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The AUD/USD pair is poised to see another test of the 0.7742 late 2020 high, which the Credit Suisse analyst team looks to cap for now, in line with their bias for further USD consolidation.

Key quotes

“AUD/USD saw another test of the crucial late 2020 high at 0.7742 yesterday, before reverting back lower and coming to a halt just shy of the pivotal 13-day exponential average, currently at 0.7632. The market is seeing strength unfold again in early trading today, however further near-term consolidation is likely at this point below the 0.7742 highs.”

“With the broader uptrend still intact and a large ‘head and shoulders’ base still in place though, a break above 0.7742 is expected in due course, which would open up a move to the psychological inflection point at 0.7800 next, removal of which would see a test of the April 2018 high at 0.7816.” 

“Support moves initially to 0.7691, then 0.7643, removal of which would see a renewed test of the aforementioned 13-day exponential average at 0.7632, which ideally holds to keep the market in its near term range. Below would confirm a deeper setback, with next support at 0.7557.”