To be honest, I may be not too professional in such technical details you are writing about. And it seems to me that a trader (and me as a trader as well) doesn’t need such details work working on the market… Perhaps you are right 
But I know for sure that a “pause” between the closing and opening price is called a gap. Anyway, thank you for your explanation!
The technical picture is mixed on the majors now. Trading instruments are consolidating. Participants of financial markets are waiting for the Fed decision. Most likely, the Central Bank will leave the interest rate at the previous level of 1.00-1.25%. The regulator will publish the updated economic forecasts. It’s also necessary to take into account the FRS comments.
I’ve identified the key levels and will open deals from these marks. I think that there won’t be any strong movements before the FRS decision.
EUR/USD
support: 1.1975, 1.1930
resistance: 1.2025, 1.2100
Hi Alex, may I have your permission to briefly explain the difference in a liquidity gap and a Retail Spot Currency Gap. I Don’t want to take your thread too far off course, or step on your analysis.
The Ever Mannerly VIPER
Hello, Viper!
Yes, of course, you’re welcome, let’s discuss this
You can also pm me, or if you wish, comment here, it wouldn’t bother me at all.
I just call things so as many traders do, especially those who work in retail.
Hey again alex. I necromanced this from 2011, shortly after I joined. It is a Scholarly Tome if I do say so myself, also there is a pretty good discussion related to futures gaps and the difference. So I will put up the link for the benefit of all. By they way this is some of the best of the best, from some of our passed honored members.
One thing to remember about Liquidity Gaps is they do have a place in technical analysis, in equities, and futures, but in spot currency there really are no liquidity gaps.
The Ever “Lets Go Living In The Past” VIPER
Yesterday, the Fed kept the key interest rate range at the previous level of 1.00-1.25%, as it was expected. This October, the regulator plans to cut assets on its balance sheet. The central bank also published some optimistic forecasts. These events caused a significant demand for the US dollar. It seems to me that the dollar will continue to strengthen against majors in the near future. At the same time, I don’t exclude a short-term technical correction. I’ll enter the market from the S&R levels. The most interesting examples are:
USD/CAD
EUR/USD
Hello, Viper!
Thank you for the link, I’m reading it just now. Though, it may be difficult for me not to call those ‘pauses’ gaps, as I’ve been doing it for quite a long time
Hey Alex, thanks for allowing the link. Yeah I know what you mean, I think my whole point was to point out the difference between a liquidity gap and a forex gap. We used to have someone here that actually used these “gaps” as part of their analysis, which was, well, wrong and it led quite a few to lose money. Anyway thanks for the patience. Your use of the term is logical in the context of retail forex, so it doesn’t seem a big deal in that overall view.
The Ever Shining A Flashlight VIPER
I think that your correction makes sense. I hope that using this term in my analysis won’t affect someone’s trading, as I don’t use the schemes called ‘Gap trading strategies’, and they obviously mean retail Forex gaps, but not those liquidity gaps mentioned by you.
So, I hope that this conversation will make clear it to other people who will visit this thread, as I surely don’t want someone to lose money because of my technical analysis
GBP/USD has grown by more than 400 points during the last week. Usually, there is a technical correction after such strong movements. The demand for the US dollar remains at a fairly high level. GBP/USD is consolidating now. I plan to sell the pair, if it fixes below the 1.3565 local support. It may move to 1.3475.
Aggressive sales were observed on the AUD/USD pair yesterday. The chairman of the RBA said that the Central Bank won’t rush to raise the interest rate. I don’t exclude a technical correction in the near future. I’ll buy the pair, if the price fixes above 0.7955. It may move to 0.7990.
The bullish sentiment prevails on AUD/USD since the end of the last week. It is consolidating in a rather narrow range now. I expect the further drop of the AUD/USD quotes. If the price fixes below the 0.7950 local support, I’ll sell the pair. The goal for taking profit is 0.7910.
Aggressive sales are observed on EUR/USD. Angela Merkel was re-elected for a fourth term. At the same time, the German Chancellor’s party suffered significant losses in comparison with the past results. The price is testing the 1.1870 support level. If EUR/USD overcomes this mark, I will sell. The pair may move to 1.2825.
Geopolitical risks on the Korean peninsula worsened again. It caused an increase in the demand for safe assets. The bearish sentiment prevailed on USD/JPY yesterday.
The pair is consolidating in the 111.50-111.75 range at the moment. I expect the further drop of USD/JPY.
I’ll sell it, if it fixes below 111.50. The pair may move to 111.10-111.00.
USD/CAD is dominated by purchases now. The demand for the US dollar remains at a fairly high level. Some Fed representatives said that the US economy is stable. The central bank may consider another increase of the interest rate this year. The probability the monetary policy tightening by the Fed is more than 70%. I plan to open deals in the current trend direction. I’ll buy USD/CAD in case of the breakdown and retest of the 1.2390 mark. The pair may move to 1.2450.
The Fed chairman supported the US dollar yesterday. Janet Yellen said that a gradual increase of the interest rate would be appropriate, despite the low inflation level in the country. The demand for USD has grown significantly. The probability of the monetary policy tightening in December 2017 exceeded 75%. At the beginning of this month, the figure was less than 40%.
I expect a bullish sentiment of USD/JPY in the near future. The price has overcome the 112.70 key resistance. I will buy the pair after the retest of this mark. The potential of the move to 113.25.
There are aggressive purchases on USD/CAD today. The price is testing the 1.2400 round level. I expect the further growth of the quotes. I’ll open long positions, if the price fixes above 1.2400. The pair may move to 1.2450.
Aggressive purchases were on USD/CAD yesterday. The head of the Bank of Canada said that they won’t rush to raise the interest rate this year. The Central Bank is concerned about the significant strengthening of the Canadian dollar. The key trading range is 1.2470-1.2515. I don’t exclude a technical correction in the future.
I will sell USD/CAD, if the price fixes below 1.2470. The pair may move to the 1.2410 mirror support.
I’ll buy it in case of the breakthrough and retest of the 1.2515 local resistance. It may move to 1.2550.
