AUD/USD is currently consolidating after retracting from its peak on May 3. The pair is trading in the 0.6610s range on Monday, continuing its sideways movement. Despite this, AUD/USD appears to be in a short-term uptrend, as seen from the rising sequence of peaks and troughs since April 19.
The trend suggests that AUD/USD is likely to move higher, with a break above the 0.6624 resistance level potentially triggering a volatile upward movement towards the next target at 0.6649. If the pair successfully surpasses 0.6624, it could lead to a strong move to around 0.6680-90, following a Measured Move pattern formed since April 19.
Measured Moves consist of three waves labeled A, B, and C, with wave C expected to be the same length as A or a Fibonacci 0.681 of A. Wave C has already reached the Fibonacci 0.681 target at the May 3 highs, but could also reach the target where C=A at 0.6690.
A bearish sign would be a decisive break below the red trendline, indicating a potential trend reversal. This break would be characterized by a long red candle closing near its low or three consecutive red candles breaking below the trendline.