AUDUSD forming a nice reversal at key resistance, time to short
Sell below 0.7885. Stop loss at 0.7978. Take profit at 0.7696
Reason for the trading strategy (technically):
Price is now testing major resistance at 0.7885 (61.8% Fibonacci retracement, horizontal swing high resistance, bearish divergence) and we expect to see a strong reaction off this level to push price down to at least 0.7696 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,3,1) is also testing major resistance at 98% and we can see bearish divergence vs price signalling that a reversal is impending.
Reason for the trading strategy (technically):
Price is now testing major resistance at 0.7885 (61.8% Fibonacci retracement, horizontal swing high resistance, bearish divergence) and we expect to see a strong reaction off this level to push price down to at least 0.7696 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,3,1) is also testing major resistance at 98% and we can see bearish divergence vs price signalling that a reversal is impending.