FX.co ★ NZDUSD Potential For Bearish Continuation | 22nd July 2022

On the H4, with price recently breaking the descending trend channel, short term ascending support and moving above the ichimoku cloud, we have a bullish bias that price will rise from the 1st support at 0.62177 at the overlap support. If price breaks the intermediary resistance at 0.62707 at the swing high in line with the 61.8% fibonacci retracement and 100% fibonacci projection, we will have upside confirmation that price will rise to the 1st resistance at 0.63269 at the swing high in line with the 78.6% fibonacci retracement. Alternatively, price may break the support structure at the 1st support and drop to the 2nd support at 0.61419 at the pullback support.

Trading Recommendation

Entry: 0.62177

Reason for Entry:

Overlap supportTake Profit: 0.63269

Reason for Take Profit:Swing high in line with the 78.6% fibonacci retracement

Stop Loss: 0.61419

Reason for Stop Loss:

Pullback support.