Mon, 14th of April, 2008
By Setyo Wibowo (analyst@fxinstructor.com)

EURUSD Outlook
The EURUSD made a big gaps, closed at 1.5807 on Friday, open at 1.5702 Monday. It is 105 pips gap. In my early days trading forex, my mentor always say this about gaps: “Gaps are made to be filled”. If that’s true, why do not buy EURUSD now? In my last technical view, I showed you the potential of bullish scenario, about every time EURUSD reach the psychological at area, the pair always made a higher low, and we also have a potential bullish triangle. Here are the chart I showed you on Friday (chart #1) compare with what happen early today (Chart #2).

Chart #1

Chart #2

Do you see the highlighted eclipse on Chart #2? The candle bottom is very near to triangle line. This means, if the bullish triangle is valid, this bottom could be the other higher low after touched psychological level. So, here are what I have in mind:

• Strong bullish momentum of technical analysis

• We have gaps, big gaps of 105 pips. Usually, this gaps are filled. And if it is filled, it goes in the same direction as technical view.

Of course, there is no 100% accuracy of any analysis and no one knows the future. But we should act based on the most logical thinking.