AUD/USD: Key resistance at 0.6891/0.6901 remains a stubborn barrier – Credit Suisse

AUD/USD strength has extended to retest and again be capped at key resistance at 0.6891/0.6901. Economists at Credit Suisse analyze the pair’s outlook.

Support at 0.6707/0.6696 to ideally hold

Our bias is to look for dips to be well-supported ahead of a retest of 0.6891/0.6901 and with the USD itself holding a large bearish continuation pattern we stay biased for a break in due course with resistance then seen at 0.6922 initially ahead of the 78.6% retracement at 0.7009.

Support stays seen at 0.6784/83 initially, below which can ease the immediate upside bias for a pullback to 0.6749/43, then 0.6707/0.6696, but with buyers expected here.