AUDUSD approaching major support, prepare for a bounce
Intro: AUDUSD has been dropping nicely and we’re seeing a strong support area where a bounce might occur.
Buy above 0.7731. Stop loss at 0.7633. Take profit at 0.7986.
Reason for the trading strategy (technically):
Price is approaching major support at 0.7731 (Fibonacci extension, Fibonacci retracement, horizontal overlap support) and a strong bounce from this level would push price up towards 0.7986 resistance (Fibonacci retracement, horizontal swing high resistance). We have to be careful about intermediate resistance at 0.7890 too.
Stochastic (34,5,3) is seeing major support at 0.4% where a corresponding bounce could occur.
Buy above 0.7731. Stop loss at 0.7633. Take profit at 0.7986.
Reason for the trading strategy (technically):
Price is approaching major support at 0.7731 (Fibonacci extension, Fibonacci retracement, horizontal overlap support) and a strong bounce from this level would push price up towards 0.7986 resistance (Fibonacci retracement, horizontal swing high resistance). We have to be careful about intermediate resistance at 0.7890 too.
Stochastic (34,5,3) is seeing major support at 0.4% where a corresponding bounce could occur.