Daily Market Analysis By FXOpen

[FXOpen Trader]

Market Analysis: AUD/USD and NZD/USD Attempt Another Recovery


AUD/USD is eyeing a steady increase above the 0.6555 resistance. NZD/USD is also rising and could extend its increase above the 0.6000 resistance zone.

Important Takeaways for AUD/USD and NZD/USD Analysis Today

• The Aussie Dollar is moving higher from the 0.6465 zone against the US Dollar.
• There is a connecting bullish trend line forming with support at 0.6555 on the hourly chart of AUD/USD at FXOpen.
• NZD/USD is showing positive signs above the 0.5925 support.
• There is a key bullish trend line forming with support at 0.5940 on the hourly chart of NZD/USD at FXOpen.

AUD/USD Technical Analysis

On the hourly chart of AUD/USD at FXOpen, the pair formed a base above 0.6465. The Aussie Dollar started another recovery wave above the 0.6510 resistance against the US Dollar

The bulls pushed the pair above the 0.6525 resistance zone. There was a close above the 0.6555 resistance and the 50-hour simple moving average. Finally, the pair tested the 0.6585 zone. A high is formed at 0.6585 and the pair is now consolidating above 23.6% Fib retracement level of the upward move from the 0.6465 swing low to the 0.6585 high.

On the upside, the AUD/USD chart indicates that the pair is now facing resistance near 0.6585. The first major resistance might be 0.6620. An upside break above the 0.6620 resistance might send the pair further higher.

The next major resistance is near the 0.6665 level. Any more gains could clear the path for a move toward the 0.6720 resistance zone.

If not, the pair might correct lower. Immediate support is near a connecting bullish trend line at 0.6555. The next support could be 0.6525 or the 50% Fib retracement level of the upward move from the 0.6465 swing low to the 0.6585 high.

If there is a downside break below the 0.6525 support, the pair could extend its decline toward the 0.6510 zone. Any more losses might signal a move toward 0.6465.

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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]

AAPL Share Price Soars after Record Buyback Announced


Yesterday, after the end of the main trading session, Apple published its report on its activities for the 1st quarter:

→ Earnings per share: actual = $1.53; expected = $1.505;

→ Gross income: actual = $90.75; expected = $90.36.

The better-than-expected report came as a relief to investors after reporting lower sales in five of the last six quarters. In addition, the following could give positive feedback to market participants:

→ Apple's forecast is that its iPad manufacturing and services business will grow at double-digit rates;

→ company investments in AI. “We think we're well positioned,” Chief Financial Officer Luca Maestri told Bloomberg Television's Emily Chang. CEO Tim Cook is expected to outline Apple's artificial intelligence strategy at its annual Worldwide Developers Conference in June.

→ Apple Inc.'s big plan to restore investor confidence. It consists of a record $110 billion share buyback and a 4% dividend increase.

As a result, AAPL's price rose nearly 8% in post-market trading, exceeding $185 per share, although yesterday's close was around $173.



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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 Price of Silver (XAG/USD) is Falling for the Second Consecutive Week


Following a surge in the price of silver close to the important psychological level of $30 per ounce on April 12, bearish momentum is now evident - concluding the week may mark the second consecutive week of decline for XAG/USD.

The decline in demand for silver could be linked to the decrease in gold prices.

Conversely, gold is losing its appeal due to:

→ easing geopolitical tensions in the Middle East;

→ gold's lack of yield, which is deemed unattractive in a high interest rate environment that may persist due to the Federal Reserve's policy - investors are given reason to favour low-risk bonds in their portfolios.



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.

[FXOpen Trader]

Watch FXOpen's 29 April - 3 May Weekly Market Wrap Video

Weekly Market Wrap With Gary Thomson: FTSE 100, US Dollar, USD/JPY, BTC/USD

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• London Calling! FTSE 100 Stocks Flying High Once Again;
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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 #fxopenyoutube #fxopenint #weeklyvideo

[FXOpen Trader]

What Did Buffett Say at the Shareholders' Meeting?


