AUDNZD testing strong resistance, prepare to sell
AUDNZD is testing strong harmonic resistance and looks poised to drop from here.
Sell below 1.0797. Stop loss at 1.0833. Take profit at 1.0706.
Reason for the trading strategy (technically):
Price is testing major resistance at 1.0797 (Fibonacci extension, bearish harmonic formation) and a strong reaction could occur at this level to push price down towards 1.0706 support (Fibonacci retracement, horizontal swing low support). Our stop loss is at 1.0833 which is just above a major swing high and Fibonacci retracement to give our trading setup ample breathing space.
Stochastic (34,5,3) is seeing nice resistance at 93% where a corresponding drop could occur.
Sell below 1.0797. Stop loss at 1.0833. Take profit at 1.0706.
Reason for the trading strategy (technically):
Price is testing major resistance at 1.0797 (Fibonacci extension, bearish harmonic formation) and a strong reaction could occur at this level to push price down towards 1.0706 support (Fibonacci retracement, horizontal swing low support). Our stop loss is at 1.0833 which is just above a major swing high and Fibonacci retracement to give our trading setup ample breathing space.
Stochastic (34,5,3) is seeing nice resistance at 93% where a corresponding drop could occur.