AUDUSD on major resistance, prepare to sell
Sell below 0.7834. Stop loss at 0.7872. Take profit at 0.7768.
Reason for the trading strategy (technically):
Price is testing major resistance at 0.7834 (Fibonacci retracement, horizontal overlap resistance) and we expect to see a strong reaction off this level to push price down to at least 0.7768 support (Fibonacci retracement, horizontal overlap support, Fibonacci extension).
Stochastic (34,3,1) is seeing major resistance as it approaches to 100% level and we expect to see a corresponding reaction off this level.
Correlation analysis: We’re seeing commodities weakness with drops expected on AUDUSD, AUDJPY and NZDUSD.
Reason for the trading strategy (technically):
Price is testing major resistance at 0.7834 (Fibonacci retracement, horizontal overlap resistance) and we expect to see a strong reaction off this level to push price down to at least 0.7768 support (Fibonacci retracement, horizontal overlap support, Fibonacci extension).
Stochastic (34,3,1) is seeing major resistance as it approaches to 100% level and we expect to see a corresponding reaction off this level.
Correlation analysis: We’re seeing commodities weakness with drops expected on AUDUSD, AUDJPY and NZDUSD.