AUD/USD: Solid floor at 0.6857, eventual break of the December 2019 at 0.7032 – Credit Suisse

The aussie has been unable to take over the 0.7032 December 2019 high and while analysts at Credit Suisse see some near-term consolidation, AUD/USD should break the mentioned peak which would reinforce the trend change to the upside.

Read: AUD/USD to trade above 0.70 next week – Westpac

Key quotes

“AUD/USD remains in a near-term consolidation phase after reversing back below the December 2019 high at 0.7032 once again, as the market continues to unwind its overbought RSI momentum condition.” 

“We look for price support and 13-day exponential average at 0.6857/56 to ideally floor the market to see a resumption of the upswing.”

“We see resistance at 0.6994, then 0.7032/41, ahead of 0.7063. An eventual break above here in due course would further reinforce the view of a broader change in trend to the upside, with resistance then seen initially at the July 2019 high and 78.6% retracement of the April 2019/March 2020 downfall at 0.7082/92.” 

“A break below 0.6856 would see a minor top established and a move back to the 200-day average at 0.6666, where we expect to see a concerted effort to hold. A break beneath here though would the correction extend further, with support next at 0.6619/12.”