• All eyes will be o the RBA this week as the Aussie will depend on it.
• AUD/USD is setting up for a move higher as per the current market structure. 

AUD/USD is one to watch this week ahead in the countdown to the Reserve Bank of Australia. Governor Lowe made it clear that the Board will discuss either a 25bps or 50bps hike this week, so there is fuel for a move one way or the other in AUD depending on the outcome of that meeting. 

This draws us to the current structure on the charts in AUD/USD and the M-formation on the daily time frame is compelling for a meanwhile bid in the run-up to the meeting and the RBA's statement, July 5. If it is not particularly hawkish, meanwhile mitigation of any price imbalance to the upside could be the site up for fresh daily lows.

AUD/USD daily chart

The 0.6880s are often regarded as a psychological area on the charts and the M-formation's neckline, or older block, is lining up there which could draw in the price in the coming sessions ahead of the RBA.

However, the price imbalance on the hourly time frame is an area that could be mitigated first of all:

AUD/USD M15 chart

The price on the 15-min chart is also building up for a breakout one way or the other and given the nature of markets, the downside mitigation process could be perceived as the bias prior to the continuation move to the upside and imbalances along the way.