​​#MarketNews

A TSUNAMI IN THE FINANCIAL MARKETS

The start of the week promises extreme volatility for three reasons:

→ firstly, the reports of such large companies as AAPL, GOOG, AMZN, META will be published.
→ secondly, news from central banks is planned: on Wednesday, from the Fed, on Thursday, from the ECB, the Bank of England.
→ thirdly, news about the state of the labor market in the US will be released on Friday.

In anticipation of important news, the dollar futures contract within the triangle:
→ support from below is provided by the level 101.15 (previously it showed its action as resistance and support, as shown by arrows);
→ from above the rate is “pressed” by the local trend line (shown in blue).

Be prepared that the futures price will break through this figure, which may cause the formation of trends in the stock and currency markets.

To take advantage of fluctuations in the prices of financial assets, consider enlisting the services of a reliable broker like FXOpen.

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CFDs are complex instruments and come with a high risk of losing your money.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

​​#MarketNews

RICH DAD WARNS OF A GLOBAL RECESSION

Rich Dad (the nickname given to Robert Kiyosaki, author of the famous book series of the same name) believes that soaring inflation and interest rates could lead to a global recession. He blamed the Fed's monetary policy on the economic situation and urged investors to prepare for the consequences (bankruptcies and unemployment).

The flip side of the coin is that crises provide an opportunity to buy undervalued assets. According to Kiyosaki, these are bitcoin and gold.

On the morning of Monday January 30, the bulls were able to raise the price to almost $24k per coin. The chart shows that the BTCUSD rate finds support from the local line (1) and may reach resistance (2) around the psychological level of 25k. This is quite possible during the week that began, when the drivers of economic news come into force.

Please note that long upper shadows are forming on the BTCUSD chart, which warn of the presence of selling pressure. Perhaps it is due to taking profits from the +40% rally since the beginning of the year. In any case, each rise in price can further motivate supply forces.

To take advantage of the price fluctuations of cryptocurrencies, consider enlisting the services of a reliable broker like FXOpen.

⚠️

CFDs are complex instruments and come with a high risk of losing your money.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

Cryptocurrency CFDs are not available to Retail clients in the UK.

​​#MarketNews

3 REASONS NOT TO WORRY ABOUT THE DANGEROUS DECLINE IN THE STOCK MARKET

Progress from a small rally (1) at the end of last week in the S&P 500 futures market was completely offset by the decline at the beginning of this week. Investors fear news from central banks about tight monetary policy. Also, the stock index may decline due to poor reports from large technology companies.

Thus, the emerging breakout of the bearish trend line (2), which has been in effect throughout 2022, may turn out to be false. Under the influence of the news, the price is able to return below the line (2), which will give reason to assume the continuation of the bearish trend.

How dangerous is such a scenario for investors?
There are 3 reasons to stay calm and believe in future growth.

1→ Technically, the price may find support from the local bull trend line (3).
2→ Fundamentally, according to Goldman Sachs (shown in the bar chart), there is a record buyback plan for 2023. That is, companies use the bear market to buy back their outstanding shares. And this is an important sign that insiders believe the stock is undervalued.
3→ Dynamics of volumes (4) in the fall of 2022 indicates the levels when large players were active, and thus were able to turn the market up. If the index drops to the 3700 area, this may cause similar activity.

To take advantage of trends in the financial markets, consider enlisting the services of a reliable broker like FXOpen.

⚠️

CFDs are complex instruments and come with a high risk of losing your money.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

FXOpen bags "Innovative Broker of 2022" award

In the recently concluded Traders Union Awards-2022, FXOpen was named Innovative Broker of the year.

FXOpen's goal is to change the market for the benefit of the trader via introducing technological innovations, and..

https://fxopen.com/en/news/fxopen-bags-innovative-broker-of-2022-award/

​​#MarketNews #Gold

ON THE EVE OF NEWS FROM THE FED, GOLD ROSE ON HIGH VOLUMES

Today, market participants will learn the decision taken by the Fed. A quarter of a percentage point hike in the benchmark interest rate is expected, which will be the smallest increase since the Fed started the tightening cycle 10 months ago from the same amount.

And tomorrow the attention will be focused on the news from the ECB and the Bank of England. Both are expected to raise rates by 0.5%.

Amid rumors about what big news from central banks will be, the price of gold futures rose sharply yesterday at the highest volumes in many days (1). On the one hand, this can be interpreted as a demonstration of the strength of demand. But there is a nuance.

Imagine that as a result of two days, which will certainly bring drivers to change the price of the precious metal, the price of gold will fall below the current support of $1915 (2). This would mean a bearish engulfing pattern and that the buyers were wrong and trapped. Closing their positions (whether voluntary or forced) will put pressure on the price of gold, which may drop to the line (2) of the older uptrend.

Bursts of volatility are expected.

To take advantage of trends in the financial markets, consider enlisting the services of a reliable broker like FXOpen.

⚠️

CFDs are complex instruments and come with a high risk of losing your money.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

​​#MarketNews #Cryptocurrency

CRYPTOCURRENCIES HAD THE BEST JANUARY IN 10 YEARS

Today, February 1, the Zhejiang testnet will be launched on the Ethereum blockchain. This is the first testnet launch since the big “Merge” when the blockchain moved from Proof-of-Work to Proof-of-Stake.

