EURAUD Approaching Its Resistance, Prepare For A Reversal
Sell below 1.6121. Stop loss 1.6185. Take profit at 1.5980.
Reason for the trading strategy (technically):
EURAUD is approaching its resistance at 1.6121 (100% Fibonacci extension, 61.8% Fibonacci extension, 78.6% Fibonacci retracement, horizontal swing high resistance) where we expect to see a reversal, causing price to fall to its support at 1.5980 (50% Fibonacci retracement, 38.2% Fibonacci retracement, 61.8% Fibonacci extension, horizontal pullback support).
Stochastic (55, 5, 3) is approaching its resistance at 96%. We have also identified a bearish divergence with price which contributes to our bearish bias.
Reason for the trading strategy (technically):
EURAUD is approaching its resistance at 1.6121 (100% Fibonacci extension, 61.8% Fibonacci extension, 78.6% Fibonacci retracement, horizontal swing high resistance) where we expect to see a reversal, causing price to fall to its support at 1.5980 (50% Fibonacci retracement, 38.2% Fibonacci retracement, 61.8% Fibonacci extension, horizontal pullback support).
Stochastic (55, 5, 3) is approaching its resistance at 96%. We have also identified a bearish divergence with price which contributes to our bearish bias.