As the AUDUSD
pair gains strength, we may see this pair push higher as well due to the fact that they have a strong positive correlation on Hourly and Daily timeframes. As a retracement, the leg has reached an important fib level (61.8%) on a Monthly timeframe
- which usually means we look for a reversal at this point. An inverse H&S
has also formed on a Daily timeframe
and there is bullish divergence
evident on the RSI
. So all in all, I have entered on a long position and may look for re-entries - price just needs to break the critical resistance level
and close above.