Daily Market Analysis By FXOpen

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5 Stocks To Consider For May 2024

Time flies, especially when things are running smoothly, and this year so far has been a period free of dramatic events across the capital markets.

Suddenly, we are almost halfway through 2024, and the forthcoming month takes us up to that point. During the first part of 2024, scepticism and trepidation gave way to hope and optimism as analysts cast their theories that central banks across the Western world may look toward reducing interest rates a few times. This turned out to have been an incorrect prediction, and rates remain unchanged, meaning companies still need that extra cash flow to grow or show greater revenues, which is currently being used to service monthly commitments at high interest rates.

It has not impeded progress, however. Some of the world's most prestigious indices have been performing outstandingly, giving rise to the notion that large corporations are, in many cases, in good fiscal order. Talk of recession has faded into the background as the FTSE 100 in London (UK 100 on FXOpen) ended April with a massive rally, and across the Atlantic, the S&P500 (US SPX 500 Mini on FXOpen) and NASDAQ (US Tech 100 mini on FXOpen) ended the month in a strong position.

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]

The Dollar Is Losing Some of Its Gains While Awaiting a Verdict from the Fed

The American currency continues to trade in different directions relative to leading currencies. Thus, the yen paired with theUS dollar fell in price to a 34-year low, and in pairs with European and commodity currencies we are seeing a corrective pullback in USD. Whether the main trends will continue, or whether it is worth preparing for a deeper corrective rollback, will be determined by the coming trading sessions:

• Today at 12.00 (GMT +3:00) inflation data in the eurozone for April will be published
• Today at 17.00 (GMT +3:00) the US consumer confidence index from CB will be released
• Tomorrow at 21.00 (GMT +3:00) a meeting of the Federal Reserve is scheduled, at which the base interest rate on the dollar and the regulator’s further plans for monetary policy will be announced

EUR/USD
The single European currency has been holding above the key range of 1.0700-1.0600 for the third week. Technical analysis for EUR/USD indicates the possibility of working out a piercing line combination on the weekly timeframe, which could lead to a test of 1.0900-1.0840. A price move below 1.0600 may contribute to updating last year’s low at 1.0450.

In addition to the already mentioned news, today at 13.00 (GMT +3:00) it is worth paying attention to the speech of the Vice President of the German Federal Bank Claudia Maria Buch.

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]

EUR/USD Dives While USD/CHF Extends Rally

EUR/USD started a fresh decline below the 1.0695 support. USD/CHF is rising and might aim a move toward the 0.9250 resistance.

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

• The Euro struggled to clear the 1.0750 resistance and declined against the US Dollar.
• There was a break below a key bullish trend line with support at 1.0695 on the hourly chart of EUR/USD at FXOpen.
• USD/CHF is showing positive signs above the 0.9185 resistance zone.
• There was a break above a major bearish trend line with resistance at 0.9130 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair failed to clear the 1.0750 resistance. The Euro started a fresh decline below the 1.0700 support against the US Dollar, as mentioned in the previous analysis.

There was a break below a key bullish trend line with support at 1.0695. Besides, the pair declined below the 50-hour simple moving average and 1.0675. The pair traded as low as 1.0654 and is currently correcting losses.

The pair is showing bearish signs, and the upsides might remain capped. Immediate resistance on the upside is near the 23.6% Fib retracement level of the downward move from the 1.0735 swing high to the 1.0654 low at 1.0675.

The next major resistance is near the 1.0695 zone or the 50-hour simple moving average. It is close to the 50% Fib retracement level of the downward move from the 1.0735 swing high to the 1.0654 low.

An upside break above the 1.0695 level might send the pair toward the 1.0735 resistance. Any more gains might open the doors for a move toward the 1.0750 level.

On the downside, immediate support on the EUR/USD chart is seen near 1.0650. The next major support is near the 1.0630 level. A downside break below the 1.0630 support could send the pair toward the 1.0580 level.

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]

The Dollar is Declining: the Outcome of the Fed Meeting Disappointed Investors

The outcome of the two-day meeting of the American regulator was that officials left the base interest rate unchanged in the range of 5.25-5.5%. Also, from the published statement, it follows that the Fed is ready to adjust the direction of current monetary policy in the event of risks that could hinder the achievement of the regulator's key objectives. Judging by the movement of major currency pairs after the rate decision announcement, market participants are hoping for a prompt change in the Fed's monetary policy. For example, the GBP/USD pair held above significant resistance at 1.2500, and the movement of USD/JPY hints at the possibility of hidden intervention by the Bank of Japan.

GBP/USD

Technical analysis of the GBP/USD pair indicates the possibility of an upward correction towards 1.2700-1.2620, as a "bullish engulfing" pattern has formed on the weekly timeframe. Breaking below recent lows at 1.2300 would invalidate this pattern, potentially leading to a resumption of downward movement towards the range of 1.2100-1.2070. Factors that could influence the pricing of the pair include:

• Data on the UK's Composite Purchasing Managers' Index (PMI) for April, scheduled for release tomorrow at 11:30 (GMT +3:00)
• US Employment Report, scheduled for release tomorrow at 15:30 (GMT +3:00)

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/JPY Analysis: US Dollar Weakens After Statements from the Federal Reserve Chair

Last night, the Federal Reserve's decision regarding interest rates was published, which, as expected, remained unchanged at 5.5%. The subsequent press conference by Powell was of particular interest to market participants.

According to CNBC, during the conference, the Fed Chair almost ruled out a rate hike as the next step, emphasizing the monetary policy's independence from the upcoming presidential elections. Additionally, he stated that:

• Concerns regarding stagflation are exaggerated;
• The Fed intends to lower rates smoothly and gradually;
• The duration of maintaining high rates is increasing indefinitely.

