FX.co ★ NZDUSD Potential for Bearish Drop | 23rd September 2022

On the H4, with the price moving within the descending channel, below ichimoku cloud, If the price can break the 1st support at 0.57984, which is in line with the 78.6% fibonacci projection, 161.8% fibonacci extension, 127.2% fibonacci extensions successfully, we can expect the price drop to the 2nd support at 0.56546, which is in line with the 200% fibonacci extension and 161.8% fibonacci extension. Alternatively, the price may pull back to the 1st resistance at 0.59984, where the 50% fibonacci retracement and overlap resistance are.

Trading Recommendation

Entry: 0.57984

Reason for Entry:

78.6% fibonacci projection, 161.8% fibonacci extension, 127.2% fibonacci extensions

Take Profit: 0.56546

Reason for Take Profit:

200% fibonacci extension and 161.8% fibonacci extension

Stop Loss: 0.59984

Reason for Stop Loss:

50% fibonacci retracement