Daily Market Analysis By FXOpen

[FXOpen Trader]

What Is the Morning Doji Star Candlestick Pattern, and How May Traders Apply It?


When it comes to forex, commodity, and stock patterns, the morning doji star is among the most well-known. It stands out as a signal that bearish momentum may be weakening and buyers could be stepping in. Formed of three candles, it often appears near the end of a downtrend and can mark the start of a potential recovery. This article explains how it works and how traders may apply it.

What Is a Morning Doji Star?
The morning doji star is a reversal candlestick pattern.The formation indicates a shift in market sentiment, with buyers gaining control. It consists of three candles and is considered an alert of a potential trend reversal from bearish to bullish.

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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.

[FXOpen Trader]

The Dollar Index Near a Key High


As shown on the Dollar Index (DXY) chart, the strength of the US currency is currently hovering near an important high reached in August. Market sentiment is being influenced by:

→ the ongoing government shutdown, which has already become the longest in history;
→ traders' assessment of last week's developments, including the Fed's interest rate cut, the meeting between the US and Chinese presidents in South Korea, and quarterly earnings reports from major corporations.

Adding to the turbulence is the political factor: according to media reports, Democrats have achieved victories in several local elections. Notably, Zohran Mamdani – a Muslim candidate from the Democratic Party – has been elected Mayor of New York for the first time.



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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. :smile41:

[FXOpen Trader]

Nikkei 225 Plunges from Record High


As the chart shows, the Nikkei 225 stock index (Japan 225 on FXOpen) formed a historic peak around 52,500 points only yesterday — but today it has fallen sharply, with losses at the session low reaching approximately 7%.

Bearish sentiment was fuelled in part by a slump in shares of Japanese investment giant SoftBank, which dropped by around 14%. The company's heavy exposure to sectors linked to artificial intelligence and cryptocurrencies, both currently under pressure, has raised investor concerns.

The decline in the Nikkei 225 appears to be an extension of the sell-off in US technology stocks recorded yesterday, driven by a stronger dollar and growing fears of an AI-fuelled bubble.



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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.

[FXOpen Trader]

Euro at the Lower End of the Range, Pound Under Pressure Ahead of the Bank of England Meeting


European currencies remain under pressure for the third consecutive week: the euro is consolidating near the lower boundary of its range, while the pound continues to decline ahead of tomorrow's Bank of England meeting. The pressure on both pairs persists amid growing uncertainty across global markets. An additional factor is the risk of the ongoing US government shutdown, which could delay the release of key data and influence assessments of the Federal Reserve's monetary outlook.

Investors are maintaining a cautious stance: the Bank of England meeting, scheduled for tomorrow, could set the tone for the pound in the coming weeks. The market is divided in its expectations – some participants anticipate that the regulator will keep rates unchanged but adopt a softer tone in its comments, while others expect hints of a possible rate cut later in the year. Any signs of dovish rhetoric could further weigh on the pound, particularly in light of weak domestic data and growing evidence of economic cooling.



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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.

[FXOpen Trader]

Liquidity Grabs: Identification and Trading Strategies


Have you ever seen prices suddenly spike beyond a key level, only to sharply reverse? That may have been a liquidity grab, one of the major components of Smart Money trading. Understanding this concept may help traders anticipate where price may go next. In this article, we explore what liquidity grabs are, how to detect them, and how they may fit into a trading strategy.

Understanding Liquidity in Trading
Liquidity is about the ability to buy or sell an asset without causing a sharp price movement. High liquidity is characterised by a dense presence of buyers and sellers, resulting in tight spreads—the small difference between ask and bid prices—and potentially smoother price movements. Conversely, low liquidity involves fewer participants and wider spreads, leading to potentially abrupt price changes even with small trades.

The level of liquidity can vary dramatically depending on several factors, including the time of day, prevailing market events, and specific price levels. For example, major currency pairs like EUR/USD experience higher liquidity during overlapping trading hours between New York and London markets, facilitating smoother transactions.

