EUR/USD tends to move sharply on London open

Very recent history, ie the last few trading sessions, suggests that EUR/USD is likely to go for a sharp 40 pip move in early London trade. The last few moves have been down so the law of averages would suggest that we are in for a rally today. Not very scientific I know, but I’m struggling to get any strong feel for these markets.

  1. I’ve observed that EU moves between 7-8 am London time are reversed starting around 8-8.30 am. The later move becomes the main move for the day, almost as if the early opposite move was to clear out stops on the opposite side. One can wait for the early move to run its course and enter when it turns in the other direction. Not very scientific, but tradeable if one is quick and ruthless with stops.

  2. okay, thanks sean.. wondering, where are the audjpy sales coming from? they must have been from a person with a bigger bazooka considering it didnt manage to rally alongside audusd

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