The AUD/USD pair is taking a near-term breather at the February lows at 0.7583/57, however analysts at Credit Suisse look for a break below here to confirm a “head and shoulders” top.
Key quotes
“Although further corrective upside is possible in the short-term, we ideally look for 0.7628/36 to cap and for a clear break beneath the aforementioned 0.7583/57 in due course. Beyond here would confirm the much looked for large ‘head and shoulders’ top and reinforce the view of a much deeper correction lower. We would then look for a test of the 200-day average, currently at 0.7375, with the potential ‘measured top objective’ below here at 0.7243.”
“Above 0.7628/36 would see 0.7688 next, removal of which would ease the immediate downside bias and see a move back to 0.7750/57. Beyond here could see a more back to 0.7838/49, where we would expect to see fresh sellers at first.”
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