Warren Buffett, aged 93, held his first Berkshire Hathaway shareholders' meeting this weekend without Charlie Munger, his longtime partner at Berkshire Hathaway, who passed away at the age of 99.

Following the meeting, it was revealed that Berkshire Hathaway's cash reserves are at record levels and continuing to grow, reflecting the challenge of finding stocks for the value investing strategy that has defined billionaire Warren Buffett's success.

Cash, cash equivalents, and short-term Treasury bills for Buffett's group totaled $189 billion at the end of March, up 13% from the end of 2023. "It is fair to assume that by the end of this quarter they will probably be around $200 billion," Buffett said.

According to the legendary investor:

• Berkshire sold about 13% of its Apple shares;
• reduced its stake in Chevron by approximately 2%;
• Coca-Cola and American Express are "wonderful companies";
• the Indian stock market may present "untapped opportunities";
• "We only pick those areas that we like."

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.

[FXOpen Trader]

Japanese Yen Goes on Volatility Drive after US Economic Uncertainty Surfaces


The Japanese yen has been notably volatile for a long time now, and today, that dynamic continues as the yen made some tremendous steps forward over the course of the Asia Pacific trading session.

In today's Asia Pacific trading session, the USDJPY pair has become the second most volatile currency on FXOpen's TickTrader platform this morning.

There have been some economic factors surrounding both the Japanese and United States economies that have surfaced during the course of the morning, including some very interesting reports and releases of data from the US government on economic circumstances surrounding the country.

The USDJPY pair was trading at 157.74 on 1st May, according to FXOpen pricing, and began to decline from there, going down to 153.13 by Thursday, 2nd May, followed by a further dip to 151.85 on Friday, settling at 153.787 at 8.15 am UK time today (Monday, 6th May) having continued this level during the Asia Pacific session.

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.

[FXOpen Trader]

UK100 Analysis: Stock Market Optimistic Ahead of Bank of England News


On Monday, the UK observed a bank holiday for May Day, and on Tuesday, the stock market demonstrated accumulated optimism.

The FTSE index (UK100) today surpassed the 8300 mark. Additionally:
→ The opening occurred with a bullish gap;
→ On the daily chart of UK100, today the RSI indicator is in overbought territory, unseen since the beginning of 2023.

One of the significant drivers of bullish sentiments could be considered events on Thursday – at 14:00 GMT+3, news from the Bank of England is expected: market participants will learn about the decision on the interest rate, followed by a press conference.

As Econoday writes:
→ A decision to cut interest rates is unlikely at Thursday's meeting, with autumn being seen as the most probable period for a 0.25-point rate cut from the current level of 5.25 points.
→ Members of the rate-setting committee are concerned that inflation is slowing down too slowly. However, the trend is in the right direction, and the Bank of England has already stated that the 2 percent target does not necessarily need to be reached before interest rates are lowered.

Perhaps the anticipation of signals for monetary policy easing instils confidence in the bulls, but how sustainable can the current growth be?



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.

[FXOpen Trader]

The US Labour Market Is Slowing Down. How Could This Impact Major Currency Pair Pricing?


A weak employment report in the US contributed to a sharp pullback in major currency pairs, but it hasn't led to a full change in major trends yet. For instance, nonfarm payroll figures showed that:

• The number of new jobs came in at 173K, compared to the forecast of 238K.
• Average monthly wages decreased by 0.2% against an expected 0.3% increase.
• Unemployment rose to 3.9% from 3.8%.

Following the slowdown in job growth, investors will eagerly await inflation data. If the figures meet or exceed expert forecasts, expectations for a rate cut by the US regulator could increase.

GBP/USD

According to technical analysis of the GBP/USD pair using the "chaos" system, we are seeing a corrective pullback after the formation of a reversal bar on April 22. Attention should be paid to price behaviour around 1.2520-1.2500. If the price rebounds from this range, it could strengthen towards 1.2640-1.2600. A drop below support at the entwined alligator lines may lead to a retest of the recent low around 1.2300.

