On the H4, with price approaching resistance on the stochastics indicator and the a graphical level, we have a bearish bias that price will dip to 1st support at 1.25573 in line with the graphical overlap support and possibly to 2nd support at 1.24967 in line with the graphical overlap support and 38.2% Fibonacci retracement area at 1.24967 from 1st resistance at 1.26354 in line with the horizontal overlap resistance and 127.2% Fibonacci extension level. Alternatively, we may see price break 1st resistance structure and head for 2nd resistance at 1.27169 in line with the 100% Fibonacci projection level and horizontal swing high resistance.
Trading Recommendation
Entry: 1.26354
Reason for Entry:
Graphical horizontal overlap resistance and 127.2% Fibonacci extension
Take Profit: 1.25573
Reason for Take Profit:
Graphical overlap support
Stop Loss: 1.27169
Reason for Stop Loss:
100% Fibonacci projection level and horizontal swing high resistance.
