AUD/USD Rising, Defying Gravity

The AUD/USD pair is rising and while this is ideally perceived of as a bearish continuation chart pattern, the Australian dollar has a habit of defying gravity when correcting the trend and a break of the current resistance would be an important development.

On the other hand, the bears are moving in and repeated failures at this resistance level would be expected to leave the ball in their court. A subsequent break of the next term support would be expected to encourage the bears back to the table and a snowball effect gathering momentum could result in a downside continuation and restest of the counter trendline:

A break of the trendline and a run on sell stops would be expected to result in supply that could push the bulls back to the edge of an abyss at 0.6950.