On the H4 timeframe, we are seeing price is abiding by the descending channel and is on a bearish momentum. Price can potentially reverse from the 1st resistance level of 1.08482 which is in line with 23.6% Fibonacci retracement and 78.6% Fibonacci projection towards the 1st support level of 1.07627 which is in line with 61.8% Fibonacci retracement, 61.8% Fibonacci projection and 138.2% Fibonacci extension. Our bearish bias is further supported by price being pushed down by Ichimoku cloud. Otherwise, price might break through the 1st resistance level and head to 2nd resistance level of 1.09368 which is in line with 38.2% Fibonacci retracement.
Trading Recommendation
Entry: 1.08482
Reason for Entry:
23.6% Fibonacci retracement and 78.6% Fibonacci projection.Take Profit: 1.07627
Reason for Take Profit: 61.8% Fibonacci retracement, 61.8% Fibonacci projection and 138.2% Fibonacci extension.
Stop Loss: 1.09368
Reason for Stop Loss:
38.2% Fibonacci retracement.
