Daily Market Analysis By FXOpen

Hang Seng Index Plunges by Around 13%


Hong Kong?s Hang Seng Index (Hong Kong 50 on FXOpen) tumbled by over 13% as trading resumed after the weekend with a sharp bearish gap.

According to media reports, this marked the biggest single-day drop since the 1997 Asian financial crisis.

Hang Seng Index Chart
In our analysis of the upward trend on the Hang Seng (Hong Kong 50 on FXOpen) chart a month ago, we noted that:
→ investor enthusiasm around artificial intelligence was still fuelling the rally;
→ however, the price appeared vulnerable to a correction.

We also highlighted that the outlook would largely depend on the fundamental backdrop, particularly the tariff standoff between China and the United States.



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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.

Trading Strategies with Bollinger Bands


The Bollinger Bands indicator has emerged as a versatile tool used by traders to gain an edge in various markets, including forex. This article explores several relevant trading strategies that can help you navigate dynamic market conditions, offering insights into entry and exit points, risk management, and profit-taking opportunities.

What Is the Bollinger Bands Indicator?

The Bollinger Bands indicator is a volatility tool. Developed by John Bollinger, this indicator consists of three primary lines: a middle band, typically a 20-period Simple Moving Average (SMA), and an upper band and lower band, both of which are positioned at a standard deviation distance above and below the middle one. These lines dynamically adjust to market volatility, expanding during periods of heightened price movement and contracting during calmer phases.

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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.

Market Analysis: EUR/USD Resumes Increase While USD/CHF Dives


EUR/USD started a fresh increase above the 1.0950 resistance. USD/CHF declined and is now struggling below the 0.8615 resistance.

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

• The Euro started a decent upward move from the 1.0880 zone against the US Dollar.
• There was a break above a key bearish trend line with resistance at 1.0955 on the hourly chart of EUR/USD at FXOpen.
• USD/CHF declined below the 0.8675 and 0.8615 support levels.
• There is a short-term bearish trend line forming with resistance near 0.8550 on the hourly chart at FXOpen.

EUR/USD Technical Analysis


On the hourly chart of EUR/USD at FXOpen, the pair started a fresh increase from the 1.0775 zone. The Euro cleared the 1.0950 resistance to move into a bullish zone against the US Dollar, as mentioned in the last analysis.

The bulls pushed the pair above the 50-hour simple moving average and 1.1000. Finally, the pair tested the 1.1150 resistance. A high was formed near 1.1146 before the pair corrected gains. It dipped below 1.1000 and tested 1.0880.

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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.

Defence Stocks Rise After Trump's Decision


As shown in the charts, despite predominantly bearish sentiment in the stock market yesterday ? with the difference between the opening and closing price for the S&P 500 index (US SPX 500 mini on FXOpen) being down by 4% ? defence company stocks showed growth.

According to the WSJ, Palantir Technologies shares rose by 8% to $84.05 on Tuesday, while General Dynamics and Boeing increased by 5% to $260.12 and $145.365 respectively. Northrop Grumman and Lockheed Martin gained about 4% each.

Why Did Lockheed Martin (LMT) Shares Rise?

This occurred after President Trump announced that the defence budget for the 2026 fiscal year would be around $1 trillion, and Defence Secretary Pete Hegset published his announcement about the budget on X (formerly Twitter).

The increase in the defence budget by approximately $50-100 billion contrasts with previous statements from US leadership in February, when:

→ Trump said that "we have no reason to spend almost a trillion dollars on the military";

→ Hegset suggested annually cutting the defence budget by 8% ? or around $50 billion ? over the next five years.

Such statements had been putting pressure on the price of LMT stock in 2025.



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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.

European Currencies Test Recent Extremes Ahead of US Inflation Data


Against the backdrop of yesterday?s announcement of a 90-day pause on previously imposed tariffs by the Trump administration, volatility in the currency markets has sharply increased again. European currencies, such as the Swiss franc, euro, and pound, continue to test recent extremes, awaiting the release of inflation data from the US.

The events of this week are heightening uncertainty among investors, who are striving to adapt to new economic conditions. The introduction of the tariff pause came as an unexpected move, which temporarily eased tensions in the global markets. However, it remains unclear how this will affect the long-term prospects for currency pairs such as EUR/USD and GBP/USD.

In the face of instability, market participants continue to seek ways to minimise risks and protect their investments. Today's core consumer price index (CPI) data may provide further clues about the impact of Trump?s tariff policy on the US economy and, in general, on the currency markets.

EUR/USD
Last week, buyers of the EUR/USD pair managed to break through a series of key resistances at 1.1100?1.1000 and recorded the highest level of the year at 1.1145. Following news of tariffs being imposed on the European Union, the pair lost over 200 pips and tested an important range of 1.0900?1.0870. Yesterday, there was a resumption of the upward momentum, and the pair tested recent extremes again at 1.1100. Technical analysis of EUR/USD suggests potential strengthening of the pair towards 1.1145, provided it can settle above 1.1000. A drop below 1.0870 could lead to a retest of 1.0800.



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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.

Tesla (TSLA) Shares Jump Approximately 22% in a Single Day


Tesla was among the standout performers in the stock market rally that followed President Trump?s decision to delay, by 90 days, the implementation of new international trade tariffs ? with the notable exception of China. According to the charts, Tesla (TSLA) shares surged by approximately 22%.

Why Did TSLA Shares Soar?
Some insight comes from Cathie Wood, CEO of asset management firm ARK Invest.

In an interview with Barron?s on Wednesday, she noted the following:

→ Tesla plans to launch a new, more affordable vehicle this quarter, likely priced at around $30,000 ? roughly half the cost of the base Model Y.
→ The upcoming release of Tesla?s robotaxi service could also lower the need for large upfront vehicle purchases, offering consumers a more economical alternative.
→ Tesla sources more components from North America than most other US carmakers, meaning it is less exposed to tariff-related costs.

And there?s another reason TSLA may have jumped ? one that can be found in the chart.



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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.

Gold Price Surpasses $3,200 for the First Time in History


According to the XAU/USD chart today, the price of an ounce of gold is fluctuating above the $3,200 level on global exchanges ? a level never reached before.

Since the beginning of 2025, gold has gained approximately 22%.

Why Is Gold Rising Today?

Today?s bullish momentum in the gold market is driven by two key factors.

First, inflation data. Figures released yesterday for the CPI (Consumer Price Index) revealed a slowdown in inflation in the United States. This suggests a greater likelihood of monetary policy easing by the Federal Reserve. According to Reuters, gold prices now reflect expectations of three interest rate cuts by the end of 2025 ? and lower rates typically support a stronger XAU/USD.

Second, fears of a global recession. Although US President Donald Trump has introduced a 90-day delay on the implementation of international trade tariffs, this does not apply to China, where tariffs have been increased to a striking 145%. Traders fear that Beijing could retaliate by raising tariffs on US goods beyond the current 84%.



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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.