AUD/USD remains under pressure for further downside – Credit Suisse

AUD/USD remains under pressure in line with the overall risk-off sentiment, which suggests further weakness, with first key support at 0.7006/00, analysts at Credit Suisse apprise.

Key quotes

“AUD/USD remains under pressure after a renewed test of the pivotal September lows as well as the psychological barrier at 0.7021/00. Whilst this should again be respected, below here in due course would reinforce the overall risk-off sentiment and see support next at 0.6989, ahead of the more important 23.6% retracement of the entire 2020 surge at 0.6965/63. Although we would expect to see another attempt to hold, beyond here would see support move back to 0.6935, ahead of 0.6921, with scope for the 0.6800 200-day average if 0.7006/6965 is broken.” 

“Resistance is seen initially at 0.7056, then 0.7076, above which would ease the immediate downside bias and suggest a move back to 0.7101 and 0.7149/58. Above here would see 0.7191 next, ahead of 0.7243. Only above here though would suggest the medium-term uptrend is resuming.”