I thought it might be instructive to follow the path of yesterday’s EUR linear regression channel study to see how it played out into the overnight session and beyond.
Note the flattening of price action around 10:45 yesterday that formed a nice narrow 20 pip wide consolidation straddle setup and expended for 10 hours before breaking down. This was a picture perfect setup for the 15-15-10 straddle I’ve posted about previously and my short entry at 20:20 was filled and limited in a single bar. Ditto for my long entry at 3:15 that was filled and limited in a single bar. Of particular interest here is how the extension of Wednesday’s LR channel provided a perfect upside target for the overnight session.
Also of note is the price reversion early in the European session back to the straddle channel. The fact that the EUR had retraced precisely back to the top of the straddle channel for the US market open at 8:30 suggests this is a powerful support level and important price pivot.
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