Dollar pairs gapped at Monday open; forex gaps tell a story
Forex gap created by USD strengthening
It is unclear the reasons for these gaps in favour of the US Dollar although developments from Jackson Hole could be one of them. The gaps were tiny and not meaningful to those with long term positions al all but swing positions could easily be stopped out (which is how market makes money from both buyers and sellers). Ironic and unsurprising: in the case of AUDUSD, it is already closed.
- EURUSD – 44 pips
- USDCHF – 38 pips
- GBPUSD – 21 pips
- USDCAD – 23 pips
- AUDUSD – 5 pips
For traders keen to find out more, these are 2 other forex gaps that we documented last year.
- Rare forex gap today with Kiwi, New Zealand milk powder in the news
- Major currency pairs open with forex gap; will NZDUSD movement repeat?
Here’s one posting from Binni Ong discussing how some of our members made money from a GBPUSD trade that gapped over a weekend by following the trade flow.
Forex gaps tell a story and this is the takeaway
- Based on their relatively smaller gaps and the fact that their gaps are already closed or near to close, AUD and GBP are strongest against the USD.
- EUR appears to be weakest.
These observations can be verified here in this chart of 1-day relative performance.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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