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The AUD/USD pair is stabilizing above the 13-day exponential average and key lows at 0.7696/43 and analysts at Credit Suisse stay biased for further high level ranging below 0.7816/20.

Key quotes

“AUD/USD is stabilizing above the 13-day exponential average and key lows at 0.7696/43 as expected, which ideally continues to hold to see the market shift into a high-level range, before the uptrend eventually resumes, in line with the large ‘head and shoulders’ base that is still in place.” 

“It’s worth stressing though that the risk of a deeper pullback remains high, in particular as a break below .7643 would now complete an intraday top, and we, therefore, stay on a cautious footing. Nevertheless, we see resistance initially at 0.7731/32, then 0.7799. Removal of here would open the door to another test of the pivotal April 2018 high at 0.7816, where we would expect to see initial sellers at first to maintain a new range.”

“Beneath 0.7643 would instead confirm an intraday ‘head and shoulders’ top to suggest a deeper corrective setback and a fall back to 0.7603/0.7599, where an initial hold is expected.”