AUD/USD: Downtrend to come to and end on a close above 0.7428 highs – Credit Suisse

AUD/USD has extended to “last resort” resistance at the 0.7428 high ahead of payrolls. The aussie needs to hold below this level into the close to avoid a large base, economists at Credit Suisse brief.

See: AUD/USD to grind lower towards 0.70 by year-end before recovering in 2022 – Rabobank

AUD/USD is testing “last resort” resistance at 0.7428/51

“The break above the 55-day average increases the risk that the market may now be forming a large base, however while the key price high at 0.7428 holds into the close, we maintain our base case view that the recent recovery is a corrective move higher.”

“First signs of a turn back lower would be given below 0.7394/92, as this would put the market back below the 55-day average, with the next support then seen at 0.7355, before 0.7288/84.” 

“A closing break above the medium-term resistance at 0.7428 would instead complete a large base to suggest the medium-term downtrend has come to an end, with the next levels at 0.7451, then 0.7489/90.”