FX.co ★ AUDUSD Potential For Bullish Continuation | 26th May 2022

On the H4, the price has recently broken the descending trendline and is moving above the Ichimoku cloud which supports our bullish bias that the price will rise from our 1st horizontal pullback support at 0.70341 in line with the 23.6% Fibonacci retracement and 78.6% Fibonacci projection, to the 1st resistance at 0.72628 in line with 50% Fibonacci retracement and another 61.8% Fibonacci retracement, or to the 2nd resistance at 0.73520 in line with the 78.6% and 61.8% Fibonacci retracements. Alternatively, the price may break through the 1st support at 0.70341 and approach the 2nd support at 0.68318 at the swing low.

Trading Recommendations

Entry: 0.70341

Reason for Entry: Horizontal pullback support in line with the 23.6% Fibonacci retracement and 78.6% Fibonacci projection

Take Profit: 0.72628

Reason for Take Profit: 50% Fibonacci retracement and another 61.8% Fibonacci retracement

Stop Loss: 0.68318

Reason for Stop Loss: Swing low