FX.co ★ AUD/USD reacting nicely to our selling area, remain bearish

Price has bounced up perfectly and has reached our profit target once again. We prepare to sell below 0.7549 resistance (Fibonacci retracement, fibonacci extension, horizontal overlap resistance, descending resistance) for a drop to at least 0.7490 support (Fibonacci retracement, horizontal pullback support).

Stochastic (55,5,3) is seeing major resistance below the 97% level where we expect a drop from.

Correlation analysis: AUD/USD has a strong positive correlation with NZD/USD which expects a bearish move increasing our bearish scenario on this trade.

Sell below 0.7549. Stop loss at 0.7588. Take profit at 0.7490.