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Topic Summary

Posted by: FXOpen Trader
« on: May 31, 2024, 01:32:41 PM »

USD/CHF Rate Falls Over 1% After SNB Chief's Statements


As evidenced by the USD/CHF chart, yesterday one US dollar was worth 0.913 Swiss francs, but today it is already 0.903, indicating a rate drop of approximately 1%.

According to MT Newswires, the franc's strengthening is attributed to statements by Swiss National Bank (SNB) President Thomas Jordan. In his view, an overly weak franc is the most likely source of higher inflation in Switzerland.

Notably, since the beginning of 2024, the Swiss franc has weakened against the US dollar by more than 7%, one of the worst performances among G10 currencies. The exchange rate has formed an ascending trend channel (indicated in blue).



TO VIEW THE FULL ANALYSIS, VISIT THE 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.
Posted by: FXOpen Trader
« on: May 31, 2024, 09:18:44 AM »

NIO Shares Surged Over 9% on Sales Growth Expectations


As evidenced by the NIO stock price chart, yesterday's trading closed at $4.93, while today the NIO share price is around $5.40, indicating an increase of over 9%.

According to MarketWatch, the rise is driven by expectations that the Chinese electric vehicle manufacturer's deliveries are likely to reach record levels.

The existing record was set in July last year when the company achieved monthly sales of 20,462 cars. However, analysts believe this result could be surpassed in May this year due to ongoing discounts on new cars and batteries.

The daily chart of NIO shares today shows that the price is in a long-term downtrend (indicated by the red trend channel) due to the global decline in demand for electric vehicles.

However, there are fundamental reasons to expect that the downward trend will be broken:
→ China is intensifying its efforts to develop electric vehicles – the State Council has presented an action plan for decarbonisation.
→ This month, the International Monetary Fund raised its forecast for China's economic growth in 2024 from 4.6% to 5%.



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.
Posted by: FXOpen Trader
« on: May 31, 2024, 09:13:26 AM »

Market Analysis: GBP/USD Dips While USD/CAD Eyes More Gains


GBP/USD is attempting a recovery wave from 1.2680. USD/CAD is rising and might aim for a move above the 1.3690 resistance zone.

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

  • The British Pound started a fresh decline from the 1.2800 resistance zone.
  • There is a key bearish trend line forming with resistance near 1.2740 on the hourly chart of GBP/USD at FXOpen.
  • USD/CAD is showing positive signs above the 1.3660 support zone.
  • There is a connecting bearish trend line forming with resistance near 1.3690 on the hourly chart at FXOpen.

GBP/USD Technical Analysis


On the hourly chart of GBP/USD at FXOpen, the pair started a fresh decline from the 1.2800 zone after a decent increase, as mentioned in the previous analysis. The British Pound traded below the 1.2740 support to again move into a short-term bearish zone against the US Dollar.

The pair even traded below 1.2710 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2680 level. A low was formed near 1.2680 and the pair is now attempting a short-term recovery wave.

There was a fresh upside above the 1.2710 level. The pair climbed above the 23.6% Fib retracement level of the downward move from the 1.2800 swing high to the 1.2680 low.

Immediate resistance on the upside is near the 50% Fib retracement level of the downward move from the 1.2800 swing high to the 1.2680 low at 1.2740 and the 50-hour simple moving average. There is also a key bearish trend line forming with resistance near 1.2740.

The first major resistance on the GBP/USD chart is near the 1.2770 level. A close above the 1.2770 resistance might spark a decent increase. The next major resistance is near the 1.2800 level. Any more gains could lead the pair toward the 1.2880 resistance in the near term.

Initial support sits near 1.2710. The next major support sits at 1.2680, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.2620.

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.
Posted by: FXOpen Trader
« on: May 31, 2024, 03:35:09 AM »

Nasdaq Index Shows Uncertainty Ahead of PCE Release


The main event of the week is the release of the Personal Consumption Expenditures (PCE) index, which the Federal Reserve particularly focuses on when assessing inflation in the US. The release is scheduled for Friday at 15:30 GMT+3. As this important event approaches, rumours and trader expectations about the news increasingly impact the current price on the stock market.

