Price Discrepancy

The price opening during the trading sessions in Asia can not go unnoticed whenever there are price discrepancies between the closing prices in New York closing prices last Friday. Of course, there would be as closing and opening prices in between trading sessions will and always have the difference of the bid and ask. A clear example of this is the Daily EURUSD chart figure as shown on the left hand column. Where the closing price last Friday was actually 1.3940 and the opening trading session in Asia was at the 1.3999 and working its way back to the current price of 1.3933 as of this writing.

However, these price openings serves as an indicator for those who happens to have a little more experience in analyzing the market behavior. These would be part of the due diligence in trading especially for those who may have kept over the weekend positions open in the market. Which are not really encourage for retail traders and investors to have an open postition even by the end of day or over the weekend , for that matter.
As a matter of information, all open positions are still settled every end of day trading and thus re-opened the next day's trading sessions. These is where swaps are made between interbank transactions thus carried over between counter-party. For those familiar with the Tom next ruling on the financial exchange which most hedge fund players and money managers pay more particular attention to since huge trading volumes do affect their trading activities.

But for retail investors who simply take advantage of price fluctuations do not pay too much attention to these matters. Although, for certain strategists and market analysts the huge difference during closing and re-opening prices does provide a glimpse of a continuation of the trend or an opposite price direction. And in this scenario, the USDX to start consolidating with a wider trading range after its decline would be the only way to go. Thereafter, due to its seasonal and cyclical pattern may eventually move higher on a slow pace, gradually towards the end of the year.
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