AUD/USD is still holding above short-term support at 0.7355/44. Economists at Credit Suisse look for the market to turn higher from here, with resistance seen at 0.7470/85.
See: AUD/USD to suffer further setbacks as far as 0.72 – Westpac
Aussie to turn back higher from key support at 0.7355/44
“We still look to hold above 0.7355/44 given the bullish momentum divergence into the lows and the daily MACD cross into positive territory.”
“First intraday resistance is seen at 0.7405/07, with a subsequent break above the downtrend from May at 0.7470/85 reinforcing our upside bias and confirming that the 2021 downtrend is over, opening up a move to 0.7499/7504 next, then 0.7557.”
“We even see scope for a recovery to the cluster of resistances around 0.7600/7642, which includes the ‘neckline’ to the 2021 top, 200-day average and series of price highs.”
“A closing break below 0.73565/44 would suggest the market is instead shifting into a rangebound phase and mark an important failure at 0.7470/85.”
