FX.co ★ AUDUSD Potential for Bearish Drop | 16th September 2022

On the H4, with the price moving within the descending channel and below ichimoku cloud, we have a bearish bias that the price may drop to the 1st support at 0.67105, which is in line with the swing low. If the 1st support level is broken, the 2nd support could be at 0.66122, where the 100% fibonacci projection is. Alternatively, the price may rise to the 1st resistance at 0.67717, which is in line with the 38.2% fibonacci retracement and overlap resistance.

Trading Recommendation

Entry: 0.67105

Reason for Entry: Swing low

Take Profit: 0.66122

Reason for Take Profit: 100% fibonacci projection

Stop Loss: 0.67717

Reason for Stop Loss:

38.2% fibonacci retracement and overlap resistance