AUD / USD remains in a high range above key supports at 0.7532 / 00 for now, but the risk of a corrective reversal is growing, the Credit Suisse team of analysts warns.
Key statements:
“AUD / USD maintains its strong rejection of key resistance and our first core target on the upside of the 38.2% retracement of the entire 2011/2020 slide at 0.7625 / 40. This rejection reinforced the potential for a consolidation phase to help the market to relax from a previous overbought condition and, more importantly, the risk of a deeper corrective reversal is also growing. “
“Support remains at the 13-day exponential average and the psychological barrier at 0.7532 / 00, which should be kept on a closing base to avoid such recoil. Assuming this is the case, risk will continue to be seen to the upside in the most lateral position and with a large ‘shoulder-head-shoulder’ base still in place, a clear break of 0.7632 / 40 is expected after this phase. , with the next initial resistance at 0.7673 / 77 ”.
“A close below 0.7529 / 00 would instead confirm a deeper correction to the downside, with the next supports below here, seen at the recent low peak at 0.7462 and then at 0.7392 / 73 “.
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