According to ForexFactory, the Core PCE Price Index on a monthly basis is as follows:
→ forecast for Friday = 0.3%.
→ previous value (a month ago) = 0.3%;
→ value two months ago = 0.3%.

These figures indicate stable inflation, but surprises are not ruled out, which could certainly lead to a spike in volatility.

The price of the Nasdaq index (US Tech 100 mini on FXOpen) has decreased since the beginning of the week – this may indicate market participants' uncertainty about whether inflation will decrease. Meanwhile, as CNBC reports, the president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, believes that the Fed should wait for significant progress in combating inflation before lowering interest rates.

In his opinion, rates could potentially even be raised if inflation fails to decrease further. “I don’t think we should rule anything out at this point,” Kashkari added.



TO VIEW THE FULL ANALYSIS, VISIT THE 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.
Posted by: FXOpen Trader
« on: May 30, 2024, 09:22:51 AM »

EUR/USD Exchange Rate Has Fallen Below 1.08 Level


As the EUR/USD chart today shows, yesterday the rate dropped by 0.46% – the most significant strengthening of the US dollar against the euro in one day this month. Moreover, the rate fell below the psychological mark of 1.08 euros per dollar (in the first half of May, it served as resistance).

Yesterday's movement was influenced by:

→ news of rising inflation in Germany. As reported by Think.ING, inflation reached 2.4% year-on-year, up from 2.2% in April – highlighting uncertainty and the resilience of inflation;

→ the rise of the US dollar, driven by falling Treasury bonds, which increased the appeal of the American currency due to both higher yields in the US and demand for safe-haven assets.

Analysing the chart on 23 May in the article "EUR/USD Price Forms Bullish Reversal," we:

→ drew an ascending channel (shown in blue);

→ highlighted the importance of resistance at the 1.0875 level.



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.
Posted by: FXOpen Trader
« on: May 30, 2024, 09:18:11 AM »

In the Spotlight: US Inflation and GDP Data


In the final trading sessions of May, leading currencies have been in a downward trend against the dollar. For instance, the pound/dollar pair lost over 100 pips in a single day, euro sellers in the EUR/USD pair are testing 1.0800, and the USD/CAD pair might update its May high around 1.3760.

USD/CAD

The rise in commodity prices and worsening geopolitical situation in the Middle East are contributing to the sharp increase of the USD/CAD pair. According to the technical analysis of USD/CAD, a bullish “piercing line” pattern was formed on the daily timeframe on 28 May. The confirmation of this pattern could lead to continued growth of the pair towards the May high of this year at 1.3760. If the price consolidates above this level, a test of the important range 1.3840-1.3790 is possible. A break below 1.3610 would invalidate the bullish scenario.

The following news could impact the pricing of USD/CAD:

  • Today at 15:30 (GMT +3:00) US GDP for the first quarter
  • Today at 18:00 (GMT +3:00) Crude Oil Inventories from the Energy Information Administration (EIA)
  • Tomorrow at 15:30 (GMT +3:00) US Core PCE Price Index for April



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.
Posted by: FXOpen Trader
« on: May 29, 2024, 11:54:44 AM »

GBP/JPY at Highest Level in Over 15 Years


As shown by today's GBP/JPY chart, the exchange rate has not only surpassed the psychological level of 200 yen per pound but has also exceeded the peak of 29 April 2024. The market is now experiencing prices last seen in 2008.

The main driver of the pound’s strength against the yen is the difference in monetary policies enacted by the central banks. While the Bank of England maintains a rate of 5.5%, in Japan it is 0.10% (having been kept unchanged at -0.10% from January 2016 until March 2024 – over 8 years).

Can the GBP/JPY rate go even higher? Fundamentally, if the imbalance in interest rates persists, it creates conditions for a continued rally.

