It makes higher highs as the uptrend extends

• AUD/USD continues to rise to new highs.
• The RSI stopped its bearish divergence with the price.

​AUD/USD is making higher highs as it extends its rally and continues the uptrend started in early August.

The pair has now broken past the previous monthly high of 0.6813 reached on Wednesday. After a brief pullback, it resumed its uptrend and reached new highs. Given that “trend is your friend” it is expected to continue to grow.

AUD/USD 4 Hour Chart

Now that AUD/USD has broken past highs, it is setting its next target at 0.6870, the December 2023 high.

The Relative Strength Index (RSI) momentum indicator has stopped showing a bearish divergence with the price since breaking Wednesday’s high. This is a supportive sign for the bullish trend.

Any trend correction would be expected to find support at either Wednesday’s 0.6813 high or 0.6755 if deeper.