AUD/USD to accelerate lower on a break below key support at 0.7418 – Credit Suisse

AUD/USD is still holding above 0.7418/09 for now. However, a break would trigger an acceleration lower, with next minor support at 0.7379/72, as the Credit Suisse analyst team notes.

Close back above 0.7617 to neutralise AUD bearish view

“AUD/USD remains under pressure, in line with its major top and our medium-term bearish view, with medium-term momentum indicators close to turning outright bearish and short-term momentum still accelerating.” 

“The aussie maintains its recent to new year-to-date lows and is now testing more important support at the 23.6% retracement of the upmove from 2020 at 0.07418/09. It’s worth reiterating that there is a dearth of meaningful support below here, meaning the downtrend could accelerate on a break below this level, with next minor support at 0.7379/72, then 0.7338 and eventually 0.7209/00 and beyond.” 

“Near term resistances move to 0.7497/7507, which ideally caps, More important resistance remains seen at the ‘neckline’ resistance at 0.7600/17, which we still look to provide a solid cap.”