FX.co ★ NZDUSD Bullish Bounce | 31th Dec 2021

On the H4 timeframe, prices are consolidating in an ascending triangle and are experiencing a squeeze. We see potential for prices to bounce from our 1st support at 0.68211 in line with 78.6% Fibonacci extension towards our 1st resistance at 0.68676 in line with 61.8% and 127.2% Fibonacci extension. Our bias is further supported by the Ichimoku Clouds forecasting bullish momentum and also RSI showing bullish momentum. Alternatively, our stop loss will be placed at our 2nd support at 0.67886 in line with 127.2% Fibonacci extension.

Trading Recommendation

Entry: 0.68211

Reason for Entry:

78.6% Fibonacci extension

Take Profit: 0.68676

Reason for Take Profit:

61.8% and 127.2% Fibonacci extension

Stop Loss: 0.67886

Reason for Stop Loss:

127.2% Fibonacci extension