FX.co ★ AUDUSD Potential for Bearish Drop | 25th October 2022

On the H4, with the price below the descending channel and ichimoku cloud, we have a bearish bias that the price may drop from the 1st resistance at 0.63260, which is in line with the overlap resistance to the 1st support at 0.61921, where the previous swing low, 61.8% fibonacci projection and 200% fibonacci extension are. Alternatively, the price may rise to the 2nd resistance at 0.64185, which is in line with the overlap resistance.

Trading Recommendation

Entry: 0.63260

Reason for Entry:Overlap resistanceTake Profit: 0.61921

Reason for Take Profit:

Previous swing low, 61.8% fibonacci projection and 200% fibonacci extension

Stop Loss: 0.64185

Reason for Stop Loss:

Overlap resistance