The AUD/USD currency pair has recently broken out of a range and has been rallying. The pair has reached an initial bullish target, leading to speculation that it could soon pull back. This breakout has led to a short-term uptrend, making it more likely to see further upside movement. The next target for the pair is 0.6988, followed by 0.7156 in a bullish scenario.
On the daily chart, AUD/USD is not considered to be overbought based on the Relative Strength Index (RSI) momentum indicator. This suggests that there is still room for more upside potential. The current uptrend has already surpassed an initial upside target based on a 61.8% Fibonacci retracement level. However, there have been no indications from price action that a pullback is imminent.
As the trend in the AUD/USD pair continues to be bullish, traders may look for opportunities to buy on dips or wait for a clear signal of a reversal before considering short positions. With the next target levels in sight, the pair could see further upside momentum in the near future. Traders should keep a close eye on price action and technical indicators to gauge the strength of the current trend.
In conclusion, the AUD/USD currency pair has broken out of a range and is currently in a short-term uptrend. With additional upside targets in sight, traders may consider looking for buying opportunities or waiting for a reversal signal before taking short positions. The RSI indicator shows that the pair is not overbought, indicating that there may still be room for further gains. However, traders should exercise caution and monitor price action closely for any signs of a potential pullback in the near future.
