Buy above 0.7842. Stop loss at 0.7814. Take profit at 0.7917.
Reason for the trading strategy (technically):
Price has continued to drop strongly since yesterday. We prepare to buy above major support at 0.7842 (Fibonacci retracement, horizontal pullback support, Fibonacci extension) for a push up to at least 0.7917 resistance (Fibonacci retracement, horizontal swing high resistance).
Stochastic (34,5,3) is seeing strong support above 12% where we expect to see a corresponding bounce from.
Correlation analysis: We’re seeing commodity strength vs USD today with bounces expected on AUDUSD and NZDUSD.