Turning our attention to the H4 chart, yesterday’s selling which originated from the underside of mid-level resistance at 1.1050 engulfed multiple technical supports before stabilizing four pips above psychological support 1.0900 by the day’s end. It’s widely reported that the Fed will raise interest rates today, which could see this pair depreciate further. However, we trade what we see, not what we think, and right now there appears to be no logical entry into this market, apart from a break above and retest of 1.0936, targeting psychological resistance 1.1000. In spite of this, would you want to buy knowing price has just sold off from daily supply and is NOT YET touching base with the lower limits of the weekly range (see above)? We certainly wouldn’t. Therefore, we’ll remain on the sidelines for now and watch for further developments.
That retracement today/yesterday ((EUR/USD@1.1059)) follows the 61.8% Fib retracement on the weekly chart from 1.1387 to 1.0516.
How much weight do you place on these Fibonacci levels? Would it be something to consider on this case?
@Baseball350, we focus more on structure (supply and demand etc...) more than Fibs, but we have found when a Fib, preferably the 61.8% value, converges with our pre-selected structure, it gives us more confidence to take the trade. However tempting it is to use the Fibo tool on the weekly, we tend not to since we find using it on the H4 and daily is enough.
Hope it helps, if not get back to me and I will try to be more descriptive.
On the other point, you prefer or consider Fb level entries more reliable in the 4H and Daily than weekly levels? At least in this situation.
There is certainly not anything wrong with using Fibs on the weekly, it is just our personal preference. We like to keep things as simple as possible.