Coleman says it is difficult to predict how the majority of USD-based pairs will move due to a lack of sustained trends, but AUDUSD appears to offer a good trade in terms of risk and reward.

According to Coleman, the pair has seen mixed trading for the last 12 days, but AUDUSD now looks to be forming a reverse Head and Shoulders pattern with the right shoulder seen at 0.7370. He says dips are being bought under this level and is looking for a move through 0.7392 to confirm bullish momentum.

Coleman’s call is to buy on a break of 0.7392. His first target is 0.7454 and his main target is 0.7560 with stop placed at 0.7362.