AUD/USD to suffer further sustained weakness on a weekly close below 0.6990/66 – Credit Suisse

AUD/USD is attempting to see a sustained break below its two-year lows at 0.6990/66. A weekly close below here would be sufficient to trigger further sustained downside in the medium-term, in the view of analysts at Credit Suisse.

Move below 0.6774/57 to reinforce the downside further 

“While we stay wary of a potential bounce back higher to the middle of the recent range, a weekly close below 0.6990/66 would likely mark a major breakout to the downside, leading us to anticipate further sustained weakness in the medium-term.”

“A weekly close below 0.6990/66 support would open up next support at the mid-June 2020 low and the 50% retracement of 2020/21 uptrend at 0.6774/57. A move below here would reinforce the downside further and trigger a move to the 61.8% retracement at 0.6461 in due course.”