FX.co ★ AUDUSD Potential for Bearish Continuation | 8th September 2022

On the H4, with the price moving below the ichimoku cloud and moving within the descending channel, we have a bearish bias that the price may drop to the 1st support at 0.67264, which is in line with the previous swing low. If the price can break this support level, the 2nd support level could be at 0.66809, where the 61.8% fibonacci projection and swing low are. Alternatively, the price may rise to the 1st resistance at 0.67770, where the 23.6% fibonacci retracement and overlap resistance are.

Trading Recommendation

Entry: 0.67264

Reason for Entry:

Previous swing low

Take Profit: 0.66809

Reason for Take Profit:

61.8% fibonacci projection and swing low

Stop Loss: 0.67770

Reason for Stop Loss:

23.6% fibonacci retracement and overlap resistance