A couple of price gaps in the USD

Interesting Candlestick & Bar patterns and some price gaps were identified in the USD/CAD and the EUR/USD

Charts (5)

A couple of price gaps in the USD

The US Dollar was bearish against most of its major pairs on Tuesday with the exception of the JPY. On the economic data front, Housing Starts declined to 891K on month in April (900K expected), from a revised 1,276K in March. On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending May 15th are expected. Finally, the Federal Open Market Committee (FOMC) is expected to hold a Meeting Minutes.                                                     

The Euro was bearish against most of its major pairs with the exception of the CHF, JPY and USD. In Europe, the U.K. Office for National Statistics has reported jobless rate for the three months to March at 3.9% (vs 4.3% expected). ZEW survey results of May have been released for Germany (current situation at -93.5 vs -87.6; Investors’ confidence at 51.0 vs 28.2 in April).

The Australian dollar was bullish against most of its major pairs with the exception of the NZD and GBP.

The dollar index dropped 0.25pt to 99.419 the day's range was 99.230 - 99.731 compared to 99.580 - 100.467 in the previous session.


Using the “technical Insight” research tool under the Market Analysis tab, I searched for interesting Candlestick & Bar patterns and some price gaps were identified in the USD/CAD and the EUR/USD showing USD weakness after today's decline in the dollar index. 


The EUR/USD confirmed a bullish gap. Gaps usually represent important areas of support or resistance. Gaps provide an indication of a financial instrument's SHORT-TERM outlook.



Source: GAIN Capital, Market Analysis Tab



Here is a bearish gap in the USD/CAD 



Source: GAIN Capital, Market Analysis Tab


Happy Trading.

More from Forex

Related Articles

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.