AUD/USD has formed new structure recently showing signs of a trend reversal. Whether this continues to hold longer or not is for price action to reveal. As for now, a potential bullish continuation is brewing after what seems like a shall retracement. The close of price action by end of day as a low test bar above ~0.7250, where price has found support, will further confirm potential bullish intentions in price. Other than that the reasons for going long are:
entry - above high of low test bar
stop loss - below low of low test bar
target - at or above previous high/resistance area around 0.7400
- rejection of 50 ema;
- a rising 50 ema;
- rejection and close above 0.382 Fibonacci level; and
- convergence on Stochastic and RSI indicators.
entry - above high of low test bar
stop loss - below low of low test bar
target - at or above previous high/resistance area around 0.7400