The opening move has also contributed to the USD Index @101.60 opening gap levels and with the ADXY @103.89 while both levels are moving contrary with each other where a half-way point would be made towards the two turn-over trading session of the European and US markets. These moves where a typical price action when they both would trade in opposite directions the same manner when it traded last Sept 16, 1992 (Black Wednesday) Post UK Exiting ERM.
Cloud Chart: #CABLE Opening Gap
The market have reacted towards a 'softer' stance from Theresa May on the BREXIT that led to a remarkable price recovery of CABLE. The same price swing form an opening gap that occurred post ERM which we made mention where prices reversed and recovered in the US session.
ReplyDeleteCABLE is currently trading above 1.2350; which is quite early since we have three more trading days to go for the week. The closing for the end of the week is critical price to watch from hereunto.
The classic opening gap was indeed a price reversal even after touching its previous low @1.1986 before making a follow-through to the upside. This was in line with the extension levels of the DXY @103.55 that gave way for a corrective move lower until today currently below 100 basis point.
ReplyDeleteCABLE is trading @1.2594 as a new high for January can find some resistance @1.2775 - 1.2880 levels. That is there would be more interest for CABLE to build up its momentum as long as the USD does continue to trade weaker.