This type of trade can often set the tone for an early day trade or the early week bias out of Asia. It’s not a hard and fast rule, but more of a conceptual idea to trade from a side in today’s world.

In the 1970’s and early 80’s this was a great tool. Markets generally opened at one extreme or another and went the other way. You could use that # set as a market pivot pretty much all day. Many early algo’s were based off this simple idea. As markets matured and participants became more savvy, this became a less reliable indicator.

EUR/USD…The opening range of the Euro was app 119.00 in 1998..it rallied first a few cents however once under it eventually broke 40 cents never violating that # set. The 1999 high was the opening range of the contract! In 2003 it came all the way back up for a retest. The dance continued.

Last year at the end of the second qtr I wrote a piece about EUR/CHF and it’s effect on the Euro. We were trading close to 119. I stated that it was very imprudent to press the short side of the Euro into that level! That was the stone cold Euro low. You can sell once convincingly through a level like this, but never press direction into it.

S&P 500 Futures…I was an original local making markets in this new contract. After a lot of torture I went back to the currency pits and vowed to just buy it when it closed back above the opening range (116.50) with a stop below and forget about it. Today it’s trading over 13,000. Unfortunately for me I was sailing in the J 24 Worlds in San Francisco that first week in Oct.,cold and soggy sailing in the fog, when it broke out. It rallied 40 points that week and the rest is history.

Timing is everything!

Those types of #’s are big time pivots that do not show up on the work available !!!!

In conclusion, 111.00 is an important # in the AUD/USD that no one has on their matrix.