The AUD/USD exchange rate is continuing to fall.
According to Credit Suisse analysts, a closing below the well-defined channel uptrend on the AUDUSD around 0.7174/69 would rule out additional corrective strength.
The Australian dollar will become negative again if it closes below 0.7174/69.
“A break below the short-term channel bottom around 0.7174/69 would now be enough to stop the corrective rebound potential and immediately decrease the risks.”
“Our medium-term bearish outlook is based on last year’s significant peak and the plainly negative trend following setup.” With this in mind, the next supports are anticipated around 0.7129, then 0.7089/82, below which a retest of the next support at 0.6992/91 is expected. Below here, we might see a move to 0.6758, which remains our primary medium-term target.”
“Short-term resistance rises to 0.7229/31, beyond which we see the possibility for a test of the broken channel’s backside and retracement resistance around 0.7349/60, which we aim to cap if achieved.”
“Only a weekly close above 0.7349/60 would negate the very large topping structure that we have been highlighting recently, which is not our base case.”
AUD/USD chart:
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Daily Super Signals (Hit Take Profit targets: TP1 is 100% accurate, TP2 is 100% accurate, TP3 is 85% accurate)