AUD/USD bounces back towards the 0.7032 level – Credit Suisse

AUD/USD rebounds swiftly from the 21-day exponential average at 0.6815 and as the pair is trading at 0.6875, the Credit Suisse analyst team points again to the 0.7032 level while support at 0.6777/75 holds the upside.

Key quotes

“AUD/USD has seen weakness come to a halt at the 21-day exponential average at 0.6815 once again for a rebound to the upside, maintaining the market’s bullish ‘reversal day’.”

“Resistance is now seen initially at 0.6912/23, then .6957/77, ahead of 0.7005, removal of which would see a renewed test of 0.7032/41 and 0.7063 in due course. An eventual break above here would see a large base established and add weight to the view of a broader change in trend to the upside, with resistance seen thereafter at the July 2019 high and 78.6% retracement of the 2019/2020 fall at 0.7082/92, where we would expect to see another initial pause.” 

“Near-term support is initially seen at 0.6805/6795, removal of which would see a move back to 0.6777/75, which ideally holds to keep the immediate upside bias intact. Removal of here though would negate the ‘reversal day’ and should see a deeper corrective move back to 0.6696/66, where we would expect to see a more concerted effort to hold.”