Extends the uptrend to the next set of targets

• AUD/USD has established an uptrend that continues to expand.
• RSI is overbought but has not given a sell signal yet.

AUD/USD has set a sequence of higher highs and higher lows on the 4-hour chart since it started to rise from the August 5 lows. This indicates that the pair is in a short-term uptrend and, given that the trend is your friend, suggests a bias to move higher.

AUD/USD 4 Hour Chart

The pair briefly consolidated into the 0.6730s before continuing higher to the 0.6750s.

AUD/USD is likely to continue to the next resistance line at 0.6760, followed by 0.6799, the July 11 high.

The Relative Strength Index (RSI) is in overbought territory, increasing the chances of a pullback. However, it should break out of overbought territory and drop below 70 on the close to provide confirmation of a sell signal. Such a move would likely coincide with a retreat.

Despite the overbought RSI, AUD/USD could still rise, although long holders would be ill-advised to add to their existing positions while the RSI remains above 70.