AUD/USD Is Developing A Sideways Consolidation

AUD/USD reached without a problem the resistance at 0.7600 and without making any attempts to break out above it and continue rallying it began developing a sideways consolidation which is especially visible on the H4 time frame.

What I can see on that time frame makes me think that before the pair continues moving north to test the trend line breakout, it could test the diagonal support (in red) or even fall lower and test the support at 0.7450.

For the moment the pair is forming a barbed wire pattern on the H4 time frame and the possibility to continue to 0.7500 is increasing.

The alternate scenario is for a test of 0.7600 and a rally to 0.7660 after a possible breakout.