Sell below 0.7525. Stop loss at 0.7582. Take profit at 0.7370.
Reason for the trading strategy (technically):
AUDUSD rose as expected to our selling area of 0.7525 yesterday which is a major resistance level (Fibonacci retracement, Fibonacci projection, horizontal resistance). We expect a drop to at least 0.7370 (Fibonacci retracement, Fibonacci projection, horizontal swing low support).
Stochastic (34,5,3) is seeing major resistance at the 93% level and also displays bearish divergence vs price.
Reason for the trading strategy (fundamentally):
The main news event driving USD today is the U.S. Advance Retail Sales which is a monthly measure of sales of goods to consumers at retail outlets. The figure is a significant market mover, valuable both for its timeliness and insight into consumer demand and consumer confidence. We’re expecting a positive value here meaning more consumer spending and confidence, leading to strength in the USD. This would go in line with our bearish AUDUSD view we have today.