Daily Market Analysis By FXOpen

[FXOpen Trader]

Relative Strength Index (RSI): Trading Strategies, Settings, and Market Applications


RSI is a popular momentum indicator in technical trading across forex, stock, and cryptocurrency* markets. The Relative Strength Index (RSI) is a momentum oscillator developed by J. Welles  Earnings-price ratioer that measures the speed of price movements on a 0–100 scale. Traders use it to detect overbought/oversold conditions, trend strength, pullbacks, and exhaustion.

Although often viewed as a basic oscillator, the RSI plays a more nuanced role in professional trading strategies, particularly when combined with trend and volatility indicators. Understanding how the RSI behaves in different market environments may help traders refine entries, implement risk management strategies, and confirm trade setups.

In this article, we will consider how the RSI indicator works, how it is calculated, and how it can be applied in practical trading strategies across multiple asset classes.

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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]

Why IBM Shares Plunged by More Than 13%


Yesterday, shares in IBM Corporation opened above $254 but closed below $224. By some estimates, this marked the company's largest single-day decline in the past 25 years. Since the start of February, the stock has fallen by roughly 27%, its worst monthly performance since 1968.

Why Did IBM's Share Price Drop?
The main trigger was an announcement by Anthropic about the launch of a new AI tool, Claude Code, designed to modernise legacy COBOL code.

This is particularly significant for IBM, as much of "Big Blue's" business is tied to mainframes processing transactions for banks and government institutions in COBOL. Traditionally, upgrading such systems required "armies of consultants" and multi-billion-dollar budgets.

The new AI solution promises to automate this process, making it faster and more cost-effective. This not only poses a direct threat to IBM's services and support revenues, but also reignites concerns that AI could reshape the entire technology sector, rendering established business models less sustainable.



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]

Analysis of AUD/USD Ahead of Key Data Release


As the AUD/USD chart shows, the Australian dollar posted strong performance in January and February. Since the start of the year, the "Aussie" has gained nearly 6% against the US dollar.

Among the bullish drivers:

→ The policy stance of the Reserve Bank of Australia (RBA), which raised its cash rate to 3.85% in February 2026, while many other central banks are considering rate cuts.

→ A resilient labour market. Australia's unemployment rate remains at 4.1%, giving the RBA room to keep interest rates elevated.

→ Commodity markets. High prices for gold, iron ore and energy exports continue to support Australia's trade balance.

However, an important CPI report is due tomorrow. Inflation data could inject additional volatility into the market and test the strength of the Australian 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.