AUDUSD is set to put its positive structure from the 0.5500 bottom back into play on the four-hour chart after ticking above its previous high of 0.6443 on Monday.
Yet, with the RSI and the Stochastics losing steam in the overbought area, downside corrections cannot be ruled out. In this case, the red Tenkan-sen line at 0.6400 could add some support as it did recently.
Should sellers persist, the price could next retest the 50-period simple moving average (SMA), currently flat at 0.6338, before meeting the April 21 low of 0.6252. Note that the 50% Fibonacci of the downleg from 0.7031 to 0.5500 is also in the neighborhood. Below this point, the positive structure from March 19 could lose some credibility, with the 0.6200 former resistance level and the 200-period SMA probably coming to the rescue.
Otherwise, another close higher could further raise confidence in the upward pattern, with resistance likely running initially up to 0.6535 and then into the 0.6655-0.6700 restrictive zone.
In brief, AUDUSD is pushing efforts to bring its positive trend back into play as overbought signals strengthen. Any downside correction could attract little attention unless the price corrects below 0.6252.
