FX.co ★ AUDUSD Potential for Bearish Drop | 10th October 2022

On the H4, the price is moving below the ichimoku cloud and descending channel , we have a bearish bias that the price may rise to the 1st resistance at 0.63973, which is in line with the previous swing low and then drop to the 1st support at 0.62085, which is in line with the 61.8% fibonacci projection . Alternatively, the price may rise to the 2nd resistance at 0.65503, where the 23.6% fibonacci retracement and 78.6% fibonacci projection are.

Trading Recommendation

Entry: 0.63973

Reason for Entry:Previous swing low

Take Profit: 0.62085

Reason for Take Profit:

61.8% fibonacci projection

Stop Loss: 0.65503

Reason for Stop Loss:

23.6% fibonacci retracement and 78.6% fibonacci projection