Price on the EURAUD has rejected the Very Big Round Number (VBRN) of 1.5000, with price firing off a rejection candle on the daily price action chart. This very big round number has been a key support and resistance price flip level in the past where price has flipped and acted as both support and resistance. Very Big Round Numbers such as the 1.5000 on this chart can act as large psychological levels in the market. These round numbers will often act as key support and resistance levels where traders can look to line them up with other points of confluence to look for high probability trades. Examples of other very big round number on other charts are; EURUSD 1.4000, USDCAD 1.000 etc.
The daily chart below shows how price was holding as support above this very big round number before price collapsed and fell through. Price then moved higher to test the old support/new resistance level and this is where the bearish rejection candle has formed in the latest session. Whilst this is not a clean price action setup it is showing that the very big round number and resistance level is at this stage respected. Whilst there is some chop and traffic to move through, if price can gain momentum and move lower, the near term support for price to move into would be around 1.4720. If price moves back higher, traders can keep an eye on the very big round number and key resistance level to see what, if any price action is fired off on either the daily or intraday charts such as the 4hr and 8hr charts.
EURAUD Daily Chart
Related Forex Trading Articles & Videos
– How to Change MT4 Time Frames to Make Any Time Frame You Want
yes nice setup