AUD/USD: Key support is seen at 0.7583/57 – Credit Suisse

AUD/USD completed a large top on Friday and further downside is likely, with next key support seen initially at 0.7583/57, per Credit Suisse.    

Key quotes

“AUD/USD extended its move lower on Friday, completing a large top to suggest that further weakness is likely. With daily MACD momentum also pointing lower and weekly MACD crossing below MACDA, we see support initially at 0.7651, ahead of a fresh test of last week’s low at 0.7622.”  

“Removal of last week’s low at 0.7622 could open up to a fall back to the cluster of supports at 0.7583/57 – the early February lows – where we would expect to see a first attempt to hold. Below here though would significantly reinforce the top and open up a much more aggressive downside, with the ‘measured top objective’ seen much lower, close to the 200-day average, currently at 0.7319.”

“Resistance moves to 0.7727/30, removal of which would ease the immediate downside bias and see 0.7815/38 next. Above here would warn of a false breakout lower and favor an extension of the rangebound environment.”