AUD/USD to drop substantially towards the 0.7085/43 region – Credit Suisse

AUD/USD has resumed its bear trend. Economists at Credit Suisse maintain their core bearish view for 0.7209 – the 78.6% retracement of the rally from last November – and eventually the core objective at 0.7085/43.

See – AUD/USD has topped longer-term, on target for the 0.7054/0.6991 area – Commerzbank

Near-term resistance moves to 0.7358

“Support is seen at 0.7265/54 ahead of 0.7209 – the 78.6% retracement of the rally from last November. Whilst we would look for this latter support to hold at first, below in due course should see support next at 0.7159/45 and eventually our core objective at 0.7085/43 –the ‘measured top objective’ and 38.2% retracement of the entire 2020/2021 bull trend.” 

“Whilst an overshoot towards the 0.6991 low from last November should be allowed for, our bias would be to look for a potentially important floor in this 0.7085/0.6991 zone.”

“Near-term resistance moves to 0.7358, then 0.7391, with the immediate risk seen lower whilst below 0.7408/09. Above can see a recovery back to the 13-day exponential average and price resistance at 0.7479/89, but with this expected to remain a cap.”