Dollar, EURUSD and USDJPY Gap - Exhaustion or Acceleration?

By DailyFx | Updated August 25, 2014 AAA

DailyFX.com -

Talking Points:

• Gaps are unusual in the FX market and usually small, but they do occur

• Distinct and substantial USDollar, EURUSD and USDJPY gaps formed Monday morning

• Fundamentals can help determine whether these gaps can establish endings or beginnings of their trends

Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.

Many stock traders use gaps to signal meaningful technically-based market developments. While they are uncommon in the FX market, they do happen from time to time. To start this week, there was a notable gap on most of the dollar-based majors. However, the bigger moves were realized on those pairs that found the most fundamental encouragement through their monetary policy bearings and this past weekend's Jackson Hole Symposium updates: USDollar, EURUSD and USDJPY. Will FX traders find the same opportunities in these opening moves that their equities counterparts exploit? Are these gaps closer to the end or beginning of the market's trends? We discuss this in today's Strategy Video.

Sign up for John’s email distribution list, here.

Related Forex Analysis
  1. Weekly Forecast: FX Volatility to Persist on Key Data, Rate Decisions
    Forex News

    Weekly Forecast: FX Volatility to Persist on Key Data, Rate Decisions

  2. Session Recap: When money comes from Japan; EUR/USD at 14-month low, USD/JPY 7-year ...
    Forex News

    Session Recap: When money comes from Japan; EUR/USD at 14-month low, USD/JPY 7-year ...

  3. USD Jumps against ZAR, PLN, & HUF Post FOMC Meeting
    Forex News

    USD Jumps against ZAR, PLN, & HUF Post FOMC Meeting

  4. CBR Drastically Raises Key Rate to 9.5%: USDRUB Respects Resistance
    Forex News

    CBR Drastically Raises Key Rate to 9.5%: USDRUB Respects Resistance

  5. EUR/USD recovery capped at 1.2540
    Forex News

    EUR/USD recovery capped at 1.2540

Trading Center