AUDJPY dropping perfectly as expected, remain bullish
Sell below 88.26. Stop loss at 88.68. Take profit at 87.27.
Reason for the trading strategy (technically):
Price has reached our selling area and reacted off it perfectly. We remain bearish looking to sell on strength below major resistance at 88.26 (Fibonacci extension, Elliott wave theory) for a continued drop to at least 87.27 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) has started dropping from our 98% resistance nicely.
Correlation analysis: AUD weakness is expected today with AUDUSD similarly testing major resistance and expecting a drop.
Reason for the trading strategy (technically):
Price has reached our selling area and reacted off it perfectly. We remain bearish looking to sell on strength below major resistance at 88.26 (Fibonacci extension, Elliott wave theory) for a continued drop to at least 87.27 support (Fibonacci retracement, horizontal pullback support).
Stochastic (34,5,3) has started dropping from our 98% resistance nicely.
Correlation analysis: AUD weakness is expected today with AUDUSD similarly testing major resistance and expecting a drop.