FX.co ★ NZDUSD bullish bounce | 7th Jan 2022

On the H4 timeframe, prices are at a Pivot and are experiencing a squeeze. We see potential for prices to bounce from our 1st support at 0.67505 in line with 100% Fibonacci extension and 78.6% Fibonacci retracement towards our 1st resistance at 0.67842 in line with 50% Fibonacci retracement. Our bias is further supported by RSI at a level where dips usually occur. If prices break our 1st support, prices can potentially dip towards our 2nd support at 0.67067 in line with 127.2% Fibonacci extensions and 100% Fibonacci retracement.

Trading Recommendation

Entry: 0.67505

Reason for Entry:

100% Fibonacci extension and 78.6% Fibonacci retracement

Take Profit: 0.67842

Reason for Take Profit:

50% Fibonacci retracement

Stop Loss: 0.67067

Reason for Stop Loss:

127.2% Fibonacci extensions and 100% Fibonacci retracement