According to Business Recorder, the Bank of Japan (BOJ) will act cautiously within its inflation targeting framework. BOJ Governor Kazuo Ueda noted that some issues are "exceptionally challenging" for Japan after many years of ultra-loose monetary policy.

“The absence of significant interest rate movements poses a considerable obstacle in assessing the economy’s response to changes in interest rates,” he said.



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.
Posted by: FXOpen Trader
« on: May 29, 2024, 11:49:58 AM »

Elon Musk Contributes to NVDA Price Surge to a New Record


Yesterday, on Tuesday, Nvidia's stock price reached a historic high, surpassing the $1,130 mark, increasing by almost 7% relative to Monday's closing price. This happened after a turbulent past week, during which Nvidia published a very strong report that led to an over 8% rise in its stock price in one day.

Thus, since the beginning of May, NVDA's price has increased by approximately 34%. The latest surge in bullish sentiment was driven by the news that Elon Musk's company xAI is purchasing Nvidia AI chips for a new powerful supercomputer.

Investor’s Business Daily reports that in a presentation for investors, Musk stated that:
→ xAI will require up to 100,000 specialised semiconductors for training and launching the next version of its AI chatbot, Grok.
→ The supercomputer will use Nvidia H100 graphics processors.
→ Musk hopes to bring the supercomputer, which he referred to as a “gigafactory of computation,” online by autumn 2025.

Analysing NVDA's stock price last week, we:
→ Updated the upward channel;
→ Suggested that on a bullish impulse, NVDA’s price could approach the median line of the upward 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.
Posted by: FXOpen Trader
« on: May 29, 2024, 09:51:42 AM »

The Dollar Resumes Growth After a Corrective Pullback


Last week, there were several local downward trends in dollar pairs. For instance, the pound/dollar pair strengthened to 1.2800, euro/dollar buyers almost updated the recent high at 1.0895, and the usd/jpy pair remained below the crucial resistance at 157.00 for several days. However, the “dollar bears” couldn’t maintain their advantage, and by yesterday, sharp pullbacks and the formation of bullish combinations in usd pairs were observed.

So, what is the main reason for the return of dollar buyers to the market?

  • The S&P/CS Composite-20 (USA) housing price composite index, excluding seasonal adjustments, was higher than forecasted at 7.4% versus 7.3%.
  • The US Consumer Confidence Index from CB rose to 102.0 against expectations of 96.0.
  • The probability of an interest rate cut by the Federal Reserve decreased to 51%, from 65% a week ago.

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.
Posted by: FXOpen Trader
« on: May 29, 2024, 09:47:17 AM »

Market Analysis: EUR/USD Slips as USD/CHF Targets Upside Break


EUR/USD started a downside correction from the 1.0890 resistance. USD/CHF is rising and might aim a move toward the 0.9155 resistance.

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

  • The Euro struggled to clear the 1.0890 resistance and declined against the US Dollar.
  • There was a break below a key bullish trend line with support at 1.0860 on the hourly chart of EUR/USD at FXOpen.
  • USD/CHF is showing positive signs above the 0.9110 resistance zone.
  • There is a connecting bearish trend line forming with resistance at 0.9130 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair gained pace for a move above the 1.0850 zone, as mentioned in the previous analysis. The Euro tested the 1.0890 resistance and recently corrected gains against the US Dollar.

The pair dipped below the 1.0870 level. There was a break below a key bullish trend line with support at 1.0860. It even tested the 50% Fib retracement level of the upward move from the 1.0805 swing low to the 1.0889 high.



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.
Posted by: FXOpen Trader
« on: May 28, 2024, 12:05:01 PM »

When the Chips Are Up! NVIDIA's Stratospheric Market Cap


NVIDIA is a veritable Goliath among the highly competitive realms of Silicon Valley's technological mainstays.

Its market capitalisation is now so vast that it is larger than Meta (Facebook), Tesla, Netflix, AMD, Intel, and IBM combined.

