FX.co ★ AUD/USD approaching major support, prepare to buy

The price has continued to drop strongly since yesterday. We prepare to buy above major support at 0.7842 (Fibonacci retracement, horizontal pullback support, Fibonacci extension) for a push up to at least 0.7917 resistance (Fibonacci retracement, horizontal swing high resistance).

Stochastic (34,5,3) is seeing strong support above 12% where we expect to see a corresponding bounce from.

Correlation analysis: We're seeing commodity strength vs USD today with bounces expected on AUD/USD and NZD/USD.

Buy above 0.7842. Stop loss is at 0.7814. Take profit is at 0.7917.