FX.co ★ NZDUSD Potential for Bearish Dip | 11th Feb 2022

On the H4 timeframe, prices have dipped beyond our strong graphical overlap and are on bearish momentum. We see potential for bearish continuation from our 1st resistance at 0.66738 in line with 38.2% Fibonacci retracement towards our 1st support at 0.66247 in line with 50% Fibonacci retracement, 78.6% Fibonacci extensions and 23.6% 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 0.67338 in line with 61.8% Fibonacci retracement.

Trading Recommendation

Entry: 0.66738

Reason for Entry:

38.2% Fibonacci retracement

Take Profit: 0.66247

Reason for Take Profit:

50% Fibonacci retracement, 78.6% Fibonacci extensions and 23.6% Fibonacci retracement

Stop Loss: 0.67338

Reason for Stop Loss:

61.8% Fibonacci retracement