AUDUSD as other USD pairs took a nose dive due to the USD strength. That being said, market has formed a support and needs to retest the support in order to continue its another leg up. Once market retests the support, double bottom will be formed and the market will make another bullish leg upwards. 

We need to pave way for the market to form higher highs and higher lows in order to form the trend. It should be noted, the trend is still bearish. We are just capitalizing on the corrective move.

The descending trendline has been tapped by the market three times. Now, its due for the impending breakout buy. Once the market breaks the trendline, we will have another confirmation for the market to continue moving up. We have to make sure that the market has validated the price action after the breakout buy.

The potential retracement level stands at the confluence with the support level at the RT level of 75-78.6%.

The EMA 50 is still bearish. We can target the profit at the retest of the EMA 50. This retest can act as a take profit for the buys.

RSI is at 46. We need to wait for the RSI to tap at the over sold region in order to form a bullish divergence at the support level. This confluence will give us an additional technical parameter for the long position.

Tapped the support level

Oct 03 2022