AUD/USD: Breach of 0.7129 to reassert the core downtrend for 0.6994/91 – Credit Suisse

AUD/USD has broken its short-term uptrend from December to suggest the corrective recovery is over and broader downtrend is resuming. A break below the January YTD low at 0.7129 would clear the way for a fall to 0.6992/91 – the late 2020 and 2021 lows, economists at Credit Suisse report.

Short-term resistance moves to 0.7170

“Key now is the January YTD low at 0.7129, removal of which should reinforce our view to add momentum to the decline for a move back to 0.7089/82 and eventually a retest of medium-term support at .6992/91 – the late 2020 and 2021 lows.” 

“Below 0.6992/91 should then open up an eventual move to the 50% retracement of the entire 2020/2021 uptrend at 0.6758, which remains our core medium-term objective.” 

“Short-term resistance moves to 0.7170 with resistance at 0.7216/33 ideally now capping to keep the immediate risk lower. A break can clear the way for a move back to the high of last week and downtrend at 0.7277/84, but with fresh sellers expected here.”