By IFCMarkets

Correction completion

Here we consider EUR/USD currency pair on the H4 chart. As oil prices keep falling, we observe the US dollar strengthening against the most liquid currencies. Euro is not an exception. The price is moving within the limits of D1 downtrend channel: four-hour price rebound is expected to be completed. The price approached ParabolicSAR values which cross the trend line and the fractal resistance level. Meanwhile, Donchian Channel is indicating the bullish bias, but we expect the situation to be changed after the support level breakout at 1.24105. It will coincide with RSI-Bars oscillator intersection at 50.3743%. At the moment, it has approached the local support level. The price support level can be used for opening a pending sell order. Stop Loss is better to be placed at the Bill Williams resistance fractal 1.25740, which is strengthened by the D1 trend line and the upper Donchian Channel boundary.

After position opening, Stop Loss is to be moved after the Parabolic values, near the next fractal high. Updating is enough to be done every day after a new Bill Williams fractal formation (5 candlesticks). Thus, we are changing the probable profit/loss ratio to the breakeven point.

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