Daily Market Analysis By FXOpen

[FXOpen Trader]

What Is ICT PO3, and How Do Traders Use It?


The ICT Power of 3 (PO3) is a structured approach to price action analysis that aims to interpret institutional market behaviour. It divides market movement into three distinct phases: accumulation, manipulation, and distribution. Recognising these phases may help traders assess potential areas of interest and align their strategies with broader market dynamics.

This article outlines the core principles of the Power of 3 framework, providing a detailed examination of how it is applied in the context of institutional order flow and market structure.

The ICT Power of 3 (PO3), or the AMD setup, is a strategic trading framework developed by Michael J. Huddleston, better known as the Inner Circle Trader. This approach revolves around three critical phases: accumulation, manipulation, and distribution, which collectively may help traders understand and anticipate market movements.

Accumulation Phase
During this phase, smart money or institutional investors accumulate positions within a price range, often leading to a period of low volatility and sideways movement. This stage sets the groundwork for future price movements by creating a base of support or resistance.

Manipulation Phase
The manipulation phase involves deliberate price moves by smart money to trigger stop losses and deceive retail traders. In a bullish scenario, prices may dip below the established range, while in a bearish market, prices might spike above the range. This phase is seen as being characterised by sharp, misleading price movements aimed at manipulating liquidity.

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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 Insights with Gary Thomson: 1 - 5 September

Market Insights with Gary Thomson: UK Retail Sales, Canada Jobs, US NFP, and OPEC+ Meeting

In this video, we'll explore the key economic events and market trends, shaping the financial landscape. Get ready for expert insights into forex and commodities to help you navigate the week ahead. Let's dive in!

In this episode of Market Insights, Gary Thomson unpacks the strategic implications of the week's most critical events driving global markets.

👉 Key topics covered in this episode:

— UK Retail Sales
— Unemployment Rate in Canada
— US NFP and Unemployment Rate
— OPEC+ Meeting
— Trade Tensions

Gain insights to strengthen your trading knowledge.




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.

Disclaimer: This video represents the opinion of the Companies operating under the FXOpen brand only. 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 Is BOS in Trading? How Is a Break of Structure Used by Traders?


Understanding market structure is fundamental to anticipating directional bias and interpreting institutional behaviour. Within the Smart Money Concept (SMC) framework, one of the most critical structural models is the Break of Structure (BOS)—a key indication that the market may be transitioning from one trend phase to another.

A BOS occurs when price decisively breaks above a significant swing high or below a swing low, suggesting a potential shift in control between buyers and sellers. For traders, the BOS serves as a confirmation tool for trend reversals, which may help them identify potential entry points and align trade setups with higher-timeframe order flow.

In this article, we uncover the core principles of the Break of Structure and how to distinguish it from liquidity grabs or false breakouts.

Strong and Weak Swing Points
In Smart Money Concept trading, understanding the basics of market structure may be crucial, particularly when discerning between strong and weak swing points. These points are pivotal in analysing the current trend and play a significant role in identifying potential breaks in structure.

A strong swing point, whether it be a high in a downtrend or a low in an uptrend, is considered to be likely to hold if the price revisits the area. A bullish trend, for example, is denoted by a series of higher highs and higher lows. For the trend to remain, traders typically watch that the last higher low is not breached.

Conversely, a weak swing point is seen as vulnerable and more likely to be breached. In an uptrend, a peak or area of resistance is expected to be traded through, continuing the trend. 

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: Pound and Euro Hold Ground—Statistics in Focus


European currencies are holding near four-week highs at the start of the week. Following the volatile swings sparked by Jerome Powell's remarks at the Jackson Hole symposium, the market has yet to form a clear scenario: the dollar corrected but then came under renewed pressure. As a result, EUR/USD and GBP/USD managed to test key resistance levels, though no breakout from their sideways ranges has yet occurred. The next move will largely depend on upcoming macroeconomic data releases from Europe, the UK, and the US, which could shift the short-term outlook.

Today, market participants are focused on the release of business activity indices and producer prices in Europe, along with inflation (CPI) data in Italy and the euro area. The significance of these releases is heightened by their potential to shape expectations for the European Central Bank's future policy. Tomorrow, a batch of important statistics is due from the UK.

GBP/USD

The GBP/USD pair yesterday tested a key resistance at 1.3550. Technical analysis suggests a potential move towards 1.3600 if the price maintains its current upward momentum. This growth scenario could be invalidated should support at 1.3500 be broken.

