FX.co ★ NZDUSD Bullish Bounce | 18th Jan 2022

On the H4 timeframe, prices are consolidating in an ascending channel and on bullish momentum. We see the potential for a bounce from our 1st support at 0.6799 in line with 61.8% Fibonacci retracement and 100% Fibonacci extension towards our 1st resistance at 0.68306 in line with 50% Fibonacci retracement. Prices are trading above our MA 200 and MA 50, and also Ichimoku clouds, further supporting our bullish bias. Alternatively, if prices break our 1st support, we see the potential for prices to dip towards our 2nd support at 0.67500 in line with 127.2% Fibonacci extension.

Trading Recommendation

Entry: 0.6799

Reason for Entry:

61.8% Fibonacci retracement and 100% Fibonacci extension

Take Profit: 0.68306

Reason for Take Profit:

50% Fibonacci retracement

Stop Loss: 0.67500

Reason for Stop Loss:

127.2% Fibonacci extension