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AUD/USD has extended its selloff, completing a top to suggest that we should see a deeper setback, with next support seen next at 0.7083, analysts at Credit Suisse apprise. 

More – AUD/USD: Downside corrective, targets June high at 0.6964 – Commerzbank

Key quotes

“AUD/USD extended its fall on Tuesday, closing beneath the crucial September low at 0.7192 as well as the 55-day average and June uptrend at 0.7183/80 to confirm a top. This reinforces the view of a deeper corrective setback within an intact medium-term uptrend.” “Support moves initially to 0.7116, then back to 0.7109/06, ahead of the more important ‘neckline’ to the large base at 0.7083, where we would expect to see fresh buyers at first. Removal of here would then see the late July low at .7064 next, ahead of a fall back to 0.7010/00. Big picture, the ‘measured top objective’ is seen much lower at the July low at 0.6878/77.” 

“We see resistance initially at 0.7148, then 0.7177, ahead of 0.7192, above which would ease the immediate downside bias, negate the top and suggest that the corrective phase may already be coming to an end. Resistance is seen next at 0.7235, above which could subsequently see a move back to the recent highs at 0.7324/45.”