AUD/USD to hint a resumption of the bull trend only on a clear close above 0.7838/49 – Credit Suisse

AUD/USD reversed lower on Thursday, reinforcing the potential for a “head and shoulders” top, with first short-term support at 0.7699, the Credit Suisse analyst team reports.

Key quotes

“We keep our view for further sideways trading intact for now, with a mild downside tilt, based on the potential for a ‘head and shoulders’ top. With this in mind, we see support initially at 0.7724, ahead of the recent low at 0.7699, removal of which would expose 0.7622/21 next.” 

“Beyond 0.7622/21 would increase the risk of a more important ‘head and shoulders’ top again, which would be triggered beneath the cluster of supports at 0.7583/57 – the early February lows.” 

“Above 0.7838/49 would warn of a false breakout lower and a more direct resumption of the core bull trend, with resistance next at 0.7895, removal of which could open the door to the current year high at 0.8000/07.”