FX.co ★ AUDUSD potential bullish bounce | 17th Jan 2022

On the H4, price is reacting within the ascending channel, signifying an overall bullish momentum. Price is approaching the 1st Support, we can expect to see price make a bullish bounce from 1st Support in line with 100% Fibonacci projection, 78.6% Fibonacci retracement and ascending channel support towards 1st Resistance in line with previous swing high and 78.6% Fibonacci projection. Our short-term bearish bias is further supported by the RSI indicator where it is approaching the support level.

Trading Recommendation

Entry: 0.71724

Reason for Entry:

100% Fibonacci projection, 78.6% Fibonacci retracement and ascending channel support

Take Profit: : 0.73091

Reason for Take Profit:Previous swing high and 78.6% Fibonacci projection

Stop Loss: 0.71369

Reason for Stop Loss:

127.2% Fibonacci projection, previous swing low