•  AUD/USD M-formation is compelling and traders will wait to see if the bears commit at the neckline resistance.
• A break of the trendline support, however, opens the risk of a move to test 0.6650 and then 0.6580. 

AUD/USD is up 0.13% having rallied from a low of 0.6744 to a high of 0.6759 in what appears to be a technical move, retesting a 4-hour M-formation;'s neckline in what could be the last defence for a considerable;e move higher. 

However, should the resistance hold, there will be prospects of a downside continuation and even a break of the channel's support for the days ahead. Fundamentally, renewed fears of a global recession could weigh on commodity-linked currencies as we head into key events from the US, including the Consumer Price Index on Tuesday and the Federal Reserve on Wednesday. 

Meanwhile, the Aussie's flight trajectory could b3 something along the lines of the following: 

AUD/USD H4 charts

As illustrated, the price of AUD/USD has been moving to the upside in a channel following the break of the prior bear trend. The M-formation is compelling and traders will wait to see if the bears commit at the neckline resistance near 0.6760 or if the bulls can get back control with eyes on 0.6850. A break of the trendline support, however, opens the risk of a move to test 0.6650 and then 0.6580.