The market's reaction to the Fed's news was a weakening of the dollar – apparently, concerns about another rate hike as the next step have diminished.

The dollar weakened significantly against the yen – the USD/JPY rate dropped from 157.50 to 153.10 yen per dollar yesterday evening (approximately -2.7%) in less than an hour, although the rate later recovered. The reason lies in the context, specifically the yen's strong strengthening on Monday, when the rate exceeded 160 yen per dollar, as we wrote on the morning of April 29. Perhaps there was another intervention yesterday?

However, official sources refuse to comment. Tokyo may be adhering to a tactic of keeping investors in the dark about its currency intervention strategy. Although, as reported by the Japan Times, fluctuations of 5 yen per dollar indicate interventions.

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]

April Became the Worst Month for BTC/USD Since November 2022

In November 2022, the BTC/USD price dropped by 16.20%. The main driver of this decline was the crash of the FTX exchange.

In April 2024, the price of Bitcoin decreased by 14.77%. Paradoxically, the main news event could be considered the halving, which occurs every 4 years and is considered a bullish factor as it signifies a reduction in supply from miners. So why did the BTC/USD price decrease by the end of April?

Presumably, expectations from the halving could have been excessively optimistic, and after the event occurred, the price declined as emotions subsided – an example of "buy the rumour, sell the fact" situation.

It's worth noting that in the Bitcoin Cash network (a fork of the Bitcoin blockchain from August 2017), the halving took place on April 4, and the BCH/USD price decreased after that day – which could have been a concerning signal.

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: AUD/USD and NZD/USD Attempt Another Recovery

AUD/USD is eyeing a steady increase above the 0.6555 resistance. NZD/USD is also rising and could extend its increase above the 0.6000 resistance zone.

Important Takeaways for AUD/USD and NZD/USD Analysis Today

• The Aussie Dollar is moving higher from the 0.6465 zone against the US Dollar.
• There is a connecting bullish trend line forming with support at 0.6555 on the hourly chart of AUD/USD at FXOpen.
• NZD/USD is showing positive signs above the 0.5925 support.
• There is a key bullish trend line forming with support at 0.5940 on the hourly chart of NZD/USD at FXOpen.

AUD/USD Technical Analysis

On the hourly chart of AUD/USD at FXOpen, the pair formed a base above 0.6465. The Aussie Dollar started another recovery wave above the 0.6510 resistance against the US Dollar

The bulls pushed the pair above the 0.6525 resistance zone. There was a close above the 0.6555 resistance and the 50-hour simple moving average. Finally, the pair tested the 0.6585 zone. A high is formed at 0.6585 and the pair is now consolidating above 23.6% Fib retracement level of the upward move from the 0.6465 swing low to the 0.6585 high.

On the upside, the AUD/USD chart indicates that the pair is now facing resistance near 0.6585. The first major resistance might be 0.6620. An upside break above the 0.6620 resistance might send the pair further higher.

The next major resistance is near the 0.6665 level. Any more gains could clear the path for a move toward the 0.6720 resistance zone.

If not, the pair might correct lower. Immediate support is near a connecting bullish trend line at 0.6555. The next support could be 0.6525 or the 50% Fib retracement level of the upward move from the 0.6465 swing low to the 0.6585 high.

If there is a downside break below the 0.6525 support, the pair could extend its decline toward the 0.6510 zone. Any more losses might signal a move toward 0.6465.

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]

AAPL Share Price Soars after Record Buyback Announced

Yesterday, after the end of the main trading session, Apple published its report on its activities for the 1st quarter:

→ Earnings per share: actual = $1.53; expected = $1.505;

→ Gross income: actual = $90.75; expected = $90.36.

The better-than-expected report came as a relief to investors after reporting lower sales in five of the last six quarters. In addition, the following could give positive feedback to market participants:

→ Apple's forecast is that its iPad manufacturing and services business will grow at double-digit rates;

→ company investments in AI. “We think we're well positioned,” Chief Financial Officer Luca Maestri told Bloomberg Television's Emily Chang. CEO Tim Cook is expected to outline Apple's artificial intelligence strategy at its annual Worldwide Developers Conference in June.

→ Apple Inc.'s big plan to restore investor confidence. It consists of a record $110 billion share buyback and a 4% dividend increase.

As a result, AAPL's price rose nearly 8% in post-market trading, exceeding $185 per share, although yesterday's close was around $173.

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]

The Price of Silver (XAG/USD) is Falling for the Second Consecutive Week

Following a surge in the price of silver close to the important psychological level of $30 per ounce on April 12, bearish momentum is now evident - concluding the week may mark the second consecutive week of decline for XAG/USD.

The decline in demand for silver could be linked to the decrease in gold prices.

Conversely, gold is losing its appeal due to:

→ easing geopolitical tensions in the Middle East;

→ gold's lack of yield, which is deemed unattractive in a high interest rate environment that may persist due to the Federal Reserve's policy - investors are given reason to favour low-risk bonds in their portfolios.

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]

Watch FXOpen's 29 April - 3 May Weekly Market Wrap Video

Weekly Market Wrap With Gary Thomson: FTSE 100, US Dollar, USD/JPY, BTC/USD

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

• London Calling! FTSE 100 Stocks Flying High Once Again;
• The Dollar Is Declining: The Outcome Of The Fed Meeting Disappointed Investors;
• USD/JPY Analysis: US Dollar Weakens After Statements From The Federal Reserve Chair;
• April Became The Worst Month For BTC/USD Since November 2022.

Stay in the know and empower yourself with our short, yet power-packed video.

Watch it now and stay updated with FXOpen.

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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.

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