AUD/USD Cross above 0.6525 essential for affirming larger bounce – SocGen

AUD/USD trades sideways near 0.6430. Economists at Société Générale analyze the pair’s technical outlook.

Inability to cross 0.6525 could result in further decline

AUD/USD failed to overcome the peak of June at 0.6900 resulting in a steady pullback. It has recently tested the line connecting the lows of March and May. The downward momentum has stalled, however, a large upside is not expected; a break above the recent pivot high at 0.6525 would be essential to confirm a meaningful rebound.  

Holding below 0.6525, there would be a risk of one more down leg. The next potential support is located at projections and the October 2022 low of 0.6200/0.6170.