On the H4 chart, as the price is testing the descending trendline and the price is above ichimoku cloud, we have a bullish bias that the price may rise to the 1st resistance at 0.58022, which is in line with the 100% fibonacci projection and previous swing high. If the 1st resistance is broken, the 2nd resistance is at 0.59963, where the overlap resistance and 50% fibonacci retracement are. Alternatively, the price may drop to the 1st support at 0.56334, where the previous swing low and 61.8% fibonacci retracement are.
Trading Recommendation
Entry: 0.58022
Reason for Entry: 100% fibonacci projection and previous swing high
Take Profit: 0.59963
Reason for Take Profit:
Overlap resistance and 50% fibonacci retracement
Stop Loss: 0.56334
Reason for Stop Loss:
Previous swing low and 61.8% fibonacci retracement
The material has been provided by InstaForex Company – www.instaforex.com
