AUD/USD to extend the consolidation phase focused on the 0.7032 level – Credit Suisse

AUD/USD closed above the pivotal 0.6856 low to turn the short-term bias back higher. The spotlight is at 0.7032/41 again, according to analysts at Credit Suisse.

Key quotes

“Resistance is seen initially at 0.6994/7005, 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 7082/92, where we would expect to see another initial pause.” 

“Near-term support is initially seen at 0.6905, 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 could see a move back to 0.6696/51, where we would expect to see a more concerted effort to hold.”