FX.co ★ AUDUSD Potential Short-term Bearish Drop | 29th Dec 2021

On the H4, price is reacting in an ascending channel, signifying bullish momentum. However, price is currently at a resistance, we can expect price to drop from 1st Resistance in line with 127.2% Fibonacci projection and -27.2% Fibonacci Extension towards 1st Support in line with 100% Fibonacci projection and 78.6% Fibonacci retracement. Our short-term bearish bias is further supported by the stochastic indicator where the %K line is at the resistance level.

Trading Recommendation

Entry: 0.72496

Reason for Entry:

127.2% Fibonacci projection and -27.2% Fibonacci Extension

Take Profit: :0.71203

Reason for Take Profit:

100% Fibonacci projection and 78.6% Fibonacci retracement

Stop Loss: 0.73206

Reason for Stop Loss:

-61.8% Fibonacci extension and 161.8% Fibonacci projection