AUD / USD fell sharply on Monday, although this was completely reversed by the close, remaining above the key support of 0.7529 / 00, a level that would allow for lower lows according to analysts at Credit Suisse.
Key statements:
“AUD / USD fell sharply on Monday to reject key resistance and our first core target to the upside in the 38.2% retracement of the entire 2011/2020 drop at 0.7625 / 40. Although the decline was reversed with the close, this rejection has reinforced the potential for a consolidation phase to help the market shed its previous overbought condition. “
“Support remains at the 13-day exponential average and the psychological barrier at 0.7529 / 00, which should be held on a closing base to avoid a deeper pullback. Assuming this to be the case, risk will continue to be seen to the upside after a lateral range and with a large ‘shoulder-head-shoulders’ base still in place, a clear breakout of 0.7632 / 40 is expected after this phase. . The next resistance is at 0.7673 / 77 and then the April 2018 high at 0.7813. “
“A close below 0.7529 / 00 would instead suggest a deeper downward correction., with the next supports below here seen at yesterday’s low at 0.7462, then at 0.7392 / 73 “.
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