AUD/USD: Resistance at 0.7365 to cap for further weakness towards major support at 0.7126/06 – Credit Suisse

AUD/USD has triggered a short-term base above 0.7312/17. However, analysts at Credit Suisse expect the 2021 downtrend at 0.7365 to cap the market.

The 2021 downtrend at 0.7365 is set to cap

“AUD/USD has broken out resistance at 0.7312/17, which suggests a short-term correction higher to the 2021 downtrend at 0.7365, which we then expect to cap the market. Thereafter, support is seen at 0.7291/87 initially, below which would confirm a turn back lower and retest of 0.7179/70 lows.” 

“Beneath the 0.7179/70 lows should then clear the way for a test of major support starting at 0.7126/06, which is the ‘neckline’ to a major potential top and stretching down through 0.7053 to 0.6991. Below here would complete a large and substantial top to mark a significant change of trend lower.” 

“A break above the important 2021 downtrend at 0.7365 would suggest a new lower level range is developing, with next resistance seen at 0.7410, then 0.7451.”