AUDUSD testing major resistance, watch for a potential breakout!

6 mar 2018

AUDUSD sees major support at 0.7737 (61.8% Fibonacci extension , 61.8% Fibonacci extension , horizontal overlap support) and is currently testing both its horizontal resistance at 0.7788 (61.8% Fibonacci extension , 38.2% Fibonacci retracement ) and a descending resistance line. If it breaks past these two resistances, it may have the potential to rise to its next resistance area that is between 0.7846 and 0.7879 (61.8% Fibonacci extension , 38.2% Fibonacci retracement , 50% Fibonacci retracement , 61.8% Fibonacci retracement ). If it does not break past the two resistances, it may fall back down to its support at 0.7737. We have also identified a 3rd resistance at 0.7993 (61.8% Fibonacci retracement , horizontal swing high resistance).

RSI (89, 5, 3) and stochastic (55, 5, 3) both show a bullish break out which are precursors of a potential bullish breakout on AUDUSD