SHORT EUR/USD from 1.0765 (Mind the Gap!!!)
3 weeks ago I noticed that EUR/GBP opened with a gap in the market.
Markets don't like gaps.
No-one seems to know why but its INEVITABLE that gaps in the market will eventually close.
The gap in EUR/GBP ironically closed when the market opened with another gap only this time the other way.
I'd been BUYING EUR/GBP for tha last 3 weeks in anticipation of the gap closing but it was a struggle as EUR/GBP BULLS could not get past market resistance.
So, like I said, my LONG trades were all closed overnight when EUR/GBP gapped open higher and a look at the charts this morning reveals another gap in the market on several EUR pairs and I'm concentrating on EUR/USD.
I'm SHORT this pair from WR1 at 1.0765 and I anticipate that the gap down to 1.0723 will be closed today.
A look at key indicators and all looks good for SHORT positions.
RSI is decling on H1.
The red SELL line on the Andean Oscillator has risen from zero and MACD is turning south.
This looks a SHORT trade from all perspectives although we do have German Prelim CPI due sometime today and if this is BULLISH then we could see EUR head north but the gap on EUR/USD (and EUR/CAD and EUR/CHF and EUR/GBP) WILL be closed at some time either today or later this week.
Markets don't like gaps.
No-one seems to know why but its INEVITABLE that gaps in the market will eventually close.
The gap in EUR/GBP ironically closed when the market opened with another gap only this time the other way.
I'd been BUYING EUR/GBP for tha last 3 weeks in anticipation of the gap closing but it was a struggle as EUR/GBP BULLS could not get past market resistance.
So, like I said, my LONG trades were all closed overnight when EUR/GBP gapped open higher and a look at the charts this morning reveals another gap in the market on several EUR pairs and I'm concentrating on EUR/USD.
I'm SHORT this pair from WR1 at 1.0765 and I anticipate that the gap down to 1.0723 will be closed today.
A look at key indicators and all looks good for SHORT positions.
RSI is decling on H1.
The red SELL line on the Andean Oscillator has risen from zero and MACD is turning south.
This looks a SHORT trade from all perspectives although we do have German Prelim CPI due sometime today and if this is BULLISH then we could see EUR head north but the gap on EUR/USD (and EUR/CAD and EUR/CHF and EUR/GBP) WILL be closed at some time either today or later this week.
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