AUD/USD to turn back lower as 0.7209/13 resistance caps again – Credit Suisse

AUD/USD is turning back higher. Nonetheless, analysts at Credit Suisse look for key resistance at 0.7209/13 to cap again.

Sustained break above 0.7209/13 to signal a longer consolidation

“We stay core bearish with the downtrend from late October at 0.7209/13 ideally capping any additional recovery. With this in mind, we look for an eventual turn back lower, with immediate support seen at 0.7112, then at 0.7099/84 and eventually back at 0.7063/49, with a close below this later level needed to reinject fresh momentum into the downward trend – putting AUD/USD on the path to a renewed test of the YTD lows at 0.6972/62.” 

“A sustained break above the late October downtrend at 0.7209/13 would lead us to reconsider our tactical position and see scope for a lengthier consolidation to emerge.”