While the medium-term uptrend for AUD/USD is intact, the current setup suggests that a corrective phase is close, given the deteriorating short-term technical backdrop. For that view, the recent struggles to extend through the next zone of critical resistance highlight the growing risk of a retracement. In this regard, the .7700/.7850 resistance area has capped the upside for now. It includes the downtrend line from the 2013 high, the August and April highs, the 76.4% retracement from the May ‘15 high, as well as the 38.2% retracement from the 2014 peak. Given this strong confluence of resistance, we sense it will remain a