Previous: AUD/USD Consolidation vs. Double Bottom (12/27)
AUD/USD 1H Chart 12/28/2012 9:55AM EST
Consolidation: The AUD/USD has basically been consolidating through the Christmas holiday, but is now testing the resistance, cracking it during the 12/28 Friday US session. Note that the 1H RSI is still 60, so the momentum is not there for a break. A break back below the middle, around 1.0360-1.0365 could be a sign that bears are still in control.
On the other hand, a true break above this consolidation, which also looks like a triple bottom opens up a bullish retracement scenario. The 1.0415 pivot could be the first near-term target.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.