Here we have an interesting trade. A brief of what is a market gap, A market gap is when a currency pair opens at the next trading session with a positive or negative value from the closing value. Usually market opens where it closes previously and carries on. Whenever a gap happens the market rectifies the gap by overlapping (IE for positive gap the market comes down to at least the closing point, for negative gaps the market goes up beyond that closing point). Usually these gap closing takes place within days or weeks. (IF YOU check my previous EURJPY trade I shared you'll notice I did mention about price correction and there was a positive gap which is now been filled and my tp hit, a classic example.)
We have an exception for EURUSD, on the 24th April 2017 market opened with a positive gap (I've marked with a red arrow on the left) but that gap was never filled. As mentioned before, the market cannot have unfilled gaps hence after exactly a year it is coming down to close the gap.
Price has broken the support level already. I'm expecting it to go up to the resistance level from where I'll take short trade and my tp will be just below where the gap has been created.
I think the EURO itself is powering up in the short term, for reasons beyond my comprehension. For new traders, I'm not referring to EURUSD in the last sentence (I will in a minute). I'm looking at EURO strength across all common pairs (so EUR/whatever) on big time frames like the Daily. It's hard to apply a science to this because normally we deal with EUR (pairs). Hence the ratio of those pairs will hide the moves of EURO strength.
EURUSD is vulnerable to the USD part of the equation. Recently we all saw US Dollar move north in strength against most pairs. But visibility of that is impaired by ratios. Hence we see EURUSD charging south. But that doesn't mean that the strength of the EURO itself is falling. What I mean is that all this is 'relative' (the reason we have currency pairs). So relative to the USD, EURO strength is falling. Nonetheless I think the ratios across all pairs hides the strength of the EURO. (Just to be clear, I don't like the EURO and I don't know or care to understand its strange powers).
Ultimately I think EURO strength is likely to decline sharply as it is currently pumped up by strange forces. Broadly speaking my expectation (not prediction) is that the Eurozone as an economic area is likely to disintegrate, having studied the underlying evidence-based political, social and monetary chaos that is happening over there. If that disintegration happens (and it could take a long time), then the EURO itself crashes.
EURUSD is vulnerable to the USD part of the equation. Recently we all saw US Dollar move north in strength against most pairs. But visibility of that is impaired by ratios. Hence we see EURUSD charging south. But that doesn't mean that the strength of the EURO itself is falling. What I mean is that all this is 'relative' (the reason we have currency pairs). So relative to the USD, EURO strength is falling. Nonetheless I think the ratios across all pairs hides the strength of the EURO. (Just to be clear, I don't like the EURO and I don't know or care to understand its strange powers).
Ultimately I think EURO strength is likely to decline sharply as it is currently pumped up by strange forces. Broadly speaking my expectation (not prediction) is that the Eurozone as an economic area is likely to disintegrate, having studied the underlying evidence-based political, social and monetary chaos that is happening over there. If that disintegration happens (and it could take a long time), then the EURO itself crashes.