EURAUD Approaching Resistance, Prepare For A Drop
EURAUD is approaching resistance where we can expect a strong drop.
Sell below 1.5502. Stop loss 1.5621. Take profit at 1.5270.
Reason for the trading strategy (technically):
EURAUD is approaching its resistance at 1.5502 (horizontal overlap resistance, 23.6% Fibonacci retracement) where we expect price to drop to its major support at 1.5270 (horizontal swing low support). Ichimoku cloud is also showing signs of bearish pressure in line with our bearish bias.
RSI (89) is also approaching its resistance line and a reaction off this level will see a corresponding drop in price.
Sell below 1.5502. Stop loss 1.5621. Take profit at 1.5270.
Reason for the trading strategy (technically):
EURAUD is approaching its resistance at 1.5502 (horizontal overlap resistance, 23.6% Fibonacci retracement) where we expect price to drop to its major support at 1.5270 (horizontal swing low support). Ichimoku cloud is also showing signs of bearish pressure in line with our bearish bias.
RSI (89) is also approaching its resistance line and a reaction off this level will see a corresponding drop in price.