The 0.786 level holding as nice resistance from the 'flash' crash seen on the 7th Oct.
With such a big move there is likely to be a following test of support before a meaningful retracement to the upside, or a further break to the downside. It's not currently possible to determine which way prices will go, but it is highly likely the initial move down to support will be made!
This trade has a 1 : 2.12 risk reward, with the stop loss placed at a psychological level (1.25500), as well as being significantly above the 0.786 retracement level in case of slippage in the case of early morning liquidity where prices may be fairly volatile.
Holding time: 1-3 days.
With such a big move there is likely to be a following test of support before a meaningful retracement to the upside, or a further break to the downside. It's not currently possible to determine which way prices will go, but it is highly likely the initial move down to support will be made!
This trade has a 1 : 2.12 risk reward, with the stop loss placed at a psychological level (1.25500), as well as being significantly above the 0.786 retracement level in case of slippage in the case of early morning liquidity where prices may be fairly volatile.
Holding time: 1-3 days.
Now time to sit out and let prices dictate the next move before hopefully jumping on.