AUDUSD moves in a formation of declining wedge. As you can see on the 4-hour chart below, two weeks ago there was another reflection from the lower limit of this formation, where then horizontal support was created close to 0.7651.
The aforementioned support has been tested several times, up to yesterday’s session, when there was a significant rebound. As a result, the quotations moved to the vicinity of a resistance confluence, where the horizontal level 0.7780 coincides with the resistance of the wedge.
The behavior of the price action on this resistance is now of significant importance. The sell signal may mean that the quotes will return to declines, and thus the price will remain in the wedge formation.
If, however, the bulls manage to overcome the resistance around 0.7780, the next goal for the increases will be the level of defense close to 0.7890. In addition, when it comes to pairs with the US dollar, it is worth bearing in mind the evening publication of FOMC minutes.