Daily Market Analysis By FXOpen

[FXOpen Trader]

Creating a Balanced Investment Portfolio


In the vast realm of trading, where platforms like FXOpen play a pivotal role, strategy and skill stand paramount. As the age-old adage goes, 'Don't put all your eggs in one basket.' In the context of trading, this underscores the significance of diversification. Enter the concept of a balanced investment portfolio - an excellent balanced portfolio example, which emerges as an oasis of hope amidst the unpredictable dunes of market volatility.

Understanding the Importance of a Balanced Investment Portfolio

To achieve a balanced investment portfolio, it's crucial to consider the balance of individual components, especially forex, CFDs, stocks, and bonds. For example, a stock portfolio balance refers to the proportion of stocks in relation to other investment types. This balance is pivotal, as stocks often carry higher risks but also higher potential rewards. By understanding their own risk tolerance and learning how to balance portfolio assets effectively, traders can determine the ideal portfolio balance that meets their specific objectives.

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Disclaimer: This article 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]

Market Analysis: EUR/USD Dips From Highs, USD/JPY Eyes Fresh Increase


EUR/USD declined from the 1.1570 resistance and traded below 1.1470. USD/JPY is rising and might gain pace above the 142.45 resistance.

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

• The Euro started a fresh decline after a strong surge above the 1.1500 zone.
• There was a break below a key bullish trend line with support at 1.1440 on the hourly chart of EUR/USD at FXOpen.
• USD/JPY climbed higher above the 141.00 and 141.65 levels.
• There was a break above a connecting bearish trend line with resistance at 141.20 on the hourly chart at FXOpen.

EUR/USD Technical Analysis


On the hourly chart of EUR/USD at FXOpen, the pair rallied above the 1.1500 resistance zone before the bears appeared. The Euro started a fresh decline and traded below the 1.1500 support zone against the US Dollar.

There was a break below a key bullish trend line with support at 1.1440. The pair declined below 1.1410 and tested the 1.1310 zone. A low was formed near 1.1308 and the pair started a consolidation phase. There was a minor recovery wave above the 1.1370 level.

The pair climbed above the 23.6% Fib retracement level of the downward move from the 1.1573 swing high to the 1.1308 low. EUR/USD is now trading below 1.1440 and the 50-hour simple moving average.

On the upside, the pair is now facing resistance near the 1.1410 level. The next key resistance is at 1.1440 and the 50% Fib retracement level of the downward move from the 1.1573 swing high to the 1.1308 low.

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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 Volatility Continues to Rise


Amid global economic instability and escalating tariff tensions, the EUR/USD and GBP/USD currency pairs are showing strong growth. Following statements by Donald Trump regarding the potential dismissal of Federal Reserve Chair Jerome Powell, pressure on the US dollar is intensifying. This is creating favourable conditions for the strengthening of the euro, the Japanese yen, and the British pound.

President Trump has repeatedly criticised Jerome Powell’s approach to monetary policy, accusing him of excessive caution and a lack of flexibility in cutting interest rates. According to the White House administration, the Fed’s current stance hinders economic growth and weakens the dollar’s position in global markets. These remarks are causing concern among investors and increasing volatility in currency markets, supporting the rise of other currencies against the dollar.

GBP/USD

At the start of the week, GBP/USD buyers managed to push the pair to new yearly highs, testing the key resistance level at 1.3400. The price briefly traded above 1.3400, but a sharp pullback from 1.3420 allowed sellers to form a bearish “dark cloud cover” pattern. Technical analysis of GBP/USD suggests a potential downward correction following the recent rapid rise. Should the pair consolidate below 1.3200, the decline could extend towards the 1.3160–1.3100 range.

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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]

Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report


On 31 March, we noted that bearish sentiment could push Alphabet’s (GOOGL) share price towards the psychological level of $150. As the current price chart suggests, GOOGL is now trading close to that very level.

Moreover, the price is approximately equidistant from the recent highs and lows (marked A and B), which may be interpreted as a sign of balanced supply and demand — and a wait-and-see stance from market participants ahead of Alphabet’s Q1 earnings release (scheduled for tomorrow, 24 April).

Awaiting the GOOGL Earnings Report

With the Nasdaq 100 index (US Tech 100 mini on FXOpen) having fallen by around 13.5% since the beginning of the year, investors are approaching tech earnings with caution. According to Barron’s, three key themes are expected to dominate the narrative:

→ management forecasts amid continued uncertainty around the White House’s tariff policy;
→ plans for major capital investment in AI-related infrastructure;
→ signs of softening consumer demand.

Given the current climate of uncertainty, Alphabet’s earnings report could prove particularly influential — serving as a benchmark for shaping market expectations ahead of other major tech company reports.



