One that has been on my radar for a while. Sometimes these longer term fib levels catch a good swing.
Watching this for a few days and managing to confuse myself regarding the fundamental pros and cons for attempting a long trade around here. Price seems to be staling and taking a breath. The drop so far this year has been an impressive one for those lucky short side traders.
The fib in question is the 50% from the lows way back in January 2016 to the highs of mid November last year. Price has been hanging around the level this week without much indication of a bounce so far. – So this is going to be a step into the unknown with established trend firmly against me. I opened a feeler long position at the time of writing at 0.7387 . I’ve placed a wide stop beneath the lows as I’m wishing for more of a medium term trade rather than an intraday scalp.
A quick look at the H4 chart below shows a few recent hammer candles in the downtrend. This could signify a willingness to challenge the drop from here without too much success, yet enough for me to stick my oars in and tackle the tide .
The Daily chart below shows the full extent of the damage inficted by the wave down since the end of 2017
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