Price has bounced up perfectly from our buying area yesterday and is approaching our profit target once again. We prepare to sell below 0.7454 resistance (Fibonacci extension, Fibonacci retracement, horizontal pullback resistance) for a drop towards 0.7397 support (Fibonacci retracement, horizontal overlap support).
Stochastic (21,5,3) is seeing strong resistance at 95% level where we expect Stochastic to rise to before seeing a reaction.
Correlation analysis: AUD/USD has a strong positive correlation with NZD/USD which means they usually move together. We are expecting a rise on AUD/USD and a rise on NZD/USD which goes in line with this correlation.
Sell below 0.7454. Stop loss at 0.7476. Take profit at 0.7397.
