On the H4, price is approaching 1st support level of 0.70894, which is in line with 50.0% Fibonacci retracement level & horizontal overlap support. We are biased towards a possible bullish reversal from this level to 1st resistance at price 0.71872 which coincides with 38.2% Fibonacci retracement level and horizontal swing high resistance and possibly to 2nd resistance at 0.72837 in line with 161.8% Fibonacci extension and 50% Fibonacci retracement. Alternatively, we may see price break 1st support structure and drop to 2nd support at 0.6998 in line with the horizontal swing low support . This is further supported by how the price is now holding above the Ichimoku cloud support.
Trading Recommendation
Entry: 0.71872
Reason for Entry:
38.2% Fibonacci retracement level and horizontal swing high resistance
Take Profit: 0.70894
Reason for Take Profit:
50.0% Fibonacci retracement level & horizontal overlap support
Stop Loss: 0.6998
Reason for Stop Loss:
Horizontal swing low support
