Get out of range and follow up

• AUD/USD is breaking out of the top of a range and rising.
• It has reached an optimistic initial target and there is a risk that it will withdraw soon.

AUD/USD is breaking its range highs and is headed higher into Friday.

It is in a short-term uptrend which, given the principle that “the trend is your friend”, is more likely to extend than not.

AUD/USD Daily Chart

The next bullish target is 0.6988 (high since 14-Feb-23), followed by 0.7156 in a bullish case (high since 2-Feb-23).

The pair is not overbought according to the Relative Strength Index (RSI) momentum indicator and thus has scope for more upside.

AUD/USD hit an initial bullish target based on extrapolation of the August rally from the early September correction base higher with a 61.8% Fibonacci. This target is around 0.6115 and has already been breached. This could indicate that the trend has run out and the pair will pull back. There are no signs yet from price action that this is about to happen.