AUD/USD dropping nicely from our selling area, remain bearish

The price has made a fake breakout before reversing strongly from our selling area. We remain bearish looking to sell on strength below major resistance at 0.7629 (Fibonacci retracement, horizontal overlap resistance, channel resistance, Fibonacci extension, bearish divergence) and we expect to see a strong drop from this level to push the price down to at least 0.7537 support (Fibonacci extension, horizontal swing low support).

Stochastic (55,3,1) is seeing strong resistance at 96% where we expect a corresponding reaction off. We can also see bearish divergence vs the price signaling that a strong drop is impending.

Sell below 0.7629. Stop loss is at 0.7670. Take profit is at 0.7537.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: AUD/USD dropping nicely from our selling area, remain bearish