AUD/USD to confirm a bull triangle pattern on a break above 0.6977 – Credit Suisse

AUD/USD held key support at 0.6852 and posted a minor bullish ‘outside day’ to suggest further strength. A break above 0.6977 would see an ascending bull ‘triangle’ complete but first the aussie faces resistance at 0.6917, analysts at Credit Suisse apprise.

Key quotes

“AUD/USD saw a rebound higher from the 21-day exponential average and lower end of the potential ascending bull ‘triangle’ continuation pattern (whose construction is becoming increasingly likely) at 0.6852/44. In addition, the market completed a minor bullish ‘outside day’ to suggest further near-term strength. With this in mind, we keep our view unchanged and look move higher in due course, with resistance seen initially at 0.6917/23.” 

“Above 0.6917/23 is needed to see a break higher towards the upper end of the ‘triangle’ at 0.6975/77, where we would expect to see fresh selling at first. Removal of here on a clear and closing basis would confirm the bullish pattern, see a minor base established and suggest further upside is likely in due course.” 

“Near-term support is seen initially at 0.6883, then back at 0.6852/44, where we would expect a first attempt to hold. Beneath here would see a move back to 0.6777/75, which ideally holds to keep the upside bias intact.”