Retreat from Key Levels


Financial and currency markets are experiencing one shock after another. The steady decline in US inflation, a potential Fed rate cut, and the current US president’s exit from the election race have led to sharp fluctuations in almost all currency pairs. Last week:

• The GBP/USD pair traded above the psychological level of 1.3000;
• USD/JPY sellers pushed the price below 156.00;
• The EUR/USD currency pair updated its May highs of the current year at 1.0920. Currently, we are observing corrective pullbacks from recent impulses. The news coming out this week will provide more clues about the development of current trends.

GBP/USD


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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.

Tesla Report May Strengthen Bullish Sentiment


President Joe Biden withdrew his bid for a second term in the White House on Sunday. It's reasonable to assume that the stock market responded optimistically to this news, as US stocks closed higher on Monday, with the S&P 500 (US SPX 500 mini on FXOpen) rising by 1.08% to 5,564.41 – its best day since 5th June. CNN Money's Fear and Greed Index showed an improvement in overall market sentiment, moving into the "Greed" zone.

TSLA stocks showed even more positive momentum, gaining 5.15% yesterday.

Recall that on 2nd July we noted that the TSLA price:

→ Was still within a descending channel (shown in red);

→ But was showing strong momentum, having crossed the median of the red channel and forming an ascending channel (shown in blue).

Since then, the TSLA price has:

→ Surpassed the upper boundary of the descending channel, breaking out of the downward trend it had been in since late 2021;

→ Continued to form a bullish channel, reaching its upper boundary last week.



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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.

How Can You Trade Using Order Flow? 3 Trading Strategies


Understanding the intricacies of order flow trading unlocks the door to deeper market insights, revealing not just the movements of prices but the forces driving them. In this FXOpen article, we’ll explore how order flow works, its components, and how it can be used within three comprehensive trading strategies.

Understanding Order Flow Trading
Understanding order flow in trading involves examining where buy and sell orders might rest in the market. Essentially, it's about understanding the action behind price movements rather than just the movements themselves. At its core, order flow reveals where traders are placing their orders and at what price, offering a glimpse into the potential future direction of the market based on the current levels of buy and sell orders.

When traders talk about order flow, they're looking at the accumulation of these orders at various price levels, which can indicate areas of strong buying or selling pressure.

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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: EUR/USD Trims Gains While USD/CHF Regains Strength


EUR/USD started a fresh decline below the 1.0900 support. USD/CHF is rising and might aim a move toward the 0.9000 resistance.

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

• The Euro struggled to clear the 1.0950 resistance and declined against the US Dollar.
• There is a key bearish trend line forming with resistance at 1.0870 on the hourly chart of EUR/USD at FXOpen.
• USD/CHF is showing positive signs above the 0.8900 resistance zone.
• There is a major bullish trend line forming with support at 0.8910 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 1.0950 resistance. The Euro started a fresh decline below the 1.0900 support against the US Dollar.

The pair declined below the 1.0875 support and the 50-hour simple moving average. Finally, the pair tested the 1.0840 level. A low was formed at 1.0841 and the pair is now consolidating losses. The pair is showing bearish signs, and the upsides might remain capped.

Immediate resistance on the upside is near the 23.6% Fib retracement level of the downward move from the 1.0896 swing high to the 1.0841 low at 1.0855.

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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.

How Will the BoC's Decision Affect the Currency Market?


The USD/CAD pair has been strengthening for the third consecutive week and is currently approaching the upper boundary of the three-month range of 1.3850-1.3600. The strength of the pair's buyers is quite significant, which could lead to a consolidation above 1.3850 and a continued rise towards the psychological level of 1.4000. However, the news background for the upcoming trading sessions is so saturated that it could lead to either a strengthening of the current trends or the formation of reversal patterns:

• today at 16:45 (GMT+3) the release of the US Services PMI for July;
• today at 16:45 (GMT+3) the Bank of Canada’s interest rate decision;
• today at 17:00 (GMT+3) the Bank of Canada’s press conference;
• today at 17:00 (GMT+3) the release of US New Home Sales data for June.

Experts surveyed by Reuters suggest that the Canadian regulator will not only cut the rate by 0.25% at today’s meeting but may also announce two more rounds of rate cuts by the end of the current year.

Technical analysis of the USD/CAD pair indicates the possibility of further growth, as the “hammer” pattern formed on 11th July remains relevant on the daily timeframe. In the event of a rebound from 1.3850, a corrective decline to 1.3760-1.3730 is possible.



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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.

Brent Crude Oil Price Is Declining Amid De-Escalation in the Middle East


On 8th July, we noted that oil prices were forming a large narrowing triangle, originating from 2022-2023, with its upper boundary being a significant resistance point.

As shown on the Brent oil price chart (XBR/USD), bulls have since failed to overcome the upper boundary resistance around $87. Subsequently, the price:

→ turned downwards, breaking the blue upward trend line;

→ eventually breached the support level at $84, which we highlighted on 8th July;

→ Formed a descending channel (indicated in red).

Bearish sentiment is driven by:

→ news of increased oil inventories;

→ reduced tensions in the Middle East. Israeli Prime Minister Benjamin Netanyahu stated that an agreement with Hamas on hostage release is "maturing."



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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.