AUD/USD set to plummet as low as 0.7085 – Credit Suisse

AUD/USD remains one of the preferred expressions of USD strength of economists at Credit Suisse. With a major top having been completed here a while ago, the aussie is set for a fall to support at 0.7085.

Aussie looks close to forming a bear “wedge” 

“AUD/USD remains in a clear medium-term downtrend, in line with the previously highlighted top, the large RSI momentum top and the cross in weekly MACD below zero. In addition, medium-term moving averages maintain their recent bearish cross lower.”

“The aussie now looks close to completing a short-term bearish ‘wedge’ continuation pattern, which would end the recent short-term consolidation phase to open up next support at 0.7221/09, which is a minor retracement level. The ‘measured top objective’ projects a move all the way down to 0.7085/43, which is likely to be reached by the end of Q3.”

“Near-term resistance is at 0.7504/24, which ideally caps to keep the risks directly lower.”