Daily Market Analysis By FXOpen

[FXOpen Trader]

Eli Lilly Shares Surge Over 9% After Strong Earnings Report

As the chart of Eli Lilly's (LLY) share price shows today, yesterday's trading closed at a level more than 9% higher than Wednesday's closing price. The main driver of this growth was a strong Q2 report:

→ Earnings per share: actual = $3.92, expected = $2.74;
→ Gross sales: actual = $11.3 billion, expected = $9.99 billion.

Market participants reacted positively not only to the fact that the American pharmaceutical company's actual results significantly exceeded forecasts but also to Eli Lilly's rising expectations for the second half of the year, driven by demand for its diabetes treatment Mounjaro and weight loss drug Zepbound.

Technical analysis of the Eli Lilly (LLY) stock chart shows that:
→ The price action is forming an upward channel in 2024 (shown in blue);
→ After a rebound, the median line of this channel was breached (as indicated by the arrow);
→ As could be expected, this line acted as resistance – as indicated by the high of yesterday's candlestick.

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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: EUR/USD Dips Again While USD/JPY Aims Fresh Increase

EUR/USD declined from the 1.1000 resistance and corrected gains. USD/JPY is rising and might take out the 147.80 resistance.

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

• The Euro started a fresh decline below the 1.0945 support zone.
• There is a connecting bearish trend line forming with resistance at 1.0920 on the hourly chart of EUR/USD at FXOpen.
• USD/JPY climbed higher above the 144.15 and 145.55 levels.
• There is a connecting bullish trend line forming with support at 147.00 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair struggled to clear the 1.1000 resistance zone. The Euro started a fresh decline and traded below the 1.0980 support zone against the US Dollar.

The pair declined below 1.0945 and tested the 1.0880 zone. A low was formed near 1.0881 and the pair is now consolidating losses. There was a minor recovery wave above the 1.0910 level. The pair surpassed the 23.6% Fib retracement level of the recent decline from the 1.1008 swing high to the 1.0881 low.

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]

NVDA Share Price Holds Above Psychological Level

On 10 July, we noted strong selling pressure above the $130 per share level. Since then, the price has dropped by approximately 22%. Losing more than a fifth of its market value seems like a serious issue, but it’s not as bad as it might appear, especially with emotions running high amid fears of a potential US recession.

Technical analysis of the NVDA chart today shows that:

→ The price is forming an upward trend (shown in blue). The false breakout of the upper boundary on 20 June mirrors the false breakout of the lower boundary of the channel on 5 August (as indicated by the arrows).

→ It’s important to focus on the interaction between the price and the psychological level of $100. On 5 August, when the price dropped below the lower boundary of the channel, it fell below this round number. However, by the end of the week, NVDA's price had recovered (along with many other stocks in the US market). It’s reasonable to assume that retail traders, who had earlier in 2024 bought NVDA shares on margin due to the prospects of AI development, rushed to liquidate their long positions when they saw the price dip below $100.

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]

Forex Trading Time Zones: Market Hours and Overlaps

In the world of forex trading, understanding the dynamics of different time zones is paramount. This article delves into the intricate web of currency trading time zones, exploring the 24-hour cycle, major trading hours, and the nuanced opportunities each presents.

The 24-Hour Cycle of Forex Market Time Zones

The forex market's distinctive feature of being open 24 hours a day, five days a week, is a testament to its unparalleled accessibility, dynamics, and decentralised nature. Unlike traditional financial markets constrained by fixed trading hours, the forex market operates continuously, commencing in Asia on Monday and concluding in North America on Friday.

Major financial centres in different time zones steer the dynamics of the forex market, acting as the primary drivers of market activity during their respective business hours. That complex interplay creates distinct trading periods, each characterised by unique market conditions and opportunities.

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]

USD/CHF Rises Over 2.5% in a Week

As indicated by the USD/CHF chart today, the rate is around 0.868 francs per US dollar, although it dropped below 0.85 last Monday.

