I thought Forex had no gap downs. Just now the EUR took a huge drop, 70 pips, at open agianst the USD. I see that the EUR dropped big time at open against all the currencies. Whats up?
forex can have gaps ... as there is no real market between friday later afternoon EST and sunday afternoon / eve EST so if there is a "news" driven event that happened between those points in time viola ... " gap "
It can gap at any time, especially over the weekend. The reason today is the German election result - it looks like there will be a grand coalition - should be the worst possible scenario for the euro if it is confirmed.
Plus there are huge stops below 1.22 and things are headed that way anyway. I was short into the Friday close, but chickened out and covered my trade. Anybody know if there is any "confirmed" election news yet?
Be really careful with this level. There was some big buying going on on Friday protecting the 1.22 level. If it truely is a breakdown here then the bear flag that has been developing will be confirmed as the bottom of the daily uptrend channel will have been violated substantially and a move down cometh. BEWARE of a re-entry into the channel, false breakout here on light flows and news.
I havent trade with fxcm for over a year but still have their platform. If their prices are to be believed cable is more volatile than the euro at the moment. Moving up and down in 40 pip gaps. For what its worth I think the Euro is a raging sell on this news, if confirmed.
Election: Exit Polls Suggest "Grand Coalition" Likely] Sydney, September 19: According to exit polls it appears that Merkel"s Christian Democrats will edge out the Schroeder led Social Democrats by a narrower than expected margin of 35.5% to 34%. With Merkel"s preferred partner the Free Democrats showing 10.5% in the exit polls it appears that Merkel can not form a governing coalition. The likely outcome would be a "grand coalition" with the Social Democrats without Schroeder. If the exit polls hold up and the "grand coalition" was to be the outcome it would weigh on the EUR/USD and German equities. The market started to price in the possibility of a "grand coalition" last week, but the EUR/USD bounced slightly on Friday when pre election polls showed her party with more that 40%. A provisional official result will not be known until after midnight local time (2200 GMT), although German television will progressively update projections of the result. --John.Noonan@thomson.com
Euro is very offered just below the figure - every time it goes 80 bid it is spanked. rather strangely Euro Swiss is so far unaffected...time to play!