FX.co ★ NZDUSD Potential for Bearish Drop| 20th October 2022

On the H4, the price is below the ichimoku cloud and descending trendline, we can expect the price to drop from the 1st resistance at 0.56622, which is in line with the overlap resistance to the 1st support at 0.55544, where the swing low support is. Alternatively, the price may rise to the 1st resistance. If the 1st resistance level is broken, the 2nd resistance level is at 0.58022, where the previous swing high, 100% fibonacci projection and 38.2% fibonacci retracement are.

Trading Recommendation

Entry: 0.56622

Reason for Entry:

overlap resistance

Take Profit: 0.55544

Reason for Take Profit:

swing low support

Stop Loss: 0.58022

Reason for Stop Loss:

previous swing high, 100% fibonacci projection and 38.2% fibonacci retracement