FX.co ★ AUD/USD is testing major support, prepare to sell on break

Price is testing major support at 0.7781 (Fibonacci retracement, horizontal overlap support, ascending support) and a break of this level would open a bigger drop to 0.7177 support (Fibonacci extension, horizontal swing low support).

RSI (34) can also see a long term bearish descending resistance line holding price down. Besides, a recent bearish exit of our short-term ascending support-turned-resistance line is signalling a potential drop from here.

Sell below 0.7781. Stop loss at 0.7819. Take profit at 0.7717.