FX.co ★ AUDUSD potential short-term bearish drop| 3rd Jan 2022

On the H4, price is reacting in an ascending channel, signifying bullish momentum. However, price is currently at a resistance, we can expect price to drop from 1st Resistance in line with 127.2% Fibonacci projection ,127.2% Fibonacci Extension and 50% Fibonacci retracement towards 1st Support in line with 100% Fibonacci projection and 78.6% Fibonacci retracement. Our short-term bearish bias is further supported by the stochastic indicator where the %K line is approaching the resistance level.

Trading Recommendation

Entry: 0.72773

Reason for Entry:

127.2% Fibonacci projection ,127.2% Fibonacci Extension and 50% Fibonacci retracement

Take Profit: : 0.71203

Reason for Take Profit:

100% Fibonacci projection and 78.6% Fibonacci retracement

Stop Loss: 0.73654

Reason for Stop Loss:

Graphical overlap resistance, 61.8% Fibonacci retracement