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]

Alibaba (BABA) Shares Soar ~13% After Earnings Report


Alibaba published its second-quarter report on Friday morning. Although the company's gross revenue came in below analysts' forecasts ($34.6bn vs $35.1bn), BABA's share price surged by around 13% (to its highest level since March) as the market reacted positively to:

→ Faster growth in cloud services revenue, seen as key to the company's success in monetising artificial intelligence, similar to Microsoft and Google.
→ Testing of a new processor designed to reduce reliance on Nvidia.



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]

GBP/USD Exchange Rate Tumbles


As today's GBP/USD chart shows, the pound sterling fell by nearly 1% against the US dollar in just one hour, forming an exceptionally long bearish candle.

The sharp drop was driven by concerns over public finances and a broad sell-off in the bond market. According to Reuters, the yield on UK 30-year government bonds hit 5.69% – the highest level since May 1998 – highlighting the elevated risk premium.



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]

20 Currencies That Are Considered the Strongest in Africa


Africa's currency landscape is as diverse as its economies. While many associate African currencies with volatility, several nations on the continent maintain strong units backed by robust fiscal policies and strategic ties to global markets. Understanding which currencies hold the most value can be useful for informed decision-making in foreign exchange trading, cross-border investments, and risk management.

In this article, we rank the 20 most valuable African currencies, based on their exchange rate against the US dollar, while exploring the economic factors that drive their performance.

The List of Currencies That Are Considered the Strongest in Africa
Below is the ranking of the 20 top-performing currencies in Africa. The US dollar remains the global benchmark for currency valuation, which is why this list is based on the exchange rates of African currencies against the US dollar.

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: EUR/USD Trims Gains as USD/CHF Targets Fresh Upside


EUR/USD started a downside correction from 1.1740. USD/CHF is rising and might aim for a move toward 0.8100.

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

• The Euro struggled to clear 1.1740 and corrected gains against the US Dollar.
  
• There was a break below a key bullish trend line with support at 1.1705 on the hourly chart of EUR/USD at FXOpen.
  
• USD/CHF is showing positive signs above the 0.8020 zone.
  
• There was a break above a connecting bearish trend line with resistance at 0.8000 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 1.1650. The Euro tested 1.1735 and recently corrected gains against the US Dollar.

The pair dipped below 1.1700 and a key bullish trend line with support at 1.1705. It sparked a move below the 50% Fib retracement level of the upward move from the 1.1574 swing low to the 1.1736 high.

The pair shows some bearish signs below the 50-hour simple moving average, and gains might remain capped since the RSI is now below 50. Immediate resistance on the upside is near 1.1655. The next key hurdle for the bulls could be near the 50-hour simple moving average at 1.1675.

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]

Alphabet (GOOGL) Stock Price Soars By Around 8% After Court Ruling


At the end of August, we reported that Alphabet (GOOGL) stock price had reached a historic high, closing above $210. But today, the price is likely to climb to a new, significantly higher level. Yesterday, in after-hours trading, it surged by roughly 8%.

Why did Alphabet (GOOGL) shares rise?

The jump is explained by a court ruling in a case concerning alleged monopoly practices related to the Chrome browser. According to Investopedia, a federal judge ruled that the tech giant does not need to sell Chrome. This dispelled fears that Alphabet might have been forced to part with a core part of its business.

Interestingly, one of the factors behind the judge's decision was the spread of AI solutions (such as ChatGPT and Perplexity), which offer competition to Chrome's search and browsing functions.



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]

Gold Price Reaches a New All-Time High


As shown on today's XAU/USD chart, the price of gold has risen above $3,530 per ounce for the first time in history.

In 2025, the increase in gold prices has been driven by sustained central bank purchases, asset diversification, steady demand for so-called safe-haven assets amid geopolitical and trade tensions, as well as general dollar weakness.

At the beginning of September, bullish sentiment may have been reinforced by:

→ Expectations of a Federal Reserve rate cut. According to the CME FedWatch tool, markets are pricing in a nearly 92% probability of a 25-basis-point rate cut at the Fed meeting on 17 September. Gold, as a non-yielding asset, is typically seen as a beneficiary of low interest rates.

→ News from China, where, in the presence of leaders from many countries, the establishment of a SCO development bank was announced. Market participants may have interpreted this as a new source of geopolitical risk and as pressure on the dollar's status. Donald Trump has already claimed that the summit in China represents a conspiracy against the United States.



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]

What Are Fair Value Gaps and Liquidity Voids in the SMC?


Understanding the distinction between fair value gaps (FVGs) and liquidity voids may support traders aiming to interpret market structure with precision. Both concepts, fundamental to the Smart Money Concept (SMC) framework, reveal important insights into supply and demand imbalances. In this article, we'll break down the mechanics of fair value gaps and liquidity voids, highlight their differences, and discuss how they may be applied in trading strategies.

