Technical Trading Tips and Techniques by 
As of early Friday morning in New York, price has retraced dramatically, all the way back down to the 1.3900 region, purportedly on low liquidity. After the one-directional bullishness of the last week or so, this retracement, or at least a consolidation, was to be expected (as noted here on Wednesday’s blog post). Further bearishness on this retracement below the 1.3880 level could target support around the long downtrend line as shown on the chart.
Dear James,
Is it possible this downturn can continue up until the next ECB rates decision, or are we just witnessing a temporary blip for the Euro?
Regards,
Bill
Hi Bill,
Thanks for your question. Yes, I think it is very possible for the pair to continue up after the downturn. Much of the extreme volatility and wild price movement that we are seeing now can be attributed to thin liquidity going into the holidays. I think there is still room for the EUR/USD to rise in the near-term foreseeable future. Thanks, Bill!
James Chen
Is weekend gap always moves upward or downward when trade open on sunday? Thks. yours, ashafa.
Hi Ashafa,
Thanks for your question. Unfortunately, there is no set rule for that. When trade opens on Sundays, it could move either up or down. Hopefully, I’ve understood your question. Thanks, Ashafa.
James Chen