Price has dropped absolutely perfectly from our selling area and has reached our profit target. We prepare to buy above 0.7441 support (Fibonacci retracement, horizontal swing low support) for a push up and reintegration into the bullish channel for a rise to at least 0.7510 resistance (Fibonacci retracement, Fibonacci extension, horizontal overlap resistance).
Stochastic (34,5,3) is seeing strong support above the 5.1% where we expect a bounce from.
Correlation analysis: AUD/USD has a strong positive correlation with NZD/USD which means they usually move together. We are expecting a bounce on AUD/USD but a drop on NZD/USD. Hence, it is best to exercise caution on this trade.
Buy above 0.7441. Stop loss at 0.7397. Take profit at 0.7510.
