My yesterdays expectations on GBP/USD confirmed. I don’t exclude a technical correction now. My fav reversal formation, the divergence of price and MACD histogram, has formed here. I’ll sell the pair, if the price fixes below the 1.3270 local support. The pair may move to 1.3240-1.3215.
The EUR/USD pair is consolidating now. I expect a downward trend and I’ll sell, if the price fixes below the 1.1975 local support. The pair may move to 1.1950-1.1930. I’ll use a trailing stop for this position. And the deal will be short-term and speculative.
My yesterday’s expectations on EUR/USD were confirmed. It seems to me that the trading instrument will continue to decline. The report on the US inflation will be released today at 12:30 (GMT). I plan to wait for the retest of the 1.1930 mirror resistance. I’ll sell EUR/USD, if the price reaches this mark. The pair may move to 1.1870-1.1835. The entry points to the market may appear during several days.
USD/JPY is consolidating now. I expect a technical correction after a significant increase since the beginning of this week. I’ll sell this pair, if the price fixes below 11035. It may move to the 110.00 round level.
USD/JPY retained the 100.00 round level during the Asian trading session. It triggered a bullish sentiment. The price is testing the 110.75 key resistance level now. I think that the quotes have the potential for the further growth. I’ll buy USD/JPY after the breakthrough and retest of 110.75. It may move to 111.00-111.25.
The ‘head and shoulders’ figure has appeared on USD/CHF. I’ll sell the pair, if it fixes below the 0.9610 mirror support. It may move to 0.9550.
Aggressive purchases were observed on GBP/USD last week. The pound has reached the 1.3600 round level. The Bank of England may raise the issue of reducing the economy stimulation program in the near future. GBP/USD is consolidating now. I don’t exclude a technical correction. I’ll sell the pair, if the price fixes below the 1.3525 local support. The closest goal for taking profit is the 1.3475 mark.
The current technical pattern indicates a possible correction on USD/JPY. The price is testing the 111.30 local resistance now. I plan to sell it, if the price fixes below 111.10. The closest target for taking profit is the 110.75 support level.
My yesterday’s expectation for GBP/USD were confirmed. I expect a strong corrective movement on this asset. The price is testing the 1.3475 local support at the moment. I’ll sell the pair, if the price fixes below this mark. The goal of its movement is the 1.3400 round level.
There is a correction on USD/CAD after sharp fall in the end of August. The pair has the potential for recovery. The Inside Bar pattern was formed on the H4 chart. I’ll buy this pair, if it fixes above 1.2335. It may move to the 1.2400 round level. This deal will be medium-term.
Gaps on in the Spot Currency markets are not an indication of a lack of liquidity, as such should not be viewed as part of technical analysis as one would see in stocks or futures. These “gaps” are only seen on retail platforms. Institutional platforms, for example Currenex, do not have gaps, because these servers run 24 - 7 and are connected to the trading platforms. So the action is continuous, on the other hand, retail servers shut down, sometime on Friday and then reopen, usually sometime on Sunday P.M. The servers grab the first quote available from the Institutional server , if the price has moved up or down, in a significant way, this lack of data, not liquidity, shows up as a Gap in price.
In reality, this particular “Phenomenon”, is not related to the different pricing from one Hub to another, or liquidity. But it is directly related to the difference between Retail and Institutional platforms.
The Ever Enlightening VIPER
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