FX.co ★ NZDUSD Bullish Dip | 3rd Feb 2022

On the H4, prices are on bearish momentum and abiding to our bearish trendline. We see the potential for a dip from our 1st resistance at 0.66629 in line with 38.2% Fibonacci retracement and 78.6% Fibonacci extension towards our 1st support at 0.65756 in line with 161.8% Fibonacci projection. RSI is at a level where dips occurred previously and prices are trading below our Ichimoku cloud resistance, further supporting our bearish bias. Alternatively, our stop loss will be placed at 2nd support at 0.64998 in line with 200% Fibonacci Projection.

Trading Recommendation

Entry: 0.66629

Reason for Entry:

38.2% Fibonacci retracement and 78.6% Fibonacci extension

Take Profit: 0.65756

Reason for Take Profit:

161.8% Fibonacci projection

Stop Loss: 0.64998

Reason for Stop Loss:

200% Fibonacci Projection