EURAUD produced a Marubozu daily candle yesterday. The H4 chart shows that the price after making the new highest high has had a pullback as well. The level which has been held as a consolidation support level is very significant. The price had a rejection at the same level earlier. Moreover, it is a Fibonacci level of support as well. Thus, an H1 breakout at yesterday’s highest high may push the price towards the North further. Let us have a look at the H4 EURAUD chart.
This trade idea was generated by our powerful Elite Swing Trader System.
The price went up to the level of 1.63405 yesterday. Then, it started having the correction. The level of 1.62845 has been held by the H4 candles as a level of support. The chart shows that the price reacted at the level several times earlier. Moreover, this is the Fibonacci 78.6 retracement level. If the level produces an H4 bullish engulfing candle followed by an H1 breakout at the level of 1.63405, then buying the pair would get us some green pips. Let us have a look at the summary of the trade…
- Buy Stop Order: 1.63524
- Stop Loss: 1.62753
- Take Profit: 1.64552
Fibonacci retracement levels such as 78.6 and 61.8 play a very vital role in the Forex market. To draw Fibonacci retracement, we need to use the swing high and swing low of a wave. The level of 61.8 or 38.2 (if it is drawn other way), is the most vital. With bigger time frames such as the H4 and daily, 78.6 play a vital role as well.
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