The AUD/USD pair is set to complete an irregular top below 0.7666/43, with next support then seen at 0.7502, which is expected to provide a solid floor, according to economists at Credit Suisse.
“AUD/USD is starting to succumb to its dramatic loss of momentum and with a momentum top now confirmed, we shift from our cautious stance towards a preference for a deeper correction lower.”
“A top would be confirmed below 0.7666/43, which would suggest a deeper fall back to 0.7603/7599, then the 0.7557 low. The size of the small top suggests a move towards the 55-day average and key price low at 0.7502 /7462 is possible, however we would expect the market to find a solid floor here in line with the broader uptrend.”
“A break above 0.7799/7805 on the back of a hold above 0.7666/43 would still be sufficient to remove the topping risks and instead suggest a much more direct resumption of the core bull uptrend, with the next resistance then seen at the recent and April 2018 high at 0.7816/20.”