The main driver of this surge in volatility (with the ATR indicator reaching its highest point since March 2023) was the decline in the Japanese stock market, which we covered twice last week: here and here. Market participants were actively buying the Swiss franc as a “safe haven” asset. However, when the Nikkei 225 (Japan 225 on FXOpen) began to recover from its nine-month lows, demand for the franc weakened.

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]

How to Trade Crude Oil: Trading Strategies

Learning how to trade crude oil requires a nuanced understanding of its fundamental aspects, instruments, and trading strategies. This comprehensive article offers insights into the critical elements that affect crude oil prices, the range of instruments available for trading, and specific strategies traders use in this market.

The Basics of Crude Oil

Crude oil, often referred to as "black gold," is a fossil fuel derived from the remains of ancient organic matter. It serves as a crucial raw material for various industries, including transportation, chemicals, and manufacturing.

Two primary types of crude oil traded on global markets are West Texas Intermediate (WTI) and Brent Crude. WTI is primarily sourced from the United States and is known for its high quality and low sulphur content. On the other hand, Brent Crude originates mainly from the North Sea and serves as an international pricing benchmark.

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.

RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

 

[FXOpen Trader]

Gold Price Near Historic High Today

As shown on the XAU/USD chart, the gold price is near $2,460 today, despite the 8th August candle opening around $2,385. This means that in just over three full trading sessions, the price per ounce has risen by approximately 3.3%. It is now only about 1.6% away from the psychological level of $2,500.

Bullish sentiment is being driven by rising geopolitical tensions. According to Trading Economics:

→ Israeli airstrikes on Khan Yunis on Monday killed at least 18 people, with several others injured.
→ Ukrainian forces last week breached the Russian border and are holding positions in the Kursk region.

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 Group (BABA) Stock Reaches Over Two-Month High

As shown on the BABA stock chart, the price today has risen to around $80.80—its highest level this summer.

The primary driver of bullish sentiment is the anticipation of a positive earnings report from Alibaba Group Holding Ltd for Q2 2024, set to be released on 15th August.

According to Dow Jones Newswires:

→ Lazada, a subsidiary of Alibaba Group, has reached a certain level of profitability, which is a promising sign for the tech giant as it seeks to boost international sales amid slowing growth in China.
→ Alibaba’s market share has stabilised after a decline in 2021. DBS analysts Sachin Mittal and Andy Yeo note that the Gross Merchandise Value (GMV) of goods sold on Taobao and Tmall has returned to double-digit growth, and Alibaba’s international e-commerce platforms could become a key driver, with an estimated compound annual growth rate of 23% from FY2024 to FY2027. DBS maintains its buy recommendation for Alibaba shares.

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]

NZD/USD Plunges Following RBNZ Decision

The exchange rate fell by 1.1% after the Reserve Bank of New Zealand cut interest rates by 25 basis points to 5.25% and signalled further easing.

According to RBNZ Governor Adrian Orr:
→ Inflation is returning to the target range, and the bank may begin normalising rates;
→ Several scenarios were considered, and consensus was reached for a 25 basis point rate cut;
→ Forecasts indicate that New Zealand is moving towards a period of low and stable inflation;
→ The economy is meeting expectations, although high-frequency data show some weakening.

The rate cut decision was somewhat unexpected, as the RBNZ had previously forecast that the rate-cutting cycle would start later. This has resulted in increased volatility in the NZD/USD chart today.

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 Inc (GOOGL) Shares Under Pressure

On 24th July, we noted in our analysis of the Alphabet Inc (GOOGL) price chart:
→ The share price had fallen despite the report's results surpassing analysts' expectations;
→ The upward momentum in the price chart was losing strength.

Since that publication, the Alphabet Inc (GOOGL) share price has dropped by 5%. While the sharp decline in stock markets on 5th August significantly impacted it, it's worth noting that since the previous Monday, the share price has been recovering more poorly than the index.

Bearish sentiment is being driven by:
→ A delay in showcasing the capabilities of the Gemini AI assistant at the “Made by Google” event;
→ Speculation about a potential breakup of Google under US antitrust laws. According to Benzinga, the US Department of Justice (DOJ) is considering this possibility.

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.