Round number SR - entry point of the trade

Round number is very valuable for currency trading. First, they are the target of funds and big traders. Second, they are good SR. Third, that's the point where there are a lot of price action, since it's option barrier and stop orders. Fourth, it's a psychological level. Example of round numbers are, 1.5000, 1.4500, 1.4700, the more 0 at the end, the stronger the level.


Price usually won't stay at those levels for long. They will be touched and leave soon, either break away for 20+ pips or pull back 20+ pips. One side will win the battle and take it further.


Below is one of the trades I took last weekend when USD/JPY break 85.00. I bought it at 84.95, the target is the 50% of Fib around 88.50. When USD/JPY broke 85.00, it only stayed at that level for less than a minute. This trade shows how valuable of round numbers as SR.

The trade was closed on Friday at the 50% Fib level 88.8 for 380 pips profit.