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.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.