AUD/USD: Scope for a move to the 0.8007 highs – Credit Suisse

AUD/USD has fallen sharply overnight. Nonetheless, the aussie is oscillating around its trendline breakout point at 0.7810, keeping the risks higher – with resistance seen back at 0.7892/7905, the Credit Suisse analyst team reports.

Support moves to 0.7785/60

“AUD/USD has continued lower, in line with the weakness in equity markets. However, the pair is oscillating around the ‘neckline’ to its recently completed irregular basing structure at 0.7810, having recovered from the 13-day exponential average at 0.7785/84. This keeps us biased directly higher, with daily MACD momentum also still re-accelerating, with the next levels at 0.7892 /7905, then the 0.8000/07 high.” 

“We expect the 0.8000/07 high to prove a tough barrier, however, with the core medium-term uptrend still intact and reasserting itself, we now expect a break in due course, which would open up a move to the 2018 highs at 0.8126/36.” 

“Near-term support moves to 0.7785/84. A close below here and then Friday’s low at 0.7760 would suggest a false breakout to leave the market back in a range.”