On the H4, price is crossing the ichimoku cloud and breaking the descending trendline, we have a bullish bias that the price may test the 1st resistance at 1.6281, which is in line with the previous swing high. If the 1st resistance is broken, the 2nd resistance is at 1.8641, where the 78.6% fibonacci retracement sits. Alternatively, the price may drop to the 1st support at 1.12688, where the swing low support and 23.6% fibonacci retracement are. If the 1st support is broken, the 2nd support is at 1.09364, which is in line with the 50% fibonacci retracement.
Trading Recommendation
Entry: 1.6281
Reason for Entry:
Previous swing high
Take Profit: 1.12688
Reason for Take Profit:Swing low support and 23.6% fibonacci retracement
Stop Loss: 1.8641
Reason for Stop Loss:
78.6% fibonacci retracement
