FX.co ★ AUDUSD Short-term Bearish Drop | 13th Jan 2022

On the H4, price is reacting within the ascending channel, signifying an overall bullish momentum. Price is approaching the 1st Resistance, we can expect to see price make a short-term bearish drop from 1st Resistance in line with 127.2% Fibonacci extension and 100% Fibonacci projection towards 1st Support in line with 50% Fibonacci retracement and 61.8% Fibonacci projection. Our short-term bearish bias is further supported by the stochastic indicator where the %K line is at the resistance level.

Trading Recommendation

Entry: 0.73091

Reason for Entry:

127.2% Fibonacci extension and 100% Fibonacci projection

Take Profit: : 0.71266

Reason for Take Profit:

50% Fibonacci retracement and 61.8% Fibonacci projection

Stop Loss: 0.73618

Reason for Stop Loss:

127.2% Fibonacci projection