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