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AUD/USD posted a ‘bearish engulfing’ candlestick reversal to signal the broader downtrend may be resuming, as analysts at Credit Suisse notes.

Key quotes

“AUD/USD saw a sharp rejection from the 61.8% retracement of the fall from December 2019 at 0.6451 as expected, completing a small intra-day top as well as a ‘bearish engulfing’ candlestick reversal to add weight to the view that the corrective rebound may now be over.”

“Support is initially seen at the 13-day and 21-day exponential averages at 0.6253/36, where we would expect to see a pause at first. Removal of here in due course would then see support move to 0.6221/20.”

“A break below 0.6195 is needed to confirm that the short – term risks have turned lower.” 

“Resistance is at 0.6451/6487.”