AUDUSD stalls near previous resistance


The AUDUSD pair was down a bit on Monday and was trading at around 0.7740 during the US session.

The recent rally was halted at 0.78, where previous highs are located. The pair is now forming what appears to be a large head and shoulders pattern on the daily chart, but the formation is far from being complete. 

It still needs a couple of days to finish the right shoulder. The formation's resistance is at the mentioned 0.78 level, and if the price rises significantly above that level, the pattern would be invalid. 

This formation's support seems to be near 0.76, and the full potential is circa 400 pips, thus targeting the 0.72 level. 

Until then, the intraday support could be at 0.7750, and if not held, further decline toward March lows at 0.7630 could occur. 

Volatility should be elevated throughout the week as the Fed is about to conclude its meeting on Wednesday, possibly having a large impact on the USD.
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