EURUSD Opens With a Big Downside Gap As FBI Clears Clinton

The Euro (EUR) opened with a big gap against the US Dollar (USD) on Monday, sinking the price of EURUSD to less than 1.1100 as the Federal Beaurue of Investigation (FBI) shuns charges against the US presidential candidate Heliary Clinton. The technical bias remains bearish because of a lower low in the recent downside move.

Technical Analysis

As of this writing, the pair is being traded near 1.1071. A hurdle can be noted around 1.1122, a huge horizontal resistance area ahead of 1.1233, a short term horizontal resistance level and then 1.1280, the swing low of the last major upside rally as demonstrated in the given below daily chart.

On the downside, the pair is likely to find a support near 1.1059, a short term horizontal support ahead of 1.1045, another important support area and then 1.1000, the psychological number. The technical bias will remain bearish as long as the 1.1280 resistance area is intact.

FBI Clears Clinton

FBI Director James Comey told lawmakers Sunday the agency hasn’t changed its opinion that Hillary Clinton should not face criminal charges after a review of new emails. “Based on our review, we have not changed our conclusions that we expressed in July,” Comey wrote in the new letter to congressional committee chairmen. Any signs of Democrats winning the upcoming US elections is being considered bullish for the dollar and vice versa mainly due to continuity in the economic policies.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels could be a good strategy if we get a valid bearish reversal candle on the daily chart.

 

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Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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