AUDUSD testing major resistance, prepare for a reversal
Sell below 0.8109. Stop loss at 0.8173. Take profit at 0.7817.
Reason for the trading strategy (technically):
Price is testing major resistance at 0.8109 (Fibonacci extension, horizontal swing high resistance, bearish divergence) and a strong reaction can be expected from this level to push price down towards 0.7817 support (Fibonacci retracement, horizontal swing low support). Only a break of our major ascending support would give further confirmation of this drop down.
RSI (34) sees bearish divergence vs price signalling that a reversal is impending.
Reason for the trading strategy (technically):
Price is testing major resistance at 0.8109 (Fibonacci extension, horizontal swing high resistance, bearish divergence) and a strong reaction can be expected from this level to push price down towards 0.7817 support (Fibonacci retracement, horizontal swing low support). Only a break of our major ascending support would give further confirmation of this drop down.
RSI (34) sees bearish divergence vs price signalling that a reversal is impending.