AUDUSD continues to test major resistance, remain bearish
Sell below 0.7697. Stop loss at 0.7725. Take profit at 0.7634.
Reason for the trading strategy (technically):
Price continues to test major resistance at 0.7697 (multiple Fibonacci extensions) and we expect a strong reaction off this level for a drop to at least 0.7634 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) is seeing strong resistance below 93% where we expect a strong drop from.
Correlation analysis: AUDUSD and NZDUSD are both strongly positively correlated as seen in the histogram. Both are expecting drops for today too and it is always better when they are moving in tandem.
Reason for the trading strategy (technically):
Price continues to test major resistance at 0.7697 (multiple Fibonacci extensions) and we expect a strong reaction off this level for a drop to at least 0.7634 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) is seeing strong resistance below 93% where we expect a strong drop from.
Correlation analysis: AUDUSD and NZDUSD are both strongly positively correlated as seen in the histogram. Both are expecting drops for today too and it is always better when they are moving in tandem.