AUD/USD: The key resistance area at 0.6658/6706 continues to cap any attempt to break higher – Credit Suisse

AUD/USD is seeing a further attempt to break above the pivotal resistance zone at 0.6658/6706, which ideally continues to cap, according to analysts at Credit Suisse.

Key quotes

“Although further consolidation around the pivotal resistance zone composed of the 200-day average, the March high, and 78.6% retracement at 0.6658/6706 should still be allowed for, in particular as a small bull ‘triangle’ is still in place, we look for this area to cap despite the break lower we are seeing in the broader USD.” 

“We see support initially at 0.6612, then 0.6588, ahead of the late May lows at 0.6520/06, where we would expect to see fresh buying at first. Beneath here on a closing basis would negate the bull ‘triangle’ and reinforce a swing lower, with next support at 0.6412/00.” 

“A closing break above 0.6706 would in contrast mark a break of a major barrier and turn the medium-term risks to the upside, in line with the broader USD weakness, with resistance seen thereafter at 0.6745/50, ahead of the February high at 0.6774.”