AUD/USD Price Analysis: Bullish breakout on the cards or have we seen the highs?

• AUD/USD bulls in control but there is a case for both the bulls and bears at this juncture.
• A break through the 0.6880s opens risk to 0.7050 and 0.7090 while a break below 0.6950 opens risk of a move to 0.6870.

It's been a roller coaster of a ride to start the year and AUD/USD has been one of the most volatile love the past week, driven on fundamentals, both home and away. Nevertheless, the schematic is arguably bearish but there needs to be a break of 0.6870 to confirm the downside bias. Therefore, bulls are going to be looking for a drive through 0.7000 for the initial balance for the week as the following illustrates: 

AUD/USD H4 chart

Firstly, a bearish outlook and schematic could be drawn as follows:

On a break of 0.6950, the trendline support could come under pressure in the coming sessions and if it were to give way, 0.6900 stops could trigger a slide towards 0.68 and below if 0.6870 breaks. 

This falls in line with a bearish daily chart thesis:

AUD/USD upside bias, H4 chart

On the upside, an inverse head and shoulders could be forming:

A break through the 0.6880s opens risk to 0.7050 and 0.7090 for sessions ahead, in line with the bullish trend.