AUDUSD approaching strong resistance, potential for drop!

AUDUSD is approaching its major resistance at 0.7786 (horizontal overlap resistance, 23.6% Fibonacci retracement , 61.8% Fibonacci extension) which coincides with the short term descending resistance line. A strong reaction could occur at this level, pushing price down to 0.7697 (horizontal pullback support, 100% Fibonacci extension). Our next resistance is at 0.7826 which is our 38.2 and 61.8% Fibonacci retracement, our 100% fibonaccei extension level along with our horizontal overlap resistance.

RSI (89) is approaching its resistance level and a corresponding drop in price might occur. We can also see a short term bearish breakout signalling bearish momentum potential.

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