AUD/USD: Current strength to stall at the 0.7315/40 area – Credit Suisse

AUD/USD has broken above a key resistance zone at 0.7186/7213. Further upside is likely toward 0.7315/40, which is the key 200-day moving average (DMA) and 2022 high, but analysts at Credit Suisse expect this zone to cap for further consolidation.

Signs of further strength

“We see immediate resistance at the December 2020 highs at 0.7275/77 and then further above at the YTD highs at 0.7315, which should hold the recovery for now. With the falling 200-DMA just above at 0.7340/42, we would look for a cap here to define the top end of the range.”

“A move back below the October downtrend and recent lows at 0.7171/64 would quickly reassert the core bearish trend, with next supports seen at 0.7099/84, then 0.7063/49 and eventually the YTD lows at 0.6972/62.”