AUD/USD: The 0.7681 mark caps for a move back lower – Credit Suisse

The AUD/USD pair is reverting lower from the “neckline” to its top at .7681 in early trading today and analysts at Credit Suisse look for further downside to unfold in due course

A large “head and shoulders” top remains in place with support seen at 0.7606/7596

“AUD/USD remains capped by the ‘neckline’ to its large ‘head and shoulders’ top, currently at 0.7681, with mild weakness unfolding in early trading today. We look for this area to ideally cap and for downside to take over again following the completion of the aforementioned top.” 

“We see support initially at 0.7606/.7596, beneath which would open the door to a move back to the cluster of supports at 0.7564/32. We would look for a short breather at this stage, however removal of here would subsequently open up 0.7517, then 0.7500/7499 – the 50% retracement of the surge from November 2020.”

“Above 0.7681 would instead see a deeper move higher with resistance next at 0.7716, ahead of 0.7750/57. Beyond here would begin to question the top and hint at a potential early resumption of the core long-term uptrend.”