The Aussie Dollar after trading as high as 0.7987 against the US Dollar started a correction. The AUDUSD pair traded towards 0.7880 where it found support.
A bullish trend line at 0.7885 and the 100 hourly simple moving average acted as a support area and prevented declines. On the upside, there is a connecting trend line at 0.7945 on the same chart.
Clearly, there is a breakout pattern forming as a contracting triangle with support at 0.7920. An initial resistance is around the 50% Fib retracement level of the last decline from the 0.7987 high to 0.7874 low. A break above the trend line resistance at 0.7930-40 may call for more gains in the near term.