AUD / USD recently had a pullback from two-month highs. Credit Suisse analysts say the pair is hovering around its trend line break point at 0.7810, keeping risks to the upside. They see strong resistance at 0.7892 / 7905.
Key statements:
“AUD / USD has continued lower, in line with weak equity markets. However, the pair is swinging around the neckline to its recently completed ragged base structure at 0.7810, having recovered from the 13-day exponential average at 0.7785 / 84. This keeps us biased directly to the upside, with the daily MACD momentum also accelerating again, with the next levels at 0.7892 / 7905, then at the high of 0.8000 / 07 ”.
“We expect the 0.8000 / 07 high to be a stiff barrier, however, with the central medium-term uptrend still intact and reasserting itself, we now expect a breakout in due course, which would pave the way for a move towards the highs of 2018 at 0.8126 / 36 “.
“Short-term support is at 0.7785 / 84. A close below here and Friday’s low of 0.7760 would suggest a false breakout to put the market back in range. “
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