AUD/USD: Key resistance is at 0.7243 once the rally resumes – Credit Suisse

AUD/USD remains in a short-term consolidation phase, which analysts at Credit Suisse expect to persist before the uptrend eventually resumes. Resistance is seen at 0.7190/96, then more importantly at 0.7243/46, while near term support moves to 0.7132/29.

Key quotes

“AUD/USD remains in a rangebound environment and we stick with our expectation of a lengthier consolidation phase above the crucial ‘neckline’ to the large ‘head & shoulders’ base at 0.7076.”

“Resistance is seen initially at the 0.7190/7196 mid-range highs, removal of which would see a shift higher within the range and suggest a renewed challenge of its recent highs at 0.7243/46. Although fresh selling is expected at this point as bears try to maintain the range, a break above here would end this range and see the upmove resume, with resistance seen thereafter at the late July and the 2019 high at 0.7284/95.” 

“Support moves initially to 0.7132/29, which includes the 21-day exponential average, which ideally holds. Removal of here could see a fall back to the aforementioned ‘neckline’ at 0.7076, where we would expect to see a more important effort to hold.”

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