AUD/USD to enjoy further upside towards May 2020 high at 0.7883/92 – Credit Suisse

AUD/USD moved decisively above the important medium-term resistance at 0.7541/57 level, which should lead to further AUD strength. Therefore, economists at Credit Suisse expect aussie to advance nicely toward 0.7777/85 next, then 0.7892.

Close above 0.7599/7616 needed to confirm the medium-term higher

“Though a sustained close above the late June high at 0.7599/7616 is needed to confirm the medium-term turn higher, our bias is for this to be achieved. Thereafter, resistance would be seen at .7644/51 initially, then further above at the June high at 0.7777/85 and eventually at May 2020 high at 0.7883/92, which now serves as our first medium-term goal. “

“Medium-term momentum remains outright bullish, whilst medium-term moving averages are turning higher.”

“Near-term supports shift to 0.7534/33, next to 0.7504/02 and eventually to last week’s low at 0.7455/41. Below here would shift the short-term risk back lower again, though only below the late-March low at 0.7372/58 would warn of more sustained weakness. However, this is not our base case.”