AUD/USD has finally broken our ascending support line, triggering a strong bearish drop from here as expected. 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 forecasted the drop we expected on it. We still have some downside potential for our drop.
Sell below 0.7885. Set stop loss at 0.7978 and take profit at 0.7696