FX.co ★ AUDUSD bullish bounce | 20th Dec 2021

On the H4, price has broken out of the descending trendline resistance and reacting in an ascending channel, signifying bullish momentum. We can expect price to bounce from 1st Support in line with channel support, 78.2% Fibonacci retracement and 127.2% Fibonacci projection towards 1st Resistance in line with 100% Fibonacci projection and 61.8% Fibonacci retracement. Our bullish bias is further supported by the stochastic indicator where the %D line is abiding to the ascending trendline support.

Trading Recommendation

Entry:0.71099

Reason for Entry:

78.2% Fibonacci retracement and 127.2% Fibonacci projection

Take Profit: 0.72317

Reason for Take Profit:

100% Fibonacci projection and 61.8% Fibonacci retracement

Stop Loss: 0.70778

Reason for Stop Loss:

161.8% Fibonacci projection and -27.2% Fibonacci extension