AUD/USD challenges the upper end of consolidation range at 0.7005 – Credit Suisse

AUD/USD has reverted back higher from key support at 0.6922/21 as trades up 0.34% on the day to 0.70. A break above 0.7005 would see a breakout from the near-term consolidation range with next resistance seen at 0.7032, per Credit Suisse sources. 

Key quotes

“AUD/USD has sharply reverted back higher from key support at 0.6922/21 as expected, maintaining the bull ‘triangle’ continuation pattern, with the market now testing above the upper end of its consolidation range at 0.7005.”

“We keep our bias to the upside and look for a closing break above 0.7005 in due course, removal of which would see a breakout from the nearterm consolidation range, with resistance seen thereafter at the more important 0.7032/63 highs, where we would expect the market to take a breather at first. Above here in due course would see the ‘neckline’ to the 2019 top at 0.7076 and the 78.6% retracement of the 2019/2020 fall at 0.7092 next.” 

“Support is initially seen at 0.6980, then 0.6962, ahead of 0.6922/21, which ideally continues to hold. Below here would negate the bullish pattern to see the rangebound environment extend further, with support seen next at 0.6902/00, which then ideally holds if reached.”