AUDUSD up, but expect another drop before stronger bounce
Intro: AUDUSD has bounced up nicely since yesterday, however we’re expecting a drop to our major support area first before another stronger bounce.
Buy above 0.7731. Stop loss at 0.7633. Take profit at 0.7986.
Reason for the trading strategy (technically):
Price has made a small recovery overnight. We’re expecting price to drop today towards our major support at 0.7731 (Fibonacci extension, Fibonacci retracement, horizontal overlap support) where a strong bounce from this level would push price up towards 0.7986 resistance (Fibonacci retracement, horizontal swing high resistance). We have to be careful about intermediate resistance at 0.7890 too.
Stochastic (34,5,3) is seeing major support at 0.4% where it is starting to bounce nicely from.
Buy above 0.7731. Stop loss at 0.7633. Take profit at 0.7986.
Reason for the trading strategy (technically):
Price has made a small recovery overnight. We’re expecting price to drop today towards our major support at 0.7731 (Fibonacci extension, Fibonacci retracement, horizontal overlap support) where a strong bounce from this level would push price up towards 0.7986 resistance (Fibonacci retracement, horizontal swing high resistance). We have to be careful about intermediate resistance at 0.7890 too.
Stochastic (34,5,3) is seeing major support at 0.4% where it is starting to bounce nicely from.