AUD/USD Continues to Surge, RSI Signals Possible Pullback – Expert Analysis
The AUD/USD pair is on a relentless upward trend, with new highs being reached consistently since the beginning of August. The latest peak of 0.6813 on Wednesday indicates a strong bullish momentum in the market.
Despite the impressive rally, there are signs of caution as the Relative Strength Index (RSI) is showing bearish divergence with the price. This divergence suggests a potential pullback in the near future, signaling a temporary shift in market sentiment.
AUD/USD 4-hour Chart
The key resistance level of 0.6799 has been breached, opening the way for a test of the next target at 0.6870, the December 2023 high. Confirmation of a bullish trend would be validated with a break above 0.6813.
While the market remains in an uptrend, the bearish divergence in the RSI indicates a possible correction in the price. Support levels at 0.6755 and 0.6639 are crucial in determining the extent of any pullback and serve as potential entry points for new uptrends.
Overall, the AUD/USD pair is primed for further gains, but traders should be mindful of the warning signs provided by the RSI divergence. A strategic approach to trading and risk management is essential in navigating the current market conditions.