Key events of the week include:

• Today at 11:30 (GMT +3:00), publication of data on business activity index in the UK construction sector for April.
• Thursday at 14:00 (GMT +3:00), Bank of England meeting and decision on the GBP base interest rate.

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.

[FXOpen Trader]

Rivian Stock Goes High as Q1 Report Anticipation Mounts


Being a newcomer within a very long-established and somewhat traditional global industry is not easy.

The automotive industry is a case in point. It has been over 139 years since Karl Benz managed to successfully produce the first motorised vehicle, and since then, huge global conglomerates have built economies of scale to compete against each other fiercely in every corner of the world whilst evolving gradually rather than taking a revolutionary position.

Suddenly, in 2014, the now infamous Elon Musk came from outside the traditional manufacturing or automotive sectors and disrupted an age-old, highly polished, and well-established industry to the extent that even Mercedes Benz, the company that invented the car all those years ago, has begun making electric cars to compete with those introduced by Elon Musk's Tesla company.

More recently, some even newer names have entered the electric vehicle arena, some of which listed their stock on public exchanges in North America with high-value listings despite little or no market share, having done so via controversial SPAC 'blank check' companies toward an audience which, for many, would have heard the names of such companies for the first time.

One such firm is Rivian Automotive, which listed its stock on the NASDAQ exchange in November 2021 at a price of $78 per share. Since then, Rivian, whose main product is an electric pickup truck, has been incredibly volatile, trading at a lot less than $10 per share more recently, but had been fluctuating around $25 in December.

As the New York trading session came to a close yesterday, Rivian stock was among the top risers on FXOpen's TickTrader platform, concluding the trading day at $10.31 per share according to FXOpen pricing.

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.

[FXOpen Trader]

The Hang Seng Index Has risen by Over 13% in 2 Weeks


Analyzing the Hang Seng (HSI) chart, we wrote on January 30th that the price was near an important support level formed by the lower boundary (shown in orange) of a long-term channel, which has been relevant since 1995.

According to Reuters, Goldman Sachs representatives noted in a client note that hedge funds were actively buying Chinese stocks – the period from January 23 to 25 saw the largest capital inflow in 5 years.

As of the beginning of May, price action suggests that hedge fund purchases are justifiable – with the Hang Seng 50 index rising by over 13% in the past two weeks.

This was partly driven by:

• Economic stimulus from Beijing.
• The Hong Kong Monetary Authority's (HKMA) decision to keep the base rate unchanged at 5.75%. As reported by the South China Morning Post, HKMA's decisions correlate with the Federal Reserve's policy since 1983, reflecting the local currency's peg to the US dollar.

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.

[FXOpen Trader]

AUD/USD Analysis: Aussie Weakens After RBA Decision


Following its decision on 7th May, the Reserve Bank of Australia (RBA) opted to maintain the interest rate at 4.35%, despite inflation continuing to decrease at a slower pace than anticipated by the RBA.

"I think we still think they’re reasonably balanced with perhaps a little bit of a signal that we need to be very watchful on the upside," RBA governor Michele Bullock said.

According to The Guardian, the absence of more aggressive language led to a decline in the Australian dollar.

Specifically, on the morning of 8th May, the AUD/USD rate fell below the 0.657 level, whereas on 7th May, the rate was at 0.664 - a decrease of approximately 1.3% in 30 hours.



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.

[FXOpen Trader]

GBP/USD Bulls Struggle While USD/CAD Regains Strength


GBP/USD declined below the 1.2550 support zone. USD/CAD is rising and might aim for more gains above the 1.3760 resistance.

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

• The British Pound started a fresh decline from the 1.2635 resistance zone.
• There is a key bearish trend line forming with resistance at 1.2500 on the hourly chart of GBP/USD at FXOpen.
• USD/CAD is showing positive signs above the 1.3685 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 started a fresh decline from the 1.2635 zone. The British Pound traded below the 1.2550 support to move into further a bearish zone against the US Dollar.

