AUD/USD is currently trading higher in the 0.6660s range as it continues to rise following a bounce from the May 24 low. The pair appears to be trading within a sideways trend with a range high at 0.6680 and a range low at 0.6591. The current upward movement within the range could potentially reach the range high before reversing and moving towards the range low.
The Moving Average Convergence Divergence (MACD) indicator has crossed above its signal line, indicating a buy signal and supporting the upward momentum in the pair. If AUD/USD reaches the range high and forms a reversal pattern, it may signify a continuation of the sideways trend with a potential move lower.
A breakdown from the rising channel on May 22 initially brought doubts to the established uptrend, but the pair quickly recovered. The lack of a clear directional trend suggests that the market could be trapped within a sideways range. A decisive break below 0.6591 could confirm a move to the downside, while a break above the range ceiling could lead to further upside towards 0.6714.
It is important to watch for long candles that break through key levels or three consecutive candles of the same color to confirm a decisive break. A MACD cross back below the signal line, especially in positive territory, would indicate a potential move lower within the narrow range. Traders should be cautious and wait for a clear breakout above or below the range to determine the next direction of AUD/USD.
