AUD/USD Price Analysis: A break from 0.6950 is on the cards

AUD/USD is consolidated in the upper quadrant of the New York range. However, the price is coiling and a breakout in the near term could be imminent on either side of 0.6950.

AUD/USD, the M5 & M15 open

For the open, the price imbalance to the downside between 0.6930 and 0.6914 is compelling. However, there could be a push higher toward the New York highs, especially if the 0.6940 structure does not break. If it does, then this will be the equivalent of a 15-min move from the resistance of the M-formation:

Meanwhile, the following is a top-down analysis outlining the price imbalances that can be watched for mitigation. 

AUD/USD monthly chart

There is a case for the downside to mitigate the price imbalances below the market, as illustrated above.

AUD/USD daily chart

The price is testing the M-formation's neckline which could be the last defence before the bears move in. 

However, there are price imbalances to the upside and a break of the neckline around 0.6950 opens risk to the upside. 

From an hourly perspective, there could be some mitigation to the downside first as follows:

The 15-min chart's M-formation is so far resisting the bulls:

Meanwhile, the US dollar will be key:

If there is more to come from the DXY bears, as the price breaks structure and heads towards the price imbalances and order block below near 103.10, the Aussie can enjoy a spell to the upside. This puts 0.7100 on the map for the week ahead.