AUD/USD ends the recent pause, further weakness to follow – Credit Suisse

AUD/USD has ended its recent pause after breaking below 0.6361. Analysts at Credit Suisse look for continued downside to 0.6041 and likely beyond.

Resistance moves to 0.6361/80

“We see the core bearish trend as resumed and with risk sentiment likely to remain weak, we look for further deterioration to follow.” 

“Support shifts to 0.6281/74 and then a more meaningful support is seen at the late April 2020 low at 0.6250. Whilst we stay wary of signs of a brief pause here as well, our bias would be to see a direct move below here to eventually reach the 78.6% retracement of the 2020/21 uptrend and April 2020 low 0.6041/5978 and likely a move lower towards the 2020 low at .5506 thereafter.” 

“Resistance moves to 0.6361/80 and then to 0.6411, though above here we look for the 13-day average at 0.6478 to continue to cap to maintain the downside.”