AUD/USD to break December 2019 and current year highs at 0.7024/32 – Credit Suisse

AUD/USD is set to experience some near-term consolidation but analysts at Credit Suisse expect a break of the December 2019 and current year highs at 0.7024/32. Contrary, UOB and OCBC see the aussie falling.

Key quotes of Credit Suisse

“AUD/USD is still consolidating ahead of the pivotal December 2019 and current year highs at 0.7024/32. With daily RSI momentum still in heavily overbought territory, we expect further near-term consolidation, before an eventual resumption of the uptrend.” 

“An eventual sustained closing break above 0.7032 and then 0.7041 would further reinforce the view of a broader change in trend to the upside, with resistance then seen initially at the July 2019 high and 78.6% retracement of the April 2019/March 2020 downfall at 0.7082/92, before the 61.8% retracement of the fall from 2018 at 0.7133/40.” 

“Support moves initially to 0.6933, then 0.6899, ahead of 0.6883/57, which now ideally holds to keep the upside bias intact. Removal of here would see a correction (rather than just consolidation) and a move back to the 200-day average at 0.6665, where we expect to see a concerted effort to hold.”