AUD/USD to turn back lower again as resistance zone at 0.7258/67 set to cap – Credit Suisse

AUD/USD continues to recover. Nonetheless, analysts at Credit Suisse still anticipate that resistance at 0.7258/67 will cap the advance.

Bearish whilst below 0.7258/67

“We remain with our view that the recent recovery is corrective, with a major resistance zone at 0.7258/67 still set to cap the market.” 

“We look for an eventual turn back lower again, with support seen at 0.7088/70 initially and further below at 0.6956/48, a break below which is needed to shift the short-term risk lower again and open the door to retest the YTD low at 0.6827, ahead of our medium-term objective at 0.6758.” 

“Should the level at 0.7258/67 break, this would neutralize our bearish medium-term view and confirm a mean-reversion back in the broader range. However, this is not our base case.”