FX.co ★ NZDUSD Potential for Bullish Bounce | 7th Feb 2022

On the H4 timeframe, prices were on bearish momentum and have bounced off 1st support. We see potential for prices to bounce from our 1st support at 0.65950 in line with 61.8% Fibonacci retracement towards our 1st resistance at 0.66475 in line with 61.8% Fibonacci retracement. Our bias is further supported by the Ichimoku Clouds forecasting a bullishness and also RSI being at levels where bounces previously occurred. Alternatively, our stop loss will be placed at 2nd support at 0.65659 in line with 78.6% Fibonacci retracement.

Trading Recommendation

Entry: 0.65950

Reason for Entry:

61.8% Fibonacci retracement

Take Profit: 0.66475

Reason for Take Profit:

61.8% Fibonacci retracement

Stop Loss: 0.65659

Reason for Stop Loss:

78.6% Fibonacci retracement