AUDUSD is may have been forming a long-term head and shoulders pattern. The head of the formation was a head and shoulders pattern itself and reached its target after the breakout in June. Now the price is trying to tank despite dovish RBA. Tomorrow, RBA minutes may decide the short-term trend direction but for the medium, to long term 0.7170 and 0.7750 levels will be key (The values will increase with time passing because of the positive trend slope). If 0.7170 breaks to the downside, the formation target could be between 0.60-0.65 depending on the breakout time. But the price may want to test the 0.76-0.7750 zone before deciding it is a head and shoulders pattern or not. Over the 0.7750, the formation may become null.