Despite the fact that the news indicates the development of Ethereum, the BTCETH chart shows that it is Bitcoin that is the favorite among investors at the beginning of the year.

By the way, in January 2023, BTC and ETH grew by more than 30%, for Bitcoin this is the best result since 2013.

Judging by the chart, the price of ETH against BTC has approached the important level (1) 14.7. It is possible that by finding a balance, we can witness a pullback lower from 14.7. This momentum could pick up as the important Shanghai upgrade to the Ethereum network is approaching, which is scheduled for March 2023.
 
To take advantage of trends in the cryptocurrency markets, consider enlisting the services of a reliable broker like FXOpen.

⚠️

CFDs are complex instruments and come with a high risk of losing your money.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

Cryptocurrency CFDs are not available to Retail clients in the UK.

​​#MarketNews

THE REACTION OF FINANCIAL MARKETS TO THE DECISION OF THE FED

Yesterday, the Fed raised the rate by 0.25%. According to Powell:
→ there are signs of a deflationary process;
→ the “wage-inflation” spiral cannot be allowed;
→ increases will continue.

A paradox. Although a rate hike formally means a tightening, financial markets reacted with a decline in the dollar index and a rise in the value of other assets - as if an act of policy easing had taken place. This is possible because:
→ there were no unpleasant surprises, such as, for example, dissatisfaction with the growth in share prices;
→ the current increase is expected to be one of the last.

Investors perceive this as the fact that the Fed is in control, and soon the tightening period will end, and “everything will be fine.” Stocks and gold have risen in price.

The price of the euro, after a rollback to 1.083, broke through the resistance level of 1.09 (which we wrote about earlier), exceeded the level of 1.10, and now the bulls need to keep the progress made during the ECB's interest rate decision today.

Bitcoin behaved most strongly (1), but a sharp subsequent decline (2) may indicate excessive hype (the market is overbought) and the need for correction.

Oil slightly won back the fall (3), caused by the increase in stocks in the US. We also note the decision of OPEC+ yesterday to keep production rates unchanged.

The volatile week continues.

We wish you the best of luck with your transactions with a reliable forex broker FXOpen.

⚠️

CFDs are complex instruments and come with a high risk of losing your money.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

Cryptocurrency CFDs are not available to Retail clients in the UK.

​​#MarketNews

MEGA CORPORATIONS PUT MEGA PRESSURE ON THE STOCK MARKET

Yesterday AMZN, AAPL, GOOG reports were published. In many ways, investors were disappointed. As Bloomberg managed to summarize, mega corporations have suffered due to lower demand amid a slowdown in the economy.

AAPL:
→ revenue and profit are declining (worse than expected);
→ the company is experiencing problems with production in China;
→ positive news: record revenues in the field of cloud, payment, music services.

GOOG:
→ revenue is growing slightly, but profit is greatly reduced;
→ plans to lay off 12,000 employees;
→ the company promises to introduce AI against the backdrop of competition from ChatGPT.

AMZN:
→ the company admits to failures with the food retail chain Fresh;
→ decrease in growth of sales of cloud services is expected;
→ about 18 thousand employees will be laid off.

As the chart shows, almost all the positives that reigned in the stock market against the backdrop of news from the Fed on Wednesday has disappeared. And today the report on employment in the USA is planned. If the data turns negative, we may see the formation of a large-scale bearish engulfing pattern, which will seriously cool the markets after a positive January.

⚠️

CFDs are complex instruments and come with a high risk of losing your money.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

​​#MarketNews #Cryptocurrency

WHAT DOES THE "BATMAN'S HEAD" PATTERN ON THE BITCOIN CHART MEAN?

The Fed and the ECB disagree: on Wednesday, Powell announced the approach of the peak rate, while Lagarde on Thursday laid down another 0.50% increase at the next meeting. The United States started tightening, and they are curtailing it faster.

As a consequence, yesterday we saw some divergence between the BTCUSD and BTCEUR rates on the chart (as circled).

Also yesterday produced price action resembling Batman's head. Do not look for a pattern with this name among the classic patterns of technical analysis, but take it as a little joke that is acceptable on the eve of the weekend. However, this price action can be significant.

As you can see, yesterday the bulls tried twice to break through the top (1) of January, but failed. This is a serious sign of seller activity, and we may soon see a test of the current support line (2) before the bulls try to raise prices again or give signals of their weakness.

To take advantage of trends in the cryptocurrency markets, consider enlisting the services of a reliable broker like FXOpen.

⚠️

CFDs are complex instruments and come with a high risk of losing your money.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

Cryptocurrency CFDs are not available to Retail clients in the UK.