Fair Value Gap (FVG) Meaning in Trading

A fair value gap, also known as an imbalance or FVG, is a crucial idea in Smart Money Concept that sheds light on the dynamics of supply and demand for a particular asset. This phenomenon occurs when there is a significant disparity between the number of buy and sell orders for an asset. They occur across all asset types, from forex and commodities to stocks and crypto*.

Essentially, a fair value gap in trading highlights a moment where the market consensus leans heavily towards either buying or selling but finds insufficient counter orders to match this enthusiasm. On a chart, this typically looks like a large candle that hasn't yet been traded back through.

Specifically, a fair value gap is a three-candle pattern; the middle candle, or second candle, features a strong move in a given direction and is the most important, while the first and third candles represent the boundaries of the pattern. Once the third candle closes, the fair value gap is formed. There should be a distance between the wicks of the first and third candles.

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]

Dollar Strengthens But Remains Under Pressure: Markets Await Jobs Data


The US currency managed to regain some ground in the first half of the week, yet no solid foundation for sustained growth has emerged. Market participants remain cautious, weighing both the latest macroeconomic data and expectations ahead of the release of the US non-farm payrolls report (NFP). This publication is traditionally regarded as a key indicator for assessing the Federal Reserve's next steps and is capable of setting the tone for markets in the coming weeks. Meanwhile, with persistent pressure on the dollar, more analysts are expecting an increase in net short positions by the end of September.

Today's statistics from the US and Canada add to market nerves: jobless claims, business activity indices (PMI), and trade balance figures could adjust short-term expectations. Another driver is Canadian labour market data (5 September at 15:30 GMT+3), which could influence the dynamics of the USD/CAD pair.

USD/CAD


Following the formation of a bullish engulfing pattern on the daily timeframe, the USD/CAD pair managed to test key resistance at 1.3800. Technical analysis of USD/CAD points to potential strengthening towards 1.3860–1.3900 if the 1.3800 level turns into support. A pullback from current levels could trigger a decline towards 1.3720–1.3760.

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]

Silver Price Retreats from a 14-Year High


As the XAG/USD chart shows, yesterday silver climbed above $41.40 per ounce. The last time silver traded at this level was in September 2011. The rise in XAG/USD was supported by gold surging to a record high, which we reported yesterday.

Furthermore, Goldman Sachs analysts have issued a gold price forecast for mid-2026, according to which XAU/USD could rise to:
→ $4,000 under the base case;
→ $5,000 if 1% of the private US Treasury market flows into gold. This scenario would imply a loss of Federal Reserve independence, higher inflation, and the US dollar weakening as a so-called reserve currency.



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]

Apple (AAPL) Shares Jump to a Six-Month High


As the AAPL chart shows, yesterday the price rose above $238 – its highest level since early March.

The optimistic sentiment was fuelled by:
→ A court ruling concerning Google, which we reported on yesterday. Apple shares advanced after the court allowed Alphabet to continue paying Apple for preloading Google Search on the iPhone. Bank of America analysts even raised their AAPL price target to $260.
→ The upcoming Apple presentation scheduled for 9 September. Expectations are that the event could unveil the iPhone 17 and new Apple Watch models, which may provide a bullish catalyst.



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]

Understanding the Inverse Fair Value Gap (IFVG) in Trading


The Inverse Fair Value Gap (IFVG) is a market structure concept used to identify areas of significant price displacement that may signal a shift in market sentiment. Unlike standard Fair Value Gaps (FVGs), which often act as magnets for price to revisit, IFVGs highlight zones where price may be less likely to return—suggesting the possibility of a strong directional move or trend reversal. Understanding IFVGs may offer traders additional conext when analysing momentum-driven markets or planning entries and exits. This article examines how IFVGs form, how they differ from conventional FVGs, and how they might be incorporated into a broader technical analysis framework.

Fair Value Gaps (FVGs) – A Brief Overview

A Fair Value Gap (FVG) occurs when the market moves so rapidly in one direction that it leaves an imbalance in price action. This imbalance shows up on a chart as a gap between three consecutive candles: the wick of the first candle and the wick of the third candle fail to overlap, leaving a "gap" created by the second candle. It essentially highlights an area where buying or selling pressure was so dominant that the market didn't trade efficiently.

Traders view these gaps as areas of potential interest because markets often revisit these levels to "fill" the imbalance. For example, in a bullish FVG, the gap reflects aggressive buying that outpaced selling, potentially creating a future support zone. On the other hand, bearish FVGs indicate overwhelming selling pressure, which might act as resistance later.

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.