Technical analysis
The four-hour time frame shows that the AUDUSD pair has formed a large inverted head and shoulders pattern, following the recent advance towards the 0.7400 level.
The Relative Strength Index indicator has turned bullish on the four-hour time frame and continues to generate a strong buy signal.
What the possible outcomes are
In our most likely scenario, the AUDUSD pair starts to rally towards the 0.7500 level once the bullish price pattern is activated.
Alternatively, the AUDUSD pair will correct back towards the 0.7350 support area and then start to rally towards the 0.7500 resistance area.
Key levels
Support 0.7380 0.7350
Resistance 0.7410 0.7500
