Market opens with Huge Gap

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Market opens with Huge Gap
Market opens with Huge Gap

Market opens with Huge Gap

The euro opened with a 60 points gap in the Asian session on Monday after which it gained an additional 20 points and is currently trading at 1.3372 in the hourly hours of the trading session on Monday.

The European Central Bank meeting is due today where good volatility might be seen in the market in the European session, where a move below the support level of 1.3348 could lead the pair to drop down to 1.3335, 1.3314 and 1.3284.

On the other hand, if it manages to move above 1.3381 then the resistance level of 1.3401 would be targeted, above which the pair would rise smoothly all day long.

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The GBP/USD also gave a huge bullish gap on Monday where it is trading at 1.5937 after testing the resistance level of 1.5959. There is no such fundamental due today for the GBP which may lead the pair to follow its technical levels solely, and hence if it fails to break 1.5960 then its timely bearish correction would surely come into place where it would attempt to fill its 70 points gap.

The pair must make a 200 points bearish move in order to enter bearish zone, so currently bulls are strongly in control of the pair where it would remain a good opportunity to buy as long as it remains above 1.5776 support area.

Moreover, FOMC meeting is just around the corner where many economists are expecting the FED to reduce its easing stimulus that may bring the major pairs down as the U.S. dollar would get strong.

Gold Investors – Stay Alert

Gold is playing at the 1325 level where it has its resistance levels are at 1333 and 1346 level, plus if it manages to move below its previous support area of 1303 and falls below 1296 then it would be a bounty for sellers as bears could take the metal down to 1275 and then 1244 within this week.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com