AUD/USD traded higher on Monday, moving back above the 0.7700 (S2) hurdle and then breaking above the 0.7740 (S1) line. The short-term picture looks positive and as a result, I would expect the positive wave to continue and perhaps aim for the 0.7850 (R1) area, defined by the peak of the 18th of June. Our short-term momentum indicators reveal upside speed and support further advances. The RSI rebounded from its 50 line and now looks ready to challenge its 70 line, while the MACD, already positive, has turned up again and moved above its trigger line. Zooming out to the daily chart, I see that on the 4th of March, the rate emerged above the sideways range it had been trading since mid-July. Therefore, I would see a positive medium-term picture as well.