That is a remarkable feat when considering that NVIDIA's bread and butter core business activity for many years was not software, it was hardware, and hardware in almost every other area of the computer technology business is almost obsolete as we live in a world of hosting and cloud-based internet services.

NVIDIA's high-quality graphics cards have for many years been the staple ingredient within machines built for specialist purposes such as gaming or professional digital currency mining. However times change and NVIDIA has angled itself firmly toward being the hardware manufacturer to handle AI, boosting its value tremendously.

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.
Posted by: FXOpen Trader
« on: May 28, 2024, 10:05:43 AM »

Analytical Tesla Stock Predictions for 2024, 2025 – 2030 and Beyond


Tesla's stock has experienced significant volatility since its IPO in 2010, driven by its significant technological advancements and status as a leading electric vehicle producer. This article explores Tesla's recent price history, analyses its outlook for 2024 and 2025, and provides detailed analytical forecasts for 2026 to 2030 and beyond, offering insights into the company's future performance and potential growth in the EV market.

Tesla’s Recent Price History

Tesla's journey in the stock market has been marked by significant milestones and periods of volatility. Since its initial public offering (IPO) in June 2010, when it debuted at $17 per share, Tesla has seen dramatic price changes driven by key events and developments.

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.
Posted by: FXOpen Trader
« on: May 28, 2024, 08:22:14 AM »

WTI Crude Oil Price Shows Bullish Trend Ahead of OPEC Meeting


As the chart indicates, on Monday, the price of WTI crude oil rose by approximately 1%.

Reuters reports that the bullish sentiment is driven by:
→ the upcoming OPEC+ meeting scheduled for 2 June;
→ expectations of high fuel demand with the start of the summer driving season and holiday season in the US.

Conducting a technical analysis of WTI crude oil on 10 May, we drew an ascending channel in blue and suggested a scenario of continued price growth within this channel.

Since then:
→ the price formed a low on 15 May at the level of 76.35, but quickly recovered from it. Thus, the bears' attempt to break the low of 8 May at the level of 76.68 quickly failed. In other words, there was a false breakout of the 8 May low.
→ A similar pattern occurred on 24 May – the price dropped below the 15 May low of 76.35, but quickly recovered.

Two false bearish breakouts are a bullish sign. And the strong behaviour of WTI crude oil prices on Monday confirms this.



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.
Posted by: FXOpen Trader
« on: May 27, 2024, 11:42:20 AM »

Can Last Week's Gold Price Rally Be Replicated?


Gold holds a particularly exceptional status among precious metals. Whilst it does have some use in the manufacturing of consumer durables and electronic products ranging from alloy compounds in wedding rings to terminals for connecting electrical cables in audio equipment, its greatest use case is as an investment vehicle for the purposes of storing value in a physical commodity.

Over recent years, other precious metals such as platinum and cobalt have suddenly seen their status change from that of a rare mineral resource to a material in high demand as they form components used in electric vehicle batteries and other renewable energy-related hardware such as solar panels.

However, despite the sudden huge demand for these materials for industrial purposes, gold still remains a de facto investable metal whose price movements are often affected by global affairs rather than supply and demand.

In the latter part of this month, gold reached a record high, according to World Gold Council data, and was trading at $2427.30 on May 21.

That soon took an opposite turn, and by May 26, FXOpen pricing showed gold to be trading at well under the $2,400 mark.

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.
Posted by: FXOpen Trader
« on: May 27, 2024, 11:39:37 AM »

USD/JPY Analysis: The Market is Indecisive Near Its Peak Since May 1


As the USD/JPY chart shows today:

→ The price is in an upward trend (indicated by the blue channel) that has been relevant since the beginning of 2024.

→ On Thursday, May 23, the exchange rate nearly reached 157.2 yen per US dollar, surpassing the peak of May 14.

→ Following this, the market began to stabilise – indicated by the Bollinger Bands' width showing low volatility, which can be interpreted as a sign of market equilibrium or indecision among participants.



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.

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