FX.co ★ AUDUSD Potential for Bullish Rise| 19th October 2022

On the H4, the price is reversing from 1st support, with the price is below the descending channel and ichimoku cloud, we can expect the price test the 1st resistance at 0.63411, which is in line with the 23.6% fibonacci retracement and 50% fibonacci retracement. If the 1st resistance is broken, as the descending channel and ichimoku cloud are both broken, we can expect the bullish momentum to carry the price to the 2nd resistance at 0.65323, which is in line with the overlap resistance. Alternatively, the price may drop to the 1st support at 0.61921, where the previous swing low, 61.8% fibonacci projection and 200% fibonacci extension are.

Trading Recommendation

Entry: 0.63411

Reason for Entry:

23.6% fibonacci retracement and 50% fibonacci retracement

Take Profit: 0.65323

Reason for Take Profit:

overlap resistance

Stop Loss: 0.61921

Reason for Stop Loss:

previous swing low