FX.co ★ AUDUSD, Potential For Bearish Dip | 4th May 2022

On the H4, with price moving below the Ichimoku cloud and the descending trendline, we have a bearish bias that price will drop from our 1st resistance at 0.71213 where the horizontal swing high resistance and 23.6%, 61.8% Fibonacci retracement is to our 1st support at 0.70348 in line with the horizontal swing low support and 78.6% Fibonacci projection. Alternatively, price may break 1st resistance structure and head for 2nd resistance at 0.71823 where the horizontal swing high resistance is.

Trading Recommendation

Entry: 0.71213

Reason for Entry: Horizontal swing high resistance and 23.6%, 61.8% Fibonacci retracement

Take Profit: 0.70348

Reason for Take Profit: Horizontal swing low support and 78.6% Fibonacci projection

Stop Loss: 0.71823

Reason for Stop Loss:

Horizontal swing high resistance