The pair even traded below 1.2500 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2465 level. A low was formed at 1.2467 and the pair recently attempted a recovery wave. The pair climbed above the 1.2485 level.

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.

[FXOpen Trader]

GBP/USD Analysis: Pound Recovers After the Bank of England Decision


Yesterday, the Bank of England published its interest rate decision. According to ForexFactory, the votes were distributed as follows:

→ rate hike - 0 votes, cut - 2 votes, unchanged - 7 (0 - 2 - 7);

→ forecast: 0 - 0 - 9;

→ previous values: 0 - 1 - 8.

For the first time in the current cycle of interest rate hikes aimed at inflation lowering, two members of the Monetary Policy Committee voted in favour of the rate cut. The dovish tone was echoed by Bank of England Governor Andrew Bailey: “It is likely that we will need to cut the bank rate over coming quarters, possibly more so than is currently priced into markets.”

The market's first reaction to the clear signals of the imminent easing monetary policy was the weakening of the pound, including against the US dollar. Thus, yesterday, the GBP/USD rate dropped below the low of April 26 at around 1.245.

However:

→ the US dollar is also affected by the prospect of the Fed's easing monetary policy because the current tight policy puts pressure on the labour market - according to data from May 9, the number of applications for unemployment benefits in the US was the highest since November 2023;

→ Today's UK GDP data (which turned out to be better than expected) supported the pound.



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.

[FXOpen Trader]

WTI Oil Price Recovers Quickly From March Lows


On May 8, the price of WTI crude oil fell below $77 per barrel for the first time since March 11. But on the morning of May 10, it was above $79 – an increase of almost 3% in less than two days.

Several factors contributed to the significant rise in the price of WTI crude oil. According to Reuters, among them:

→ Increased oil demand from the United States. Data released on Wednesday showed a drop in US crude oil inventories, driven by increased refinery utilisation.

→ Growing demand from China. Data published on Thursday showed an increase in oil imports.

→ Ongoing concerns about possible supply disruptions due to escalating conflict in the Middle East. Negotiations to end hostilities between Israel and Hamas failed, and Israel attacked the Palestinian city of Rafah.

On April 19, we wrote about the possibility of a bearish breakdown of the ascending channel line, which would be welcomed by the US administration, where the presidential elections are getting closer and closer.

Since then, the price of oil has broken down the median line and the support line at $80.70, which may act as resistance in the future.



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.

[FXOpen Trader]

Market Analysis: Gold Price Regains Strength While Crude Oil Price Recovers


The gold price started a fresh increase above $2,320. Crude oil is recovering and might rise toward the $81.20 resistance zone.

Important Takeaways for Gold and Oil Price Analysis Today

• The gold price started a decent increase from the $2,300 zone against the US Dollar.
• It broke a key descending channel with resistance at $2,315 on the hourly chart of gold at FXOpen.
• Crude oil is recovering losses and trading above the $78.55 support.
• There was a break above a connecting bearish trendline with resistance near $78.40 on the hourly chart of XTI/USD at FXOpen.

Gold Price Technical Analysis


On the hourly chart of XAU/USD at FXOpen, the price formed support near the $2,275 zone, remained in a bullish zone, and started a strong increase above $2,300.

It broke a key descending channel with resistance at $2,315. The bulls even pushed the price above the $2,345 level and the 50-hour simple moving average. Finally, it traded as high as $2,358. XAU/USD is now consolidating gains near the $2,355 zone, and the RSI is above 70.

Initial support on the downside is near the 23.6% Fib retracement level of the upward move from the $2,307 swing low to the $2,358 high at $2,345.

The first major support is near the $2,335 zone. It is close to the 50% Fib retracement level of the upward move from the $2,307 swing low to the $2,358 high. If there is a downside break below the $2,335 support, the price might decline further.

In the stated case, the price might drop toward $2,320 and the 50-hour simple moving average.

Immediate resistance is near the $2,360 level. The next major resistance is near the $2,372 level. An upside break above the $2,372 resistance could send the gold price toward $2,385. Any more gains may perhaps set the pace for an increase toward the $2,400 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.