ST_Touches only returns true for lines that intersect start or end points, not the space along the line, so it should not work on for your case, as expected. ST_Overlaps, however, should work exactly as you are intending:
SELECT ST_Overlaps('LINESTRING(0 0, 2 0)'::geometry,
'LINESTRING(1 0, 3 0)'::geometry)
>>> t
SELECT ST_Overlaps('LINESTRING(0 0, 2 0)'::geometry,
'LINESTRING(1 0, 2 1, 2 0, 3 0)'::geometry)
>>> f
I just tested it both on PotGIS 2.2.0 and 2.3.2, so it should be working on yours too. Regardless, you can go one step deeper and work with ST_Relate. This function tests for DE-9IM topology, so you should be able to control exactly what you want.
Specifically, you want interior-interior interaction, so your matrix should look something like '1********' (the other cells will depend on whatever other topological restrictions you may have). Notice that this also accepts lines being completely within another, a special case of collinearity, where ST_Overlaps does not.
SELECT ST_Overlaps('LINESTRING(0 0, 2 0)'::geometry,
'LINESTRING(1 0, 2 0)'::geometry)
>>> f
SELECT ST_Relate('LINESTRING(0 0, 2 0)'::geometry,
'LINESTRING(1 0, 2 0)'::geometry,
'1********')
>>> t
If not even ST_Relate is working, then you might have topological problems with your data.