Here’s a view of the EUR’s US close to US open session with the results in the FXE shown on the lower chart. Now the point to be made here is a very simple one: if you actively trade FXE (or FXB or FXB) you MUST watch the overnight EUR in order to see the true momentum.
While both charts are based on the 24 clock, keep in mind the EUR chart is in Chicago time, while the Schwab chart is on New York time. Monday’s US market close on the EUR was therefore at 15:00 and Tuesday’open was at 8:30. The true drama of the Asian session in shown on the EUR chart, while the net result for the the US open looks interesting, but certainly gives no hint of the wild path taken to arrive at the opening price. Looking at the EUR chart shows that the overnight surge up to 1.4030 culminated in an exhaustion peak dead on 8:00, 30 minutes prior to the US open. What followed was a rapid descent into the US 8:30 open. While popular perception typically calls for fading opening gaps of this magnitude, the real argument for an FXE short at the open was the underlying EUR chart. Many FX brokers offer full featured demo platforms requiring no actively funded account that can be used for tracking purposes. Other fully integrated brokers offer FX data/trading as part of their basic services.
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