After the yesterday's 160 pips fall, EURUSD took great support at $1.0776 - $1.07574 levels for a good 78 pips pull back therefrom.
Saw some rejection, Retraced 50% and ended up forming a wedge with a $1.07970 low and $1.08236 high.
There was quite a resistance at $1.08070 levels, Breakout therefrom made the high of $1.08236.
(Which happens to be the 61.8% Retracement level too).
When I got to my desk, This whole story was already in play. Price was travelling near the $1.08070 levels and thanks to the buying pressure reflected by the long wick and a hammer candle, which made the entire set up look like a re-test.
1) Getting some decent 1.95 Reward to Risk.
2) DXY seeking resistance at 100.49 levels and preparing for a quick Immediate fall.
3) Buying pressure at 61.8% retracement level.
4) Making higher highs - higher lows on a shorter timeframe.
These were the reasons for me to put on this quick trade for 13-14 pips.
It's just so amazing to see the way Fibonacci levels play out even on such a shorter timeframe.
Fun Fact (Just in case you didn't know) - Fibonacci Sequence was first discovered by an Indian mathematician Acharya Pingala.
Saw some rejection, Retraced 50% and ended up forming a wedge with a $1.07970 low and $1.08236 high.
There was quite a resistance at $1.08070 levels, Breakout therefrom made the high of $1.08236.
(Which happens to be the 61.8% Retracement level too).
When I got to my desk, This whole story was already in play. Price was travelling near the $1.08070 levels and thanks to the buying pressure reflected by the long wick and a hammer candle, which made the entire set up look like a re-test.
1) Getting some decent 1.95 Reward to Risk.
2) DXY seeking resistance at 100.49 levels and preparing for a quick Immediate fall.
3) Buying pressure at 61.8% retracement level.
4) Making higher highs - higher lows on a shorter timeframe.
These were the reasons for me to put on this quick trade for 13-14 pips.
It's just so amazing to see the way Fibonacci levels play out even on such a shorter timeframe.
Fun Fact (Just in case you didn't know) - Fibonacci Sequence was first discovered by an Indian mathematician Acharya Pingala.