The AUD/USD currency pair continues to rise in line with the dominant uptrend that began in August. Despite the ongoing rally, the Relative Strength Index (RSI) is showing bearish divergence with the price, indicating a possible pullback in the near future.
On Wednesday, the pair reached a new monthly high of 0.6813 before retracting slightly. However, the overall uptrend remains intact and is expected to continue. The next target for AUD/USD is set at 0.6870, the December 2023 high, after breaking above the key level of 0.6799 from July.
The RSI indicator, which measures momentum, is showing bearish signs as it did not reach a new high along with the price movement on Wednesday. This divergence suggests that the uptrend may face a correction soon. Despite this, key support levels at 0.6755 and 0.6639 are expected to provide stability and serve as entry points for new upward movements.
In the 4-hour chart, AUD/USD is displaying a clear bullish trend, with the price action indicating higher highs. A break above 0.6813 would confirm the bullish momentum and signal further advancement towards the next resistance level. Traders should be cautious of the bearish divergence in the RSI and be prepared for a potential pullback in the market.
With the dominant uptrend expected to resume, any corrections in the price of AUD/USD are likely to be short-lived. Investors should monitor the key support levels mentioned earlier for signs of a reversal. Overall, the outlook for AUD/USD remains positive as it continues to move higher in line with the prevailing market trend.
