AUDUSD approaching resistance, potential drop!

AUDUSD is approaching our first resistance at 0.7704 (horizontal overlap resistance, 23.6%, 38.2%, 50% Fibonacci retracement) which coincides with the short term descending resistance line. A strong reaction might occur at this level, pushing price down to our major support at 0.7643 (horizontal swing low support, 61.8% Fibonacci extension).

Stochastic (34,5,3) is also reacting off its major resistance at 90%, a good precursor of a potential drop in price.

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