AUDUSD dropping nicely towards profit target, remain bearish
Sell below 0.7942. Stop loss at 0.7981. Take profit at 0.7875.
Reason for the trading strategy (technically):
Price has dropped nicely from our previous call on Friday. We remain bearish looking to sell on strength below 0.7942 resistance (Fibonacci retracement, horizontal overlap resistance) for a further push down to 0.7875 support (Fibonacci extension, horizontal swing low support, bearish channel momentum).
RSI (34) sees a descending resistance line holding our bearish momentum really nicely.
Correlation analysis: We are expecting commodities weakness with AUDUSD and NZDUSD both expecting drops.
Reason for the trading strategy (technically):
Price has dropped nicely from our previous call on Friday. We remain bearish looking to sell on strength below 0.7942 resistance (Fibonacci retracement, horizontal overlap resistance) for a further push down to 0.7875 support (Fibonacci extension, horizontal swing low support, bearish channel momentum).
RSI (34) sees a descending resistance line holding our bearish momentum really nicely.
Correlation analysis: We are expecting commodities weakness with AUDUSD and NZDUSD both expecting drops.