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The AUD/USD pair is back pressuring the 55-day average at 0.7595, increasing the risk of further near-term weakness again, analysts at Credit Suisse appraise.

Key quotes

“AUD/USD is back under pressure in line with its recently completed small top and is pressuring the crucial 55-day average, currently at 0.7595, with the aussie already prodding beneath this level in early trading today. Although the market has so far managed to essentially hold above here, we see an increased risk of a break lower again as the daily MACD momentum turned negative for the first time in 2021.” 

“A clear close beneath 0.7595 would reinforce the top significantly and open up a move to 0.7464/57, just below the ‘measured top objective’ at 0.7503, where we then would expect a more concerted effort to hold.” 

“Immediate resistance is seen at 0.7648, then 0.7662/81, where we would expect fresh sellers at first. Removal of here would question the top and expose the late January high at 0.7704, above which would see a move back to 0.7764/70, beyond which would then negate the bearish “reversal day” and see a fresh test of 0.7782.”