AUDUSD is testing major support, prepare to sell on break

AUDUSD has dropped and is testing major support. We look to sell if it breaks this support level.

Sell below 0.7781. Stop loss at 0.7819. Take profit at 0.7717.

Reason for the trading strategy (technically):

Price is testing major support at 0.7781 (Fibonacci retracement, horizontal overlap support, ascending support) and a break of this level would open a bigger drop to 0.7177 support (Fibonacci extension, horizontal swing low support).

RSI (34) can also see a long term bearish descending resistance line holding price down and a recent bearish exit of our short term ascending support-turned-resistance line is signalling a potential drop from here.

Put your trading knowledge into action. Create a trading account now.

About the analyst

Desmond Leong provides technical analysis to the largest banks, hedge funds, and brokers whilst coaching hundreds of aspiring traders. He specializes in providing actionable and accurate analysis that utilizes the most advanced theories.

Disclaimer: The publication of Analytics is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience, or current financial situation. The Analytics is not prepared in accordance with legal requirements promoting independent investment research, and Exness is not subject to any prohibition on dealing before the release of the Analytics. Readers should consider the possibility that they may incur losses. Therefore, Exness is not liable for any losses incurred due to the use of its Analytics.