AUDUSD tested the important support level of 0.700 on Thursday and and dipped even lower on Friday only to bounce from there and close much above, forming a bullish candle. This is a very bullish sign. In fact, if we look at the chart, we can observe a double bottom at this level, which had provided support earlier. The support region extends much lower all the way down to 0.68.

Therefore, our preference is only to the upside at this time. Several fundamental factors can help for a faster move to the upside, such as Australian Retail sales figures due to be released on Tuesday, as well as the interest rate decision on the same day. Therefore, it is important to manage your risk well, it may be a good idea to enter with small lot size and keep adding to it as the trade moves in your favour.

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