EURUSD Opens With a Big Downside Gap As FBI Clears Clinton

FXOpen

07 Nov 2016, 06:05

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.

EURUSD Opens With a Big Downside Gap As FBI Clears Clinton

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.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.