AUD/USD Price Forecast: Aussie Recovery Rally Extends

• AUD/USD extends its recovery move from September 11 lows.
• It will probably go a bit higher until it hits the July or August highs.

AUD/USD continues to rise as it climbs from the low formed on September 11th. The new bullish leg broke a key trend line for the correction of the August rally. This is a bullish sign and suggests that it is now in a short-term uptrend.

AUD/USD Daily Chart

Given that it is a principle of technical analysis that “the trend is your friend”, the Aussie is likely to continue to go higher. It could match or closely match the August 29 high of 0.6824. The resistance level at 0.6799 (July high) is another potential target and could provide firm resistance to the bulls.

Momentum as measured by the Relative Strength Index (RSI) is weakening a bit and suggests some caution before taking an overly bullish stance, however, it is generally price-reflective, a fact that supports the current mini-rally.