AUDUSD Potential For Bearish Drop | 31st August 2022

On the H4, with the price moving below the ichimoku cloud, moving within the descending channel and MACD is showing a death cross, we have a bearish bias that the price may drop to the 1st support at 0.68412, which is in line with the swing low to the 2nd support at 0.68024, where the overlap support is. Alternatively, the price may rise to the 1st resistance at 0.69118, where the 38.2% fibonacci retracement and previous swing high are. If the price can break this resistance level, we can expect the price to rise to the 2nd resistance at 0.69925, where the swing highs, 50% fibonacci retracement and 100% fibonacci projection are.

Trading Recommendation

Entry: 0.68412

Reason for Entry:Swing low

Take Profit:0.68024

Reason for Take Profit:Overlap support

Stop Loss: 0.69118

Reason for Stop Loss:

38.2% fibonacci retracement and previous swing high