AUDUSD right on major resistance, time to sell
Sell below 0.7554. Stop loss at 0.7588. Take profit at 0.7490.
Reason for the trading strategy (technically):
Price has testing our major resistance at 0.7554 (Fibonacci extension, horizontal resistance) and we expect a strong reaction off this level for a drop to at least 0.7490 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) is dropping nicely from our 93% resistance with good downside potential.
Correlation analysis: Overall AUD weakness expected today with a drop on AUDUSD and AUDJPY.
Reason for the trading strategy (technically):
Price has testing our major resistance at 0.7554 (Fibonacci extension, horizontal resistance) and we expect a strong reaction off this level for a drop to at least 0.7490 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) is dropping nicely from our 93% resistance with good downside potential.
Correlation analysis: Overall AUD weakness expected today with a drop on AUDUSD and AUDJPY.