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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.

[FXOpen Trader]

Dollar Steadies Near Highs as Markets Await Fresh Signals


The US dollar is consolidating after reaching new local highs, holding near key technical levels amid mixed macroeconomic data. The Dollar Index remains close to the upper boundary of its recent range, reflecting a balance between weak domestic indicators and steady demand for safe-haven assets as uncertainty surrounding the US government shutdown persists.

Data released on Wednesday by ADP showed employment growth of just 42K, signalling a cooling labour market and potential slowdown in private-sector activity. The ISM business activity indices for the services and manufacturing sectors displayed mixed trends, reinforcing concerns about the pace of the economic recovery.



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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.

[FXOpen Trader]

Gold Price Surges Above $4,000


As the chart shows, XAU/USD climbed above the $4,000 mark today, a move likely driven by:

→ Weakness in the US dollar index – or a pullback from the resistance level discussed in yesterday's DXY analysis.

→ Concerns over the ongoing US government shutdown – according to media reports, one consequence has been that American airlines began limiting ticket sales in November.



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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.

[FXOpen Trader]

Palantir Technologies (PLTR) Shares Fall Despite Strong Earnings


Palantir Technologies (PLTR), a company specialising in big data analytics software, released a strong quarterly report this week:

→ Earnings per share: actual = $0.21, expected = $0.17
→ Revenue: actual = $1.181 billion (up 63% year-on-year), forecast = $1.09 billion

Palantir thus reaffirmed its status as a leader in the field of artificial intelligence. Yet, despite the impressive results, PLTR shares fell following the release. Why?

It is likely that much of the optimism had already been priced in during the company's 150% rally earlier this year. In other words, the drop in PLTR's share price appears to have been driven purely by market sentiment and overly high expectations, rather than any weakness in the company's fundamentals.



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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.

[FXOpen Trader]

Understanding Candlestick Wicks: Basics and Techniques


Candlestick wicks often contain critical information about buying and selling pressure that body patterns alone may not reveal. By analysing wick length and position, traders can understand price rejection, momentum shifts, and liquidity zones. In this article, we explain the meaning of candlestick wicks and outline several strategies traders may use.

Understanding Candle Wicks
You likely know this already, but to recap: candle wicks, or shadows, are the thin lines above and below a candlestick's body that indicate how far the price moved during a specific period. Candle wicks, extending beyond the body of the candlestick, offer a deeper insight into market dynamics than open and close price levels. Their lengths and positions relative to the candle body unveil the tug-of-war between buyers and sellers within a given timeframe.

A long wick candle to the upside suggests that buyers pushed the price higher, but sellers eventually overcame, driving the price down from its peak. Conversely, a lengthy lower wick indicates sellers initially dominated, with buyers making a strong comeback.

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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.

[FXOpen Trader]

Gold Stays Flat as WTI Crude Faces Hurdles


Gold price corrected gains, traded below $4,000, and started a consolidation. Crude oil is showing bearish signs and might decline below $58.80.

Important Takeaways for Gold and WTI Crude Oil Prices Analysis Today
- Gold price started a downside correction below $4,100 and $4,000 against the US Dollar.
- A key bullish trend line is forming with support at $3,985 on the hourly chart of gold at FXOpen.
- Crude oil prices failed to clear the $61.20 region and started a fresh decline.
- There is a bearish trend line forming with resistance at $60.00 on the hourly chart of XTI/USD at FXOpen.

Gold Price Technical Analysis


On the hourly chart of Gold at FXOpen, the price formed a base above $3,915. The price remained in a bullish zone and started an upward move within a range above $3,930.

There was a decent move above the 50-hour simple moving average and $3,975. The bulls pushed the price above the $4,000 and $4,010 resistance levels. A high was formed at $4,019 before the price saw a pullback.

