I see a Fibonacci cluster in the price range of 106.374-106.253 that we can use for a short entry opportunity. The price might stop its upward movement in this range or continue rising after forming a lower high first in the 104.927-104.869 range. If measured using Fibonacci, this price shows a retracement of 0.5 from the latest lower high formation or 0.385 if measured from the major lower high movement.
It's important to note that the measurement is done at this moment before a higher high is formed. To see the exact retracement level, we need to wait for the higher high to form in that area.
For entry, it is advisable to wait for a rejection candle on a smaller timeframe. A stop loss distance of 65 pips is suggested as a reference to achieve a 1:2 risk-reward ratio. Since we do not know how far the price might spike, a 1:2 risk-reward ratio should be sufficient to avoid being taken out by stop loss hunters due to a fake breakout.
Stop Loss (SL): 106.922 (65 pips)
Take Profit (TP): 104.972
Risk-Reward Ratio (R:R): 1:2
It's important to note that the measurement is done at this moment before a higher high is formed. To see the exact retracement level, we need to wait for the higher high to form in that area.
For entry, it is advisable to wait for a rejection candle on a smaller timeframe. A stop loss distance of 65 pips is suggested as a reference to achieve a 1:2 risk-reward ratio. Since we do not know how far the price might spike, a 1:2 risk-reward ratio should be sufficient to avoid being taken out by stop loss hunters due to a fake breakout.
Stop Loss (SL): 106.922 (65 pips)
Take Profit (TP): 104.972
Risk-Reward Ratio (R:R): 1:2