The AUD/USD pair maintains a small top, suggesting that further near-term weakness is likely, with the next important support seen at the 55-day average at 0.7573, analysts at Credit Suisse report.
Key quotes
“Whilst beneath 0.7687/7704, we maintain our mild bias for further near-term weakness, reinforced by the bearish ‘reversal day’ and small top that is still in place (as well as daily MACD momentum still pointing lower).”
“We see support initially at the January low at 0.7606/7584. Beyond here would see a fall back to the 55-day average at 0.7573, where we would expect to see a more concerted effort to hold and ideally the core uptrend resume. Failure to hold here would open up 0.7462, just below the ‘measured top objective’ at 0.7503.”
“Above 0.7687/7704 would instead ease the immediate downside pressure and warn of a false breakout lower. Beyond here would see a move back to 0.7764/70, above which would then negate the bearish ‘reversal day’ and see a fresh test of 0.7782.”
Share