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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 Plunges After Climbing to $3,500 for the First Time


As the XAU/USD chart shows:
→ Yesterday, the spot gold price stopped just a few cents short of the key psychological level of $3,500 (and even exceeded it on the futures market);
→ But this morning, an ounce is trading around $3,300, having dropped aggressively by more than 5%.

Why Did Gold Suddenly Drop?

The sharp decline followed a shift in rhetoric from President Trump. According to Reuters:
→ The US President backed away from threats to dismiss Federal Reserve Chair Jerome Powell;
→ He also signalled a more moderate stance on tariffs against China.

Market participants interpreted this as a reason to take profits on long positions, as the softened tone from the White House reduced demand for safe-haven assets. As a result, gold collapsed from its historic high, while the US dollar index rebounded from multi-month lows.



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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]

Algorithmic Trading Overview


Algorithmic trading is an essential component in today's financial markets, automating trading to improve efficiency and profitability. This article explores the intricacies of algorithmic trading, from how it works to its benefits and drawbacks, providing a comprehensive overview for traders.

What Is Algorithmic Trading?

Algorithmic trading uses computer programs to carry out trades in financial markets. It offers a modern approach that combines quantitative analysis, programming, and market expertise. Essentially, it automates the trading process, allowing for pre-defined rules and conditions to trigger buying or selling actions. While the concept may sound complex, its core function is to improve trading efficiency and potentially enhance profitability. Moreover, its utility extends across various asset classes, from equities and commodities to forex and derivatives.

Both individual and institutional traders employ algorithmic trading to capitalise on market opportunities that may unfold too quickly for human traders to seize.

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Disclaimer: This article 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]

The US Dollar Retraces Amid Rumours of Potential Tariff Reductions for China


Recent US data points to improvement in the manufacturing sector: the Purchasing Managers’ Index (PMI) reached 50.7, exceeding forecasts. However, both the composite index and the services PMI came in below expectations.

Particular attention is being drawn to discussions within the White House regarding a potential reduction in tariffs on Chinese imports — a move that could significantly impact trade relations and support a strengthening of the US dollar.

Moreover, speculation regarding the resignation of Federal Reserve Chair Jerome Powell appears to have been exaggerated, which could also be perceived as a bullish signal for the USD. Together, these factors set the stage for an upward correction in currency pairs such as USD/JPY and USD/CAD.

USD/JPY
Having narrowly missed revisiting last year’s lows near 139.60, the USD/JPY pair reversed course and at one point yesterday traded above 143.00. On the daily timeframe, a bullish “piercing pattern” is potentially forming. Technical analysis suggests there may be room for continued upward correction towards the 145.00–145.50 region. A resumption of the downward trend may only be considered upon a firm break below the 140.00 level.



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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]

IBM Share Price Falls Following Earnings Report


Yesterday, after the close of the main trading session, International Business Machines (IBM) released its Q1 earnings report, exceeding Wall Street analysts’ expectations in several key areas. According to FactSet:

→ Earnings per share came in at $1.60 (forecast = $1.42), although this was below last year’s figure of $1.68.
→ Quarterly revenue reached $14.54 billion (forecast = $14.39 billion), marking a 1% increase year-on-year.

Initially, IBM shares rose on the news, but then dropped by approximately 6% during after-hours trading, according to Google Finance.

This suggests that today’s trading session may see IBM shares open below the $230 mark.

Market participants may have been disappointed by the following:

→ IBM’s mainframe business (large-scale computing systems designed for high-volume data processing) continued its decline, falling by 6% year-on-year.
→ Revenue from software and consulting divisions increased, but only by 3% compared to the same period last year.
→ The revenue forecast for Q2 stands at $6.6 billion – a 3% decline relative to the same quarter in 2024.



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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]

USD/CHF Rebounds from Multi-Year Low


As the charts show, the USD/CHF exchange rate fell below 0.810 US dollars per franc earlier this week. The pair had not traded this low since the 2008 financial crisis. Demand for the Swiss franc as a safe-haven currency was driven by concerns over the escalation of the trade war between the United States and other major economies.

However, the USD/CHF pair has since rebounded and is currently trading above 0.825. This recovery was supported by yesterday’s statement from Finance Minister Bessent at the JPMorgan Private Investors Conference, where he expressed optimism about imminent de-escalation in trade tensions with China.



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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]

Thriving in Volatile Market Conditions


Navigating financial markets often involves confronting periods of high volatility. For traders, the question invariably arises: what is the best way to deal with volatility? This article aims to provide a comprehensive overview of understanding market volatility, managing risks, choosing appropriate trading styles, and utilising key analytical tools to help traders survive and thrive in volatile conditions.

The Meaning of Market Volatility

Market volatility refers to the degree of variation in a financial instrument's price over a specific time frame. Simply put, it's the measure of how  Earnings-price ratioly or moderately the price of an asset, such as a stock, currency, or commodity, fluctuates.

