In a bit of a departure from my usual focus, I’ve been tracking the EUR/USD overnight patterns for the last couple weeks. This chart reflects 10 minute bars, larger than the 2 minute framework I typically follow.
The technical overlay is my basic setup: two 8 period SMAs: one of the highs, one of the lows, the parabolics and an 8 period linear regression line. The stepped horizontal lines are the intraday pivots . . readjusted very 8 hours. The time is GMT set for Chicago so 8:00 is really 6:00AM west coast time. The pivots are, of course, relative to previous 8 hour levels but I seem to detect an interesting setup that occurs with some regularity and over the next few days I’ll explore the parameters. The bad news is that FX markets run 24 hours a day weekdays, except Friday, and the typical triggers are 2 in the morning PST. If you’re an insomniac this could work for you.
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