AUD/USD is seeing near-term weakness but is set to hold above 0.6922 to maintain an ascending bull ‘triangle’ continuation pattern, the Credit Suisse analyst team reports.
“We look for the correction to ideally hold above 0.6927/22 to maintain the chart pattern and our near-term bias for further upside. With this in mind, we see resistance initially at 0.6951, then 0.6969, above which would ease the pressure of a more significant correction lower. Resistance is seen thereafter at 0.7001/05, removal of which would see a fresh challenge of the more important 0.7032/63 highs, where we would expect the market to take a breather at first.”
“Above 0.7063 in due course would see the ‘neckline’ to the 2019 top at 0.7070 and the 78.6% retracement of the 2019/2020 fall at 0.7092 next.”
“Below 0.6922 would negate the bullish pattern to see the rangebound environment extend further, with support seen next at 0.6902. Removal of here would then see the uptrend support from the June low at 0.6883, which ideally holds if reached.”