AUDUSD approaching resistance, potential drop!

AUDUSD is approaching our first resistance at 0.7781 (horizontal overlap resistance, 50% Fibonacci retracement, 61.8% Fibonacci extension) which coincides with our long term descending resistance line. A strong reaction might occur at this level, pushing price down to our major support at 0.7722 (horizontal overlap support, 38.2% Fibonacci retracement, 61.8% Fibonacci extension).

Stochastic (55,5,3) is also testing our major resistance and a reaction off this level might be a good precursor for a potential drop in price.

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