Watch FXOpen's January 30 - February 3 Weekly Market Wrap Video

In this video, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports.
- What CHATGPT means for investors
- Brent Crude Oil price takes a bashing overnight
- Markets focus on Bitcoin as volatility takes it to 5-month high
- The reaction of financial markets to the decision of the Fed
Watch our short and informative video, and stay updated with FXOpen.

https://youtu.be/FMmhHwmvulY

​​#MarketNews

THUNDERCLOUDS GATHERING OVER THE CHINESE STOCK MARKET

A Chinese intelligence apparatus was shot down in the skies over the United States, further exacerbating relations between the world's 2 largest economies. US Secretary of State Blinken's visit to China (scheduled for February 5-6) was cancelled.

The media, on the one hand, write that positive sentiment about Chinese stocks is at a maximum in 5 years (CNBC), on the other hand, about the fact that traders are selling Chinese stocks (Bloomberg).

What does this mean?

The HSI index chart gives a hint. In fact, we have an attempt at a bullish breakout of the trend line (1), the attempt is already failing. Interestingly, these are gaps. On the breakout attempt, there was a gap up (2), which creates a lot of hype and motivates late buyers to jump on the runaway train. However, a gap down at the open of the current week trapped them. Thus, a reversal pattern is formed, which indicates that after an impressive rally (about +50% in 2 months), sellers are ready to act.

To take advantage of trends in the global stock markets, consider enlisting the services of a reliable broker like FXOpen.

⚠️

CFDs are complex instruments and come with a high risk of losing your money.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

​​#MarketNews #Oil

WHAT IS HAPPENING TO THE OIL PRICE?

- Oil terminal shut down in Turkey due to massive earthquake 
- International Energy Agency points to demand recovery in China
- Bloomberg reports that Saudi Arabia intends to raise the selling price of oil

Despite this bullish news, the price of oil futures yesterday set a low since the beginning of the year. Why so?

The effect of the strong dollar. On 2-3 and 6 February the US dollar futures were up 2.6%. Which put pressure on the oil price in USD terms.

The chart shows that yesterday's low of the year might be just a false pierce of the previous low (1), as the price is recovering very fast and there was even a gap up at the opening of Tuesday's session (2).

According to Goldman Sachs analysts, in 2023 the oil price can exceed $105. To benefit from trends in energy markets, take advantage of a reliable FXOpen broker.

⚠️

CFDs are complex instruments and come with a high risk of losing your money.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

Overview of FXOpen's Best-performing PAMM Accounts of January 2023

At the end of the second month of winter and after the end of all Christmas season holidays, working days continue. It will be important for many to achieve stability of earnings when investing their savings — February is a short month in terms of the number of days — and, most importantly, to have time to correctly select suitable stable PAMM accounts for the portfolio, while PAMM managers must show the most positive results in such a short period.

https://fxopen.com/blog/en/overview-of-fxopens-best-performing-pamm-accounts-of-january-2023/

​​#MarketNew

ON THE STATE OF THE US ECONOMY

In his annual State of the Union address, President Biden said the US economy is at its best in decades and ready to take on China or any other competitor.

More like an election campaign underway, given the high inflation and public debt at ceiling level (the US trade deficit rose to a record $948 billion).

Nevertheless, the dollar index shows positive dynamics.

We have previously pointed to signs of strength in the DX futures market and the formation of a contracting triangle pattern (1-2). With a surge in volumes (3) in the past week full of important news, the price of the futures made:
→ first, a false bearish breakdown (4) of the lower border of the pattern (thus confirming the presence of demand)
→ subsequent bullish breakout of the upper boundary.

Now the price is fixing above the figure (1-2), but is under pressure from the long-term line (5) of the downtrend. It is possible that if the bulls make an attempt to break this line, they will need to wait for a small correction after a sharp increase in the price on February 2-3 and 6.

By the way, these candles form a rare Three White Soldiers bullish reversal pattern. According to statistics from CandleScanner (collected from the stock markets of the S&P-500 index), over the next 10 candles, the probability of a medium or strong increase is about 60%.

To take advantage of trends in the currency markets, consider enlisting the services of a reliable broker like FXOpen.

⚠️

CFDs are complex instruments and come with a high risk of losing your money.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

​​#MarketNews #Cryptocurrency #BTC

POWELL TALKS ABOUT A “DISINFLATIONARY” PROCESS, BUT WILL IT HELP BITCOIN?

Commenting on the rate hike last week, the head of the Fed said about the "disinflationary process." In an interview yesterday, Powell reaffirmed this view, adding that the process of reducing inflation is just beginning and it will take time and new rate hikes to beat the rise in prices.

Powell's words may have given some optimism to market participants — many US stocks have risen in price, led by technology companies that release "hot" news related to artificial intelligence. Bitcoin has also risen in price, but for how long?

Let’s take a look at the BTCUSD daily chart. Now the price is influenced by the support line (1), however, each bounce from it in the future is accompanied by a loss of momentum, and the price does not have enough strength to approach the line (2) around the key $25k level.

Yesterday's bullish momentum could be another such failure, which adds up to a lack of demand and a growing possibility of a bearish breakout of the (1) line.

To take advantage of trends in the cryptocurrency markets, consider enlisting the services of a reliable broker like FXOpen.

⚠️

CFDs are complex instruments and come with a high risk of losing your money.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

Cryptocurrency CFDs are not available to Retail clients in the UK.