FX.co ★ NZDUSD Potential for Bearish Drop | 4th January 2023

Looking at the H4 chart, my overall bias for NZDUSD is bearish due to the current price crossing below the Ichimoku cloud, indicating a bearish market. If this bearish momentum continues, expect price to possibly break the 1st support at 0.62305, where the previous swing low is, before heading towards the 2nd support at 0.61601, where the -27.2% Fibonacci line is. In an alternate scenario, price could possibly head back up towards the 1st resistance level at 0.63024, where the 23.6% Fibonacci line is

Trading Recommendation

Entry: 0.63024

Reason for Entry:

Sell limit entry to retest the 1st resistance line

Take Profit: 0.61601

Reason for Take Profit:2nd support line

Stop Loss: 0.63742

Reason for Stop Loss:

2nd resistance line and recent swing high