FX.co ★ NZDUSD Potential For Bearish Continuation | 17th May 2022

On the H4, with price moving below the Ichimoku cloud, we have a bearish bias that price will drop from our 1st resistance at 0.63428 where the 23.6% Fibonacci retracement, 38.2% Fibonacci retracement and horizontal swing high resistance is to our 1st support at 0.62274 in line with the horizontal swing low support. Alternatively, price may break 1st resistance structure and head for 2nd resistance at 0.64052 in line with the horizontal pullback resistance and 50% Fibonacci retracement.

Trading Recommendation

Entry: 0.63428

Reason for Entry:

23.6% Fibonacci retracement, 38.2% Fibonacci retracement and Horizontal swing high resistance

Take Profit:0.62274

Reason for Take Profit:Horizontal swing low supportStop Loss: 0.64052

Reason for Stop Loss:

Horizontal pullback resistance and 50% Fibonacci retracement