The AUD/USD pair is currently trading within a narrow range in the middle of a multi-week range. This sideways trend is expected to continue, as the pair has been moving sideways since mid-May and the volatility has decreased since June 19.
On the 4-hour price chart, AUD/USD is now trading in a mini range within the larger range. The pair could potentially move higher or lower within this mini range. A break above the high of the mini range at 0.6679 may lead to a continuation up to 0.6709, while a break below the low of the mini range at 0.6625 could result in a move down to 0.6590.
The short-term trend is sideways, and as long as the price remains within the range, it is likely to continue extending within the range. Eventually, the pair is expected to break out of the range, and the move is likely to be strong due to the current low volatility period. An upside breakout is slightly more probable given the prior bullish trend.
If there is a decisive break above the range ceiling, the pair could target 0.6770, while a break below the range floor could target 0.6521. A decisive break would involve a longer-than-average candle breaking out of the range and closing near its high or low, or three successive candles of the same color breaking cleanly through the range top or bottom.
Target levels are generated using technical analysis methods, such as extrapolating the height of the range by a Fibonacci 0.618 ratio. A more generous target would involve extrapolating the full height of the range.