AUD/USD has moved sharply higher again after the Reserve Bank of Australia (RBA) meeting. Nevertheless, economists at Credit Suisse expect the aussie to remain capped below key resistance at 0.7597/7617.
Key support at 0.7418 next
“AUD/USD has recovered back to the ‘neckline’ to its major top at 0.7597/7617 following the RBA meeting, however, the recent weekly close below this key band of support reversed us into a medium-term bearish view and we therefore still expect this level to cap.”
“We look for a close back below the 200-day average at 0.7573, which should confirm that the ‘neckline’ resistance has held. Thereafter, near-term supports move to 0.7508, then 0.7447, before the more important 23.6% retracement of the upmove from 2020 at 0.7418. It’s worth noting that there is a dearth of meaningful support below here, with next minor support at 0.7379/72.
“We still look for ‘neckline’ resistance at 0.7597/7617 to cap. Above here would suggest a deeper rally, with the next resistances seen at 0.7642/45, then 0.7694/7707, above which would make the top much less compelling.”