The price dipped below the 23.6% Fib retracement level of the upward move from the $3,928 swing low to the $4,019 high, and the RSI declined below 50. Initial support on the downside is near $3,985, a bullish trend line, and the 50-hour simple moving average.

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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.

[FXOpen Trader]

Market Analysis: GBP/USD Bounces Back As EUR/GBP Awaits Catalyst


GBP/USD is attempting a recovery wave above 1.3100. EUR/GBP is consolidating and might aim for a fresh increase above 0.8800.

Important Takeaways for GBP/USD and EUR/GBP Analysis Today
- The British Pound is attempting a fresh increase above 1.3120.
- There was a break above a bearish trend line with resistance at 1.3070 on the hourly chart of GBP/USD at FXOpen.
- EUR/GBP is trading in a positive zone above the 0.8750 pivot level.
- There is a short-term declining channel forming with resistance near 0.8805 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair declined after it failed to clear 1.3370. As mentioned in the previous analysis, the British Pound even traded below 1.3250 against the US Dollar.

Finally, the pair tested the 1.3000 zone and is currently attempting a fresh increase. The bulls were able to push the pair above the 50-hour simple moving average and 1.3080. The pair even climbed above a bearish trend line with resistance at 1.3070.

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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.

[FXOpen Trader]

Nasdaq 100 Rebounds as Traders Anticipate End of the US Shutdown


As the chart shows, the Nasdaq 100 index (US Tech 100 mini on FXOpen) has started the week on a positive note amid growing expectations that the longest government shutdown in US history may soon come to an end.

According to Reuters, a bill has been introduced in the Senate proposing amendments to extend government funding until 30 January. The news acted as a bullish catalyst for equity markets. Still, the question remains – is the risk truly behind us?



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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.

[FXOpen Trader]

Dollar Index Pulls Back from a Key High


As the Dollar Index (DXY) chart shows, the index is currently trading below its 5 November high, which formed after a false bullish breakout (marked by an arrow) above the 1 August peak — a scenario previously outlined in the post "The Dollar Index Near a Key High."

According to Trading Economics, trader sentiment at the start of the week is being shaped by expectations of comments from ECB and Federal Reserve officials regarding the outlook for monetary policy.

A statement has already come from Reserve Bank of Australia Deputy Governor Andrew Hauser, who noted that financial conditions in the country are now close to a neutral rate — one that neither stimulates nor restrains economic growth. The Australian dollar strengthened following his remarks.



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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.

[FXOpen Trader]

What the Break and Retest Strategy Is and How It Works


Traders widely use strategies as structured approaches to entering and exiting the market. One of the most popular methods is the break and retest strategy, based on support and resistance levels. In this article, we explain the core principles of the strategy, how it works, and provide practical examples.

Understanding the Break and Retest Strategy
The break and retest strategy revolves around identifying key support and resistance levels on a price chart. When the price breaks through a support or resistance level, it signals a potential shift in market sentiment. For example, if a stock breaks above a resistance level, it suggests increasing buying interest. Traders then watch for the price to return to this newly broken level—known as a retest in trading. During the retest, the former resistance now acts as support, providing a potentially more attractive entry point for traders looking to join the trend.

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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.

[FXOpen Trader]

Buffett to Shareholders: "I'm Going Quiet"


Legendary investor Warren Buffett, the 95-year-old head of Berkshire Hathaway, has marked the end of an era by publishing what he called his "final letter" to shareholders on 10 November. The "Oracle of Omaha" announced that he is "going quiet", bringing to a close his famous annual essays that have guided generations of investors for nearly six decades.

In this letter, Buffett:
→ noted that he will continue to communicate with shareholders through an "annual Thanksgiving message";
→ announced a new $1.3 billion donation to four family foundations;
→ paid tribute to the late Charlie Munger and reflected on the "incredible luck" that has shaped his life.

Buffett also confirmed that his successor, Greg Abel, will formally assume the role of CEO by the end of 2025, expressing full confidence in the man who will oversee the legacy of one of the world's greatest investors.



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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.