For future posts I’ll refer to the EUR/USD linear regression channel from 3:00 am to US market open (Chicago time) as the EUR Trak. Hopefully this will help identify the concept and remove my need to explain the setup every time I post about it.
Last week’s look at the EUR Trak (then referred to as the Dipper channel) suggested we look at the slope of the overnight channel to determine a tactical approach for trading an opening gap in FXE. Today’s overnight session put that premise to the test and the EUR and FXE charts above show the results one hour into the US market open. Contrary to the majority opinion on stocktwits this morning that EUR was most likely bullish coming into the US open, the EUR Trak paints a decidedly negative picture and provided a nice warning shot for the potential longs the open.
I’ve noted in previous posts that it’s best to wait 8-10 minutes after the open to allow the MOO (market on open) orders to fill and for a clearer picture of momentum to emerge. This was clearly true in today’s study of FXE when the high of the day was reached exactly 10 minutes into the open.
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