AUD/USD: Clearance of tough resistance at 0.6977 to test 0.7032 – Credit Suisse

AUD/USD remains capped by the key resistance at 0.6977 but after a consolidation phase, analysts at Credit Suisse expect the aussie, which stages a modest intraday recovery of 0.15%, to test the 0.7032 level.

Key quotes

“AUD/USD remains in a tight range as the market has not managed to break above the pivotal price resistance at 0.6977. We keep our view unchanged and we expect further upside to unfold post this consolidation phase. Removal of the 0.6977 mark would see a minor base established to reinforce this view. Resistance is seen thereafter at 0.7005, removal of which would see a renewed test of 0.7032/41 and 0.7063.” 

“An eventual break above 0.7063 would see a larger base established and add weight to the view of a broader change in trend to the upside, with resistance seen next at the July 2019 high and 78.6% retracement of the 2019/2020 fall at 0.7082/92, where we would expect to see another initial pause.” 

“Support is seen initially at 0.6851/36, where we expect to see fresh buyers at first. Beneath here would see support next at 0.6777/75, which ideally holds to keep the immediate upside bias intact.”