AUDUSD is testing major resistance, watch for potential drop!

AUDUSD is testing its major resistance level at 0.7825 (horizontal overlap resistance, 38.2%, 61.8% Fibonacci retracement ) which coincides with the long term descending resistance line. A strong reaction could occur at this level, pushing price down to our next major support level at 0.7729 (horizontal overlap support, 61.8% Fibonacci retracement , 61.8% Fibonacci extension ).

RSI (55) is also testing its descending resistance line at 53% along with an ascending support line and we are seeing a short squeeze. A bearish breakout of the support level would be a good precursor of a potential drop.

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Trade closed: stop reached:

2nd resistance got hit invalidating our idea before dropping hard. Part and parcel of the markets!