Hourly EUR/JPY showing life bouncing nearly 100 pips from a little below the .618 at 160.40 area to 161.80 at the time of this writing.

This level was challenged on 11/15 that took us for a 200 pip ride north to the 162.80 area as warnings of Japanese Intervention and increasing risk appetite helped buoy the currency pair skyward.

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We'll here we go. As I said in the previous post, we had the EUR/CHF on our radar and were waiting for our bounce.

That bounce happened and now you can see the pull back we had to the 50%retrace of the initial move as anticipated

I have illustrated this on a 4 hour Line chart, yes ladies and gentlemen, a Line chart. This screens out all of the distraction so we can focus on Fibonacci at work.

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Good looking analysis. It is in agreement with the bearish daily head and shoulders pattern

Notice another big up move with possible BUY ZONES at Fibonacci Support Levels give us yet another chance to get involved in this trade.

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The retrace was not as deep as expected. A little less than the 23.6% fibo retracement indicates a very strong trend. If we were fortunate enough to get into the trade on the first pull back or the break above the 1.6400 high, we can comfortably move our stops up to breakeven.

Remember, our target was the top of the channel at 1.6900 and we 2/3 of the way there.

We will keep a watch out for any new fib pullbacks that would give us an additional entry.

Here are the long term DAILY chart including our channel and 4 hour chart comparisons.

The Daily is due for a retrace which we haven't seen of any significance.

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We got our retrace down to the 38.2% level. Bullish rejection pattern formed on 4 hour chart as Sellers ran out of energy, Buyers seem to have taken control.

Notice the number of long wicked candles and small bodied candles at a fibonacci level.

The bull engulfing candle ends the "battle" and the bulls are back in the drivers seat.

A break above the 1.6590 area would confirm the upmove.

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EUR/CHF has consolidated into a pennant formation within a larger triangle. A break above the red lower trendline with a close above the previous Doji high would spark further gains to the extension target.

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With the coordinated Central Bank action to inject liquidity in the banking system caused the Yen and CHF to sell off as risk appetite for carry trades resumed.

EURCHF formed a Shooting Star candle on the daily chart which was bearish. But today's price action confirmed the follow-through bounce form the 62% fibonacci level.

Find out how to recognize and take advantage of moves like these in our 8-Day Intensive Power Course: http://www.fxcm.com/power-course-promo.jsp

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I will join all of you in this thread if possible. For now just let me share with you my yesterday's experience using Fibos. I saw a good short-term opportunity in GBPJPY.
http://www.learncurrencytrading.com/...postcount=3292

Using hourly chart, I sold above 229, looking for to test 228.00 and 226.50, just some pips below 38.2 and 61.8% of 224.76-230.34. The pair was clearly rejected at 50% of retracement (227.55). All positions were closed out at 228.00. Good intra-day trade!

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Thanks for posting! Keep them coming.

After reaching a historic all-time low of .9056, the USD/CAD had rallied 1191 pips to 1.0247. On December 17th, this counter trend move ran out of gas and broke a steep trend to rejoin the daily down trend.

A bounce from the low of 1.0011, give us another chance to enter on the short side near the 61.8% retracement of 1.0144.

Fibonacci gives us a way of getting involved after a market move has occurred. This gives us a better risk reward and reduces the stress that a trader has to endure as Price retraces a break.

To learn more about trading with Fibonacci retracements in an interactive environment, enroll in the next upcoming Intensive FX Powercourse at:

http://www.fxcm.com/power-course-promo.jsp

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AUD/USD is a textbook example of price action interacting with Fibonacci levels. the .8540 area saw multiple failed attempts by the bears to push prices lower. A bullish engulfing candle is the exclamation point signaling an end to the month long price decline.

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In a longterm uptrend, price periodically retraces/takes a break from making higher highs and higher lows. This is indicated by crossovers in indicators such as MACD and RSI. New traders often mistake these pauses for trend reversals and place short/selling trades to take advantage of falling prices. They often stay too long and lose their small gains.

A better strategy would be to stand aside and wait for the counter trend to end and rejoin when the trend resumes.

Usually, the point where the trend resumes is, you guessed it, a Fibonacci level. Using our indicators to show the weakening counter trend by looking for double bottoms or divergence in oscillators or rising histogram and MACD lines are things you can look for as price hits a Fib line.

A reversal candlestick pattern at a Fib line and trend line break are the final pieces of the puzzle of when to rejoin the trend.

Look at the following AUD/CHF chart to see how all of these clues fit together.

Learn more 'forensic forex' methods in the Intensive FX Power Course https://fxcmstore.com/findproduct.do?aff=1&prod=1

See you in class!

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We are glad to be of help to you. If you have any questions please post. Your English is fine.