AUD/USD: Scope for further weakness towards major support at 0.7118/06 – Credit Suisse

AUD/USD is likely to continue lower now in the view of the analysts at Credit Suisse. A break below 0.7220 would open up a test of major long term supports which start at 0.7118/06.

Aussie to test of major support at 0.7118/06

“Next support is seen at a corrective price low at 0.7226/20, below which would open up a test of much more major support starting at 0.7118/06, which is the ‘neckline’ to a major potential top and stretching down through 0.7053 to 0.6991. This area includes the 38.2 retracement of the 2020/21 rise and the major November 2020 price low.” 

“First resistance moves to 0.7317/23, then 0.7347, above which would negate the recent bearish ‘outside day’ and help to stabilize the market.”

“Only above 0.7410/37 would turn the risks higher though.”