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A ‘bearish engulfing’ candlestick reversal pattern remains in place to signal the broader downtrend may be resuming, analysts at Credit Suisse take a look at the AUD/USD technical picture.

Key quotes

“With a small intra-day top and a ‘bearish engulfing’ candlestick reversal in place, we view this as corrective only and keep our view that the corrective rebound may now be over.” 

“Support is initially seen at 0.6271/64, then at the 21-day exponential average at 0.6251, where we would expect to see a pause at first.” 

“A closing break above 0.6451 and then the potential 2020 downtrend at 0.6480 would instead turn the short-term risk to the upside to see a move back to the 200-day average and 78.6% retracement at 0.6706/14.”