AUD/USD to turn back lower with next key support at 0.7418 – Credit Suisse

AUD/USD remains capped below the 200-day average at 0.7557, although a test of the “neckline” to the large top at 0.7588/7617 seems likely. Thereafter, economists at Credit Suisse look for a concerted move lower.

AUD/USD may see a short-term correction higher

“AUD/USD may see a short-term correction back towards the ‘neckline’ to the major top at 0.7588/7617, however the recent weekly close below the key band of support including the 200-day average at 0.7556 reversed us into a medium-term bearish view.” 

“We look for a turn back lower in due course, with the next initial support seen at 0.7477/61, below which would complete a fresh intraday bearish continuation pattern to open up the 23.6% retracement of the entire upmove from 2020 at 0.7418 next. It’s worth noting that there is a dearth of meaningful support below here, with the ‘measured top objective’ seen all the way down at 0.7085/43.” 

“First short-term resistance stays at 0.7556/65. Above here would trigger a corrective move back higher, with the next level at 0.7588/92, then at most 0.7617/23, where we’d look for a cap.”