AUDUSD Broke Out Of Support, Sell On Strength!
Sell below 0.7748. Stop loss at 0.7813. Take Profit at 0.7649.
Reason for the trading strategy:
Price is approaching our major resistance at 0.7748 (horizontal overlap resistance, breakout level). A strong reaction might occur below this level, pushing price down to our major support at 0.7649 (horizontal swing low support, 61.8% Fibonacci extension, 76.4% Fibonacci retracement) which coincides with our long term ascending support line. Ichimoku cloud is also showing signs of bearish pressure, in line with our bearish bias.
RSI (34) is also seeing a bearish exit and we might see a corresponding drop in price.
Reason for the trading strategy:
Price is approaching our major resistance at 0.7748 (horizontal overlap resistance, breakout level). A strong reaction might occur below this level, pushing price down to our major support at 0.7649 (horizontal swing low support, 61.8% Fibonacci extension, 76.4% Fibonacci retracement) which coincides with our long term ascending support line. Ichimoku cloud is also showing signs of bearish pressure, in line with our bearish bias.
RSI (34) is also seeing a bearish exit and we might see a corresponding drop in price.