AUD/USD: Upside bias with resistance seen at 0.7276/95 – Credit Suisse

AUD/USD rallied strongly on Wednesday and broke above its 0.7216 mid-range highs to turn the focus onto the broader range highs at 0.7276/95, the Credit Suisse analyst team reports.

Key quotes

“AUD/USD rose rapidly on Wednesday after holding key support at the 21-day exponential average at 0.7172 as expected. Although short-term momentum remains poor despite this recovery, which is a concern, we stay biased higher whilst above 0.7172, as this level has held since April. With this in mind, the break above near-term resistance at 0.7207/16 turns the focus onto the recent range high and 2019 highs at 0.7276/95.”

“Above 2019 highs at 0.7276/95 the aussie would reinforce the upmove and open up 0.7394, whilst our medium-term objective remains unchanged at a cluster of Fibonacci retracements at 0.7574/7638.” 

“A closing break below 0.7172 would still turn our short term outlook lower, with a move below 0.7140/32 also completing a small intraday top for a move to 0.7109. A break below here would signal a move back to 0.7076/63.”