Several factors contribute to market volatility. Macroeconomic indicators like inflation rates, unemployment data, and geopolitical events can send ripples through the market. Furthermore, company-specific news, such as earnings reports and mergers, can result in sharp price swings. Understanding volatility is essential for traders because it directly impacts the risk and reward profile of any trade.

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Disclaimer: This article 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]

Why Coinbase (COIN) Shares Are Rising


As the Coinbase (COIN) stock chart shows, trading closed yesterday above the $200 mark — for the first time since March.

Since the beginning of April, COIN's share price has risen by nearly 20%, while the S&P 500 index (US SPX 500 mini on FXOpen) has declined by approximately 2%.

Bullish Drivers Behind COIN’s Price Rise

According to media reports, several factors are contributing to the bullish momentum:

→ Yesterday’s announcement that Coinbase and PayPal are expanding their partnership in the areas of crypto payments and decentralised finance (DeFi). The collaboration aims to increase the adoption of the PYUSD stablecoin and integrate it into merchant settlements.

→ The anticipated adoption of US stablecoin legislation, designed to establish a regulatory framework for the use of stablecoins. This is being supported by the Trump administration’s progressive stance on cryptocurrencies, including the appointment of crypto-friendly officials, the creation of a strategic crypto reserve, and other pro-crypto initiatives.



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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]

USD/CAD Consolidates


In the second half of April, the USD/CAD chart has shown a decline in volatility following significant spikes observed since February.

The Canadian dollar has stabilised against the US dollar within the 1.390–1.380 range over the past week, as market participants assess what a fair USD/CAD rate might be, given the evolving news backdrop:

→ The US dollar gained upward momentum on hopes of easing trade tensions between the US and China, although the information remains conflicting — Trump claims negotiations are ongoing, while Beijing denies this.

→ Oil prices — a key Canadian export — have recovered by more than 10% from their April lows, providing support for the Canadian dollar.

→ Economic data published this week suggests a cooling in the Canadian economy: employment is declining, and the pace of average wage growth has slowed to 5.4%.

→ Although an important political event — the Canadian Parliamentary elections — is set to take place this weekend, it appears to have had little impact on the USD/CAD exchange rate so far. Trade tariffs between the US and Canada likely remain the dominant concern.



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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 Is the Smart Money Concept?


In forex trading, gaining insight into the behaviour of powerful market participants—such as banks, hedge funds, and other institutional investors—can offer a major edge to retail traders. Commonly referred to as "smart money," these players often drive the market’s biggest moves. In this FXOpen article, we explore the Smart Money Concept in detail, uncovering how institutional strategies shape price action and how retail traders can use this knowledge to refine their own trading approach.

Understanding the Smart Money Concept

The Smart Money Concept (SMC) centres on the principle that the movements of large institutional investors in financial markets can offer valuable clues to retail traders about future market trends.

These institutional investors, often referred to as “smart money,” include banks, hedge funds, and investment firms, wielding significant capital power to influence market directions. The core of SMC lies in the belief that by observing and understanding the trading behaviours and patterns of these entities, retail traders can align their trading strategies to potentially tap into more favourable results.

In essence, SMC is not merely about following the “money” but understanding the strategic placements and movements of these large volumes of capital. Institutional investors typically conduct extensive research and possess a deep understanding of the market dynamics before making substantial trades.

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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]

S&P 500 Chart Analysis Ahead of the Busiest Week of Earnings Season


Despite the fact that President Trump’s earlier decision to impose tariffs (at higher rates than expected) shook the stock markets, the S&P 500 index (US SPX 500 mini on FXOpen) could still end April without significant losses (currently trading less than 2% below the month’s opening level) or even achieve a positive result.

According to media reports, around 180 S&P 500 companies are expected to release their quarterly earnings this week, including Apple (AAPL), Amazon (AMZN), Coca-Cola (KO), Eli Lilly (LLY), Meta (META), Microsoft (MSFT), and Chevron (CVX).

The share prices of these major companies — some of the largest by market capitalisation — could have a substantial impact on the S&P 500 index chart (US SPX 500 mini on FXOpen), given that their combined weight accounts for approximately a quarter of the index calculation.



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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]

An Important Bullish Pattern Forms on the NIO Share Price Chart


Today, the share price of NIO Inc. (NIO), a Chinese manufacturer of "smart" electric vehicles, is trading above $4 – a development that may be viewed as an optimistic scenario following the drop to $3 in the first half of April, marking the lowest level in nearly five years.

Why Has NIO’s Share Price Risen?

Bullish sentiment has been supported by news that the company: → increased vehicle deliveries by 40.1% compared to the same period last year; → is launching its premium ET9 model, expanding its range of offerings.

Additionally, news offering hope that high tariffs in international trade may not hinder the company's growth has also had a positive impact on NIO’s share price.



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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.