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There are a lot of major levels around at the moment at this daily chart of the EURCAD is a prime example of one such level. If you look at my daily chart below you will see that the Round Number of 1.3800 is a super important level on this chart that has acted a major price flip.
You will also noticed that this is a real ‘level’ or ‘zone’ and not a straight line with price not touching it perfectly to the pip, but more hovering around it and still respecting it.
A really great example of how a price can make a false break on an intraday chart and get the whole market going the wrong way, but give price action traders the inside running is on the 4 hour chart. As my 4 hour chart shows below; price made a very solid 2 bar reversal false break with a clear FB of the daily support. This would have got all the breakout traders going short right before all their stops got taken out with the snap back higher.
4 HOUR CHART
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