Good day forex traders.
We noted on a forex gap in the previous review and I cautioned on the dangers of forex gap trading. While the market often closes the gap, it is definitely not a given!
BUT it closes for now. I can imagine the scores of readers screaming out loud ” there I told you ! Yah .” However we have to be mindful that you only need 1 margin call to derail your forex aspirations 😉 . Better to be safe than sorry.
On the short time frames, it is noted that the current levels at 1.12ish exerts significant pressure on the EUR/USD. Further breakdown of the support will likely lead to a test of the lower bollinger band. It coincides with the major support of 1.12.
It is prudent to be mindful that the sentiment towards the US is not as optimistic as many would like to. It was reported that a US Federal Reserve official who was usually hawish mentioned that he sees only one interest rate hike between now and 2019.