AUDUSD approaching major resistance, prepare to sell
Sell below 0.7964. Stop loss at 0.7997. Take profit at 0.7874.
Reason for the trading strategy (technically):
Price has slowly creeped up towards our selling area and is starting to form a really nice reversal pattern. We prepare to sell on major resistance at 0.7964 (Fibonacci retracement, horizontal swing high resistance, Fibonacci extension, bearish divergence) for a push down to at least 0.7874 support (Fibonacci retracement, horizontal overlap support).
Stochastic (21,5,3) is seeing major resistance below 95% where we expect a drop from. We also see bearish divergence vs price signalling that a reversal is impending.
Reason for the trading strategy (technically):
Price has slowly creeped up towards our selling area and is starting to form a really nice reversal pattern. We prepare to sell on major resistance at 0.7964 (Fibonacci retracement, horizontal swing high resistance, Fibonacci extension, bearish divergence) for a push down to at least 0.7874 support (Fibonacci retracement, horizontal overlap support).
Stochastic (21,5,3) is seeing major resistance below 95% where we expect a drop from. We also see bearish divergence vs price signalling that a reversal is impending.