Sell below 1.6032. Stop loss 1.6068. Take profit at 1.5960.
Reason for the trading strategy (technically):
EURAUD reversed nicely off its resistance at 1.6032 (61.8% Fibonacci retracement, 100% Fibonacci extension) where we expect to see a further drop to its support at 1.5960 (61.8% Fibonacci extension, 38.2% Fibonacci retracement, horizontal pullback support). We do have to be cautious of the intermediate support at 1.5986 (23.6% Fibonacci retracement, horizontal overlap support).
Stochastic (89, 5, 3) reversed off its resistance at 97% where a corresponding drop is expected.
Reason for the trading strategy (technically):
EURAUD reversed nicely off its resistance at 1.6032 (61.8% Fibonacci retracement, 100% Fibonacci extension) where we expect to see a further drop to its support at 1.5960 (61.8% Fibonacci extension, 38.2% Fibonacci retracement, horizontal pullback support). We do have to be cautious of the intermediate support at 1.5986 (23.6% Fibonacci retracement, horizontal overlap support).
Stochastic (89, 5, 3) reversed off its resistance at 97% where a corresponding drop is expected.