AUD/USD Technical Analysis: Breaks through bullish Head & Shoulders neckline resistance

   •  The pair finally broke out of its European session consolidation phase and rallied beyond the 0.7100 handle to over one-week tops in the last hour.

   •  The up-move marked a near-term bullish break through the neckline resistance of an inverted Head & Shoulders chart pattern on the 1-hourly chart.

   •  Technical indicators on the mentioned chart are holding comfortably in positive territory and support prospects for an extension of the breakout momentum.

   •  However, indicators on the daily chart are yet to catch up with the positive move, indicating that the latest leg of uptick could have been sparked by some buy stops.

   •  Hence, it would be prudent to wait for a strong follow-through buying before positioning for any further up-move ahead of Australian Q3 CPI print on Wednesday.

AUD/USD 1-hourly chart