FX.co ★ AUDUSD Potential For Bullish Continuation | 12th July 2022

On the H4, with price moving below the ichimoku cloud and in a descending trendline, we have a bearish bias that price will continue to drop from the 1st resistance at 0.67009 in line with the 127.2% fibonacci extension and 78.6% fibonacci projection to the 1st support at 0.65776 in line with the 161.8% fibonacci extension and 78.6% fibonacci projection. Alternatively, price may reverse off the 1st resistance and rise to the 2nd resistance at 0.68487 in line with the overlap swing high.

Trading Recommendation

Entry: 0.67009

Reason for Entry:

127.2% fibonacci extension and 78.6% fibonacci projectionTake Profit: 0.65776

Reason for Take Profit:161.8% fibonacci extension and 78.6% fibonacci projection

Stop Loss: 0.68487

Reason for Stop Loss:

Overlap swing high