The AUD/USD pair is currently taking a breather after a strong rally, but it is biased to continue rising in line with the trend once the consolidation phase ends. The Relative Strength Index (RSI) is overbought, indicating a potential pullback, but has not yet given a sell signal.
AUD/USD 4-hour Chart
Since recovering from the August 5 lows, AUD/USD has formed a sequence of rising peaks and troughs on the 4-hour chart, indicating a short-term uptrend. A close above 0.6740 could signal a continuation higher, with further resistance levels at 0.6760 and 0.6799.
Although the RSI is in overbought territory, suggesting a potential pullback, long holders are advised to be cautious and not add to their positions while the RSI remains above 70.
Analysis:
The AUD/USD pair is currently in a short-term uptrend, with potential for further gains once the consolidation phase ends. Traders should watch for a close above 0.6740 as a signal of continuation higher, with resistance levels at 0.6760 and 0.6799. Despite the overbought RSI, long holders should exercise caution and avoid adding to positions while the RSI remains above 70.