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The AUD/USD pair extends its consolidation below the start of a cluster of long-term Fibonacci retracements and the first core upside objective of the Credit Suisse analyst team starting at 0.7574, which is expected to cap for now.

Key quotes

“AUD/USD continues to consolidate as expected after reaching the beginning of a cluster of long-term Fibonacci retracements and our first core upside objective, starting at 0.7574, the 78.6% retracement of the entire 2018/2020 fall, and stretching up to the 38.2% retracement of the entire 2011/2020 fall at 0.7624/38. We, therefore, continue to look for this resistance zone to cap at first and for the consolidation phase to extend.” 

“Support is seen initially at 0.7507/00, which ideally now holds. Below here though can see a move back to 0.7485, removal of which would see a move to the 13-day exponential average at 0.7456/54 next, where we would expect to see a stronger attempt to hold.” 

“Above 0.7638 can see the risk stay directly higher with resistance seen next at 0.7673/77 and then the April 2018 high at 0.7813.”