AUD/USD: Resistance at o.7167/83 to cap for an eventual retest of 0.6992/91 – Credit Suisse

AUD/USD has extended its recovery. But strength is ideally capped at 0.7167/83 for a fresh attempt to remove medium-term support at 0.6992/91 – the key lows of late 2020 and 2021, aanalysts at Credit Suisse report.

Close above 0.7183/89 would suggest further strength

“We look to maintain our negative tactical bias whilst below a cluster of resistances at 0.7167/83, which includes the 55-day average and reaction high from last week and for the risk to turn back lower from here.” 

“Support is seen initially at 0.7077, below which can ease the immediate upward pressure for a fall back to 0.7040/33. Beneath this latter areas should confirm the rebound is indeed over for a fresh attempt to remove 0.6992/91 again. A sustained move below here in due course should see a fall to our core objective of the 50% retracement of the entire 2020/2021 uptrend at 0.6758.”

“A close above 0.7183/89 though would suggest further strength can be seen yet toward 0.7213/16 next, then the downtrend from October at 0.7241/48, but with a fresh cap expected here.”