AUD/USD 4H Chart 9/20/2012 8:58AM EDT
In the previous update, we noted a completed head and shoulders pattern in the 4H AUD/USD chart. I noted that a break above 1.05 reflects a false head and shoulders, and this is what we have to start the 9/21 US trading session, a break above 1.05.
Now, the market should be refocused to the upside, especially if the RSI in the 4H chart pushes back above 60, which reflects maintenance and possible continuation of bullish momentum. There is a pivot at 1.0530 that might provide some brief resistance during the 9/21 US session. A break above 1.0530 focuses on the 1.0615 high.
A hold below 1.0530 with the RSI retreating from 60 shows the market is still in consolidation momentum.