AUD/USD resumes its downtrend, potential to plummet to the 0.7085/43 zone – Credit Suisse

AUD/USD brief consolidation has come to an end as the pair drops under 0.74. Economists at Credit Suisse maintain their core bearish view for 0.7209 – the 78.6% retracement of the rally from last November.

Resistance at 0.7507 to cap

“With a major top in place we maintain our core bearish view with next minor support seen at 0.7379/72, then 0.7338 and then 0.7209 – the 78.6% retracement of the rally from last November.

“Whilst we would look for the 0.7209 support to hold at first, below in due course should see support next at 0.7159/45 and eventually our core objective at 0.7085/43 – the ‘measured top objective’ and 38.2% retracement of the entire 2020/2021 bull trend.”

“Near-term resistance moves to 0.7418, with the immediate risk seen lower whilst below 0.7444. Above can see a recovery back to the 13-day exponential average and highs of last week at 0.7489/0.7507, but with this expected to remain a solid cap.”