The AUD/USD daily chart is squeezing within the narrows of the rising wedge. The “narrows” are basically the point within a triangle or pennant or wedge where the lines begin to decrease in range and put the squeeze on price action.
The uptrend is intact as the 34ema Wave is still heading higher at a twelve to two o’clock angle. The daily is not usually a time frame that I trade actively however this chart is very close to a decision level as prices are currently resting on the top line of the Wave (the 34ema high) and could be a swing buy. The correction would be in the 0.8580 to 0.8600 area as prices near the Wave high. The ceiling is waiting just below 0.8800 as prices have been rejected at 0.8775, 0.8790, and 0.8763.
If this uptrend is to confirm a reversal — as opposed to the continuation set up — then prices will have to break the uptrend line which is currently traveling with the 34ema close and the lower line of the Wave, the 34ema low at 0.8462.