AUDUSD has broken key support, time to sell
Sell below 0.7885. Stop loss at 0.7978. Take profit at 0.7696
Reason for the trading strategy (technically):
Price has finally broken our ascending support line triggering a strong bearish drop as expected from here. We look to sell on strength below major resistance at 0.7885 (61.8% Fibonacci retracement, horizontal swing high resistance, bearish divergence) for a drop to at least 0.7696 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,3,1) is also testing major resistance at 98% and we can see bearish divergence vs price signalling that a reversal is impending. The recent bearish exit has forecasted well the drop we expected on it. We still have some downside potential for our drop.
Reason for the trading strategy (technically):
Price has finally broken our ascending support line triggering a strong bearish drop as expected from here. We look to sell on strength below major resistance at 0.7885 (61.8% Fibonacci retracement, horizontal swing high resistance, bearish divergence) for a drop to at least 0.7696 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,3,1) is also testing major resistance at 98% and we can see bearish divergence vs price signalling that a reversal is impending. The recent bearish exit has forecasted well the drop we expected on it. We still have some downside potential for our drop.