What we see here is a really eager consolidation period. Since the beginning of February the Euro hasn't found a place to go, and the Australian Dollar has recently established some bullish behavior over some other majors. In this graph we can see that there is a persistently strong resistance level around the 1.5655 area, right above the 78% retracement. I would've considered waiting a while longer to place a trade (I've been within the consolidation zone for about 6-7 hours), but I considered a few key points. 1.) The overall trend for the past year has been bullish (The trend is your friend) 2.) The bullish flag formation shows a solid rejection towards any new low's. 3.) Lastly, the highest low is exactly at a 45 degree angle [bust out your Gann Fans!]
Note that I didn't list any information from my indicators. This is because the information above was given to me by the market. Though the indicators give some supporting feedback.
We can see within the RSI, our levels have started converging towards the 50%. Small, I know, but this can precede a rally in most consolidation circumstances. The second most important artifact is the 50 EMA. This recent position placed the 50 EMA right under our higher candle, above the 78% retracement; showing us some decent support. If the EUR/AUD does break out of it's tightening zone, we can expect to see some strong bullish candles above it's current resistance (1.57624) heading towards a few other (but weaker) resistance levels.