AUDUSD bearish continuation | 4th Oct 2021

Price is holding below the descending trendline resistance, signifying a bearish momentum. We can expect the price to drop down from the 1st Resistance in line with 50% Fibonacci retracement towards the 1st Support level in line with the previous swing low. Our bearish bias is further supported by the stochastic indicator where the %K line is approaching the resistance level and awaiting a drop from that level.

Trading Recommendation

Entry: 0.73135

Reason for Entry:

50% Fibonacci Retracement, graphical overlap resistance

Take Profit: 0.71703

Reason for Take Profit:

Previous swing low

Stop Loss: 0.74097

Reason for Stop Loss:

78.6% Fibonacci Retracement and 61.8% Fibonacci projection