AUD/USD: Decline to extend on a break below 0.6991 – Credit Suisse

AUD/USD is falling sharply following the break of its short-term uptrend from December at 0.7129. Analysts at Credit Suisse look for a retest and eventual break of medium-term support at 0.6992/91 – the late 2020 and 2021 lows.

Key resistance seen at 0.7189

“Aussie is set to retest medium-term support at 0.6992/91 – the key lows of late 2020 and 2021. Although this support should again be respected, with an existing major top in place we look for a clear and sustained break in due course. Support would then be seen next at 0.6921 ahead of 0.6832 and then our core and long-held objective of the 50% retracement of the entire 2020/2021 uptrend at 0.6758.” 

“Short-term resistance moves to 0.7095, then 0.7123, which we look to now try and cap. We will though look to maintain an immediate negative tactical bias whilst below a cluster of resistances at 0.7167/89, which includes the 55-day average.”