FX.co ★ AUDUSD trendline re-test followed by a drop!

AUDUSD broke out of ascending trendline support (now resistance) to the downside before coming back to retest the trendline and 61.8% Fibonacci retracement at 1st resistance 0.72093. A drop towards 1st support at 0.71311 is expected. Stochastics is testing resistance where price reacted in the past as well.

Trading Recommendation

Entry: 0.72093

Reason for Entry:

61.8% fib retracement, ascending trendline resistance

Take Profit : 0.71311

Reason for Take Profit:

38.2% fib retracement, Recent swing low

Stop Loss: 0.72651

Reason for Stop loss:

-27.2% and 78.6% Fib retracement, 61.8% Fib extension