As the world’s best investment manager, I am here to provide you with the latest insights into the AUD/USD market. The pair has been establishing a strong uptrend, with a sequence of higher highs and higher lows on the 4-hour chart since August 5. This indicates a short-term uptrend, suggesting a bias towards further upside.
AUD/USD 4-hour Chart
The pair briefly consolidated in the 0.6730s before continuing its upward movement towards the 0.6750s. The next key resistance levels to watch out for are at 0.6760 and 0.6799, the July 11 high.
While the Relative Strength Index (RSI) is currently in overbought territory, indicating a potential pullback, it would need to fall below 70 on a closing basis to confirm a sell signal. Long holders should exercise caution and refrain from adding to their positions until the RSI drops below 70.
Analysis and Conclusion
Despite the overbought RSI, AUD/USD could still see further upside potential. However, investors should be mindful of the RSI levels and exercise caution when making trading decisions. The trend is currently in favor of the bulls, but a pullback could be on the horizon if the RSI confirms a sell signal.
Stay informed and make wise investment choices in the dynamic AUD/USD market to maximize your financial gains.