The Power Of Fibonacci Retracements! Gold, EUR/USD Recap - Forex News by FX Leaders

The Power Of Fibonacci Retracements! Gold, EUR/USD Recap

Posted Wednesday, August 30, 2017 by
Shain Vernier • 1 min read

Yesterday I discussed the use of Fibonacci retracements as a great way to enter trending markets on pullbacks. In two specific instances, solid long entries could have been had at the 38% retracement of the current bullish run.

EUR/USD

Yesterday’s breakdown of the EUR/USD showed a market trending to the bull. Today’s trade has seen a considerable retracement amid the positive U.S. GDP release.

EUR/USD 60 Minute ChartEUR/USD 60 Minute Chart- Profitable Entry

Although I did not recommend this trade outright, a buy from the 38% retracement proved a winner. With only a moderate draw and an upside of 28 pips, this trade could have been scalped for a 1:1 ratio rather easily.

Kudos to anyone that got this one! For everyone else, no worries. That is the great thing about the markets: there are always more trades.

December Gold Futures

The recommended long in December gold futures turned out to be a nice trade. Clean entry at 38% of the bull run at 1312.6 yielded a 50+ tick return.

Gold 60 Minute ChartDecember Gold Futures 60 Minute Chart- Fantastic Long Entry

Again, the 38% Fibonacci retracement provided a minimal draw and extremely positive upside. As December gold tested the gap up on the session’s open, we got long at a great level. Nice and simple.

Overview: Where there is pricing volatility, there are considerable traded volumes. Enhanced participation levels have the tendency of bringing technicals into play. Often, these support and resistance areas can give us entry points for positive trades.

We will certainly be on the lookout for more solid entries around these key Fibonacci numbers!

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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