AUDUSD approaching major resistance, prepare for a drop!
Sell below 0.8036. Stop loss at 0.8126. Take profit at 0.7894.
Reason for the trading strategy (technically):
Price is testing major ascending support and only a break of key support level at 0.8036 (Fibonacci retracement, horizontal overlap support, ascending support, bearish divergence) would trigger a big drop down to 0.7894 support (Fibonacci retracement).
RSI (34) is seeing strong support above 46% and also sees bearish divergence vs price signalling that a reversal is impending.
Reason for the trading strategy (technically):
Price is testing major ascending support and only a break of key support level at 0.8036 (Fibonacci retracement, horizontal overlap support, ascending support, bearish divergence) would trigger a big drop down to 0.7894 support (Fibonacci retracement).
RSI (34) is seeing strong support above 46% and also sees bearish divergence vs price signalling that a reversal is impending.