The AUD/USD was in a bullish breakout from a flag pattern earlier in the week. Let's follow up on the bullish breakout.AUD/USD 1H Chart 9/28(click to enlarge)Breakout to new highs:- The 1H chart shows that price was in a flag pattern since hitting a high of 0.7675 last week.- This week, price broke that pattern, pulled back but respected the breakout, and thereby forming a higher low. - The RSI respected 40, which indicated maintenance of bullish momentum.- Price also bounced off of the 200-, and 100-hour simple moving averages (SMAs), maintaining a bullish bias in the short-term.- Most importantly, price pushed to a new high, but still missed 0.77.Bearish divergence:- In the short-term, we should not be surprised to see some consolidation or sideways action.- The RSI and price has developed a bearish divergence, signaling a change in momentum. Essentially, the uptrend from the last couple of weeks is slowing.- If price action consolidates but holds above the 0.7640 level, we still have a bullish bias. Short-term vs Medium-term Targets:- At the moment, if price can extend higher, the first near-term bullish outlook is 0.7730, which is basically the September high.- A slightly more aggressive target in the short-term would be the 0.7760, October high. - There is still upside risk towards the high on the year around 0.7830, but I suspect that there will be a pullback first. - If price pushes above the 0.7830 high, we are likely looking at extension of a consolidation pattern in the daily chart. - If we look at the medium-term outlook, the 0.8145 area is a viable target as well, within the context of a rising channel. AUD/USD Daily Chart 9/28(click to enlarge)