FX.co ★ AUDUSD Bearish Breakout | 11th Jan 2022

On the H4, price broke out of the ascending trendline support, signifying a bearish momentum. We can expect price to drop from 1st Resistance in line with 38.2% Fibonacci retracement and 61.8% Fibonacci projection towards 1st Support in line with 61.8% Fibonacci retracement. Our bearish bias is further supported by the price holding below the Ichimoku cloud and RSI indicator where it is abiding to the descending trendline resistance.

Trading Recommendation

Entry: 0.71844

Reason for Entry:

38.2% Fibonacci retracement and 61.8% Fibonacci projection

Take Profit: : 0.70894

Reason for Take Profit:61.8% Fibonacci retracement and graphical overlap support

Stop Loss: 0.72158

Reason for Stop Loss:

61.8% Fibonacci retracement and 100% Fibonacci projection