FX.co ★ NZDUSD Potential for Bearish Dip | 9th Feb 2022

On the H4 timeframe, prices were on bearish momentum and are abiding to our descending trendline. We see potential for prices to dip from our 1st resistance at 0.66474 in line with 61.8% Fibonacci retracement towards our 1st support at 0.66198 in line with 61.8% Fibonacci retracement. Our bias is further supported by RSI being at levels where dips previously occurred. Alternatively, our stop loss will be placed at 2nd resistance at 0.66735 in line with 100% Fibonacci retracement and 61.8% Fibonacci extension.

Trading Recommendation

Entry: 0.66474

Reason for Entry:

61.8% Fibonacci retracement

Take Profit: 0.66198

Reason for Take Profit:

61.8% Fibonacci retracement

Stop Loss: 0.66735

Reason for Stop Loss:

100% Fibonacci retracement and 61.8% Fibonacci extension