AUD/USD to extend its slide on a break below 0.7418 – Credit Suisse

AUD/USD was recently aggressively capped below key resistance at 0.7599/7617. A break below 0.7418 is likely to trigger an acceleration lower, the Credit Suisse analyst team reports.

AUD/USD breaks to new YTD lows, bringing key support at 0.7418 into focus 

“The aussie has broken to new year-to-date lows this morning, bringing more important support at the 23.6% retracement of the upmove from 2020 at 0.7418 into focus. It’s worth noting that there is a dearth of meaningful support below here, meaning the downtrend could accelerate on a break below this level, with next minor support at 0.7379/72, then 0.7338 and eventually 0.7209/00.” 

“Near-term resistances move to 0.7535, then 0.7576, with more important resistance seen at the ‘neckline’ resistance at 0.7599 /7617, which we still look to provide a solid cap.”