AUDUSD back to major resistance, remain bearish
Sell below 0.7889. Stop loss at 0.7933. Take profit at 0.7738.
Reason for the trading strategy (technically):
Price has risen back up to our major resistance area of 0.7889 (Multiple Fibonacci retracement, horizontal swing high resistance, Fibonacci extension) and we expect to see a strong reaction from this level to push price down to 0.7738 support (Fibonacci extension, horizontal swing low support).
Stochastic (34,3,1) is seeing major resistance at 97% and has good downside potential. It is potentially forming a bearish divergence signal too.
Reason for the trading strategy (technically):
Price has risen back up to our major resistance area of 0.7889 (Multiple Fibonacci retracement, horizontal swing high resistance, Fibonacci extension) and we expect to see a strong reaction from this level to push price down to 0.7738 support (Fibonacci extension, horizontal swing low support).
Stochastic (34,3,1) is seeing major resistance at 97% and has good downside potential. It is potentially forming a bearish divergence signal too.
Trade active:
This trade is working out quite nicely :)