AUD/USD to resume the bull trend after a near-term corrective phase – Credit Suisse

AUD/USD is correcting lower near-term but is poised towards further upside over the medium-term, according to the Credit Suisse analyst team. On Wednesday, the aussie is probing intraday high at 0.7090 while keeping pullback moves from one-month low.

See: AUD/USD: Australia’s turn for negative rate speculation hits the aussie – MUFG

Key quotes

“AUD/USD remains in a near-term corrective period, which is likely to extend further in the short-term, but we stay biased for an eventual resumption of the core bull trend following the completion of a large ‘head & shoulders’ base in July.” 

“Resistance is seen first at the recent 2020 high at 0.7414, then the cluster of Fibonacci retracements at 0.7574/.7638 – the 38.2% retracement of the entire 2011/2020 bear trend and 78.6% retracement of the fall from 2018 – where we would also expect to see a first attempt to cap. Removal of here though would then open the door to a more significant move higher with scope for a move up to the pivotal psychological inflection point and 2018 high at 0.8000/8136.”

“First support is seen at 0.7006/6955. Below here would suggest a washout to support seen at the mid-June low and 200-day average at 0.6791/77.”