Breakout Trades/Daily Gap Moves

Posted on Tuesday, February 16th, 2010 at 12:29 pm.

As Joey said, We finally had some movement! Monday was a Holiday for the USD, and so there was minimal volatility in the Forex Markets. Looking across several pairs there were a lot of consolidation areas, and points of interest to use for breakout entries. Many pairs have been overbought or oversold and away from the daily gap for some time now. Finally this morning several of these pairs including the EURUSD, GBPUSD, EURJPY, GBPJPY, and USDCHF broke out of their consolidation areas, crossed the hourly gap and have begun their moves back toward the daily gap or the 38.2 fibonacci retracement level. I am looking for these currency pairs to consolidate a little over the next several hours and maybe even make some re-tests of previous support and resistance before continuing the movement later on tonight! Happy Currency Trading!