AUD/USD to mark an important range breakout above 0.6977 – Credit Suisse

AUD/USD, which trades at 0.6940, would complete an ascending bull ‘triangle’ continuation pattern with a close above 0.6977 whilst support at 0.6872 ideally holds, according to analysts at Credit Suisse.

Key quotes

“Although a near-term consolidation phase or even a minor correction should be allowed for at this point, we look for another test and eventual break above the 0.6977 high in due course, reinforced by the fact that MACD is close to crossing above MACDA and turning outright bullish again. This would then see an ascending bull ‘triangle’ continuation pattern complete and suggest that further upside is likely. Resistance is seen thereafter at the more important 0.7032/63 highs.” 

“Support is seen initially at 0.6933, then 0.6922/17, ahead of 0.6902, where we would expect to see a first attempt to hold. Beneath here can see a move back to the lower end of the ‘triangle’ at 0.6872, which ideally holds.”