AUD/USD: Support at 0.7154 needs to hold on closing basis to maintain upside bias – Credit Suisse

AUD/USD posted a neutral session on Thursday to hold above key support at 0.7154, but momentum remains a concern. All in all, analysts at Credit Suisse lean higher whilst the market holds above the mentioned 21-day exponential average at 0.7154 into the close.

Key quotes

“Whilst significantly tiring momentum remains very concerning, the 21-day exponential average at 0.7154 has held since April and we therefore stay biased higher whilst above here, in line with our medium-term bullish outlook.” 

“An eventual breakout from the range would now be confirmed above the recent and 2019 highs at 0.7276/95. Above here would open up 0.7394, whilst our medium term objective remains unchanged at a cluster of Fibonacci retracements at 0.7574/7638.” 

“A sustained break below 0.7154 would quickly turn our short term outlook lower, with a move below 0.7136/32 also now completing a small intraday top for a move to 0.7109. A break below here would signal a move back to 0.7076/63.”