FX.co ★ AUDUSD Potential for Bearish Drop | 4th October 2022

On the H4, with the price reversing from the 1st resistance, and the price is below ichimoku cloud, the price may drop form the 1st resistance at 0.65337, which is in line with the 23.6% fibonacci retracement to the 1st support at 0.63630, which is in line with the swing low, 161.8% fibonacci extension and 127.2% fibonacci projection. Alternatively, the price may break the 1st resistance,and rise to the 2nd resistance at 0.66373, where the pullback resistance, 50% and 38.2% fibonacci retracement are.

Trading Recommendation

Entry: 0.65337

Reason for Entry: 23.6% fibonacci retracement

Take Profit: 0.63630

Reason for Take Profit:

Swing low, 161.8% fibonacci extension and 127.2% fibonacci projection

Stop Loss: 0.66373

Reason for Stop Loss:

Pullback resistance, 50% and 38.2% fibonacci retracement