• AUD/USD bulls eye a stronger correction into the M-formation's neckline. 
• Bears look to cap bulls in shallow grounds. 

AUD/UUS is rising on the back of the weaker US Dollar and ahead of domestic inflation data that will be eyed in terms of the currency's current northerly trajectory as a potential catalyst. The following illustrates the technical outlook on the daily and 4-hour charts. 

AUD/USD daily chart

AUD/USD's daily M-formation offers prospects of a move towards the neckline in the coming days. A 50% mean reversion meets the area around 0.6730 while the 61.8% Fibo comes in at the 0.6750 level. 

AUD/USD H4 chart

There is a large imbalance on the way towards the targets on the 4-hour chart but bulls will need to get over the trendline resistance first. The bears are capping the attempts at a 50% mean reversion of the last bearish 4-hour impulse's range.