AUD/USD to resume the downtrend towards key support at 0.7418 – Credit Suisse

AUD/USD was aggressively capped below key resistance at 0.7598/7617 as expected. Economists at Credit Suisse look for a move below next support at 0.7447/18.

Close back above 0.7617 to neutralise the bearish view

“Yesterday’s close back below the 200-day average at 0.7575 should confirm the downtrend is set to directly resume, with more important support seen back at the 23.6% retracement of the upmove from 2020 at 0.7418. It’s worth noting that there is a dearth of meaningful support below here, meaning the downtrend could accelerate on a move below here, with next minor support at 0.7379/72.” 

“We still look for ‘neckline’ resistance at 0.7597 /7617 to cap. Above here would suggest a deeper rally, with the next resistances seen at 0.7642/45, then 0.7688/7706, above which would make the top much less compelling.”