Looking at AUDUSD on the H4 interval, one can see that the pair has been trading in a consolidation range recently. However, according to the classic of technical analysis, head and shoulders pattern has formed. Should the break below the neckline of formation occur (area near 0.77), the downward move may accelerate. On the other hand, defending the support at 0.77 could lead to a resumption of an upward move. In such a scenario, the nearest potential target for buyers will be the 0.7820 resistance which is marked with previous price reactions. One should be aware that the market may become more volatile once key US data (ADP report) is released at 1:15 pm BST.
AUDUSD H4 interval. Source: xStation5
