FX.co ★ AUDUSD Potential For Bearish Dip | 5th May 2022

On the H4, with price expected to reverse off the Ichimoku cloud resistance, we have a bearish bias that price will pullback and retest from our 1st resistance at 0.72557 where the horizontal swing high resistance and 50% Fibonacci retracement is to our 1st support at 0.71704 which is closer to the recent trendline breakout in line with the horizontal pullback support and 38.2% Fibonacci retracement. Alternatively, price may break 1st resistance structure and head for 2nd resistance at 0.73469 where the horizontal pullback resistance and 78.6% Fibonacci retracement is.

Trading Recommendation

Entry: 0.72557

Reason for Entry: Horizontal swing high resistance and 50% Fibonacci retracement

Take Profit: 0.71704

Reason for Take Profit: Horizontal pullback support and 38.2% Fibonacci retracement

Stop Loss: 0.73469

Reason for Stop Loss:

Horizontal pullback resistance and 78.6% Fibonacci retracement