AUD/USD: Strong case for an early resumption of the core bull trend – Credit Suisse

AUD/USD has not managed to follow through on Friday’s break higher. Nonetheless, analysts at Credit Suisse look for an eventual resumption of the core bull trend with resistance seen at 0.7235/43. 

Key quotes

“AUD/USD has not managed to follow through on Friday’s gains, keeping the market in a rangebound environment, hovering around key moving averages. However, with daily MACD momentum also pointing higher, we keep our bias for an eventual early resumption of the core bull trend.”

“Resistance moves initially to 0.7218, then 0.7235/43, above which would see 0.7254 next. Removal of here would subsequently see a move back up to 0.7324 – the beginning of a key price resistance area, which stretches up to 0.7345 – and where we would expect to see fresh sellers at first. Beyond here though should see a renewed test of the current year high at 0.7414 and eventually beyond over the medium-term.” 

“Support is seen initially at 0.7165/61, beneath which can see a fall to the recent October low at 0.7100/7096, where we expect to see a first attempt to hold. Beyond here could open the door to an eventual fall back to 0.7006/00.”