AUD/USD continued to engage in choppy sideway trading below 1.0844 last week. The corrective structure so far argues that price actions from 1.0844 are merely a consolidation pattern. That is, AUD/USD hasn't topped out yet. Break of 1.0844 will bring another rise to retest 1.1079 high. However, below 1.0597 will extend the fall towards 1.0377 resistance turned support. Break there will confirm the whole rebound from 0.9387 has completed. In such case, AUD/USD should have started another falling leg inside the consolidation pattern from 1.1079 and deeper fall should be seen back to 0.9663 support and below.

In the bigger picture, the up trend from 0.6008 (2008 low) is still intact. Price actions from 1.1079 are treated as consolidation in the up trend only. In any case, with 0.9387 support intact, an eventual upside break out is anticipated, for a new high above 1.1079. However, break of 0.9387 would possibly bring deeper pull back towards 0.8066 key support before the long term up trend finally resumes.

In the longer term picture, whole up trend from 0.4773 (01 low) extended to a point where it just missed 100% projection of 0.4773 to 0.9849 from 0.6008 at 1.1084. At this point, there is still prospect for a lengthier medium term consolidation. But there is no indication of long term reversal yet. We'll stay bullish as long as 0.8066 support holds and expect an eventual break of 1.1084 to 138.2% projection at 1.3023, which is close to 1.3 psychological level, in the long term.