AUD/USD: Weekly close below year lows at 0.7531 to introduce a bearish bias – Credit Suisse

AUD/USD is testing below its 2021 lows and 200-day average at 0.7552/31. Below this area, the aussie would complete a major top to turn the medium-term risks lower, analysts at Credit Suisse report.

Close back above 0.7551 to neutralise the bearish view

“A weekly closing beak below the key band of support at the year to date lows at 0.7551/31 and the 200-day average would complete a large top to reverse us into a medium-term bearish view, with the next initial support seen at 0.7461, then the 23.6% retracement of the entire upmove from 2020 at 0.7418. It is worth noting that there is a dearth of meaningful support below here, whilst the potential ‘measured top objective’ coincides at 0.7053/43.” 

“First short-term resistance moves to the broken 200-day average at 0.7553. A close back above here today would likely see some sort of candlestick reversal formed and point to a hold of a key level, therefore neutralizing our short-term downside bias.”